Transformer Market Size to Surpass USD 125.68 Billion by 2035 | Research by SNS Insider
The United States transformer market is projected to grow from USD 10.25 billion in 2025E to USD 18.79 billion by 2035, registering a CAGR of 6.25%. Growth is driven by industrialization, urban electrification, renewable energy expansion, and rising adoption of energy-efficient, low-loss, and smart transformers across commercial and utility sectors.
Austin, Feb. 27, 2026 (GLOBE NEWSWIRE) — Transformer Market Size & Growth Insights:
According to the SNS Insider, “The Transformer Market Size was valued at USD 66.33 Billion in 2025E and is projected to reach USD 125.68 Billion by 2035, growing at a CAGR of 6.60% during 2026–2035.”
Surging Global Power Demand and Rapid Renewable Energy Adoption to Propel Market Growth Globally
The growing need for electricity worldwide and the quick uptake of renewable energy sources are driving the transformer market’s strong expansion. Industrialization, urban electrification, and infrastructure upgrading are expected to propel the global transformer installations to over 25 million units by 2030. Demand is rising as a result of government-sponsored grid upgrading initiatives and the expansion of solar and wind power installations. Developments in smart and energy-efficient transformers are also facilitating their broad use in the commercial, residential, and utility sectors.
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Leading Market Players with their Product Listed in this Report are:
- Siemens Energy AG
- ABB Ltd.
- General Electric Company (GE Vernova)
- Mitsubishi Electric Corporation
- Schneider Electric SE
- Hitachi Energy Ltd
- Toshiba Energy Systems & Solutions Corporation
- Hyundai Electric & Energy Systems Co., Ltd.
- Eaton Corporation
- CG Power and Industrial Solutions Ltd.
- Bharat Heavy Electricals Limited (BHEL)
- Hyosung Power & Industrial Systems Performance Group
- Wilson Power Solutions
- Prolec GE Waukesha
- Wilson Transformer Company
- Olsun Electrics
- Elsco Transformers
- Hammond Power Solutions
- Eurogulf Transformers
- JSHP Transformer
Transformer Market Report Scope:
| Report Attributes | Details |
| Market Size in 2025E | USD 66.33 Billion |
| Market Size by 2035 | USD 125.68 Billion |
| CAGR | CAGR of 6.60% From 2026 to 2035 |
| Report Scope & Coverage | Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook |
| Key Segmentation | • By Type (Power Transformers, Distribution Transformers, Instrument Transformers, Others) • By Application (Industrial, Utilities, Commercial, Residential, Others) • By Cooling Type (Oil-Cooled, Dry-Type, Others) • By Capacity (Low Voltage, Medium Voltage, High Voltage) • By Installation Type (Indoor, Outdoor) • By Distribution Channel (Direct Sales, Distributors, Online, Others) |
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Key Segmentation Analysis:
By Installation Type
Outdoor transformers held the largest share of 55.10% in 2025 as they are preferred for utilities and high-capacity industrial applications. Indoor transformers are projected to grow at the fastest CAGR of 7.10% due to urban infrastructure, industrial growth, and renewable energy projects.
By Type
Power Transformers held the largest market share of 42.75% in 2025 driven by high demand from utilities and industrial projects. Instrument Transformers are expected to grow at the fastest CAGR of 7.20% due to the growing need for reliable electricity distribution and monitoring in modern grids.
By Application
Utilities dominated with a 38.90% share in 2025 fueled by transmission and distribution network expansion. Industrial applications are projected to expand at the fastest CAGR of 7.05% reflecting electrification, factory automation, and manufacturing growth.
By Cooling Type
Oil-Cooled transformers accounted for the highest market share of 51.30% in 2025 due to reliability in high-capacity applications. Dry-Type transformers are expected to record the fastest CAGR of 6.85% reflecting preference for safer, low-maintenance, indoor installations in commercial and residential sectors.
By Capacity
High Voltage transformers held the largest share in 2025 with 44.20% supported by long-distance transmission and large-scale power projects. Medium Voltage transformers are expected to grow at the fastest CAGR of 6.95% due to distribution networks, commercial, and industrial facilities.
By Distribution Channel
Direct Sales held the largest share of 48.65% in 2025 driven by utility contracts, industrial agreements, and bulk orders. Online Retail is expected to grow at the fastest CAGR of 7.25% due to wider accessibility, and adoption of advanced transformers.
Regional Insights:
With over 11.5 million units installed worldwide in 2025, the Asia-Pacific transformer market accounted for 45.30% of all installations worldwide, with China and India adopting the most (5.2 and 3.1 million units, respectively). The region was dominated by power and distribution transformers, but versions that are IoT-enabled and energy-efficient are growing quickly.
The U.S. (3.2 million) and Canada (1.1 million) accounted for the majority of the 5.5 million transformers installed in the North American market in 2025. Urban electrification, industrial growth, and the integration of renewable energy sources are the main drivers of growth. Around 1.5 million units were made possible by digital procurement platforms, but direct sales are still the most common.
High Manufacturing Costs and Complex Regulatory Standards May Impede Market Growth Globally
High production costs and strict regulations provide major obstacles for the transformer market. Rising steel, copper, and insulation prices put pressure on the margins of about 35% of manufacturers, while supply chain interruptions cause deliveries to be delayed. In many areas, market expansion is further constrained by adherence to intricate certification and safety requirements. Intense competition from sophisticated, energy-efficient, low-loss, and modular transformers continues to restrict expansion and stall adoption globally, primarily affecting smaller regional firms.
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Recent Developments:
- In June 2025, Siemens Energy expanded its Nuremberg transformer facility, increasing production capacity to meet rising global demand. The expansion also created 350 new jobs, supporting large transformers for grid modernization and renewable energy projects.
- In March 2025, ABB inaugurated a new factory in Albuquerque, New Mexico, focused on manufacturing advanced transformers for power grids. The facility strengthens energy infrastructure and supports utilities and industrial sectors with efficient, reliable transformer solutions.
Exclusive Sections of the Transformer Market Report (The USPs):
- SUPPLY CHAIN & MANUFACTURING METRICS – helps you understand the regional share (%) of transformer manufacturers. Tracks capacity utilization rates (%) of major production facilities. Analyzes lead times for key transformer types to assess supply tightness and delivery risks.
- CAPACITY UTILIZATION RATES – helps you identify whether the industry is operating under overcapacity or supply constraints. Measures plant-level output efficiency (%) across regions. Supports pricing and investment strategy decisions.
- OPERATIONAL PERFORMANCE BENCHMARKS – helps you evaluate average transformer lifespan (years) by type and voltage capacity. Compares efficiency ratings (%) across cooling technologies and voltage classes. Tracks maintenance frequency and failure rates (%) of installed units.
- ENVIRONMENTAL COMPLIANCE METRICS – helps you assess the share (%) of eco-friendly and low-loss transformer technologies. Measures compliance rates (%) with international safety and efficiency standards. Tracks adoption of low-noise and green material-based transformers.
- AFTERMARKET & SERVICE ECONOMICS – helps you analyze the percentage (%) of transformers undergoing refurbishment or retrofit. Evaluates revenue share from maintenance and service contracts. Measures average service life extension (%) achieved after retrofitting.
- COMPETITIVE LANDSCAPE – helps you gauge the competitive strength of key players. Covers production capacity, regional footprint, technology portfolio, and recent developments. Supports benchmarking of growth projections and market positioning.
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