Distribution Transformer Market Size was valued at USD 12.9 Billion in 2023. The distribution transformer market industry is projected to grow from USD 14.06 Billion in 2024 to USD 25.8 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.88% during the forecast period (2024 - 2032). Increasing system efficiency and a rise in power production capacity plans around the world are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
In order to support the American transformer supply chain, which is a crucial component of energy grids, U.S. senators have introduced The Distribution Transformer Efficiency & Supply Chain Reliability Act of 2024, new legislation that would set new, realistic energy efficiency standards and help stabilize domestic transformer manufacturing to meet rising demand without aggravating current supply chains or jeopardizing U.S. steel production.
The U.S. Department of Energy released a proposed rule in January 2023 that might exacerbate distribution transformer supply chain issues already present as well as shortages of associated parts. To the detriment of US steel producers, such as Ohio-based Cleveland-Cliffs, the proposed rule, if it is approved, would force all distribution transformers to switch from the industry standard grain orientated electrical steel (GOES) cores to amorphous cores.
The market CAGR for distribution transformer is being driven by the increased acceptance and demand for more flexible electrical transformers as a result of the development in microgrid and energy utilities. Many applications in the electronics industry run on 5V, 6V, 9V, 12V, 24V, and 48V in step-down transformers.
Step down transformers are also used extensively in the electrical industry. As the use of microgrids and power systems in the electrical industries grows, so does the use of step down transformers. This is because step down transformers are used in electrical distribution systems for very high voltage applications to ensure a low loss and cost effective solution for long distance power delivery requirements.
Furthermore, the power transformers market is expanding due to rapid industrialisation and rising domestic power demand. demand for power is continually increasing, which has increased the consumption of energy resources. As a result, the world currently has more power plants and vast transmission networks.
Electricity usage in the automobile industry is increasing due to the development of advanced electric vehicles and incentives to utilise them. The majority of power plants are located in remote places; the electricity generated is then carried to substations through HVDC power transmission lines before being supplied to end consumers following step-down.
For instance, Hitachi ABB Power Grids and Nanyang Technological University, Singapore (NTU Singapore) will collaborate on a government-led smart grid development initiative in 2021. The Energy Research Institute and the National Research Foundation of Singapore will work together to enhance breakthroughs in Solid State Transformer (SST) technology.
The effort is part of Singapore's Energy Grid 2.0 initiative, which intends to shape the next-generation grid system and improve energy management by integrating different energy sources into a single intelligent network that is more efficient, sustainable, and resilient.
The distribution transformer market segmentation, based on insulation type includes liquid immersed, dry. The liquid category held the largest market share. Liquids are used to cool oil-filled transformers, making them suitable for outdoor use. They offer more dependable overload capabilities, are more efficient, and last longer. These types of transformers are preferable to dry kinds since they use a liquid as a medium for optimum cooling. The ability to handle higher ratings and overloads is the most significant advantage of an oil-filled transformer.
The distribution transformer market is divided into three segments based on mounting: poles, pads, and subterranean vaults. The pads category is predicted to rise during the forecast period, owing to their use in a variety of ground distribution loads and their suitability for use in renewable energy installations.
The distribution transformer market segmentation, based on phase-type, includes three-phase and single phase. Three phase category is seeing significant market growth as a result of their wide range of applications, which include supplying huge loads, power transmission of electrical grids in power generation, and increasing deployment in the transmission and distribution sector.
Three phase transformers are more cost effective than single phase transformers for supplying huge loads and large power distribution. Three phase transformers are becoming more popular due to their numerous advantages, including their smaller and lighter construction and superior working characteristics.
Figure1: Distribution Transformer Market, by Phase-Type, 2024 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The distribution transformer market segmentation, based on power rating, includes Up to 500 MVA, 501 MVA-2,500 MVA, 2,501 MVA-10,000 MVA and above 10,000 MVA. Up to 500 MVA category held the largest market share of 63.8% in 2022 and are predicted to grow at the fastest rate of 7.7% from 2022 to 2032. The up to 500 MVA transformers find application in the amplitude of field, such as industrial usage to powering a vehicle engine. The increasing demand for transformers in the up to 500 MVA range is being driven by industrialisation and urbanisation.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American distribution transformer market is expected to grow at a 9.1% annual rate between 2022 and 2032. Rising attempts to replace current electrical equipment with energy-efficient and smart systems will boost product demand. The United States administration agreed in February 2020 to raise taxes on derivative steel and aluminum imports by 25% and 10%, respectively. The increase in prices causes an increase in operating expenses, stifling market expansion.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Distribution Transformer Market Share By Region 2022 (Usd Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s distribution transformer market accounts for the second-largest market share due to its industrial dominance, Europe needs a modernized power grid just as much as it needs to implement renewable energy sources. Further, the German distribution transformer market held the largest market share, and the UK distribution transformer market was the fastest-growing market in the European region
The Asia-Pacific Distribution Transformer Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rapid rise in industrial and manufacturing facilities. Moreover, China’s distribution transformer market held the largest market share, and the India distribution transformer market was the fastest-growing market in the Asia-Pacific region.
Leading market players are investing heavily in R&D to expand their product lines, which will help the distribution transformer market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, distribution transformerindustry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the distribution transformer industry to benefit clients and increase the market sector. In recent years, the distribution transformer industry has offered some of the most significant advantages to medicine.
Major players in the distribution transformer market, including Eaton Corporation (Dublin), and General Electric (U.S.). Mitsubishi Electric Corporation (Japan), Ormazabal (Spain), SP Transformer Solutions Inc. (U.S.) and others, are attempting to increase market demand by investing in R&D operations.
Enel X is the world's leading provider of demand response, as well as products and services for energy transformation at the residential, city, and industrial levels. Enel X is dedicated to the domains of electric public transportation, smart homes and smart cities, intelligent public lighting, renewables integration, and energy efficiency for enterprises and public administrations by applying solutions deriving from the digital transformation to the energy sector. In December 2020, Enel X, the Enel Group's have announced intentions to create microgrids in Puerto Rico.
The initial project will include onsite solar generating and battery storage at Eaton's Arecibo plant, which will produce circuit breakers for use in homes, buildings, and a variety of industrial uses. During instances of excess generation, Eaton will be able to transfer renewable energy back onto Puerto Rico's electrical system.
BTW, or Baoding Tianwei Baobian Electric Co., Ltd., is a Chinese maker of power transformers and other electrical equipment. It is one of China's leading transformer producers, alongside competitors Tebian Electric Apparatus (TBEA) and the XD Group. Wind turbines are manufactured by the company. TWBB's wind turbine business received a 300 million RMB contract in 2009 to supply 33 wind turbines to the Zhuozi wind farm in Inner Mongolia, the company's first wind turbine agreement. In September 2022, Baoding Tianwei Baobian Electric Co. Ltd announced the development of its 110KV natural ester oil transformer. The ester oil used in the transformer has a natural deterioration rate of 98% and a higher ignition point.
In November 2023, Hitachi Energy has announced the development of liquid-filled transformers that are embedded with Transient Voltage Protection (TVP) technology.
In July 2023, Saudi Power Transformers Co., a subsidiary of Saudi Arabia’s Electrical Industries Company, placed an order that amounts to USD 40.78 million. This order is to provide transformers for Saudi Aramco, which is a petroleum refinery company. With this achievement in the bag, the company will have a favorable foothold in terms of financial position.
In June 2023, Larsen & Toubro, which is an Indian multinational conglomerate, landed two contracts in the Middle East region. The projects involved the enhancement of already existing electrical networks in large industrial buildings by the installation of gas-insulated substations alongside high-voltage cable systems.
In February 2023, Servokon announced the launch of a 16,000 KVA power transformer during Elecrama 2023, which is well renowned for being a leader in the manufacturing and provision of power conditioning equipment along with power transformers.
In May 2021, Elsewedy Electric took control of 95 percent of CG Power Systems shares in Indonesia. This investment is the first significant investment the company has made in the Southeast Asian region. This acquisition allowed the business to expand its customer base and reinforce its position in the transformer industry.
In May 2022, Siemens Energy provided ten mobile transformers and ten substations to the Transmission Company of Nigeria after winning a contract in July 2020 and completing it in May 2022.
In September 2022, Baoding Tianwei Baobian Electric Co. Ltd. (BTW), an enterprise of Baoding Tianwei Group Co. Ltd. from China, then designed a 110 kW transformer working with a natural ester insulating oil. The first new Class 1 energy efficient, smart technology 110 kV natural ester insulated oil power transformer has successfully undergone all the type tests in its first attempt, which was conducted in the presence of the National Transformer Quality Supervision and Inspection Center.
The Indian government is taking steps to further boost the electrical network with the aim of developing a robust electrical grid throughout the geographical area of India. The Integrated Power Development Program saw the Indian government disburse grants worth USD 4.12 billion by February 2022 to improve sub-transmission and distribution networks in the urban areas of the country, which will be beneficial in the expansion of the distribution transformer market.
In August 2022. RESA Power, LLC, a global company that provides power distribution equipment transformer service, electrical testing, power systems, and life extension solutions, announced the acquisition of Advanced Electrical Services, Ltd, which is headquartered in Alberta, Canada. Advanced Electrical Services (AES) is a Colorado, NETA-accredited company that provides a range of electrical testing services across Western Canada.
In March 2022, Integrated Power Services (IPS), the North American company that offers services and repairs of distribution transformers and associated power transmission products, announced an agreement to purchase ABB's US and Canadian transformers repair business. This deal includes the ownership of ABB's coil factory in Beloeil, Quebec, and a service center in Denver, Colorado.
| Attribute/Metric | Details |
| Market Size 2023 | USD 12.9 Billion |
| Market Size 2024 | USD 14.06 Billion |
| Market Size 2032 | USD 25.8 Billion |
| Compound Annual Growth Rate (CAGR) | 7.88% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Insulation Type, Mounting, Phase-Type, Power Rating, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Wilson Power Solutions Ltd (U.K), Emerson Electric (U.S.), Hitachi (Japan), Kirloskar Electric Co. Ltd. (India), Wenzhou Rockwell Transformer Co., Ltd. (China), ABB Ltd (Switzerland), Eaton Corporation (Dublin), and General Electric (U.S.). Mitsubishi Electric Corporation (Japan), Ormazabal (Spain), SP Transformer Solutions Inc. (U.S.), |
| Key Market Opportunities | · Calibration of suitable equipment New product introductions. |
| Key Market Dynamics | · Power infrastructure already in place in underdeveloped nations. |
Distribution Transformer Market Highlights:
Frequently Asked Questions (FAQ) :
The distribution transformer market size was valued at USD 12.9 Billion in 2023.
The market is projected to grow at a CAGR of 7.88% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market are Eaton Corporation (Dublin), and General Electric (U.S.). Mitsubishi Electric Corporation (Japan), Ormazabal (Spain), SP Transformer Solutions Inc. (U.S.).
The liquid category dominated the market in 2022.
The Up to 500 MVA category had the largest share in the market.
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Senior Research Analyst With an experience of over five years in market research industry (chemicals & materials domain), i gather and analyze market data from diverse sources to produce results, which are then presented back to a client. also, provide recommendations based on the findings. as a senior research analyst, i perform quality checks (qc) for market estimations, qc for reports, and handle queries and work extensively on client customizations. also, handle the responsibilities of client proposals, report planning, report finalization, and execution
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