Traction Transformer Market Analysis

Global Traction Transformer Market Overview:

Traction Transformer Market Size was valued at USD 1.57 Billion in 2023. The traction transformer market industry is projected to grow from USD 1.65 Billion in 2024 to USD 2.7 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.35% during the forecast period (2024 - 2032). Liberalization of the rail transport network and an increase in government efforts in the form of money for railway infrastructure improvement are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

The global traction transformer market stands at a crucial juncture with multiple ongoing  developments.  In April 2023, the BHEL-TWL consortium reached a great milestone by winning a major tender for manufacturing and servicing 80 Vande Bharat Trains, which happens to be one of the biggest. However, BHEL will also make a significant contribution to this project since it has long been recognized as a major supplier of rolling stock electrics for the Indian Railways. They must deliver an integrated drive system encompassing propulsion such as TCMs, IGBT-based TCIs, ACDC auxiliary converters, motors, transformers, transformers and mechanical bogies. 

In January 2023, RATP (Parisian Autonomous Transport Authority) started the upgrade program on Line 6, which runs from Charles de Gaulle-Étoile to Nation. Under this program, MP89 rubber-tired trains are anticipated. The current MP73 fleet on Line 6 is expected to be replaced by renovated and shortened MP89 trains from Line 4, which would reduce their length from six cars to five. 

In June 2021, Hitachi ABB Power Grids introduced two new traction transformers: RESIBLOC CRail at 25 kV, which replaces mineral oil with dry insulation material, thereby avoiding oil pollution risks that may lead to hazards, and Natural Cooling Effilight Traction Transformer, which employs natural airflow caused by the motion of the train, thus reducing energy consumption while saving efficiency.

Traction Transformer Market Trends

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  Rising demand for metro systems and high-speed rail in developing countries propels market growth

  
  

Market CAGR for traction transformer is being driven by the growing rate of urbanization has increased the desire for a transportation alternative that is not only swift but also frequent and flexible during rush hour. High-speed rail networks for interstate travel and metro systems for intracity transit are both popular modes of transportation in major urban regions. There is general agreement that metro railways provide greater comfort, efficiency, and speed than bus services, making them more desirable to decision-makers and potential passengers.

According to World Bank figures, the worldwide urbanization rate climbed rapidly from 54.38% in 2019 to 54.83% in 2022, eventually reaching 55.28% in 2032. As a result, the growing number of rail projects is leading to greater adoption and implementation of traction transformers on a broad scale.

Furthermore, traction transformers, which are critical components of the traction chain, have an impact on both the functioning of trains and the services supplied by operators. Major manufacturers of traction transformer parts have expanded their portfolios in the power technologies sector, which is garnering recognition for finding widespread application in AC metros, tram-trains, and high-speed, commuter, and regional trains.

In December 2019, Mitsubishi Electric Corporation stated today that it will be the first Japanese business to supply the French National Railways (SNCF) with prototype traction transformers for the Z2N commuter train and T4 tram-trains operating in Paris and its environs.

Traction Transformer Market Segment Insights:

Traction Transformer Type Insights

The traction transformer market segmentation, based on type includes tap changing, rectifier. In 2022, tap changer category held a significant market share. A tap changer is a mechanism in transformers that allows variable turn ratios to be adjusted in distinct steps. This is accomplished by connecting to a number of access points known as taps located along either the major or secondary winding. Aside from that, automatic tap changers can be installed on either a lower voltage winding or a higher voltage winding. However, for high-power generation and gearbox applications, automatic tap changers are frequently installed on the higher voltage (lower current) transformer winding for accessibility and to reduce current load while in operation.

Traction Transformer Overhead Line Voltage Insights

The traction transformer market segmentation, based on overhead line voltage, includes AC System, DC System. During the forecast period, the AC system segment is expected to increase significantly. demand for AC-type equipment is increasing as people become more conscious of the need to switch to energy-efficient items in order to mitigate the environmental and financial harm caused by outmoded technologies. Furthermore, the segment is expanding as AC systems become more common on mainline railways.

Figure 1: Traction Transformer Market, by Overhead Line Voltage, 2024 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Traction Transformer Mounting Position Insights

The traction transformer market segmentation, based on mounting position includes underframe, machine room and roof. In 2022, the underframe segment had the biggest market share. Because of enhanced passenger capacity and passenger comfort. The machine room mounting market is predicted to increase at a high pace over the next few years. Machine room mounting is critical for maximum flexibility and reliability in single and multiphase rail systems.

Traction Transformer Rolling Stock Insights

The traction transformer market segmentation, based on rolling stock includes electric locomotives, high-speed, metros. In 2022, the electric locomotives segment dominated the market. As rail infrastructure around the world develops, electric locomotives are gradually replacing diesel and steam locomotives. The demand for electric locomotives is increasing as people increasingly prefer non-polluting and energy-efficient ways of transportation. In addition to having highly efficient electric motors with an average efficiency of over 90% due to advancements such as regenerative braking, this can recover energy from brakes, electric locomotives, and electric vehicles.

Traction Transformer Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. The Asia Pacific traction transformer market area will dominate this market, due to growing rail network throughout developing nations, especially high-speed metros, is expected to promote market expansion. Furthermore, the increasing use of electrified railways is expected to increase demand for traction transformers.

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.

Figure 2: Traction Transformer Market Share By Region 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe traction transformer market accounts for the second-largest market share with the early adoption of the majority of recent technological improvements in rail traction systems, Europe's industry is mature. Further, the German traction transformer market held the largest market share, and the UK traction transformer market was the fastest-growing market in the European region

The North America Traction Transformer Market is expected to grow at the fastest CAGR from 2023 to 2032. This is because of the high expense of electrifying the rail network and the prevalence of diesel-powered rail engines. Moreover, China’s traction transformer market held the largest market share, and the Indian traction transformer market was the fastest-growing market in the North America region.

Traction Transformer Key Market Players & Competitive Insights

Leading market players are investing heavily in R&D to expand their product lines, which will help the traction 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, traction transformer industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the traction transformer industry to benefit clients and increase the market sector. In recent years, the traction transformer industry has offered some of the most significant advantages to medicine. Major players in the traction transformer market, including Toshiba Corporation (Japan), International Electric Co Ltd (South Korea), Schneider Electric (France), Siemens (Germany), ABB (Switzerland) and others, are attempting to increase market demand by investing in R&D operations.

In Zürich, Switzerland, there is a company called ABB Ltd. Allmänna Svenska Elektriska Aktiebolaget (ASEA) of Sweden and Brown, Boveri & Cie of Switzerland merged in 1988 to establish ASEA Brown Boveri, which was thereafter referred to as ABB. Both businesses were founded in the late 1800s and produced a significant amount of electrical equipment; ABB is still involved in this industry today. The business has recently expanded into the field of automation and robotics.  It is 341st on the 2018 Fortune 500 list and has been a Fortune 500 company for 24 years. Until the sale of its Power Grids segment in 2020, ABB was Switzerland's largest industrial employment. In June 2021, Hitachi ABB Power Grids Ltd introduced revolutionary traction transformers for sustainable mobility. The RESIBLOC Rail 25 kV and Natural Cooling Effilight Locomotive Traction Transformer are intended to increase dependability while lowering total operational costs.

Siemens is a German multinational conglomerate and Europe's largest industrial manufacturing firm.  Its headquarters are in Munich, and it has a number of foreign branch offices. The company's primary divisions are Digital Industries, Smart Infrastructure, Mobility, Healthcare (named Siemens Healthineers), and Financial Services. The firm is a notable manufacturer of medical diagnostics equipment; its medical health-care segment, which accounts for around 12% of total revenues, is the corporation's second-most lucrative unit after the industrial automation division. It is considered as a pioneer in this field and the corporation with the largest revenue in the world. In June 2019, Indian Railways received a propulsion system from Siemens AG. The business is outfitting the Railways' 9,000 HP electric locomotive with the first integrated propulsion system and steel tank transformer designed and manufactured in-house.

Key Companies in the traction transformer market include

• CG Power and Industrial Solutions Limited (India)


• WEG (Brazil)


• Alstom (France)


• Altrafo Srl (Italy)


• Hind Rectifiers Limited (India)


• JST Group (France)


• Toshiba Corporation (Japan)


• International Electric Co Ltd (South Korea


• Schneider Electric (France)


• Siemens (Germany)


• ABB (Switzerland)


• Mitsubishi Electric Corporation (Japan)


• Emco Limited (India)

Traction Transformer Industry Developments

In October 2019: Alstom SA began production of on-board transformers for electric locomotives in Astana, Kazakhstan, through the EKZ joint venture. EKZ became a key manufacturer of on-board transformers for Alstom after beginning production of such components. At full capacity, the production capacity is estimated to be 300 transformers per year with 100 staff.

In December 2019: Mitsubishi Electric Corporation stated that it would be the first Japanese business to supply the French National Railways (SNCF) with prototype traction transformers for the Z2N commuter train and T4 tram trains running in Paris and its environs. Mitsubishi Electric fulfilled the orders by being the first Japanese business to be certified by SNCF as a propulsion systems provider, effective immediately.

In November 2021: Schneider Electric, a leader in digital energy management and automation, has launched Green Yodha, a sustainability engagement programme in India, to promote and enable businesses, industries, and individuals to collaborate and take tangible climate action.

Traction Transformer Market Segmentation

Traction Transformer Market by Type Outlook

• Tap Changing


• Rectifier

Traction Transformer Market by Overhead Line Voltage Outlook

• AC System


• DC System

 Traction Transformer Market by Mounting Position Outlook

• Underframe


• Machine Room


• Roof

 Traction Transformer Market by Rolling Stock Outlook

• Electric locomotives
  
  
  
  • Freight locomotives
  
  
  • Passenger locomotives
  
  
  
  


• High-speed


• Metros

Traction Transformer Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America