As per the report by Global Market Insights, Inc. “Worldwide Oil Filled Transformer Market was valued at USD 37 billion in 2022 and will surpass a revenue collection of USD 37 billion by 2032 with an annual growth rate of 6.5% over 2023 to 2032.” 

The market growth can be attributed to the ongoing refurbishment of existing grid networks and rising investment regarding the expansion of the current T&D network to fulfill the increasing power demand. In addition, with utilities shifting their focus to grid upgrades and expansions, national renewable targets and efforts toward replacing conventional electrical networks are expected to offer favorable business prospects in the coming years.

Overall, the oil-filled transformer market is bifurcated in terms of core, product, winding, mounting, modes of cooling, substation connectivity, rating, application, and region.

Based on core, the shell segment is expected to register a 6% CAGR by 2032. Shell core transformers have been gaining traction in the market given their features like improved efficiencies, high output, and reduced losses compared to the conventional closed-core units, which will support the segment’s expansion.

Considering the product, the power transformer segment is expected to witness considerable growth through 2032. The growth will be attributed to rising infrastructural spending, coupled with norms related to the expansion and refurbishment of existing grid networks.

With respect to winding, the auto-transformer segment is slated to hold over 7% of the oil-filled transformer market share during 2023-2032. Compared to its counterparts, auto-transformer offers effective transformation and operational flexibility, which is projected to escalate the product demand in the future.

On the basis of mounting, the PAD segment is set to witness notable gains through 2032. Reduced land requirement, improved aesthetics, enhanced safety, and suitable installation costs are some of the key features offered by PAD mounting, which is expected to increase the product adoption.

Considering the modes of cooling, the Oil Natural Air Natural (ONAN) mode of cooling will hold a considerable share owing to its increasing adoption and applicability in transformers up to 30 MVA.

With respect to substation connectivity, the transmission segment is projected to achieve an installed capacity of over 600,000 units by 2032. Increasing investments by several governments to ensure adequate grid infrastructure will be a positive factor driving the segmental expansion.

By rating, the > 5 MVA to ≤ 10 MVA segment will exhibit appreciable growth owing to the ongoing residential expansion and rapid urbanization across the globe.

Considering the application, the commercial and industrial segment is expected to witness massive growth, credited to the rising demand for medium voltage networks across industrial and commercial establishments.

Regionally, the Latin America oil-filled transformer market held a market share of USD 1.5 billion in 2022 and is expected to grow considerably through 2032, owing to the rising focus on expanding the T&D network in the region.