New Articles

Oil Filled Transformer Market Revenue to reach $37 Bn by 2032

demand Oil Filled Distribution Transformer market

Oil Filled Transformer Market Revenue to reach $37 Bn by 2032

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.

transformer market

Transformers Market Size to Reach USD 93 Bn by 2030

As per a recent industry report put forward by Global Market Insights, Inc. Transformers Market is forecast to register its name in the billion-dollar fraternity down the line of seven years, by exceeding a revenue of USD 93 billion by 2032 with a projected CAGR of 7.1% over 2023-2032.

The market growth is driven by the proliferation of advanced transformer technology and the ongoing expansion of the grid infrastructure across the globe.

Recently, industry players in the transformer market have been making significant investments towards infrastructural advancements, which has positively boosted the market growth.

In fact, back in August 2022, Siemens Energy, the German energy giant, announced plans to deliver the first batch of $64 million mega transformers in Nigeria commissioned by the Federal Government under the PPI or Presidential Power Initiative by September 2022. To increase and stabilize the nation’s electrical supply, the first phase will include 10 mobile power sub-stations as well as 10 mega transformers.

The transformer market has been segmented in terms of core, product, winding, cooling, insulation, rating, mounting, application, and region.

Based on product, the sector has been divided into distribution transformer and power transformer. The distribution transformation segment is set to witness a propelling market growth through the forthcoming years owing to the growing concerns about energy security and exponentially escalating energy use in underdeveloped economies.

Also, rapid grid infrastructure growth and accelerated growth in the renewable energy sector created a favorable environment for business expansion.

With respect to cooling, the transformer market has been segmented into dry type and oil immersed. The dry-type segment is anticipated to record a yearly installation of nearly 8 million through 2030 due to the significant attributes of dry-type transformers such as competitive cost structure as well as operational safety.

However, the devices have yet to establish a sustained market share in high-voltage electrical applications, considering their enormous industrial growth potential.

Based on insulation, the industry has been categorized in terms of air, gas, oil, and solid. The air & gas insulated power transformers is slated to grow at a significant rate over the review timeline because of the increasing market penetration due to their reliable and safe operations as well as adaptable product applications.

In terms of application, the transformer industry has been bifurcated into residential, commercial & industrial, and utility. The commercial & residential segment is projected to grow at a sturdy rate through the forecast years credited to the increasing focus on the incorporation of wide-ranging frequency distribution links, combined with rising energy-efficiency concerns. The growing need for ultra-high voltage networks will further fuel product demand.

From the regional front, the Middle East & Africa transformer market is set to register considerable market valuation owing to the lack of grid infrastructure across all the nations and rising power consumption.

The industry outlook will be driven by rising private support from financial organizations like the IFC, the World Bank, and the Asian Development Bank for electrification throughout the area.


The Increasing Energy Demand is Fueling the Consumption of Distribution Transformers

The global distribution transformers market was estimated to reach a valuation of USD 26.1 Billion in the year 2022. With a steady CAGR of 6% from 2023 to 2033, this market is expected to reach USD 27.5 Billion by 2023 and USD 49.4 Billion by 2033.

The globally increasing energy demand along with the introduction of various regulatory reforms for the improvement of distribution and transmission networks will accelerate the penetration of technology. The rising investments in supporting the distribution networks to provide electricity in remote areas will also affect this technology positively during the forecast period. These networks are gaining huge popularity nowadays based on three aspects: compactness, cost-effectiveness, and simple installation features.

The key players in the global market are aimed at investing in innovative smart technology, like smart transformers, that would take immediate steps during any fluctuations and hence enhance the power quality being received at various homes. Such factors are predicted to open up new opportunities for the manufacturers in this market.

During the projected period, the oil-filled distribution transformers segment is anticipated to rule the distribution transformer market. Liquids are used to cool the oil-filled transformers, which makes them ideal for outdoor usage. They have more dependable overload capabilities, are more efficient, and have longer service lifetimes. The utilization of a liquid as a cooling medium makes these sorts of converters a better choice than dry ones.


The main benefit of an oil-filled transformer is its ability to take larger ratings as well as overloads. To enhance their rates of electrification, nations like India and China are extending their transmission & distribution networks, which is anticipated to drive the demand for oil-filled distribution transformers. For instance, the Pradhan Mantri Sahaj Bijli Har program of the Indian government seeks to electrify every home.

Region-wise, one of the top regions for distribution transformer production is Asia-Pacific. Along with increased family income as well as urbanization, developing countries like India and China have seen rapid population expansion. The market for distribution transformers is growing quickly as a result of the sudden increase in demand for power. To address the growing demand for power in China, the government is creating new generation projects, notably those utilizing renewable energy.

 What is Driving Demand for Distribution Transformers

Distribution transformers are used for providing final voltage transformation in electric power distribution system. It steps down the high voltage used in the distribution line to the level used by consumers.

These are designed to provide maximum efficiency at lower loads hence they generally do not operate at full load.

Distribution transformers market growth is anticipated to be influenced by increasing demand for substituting and refurbishing of aged transformers and initiatives for increasing power generation capacities around the globe.

The rising demand for electricity in emerging countries such as China, India, etc. is driving the rapid investments in power transmission and distribution infrastructure subsequently augmenting the consumption of distribution transformers.

Power generation from natural gas sector and renewable energy and is increasingly taking over fossil fuel along with other conventional methods so as to meet the requirements.

The investments in renewable power infrastructure are projected to ascend the demand for distribution transformers.

The competition between Power distribution and transmission sector with each other and partnerships with tech firms to deliver improved and innovative solutions is compelling the steady growth in the market.

The increasing activities for expansion of electrical distribution network and retrofitting of existing networks are fueling the consumption of distribution transformers.

Asia Demand Potential

Asia Pacific region is projected to witness highest growth over the forecast period, on the back of large scale manufacturing in China and Japan coupled with substantial investments in new technologies.

The shift of manufacturing locations in the emerging countries such as Taiwan, China, etc. is paving the way for market growth in the region.

China is witnessing robust growth in the electricity demand from recent couple of decades, on the back of infrastructural developments and high levels of industrialization. This, in turn, is projected to create positive growth prospects for the distribution transformers market growth.

Europe Market Growth Outlook

The developed countries from Northern and South Western Europe also hold prominent share in the distribution transformers market on the account of increasing electricity demand and technology upgradation.

The rapid growth in investments in smart grid technologies with integration of IoT and artificial intelligence is projected to positively influence the growth in demand over the forecast period.

Electrical Transformers

Global High-Power Electrical Transformer Market Hampered by Decreased Investment amid the Pandemic

IndexBox has just published a new report: ‘World – Electrical Transformers with Liquid Dielectric, of Power Handling Capacity over 10000 kVA – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

After two years of growth, the global market for electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA decreased by -18.6% to $14.5B in 2019.

The countries with the highest volumes of consumption of electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA in 2019 were China (4.5K units), Pakistan (2.4K units) and the U.S. (2.2K units), together comprising 26% of global consumption (IndexBox estimates).

In value terms, China ($1.5B) led the market, alone. The second position in the ranking was occupied by the U.S. ($703M). It was followed by India.

Transformers and power distribution equipment tend to follow distributional and industrial electrical utility construction, the creation of new communities, and a replacement cycle. Therefore, the rising demand for transformers will also be shaped by both the residential construction sector and industrial production alike, which are conditioned by rising population and urbanization, particularly in Asia, capital investment, and the expansion of transport and telecom infrastructure; overall, those factors reflect the global GDP growth.

Until 2020, the global economy has been developing steadily for five years, although at a slower pace than in the previous decade. The slowdown in global economic growth was caused by increased political uncertainty in the world and trade wars between the United States and China. According to the World Bank outlook from January 2020, the global economy was expected to pick up the growth momentum and increase from +2.5% to +2.7% per year in the medium term.

In early 2020, however, the global economy entered a period of crisis caused by the outbreak of the COVID-19 pandemic. In order to battle the spread of the virus, most countries in the world implemented quarantine measures that put on halt production and transport activity.

The combination of those factors disrupts economic growth heavily throughout the world. According to World Bank forecasts, despite the gradual relaxing of restrictive measures and unprecedented government support in countries that faced the pandemic in early 2020, the annual decline of global GDP could amount to -4.3%, which is the deepest global recession being seen over the past eight decades.

In Asian countries, especially China, which faced the pandemic earlier than others, the epidemic situation improved earlier, with the quarantine measures largely relaxed, and the economy is gradually recovering from the forced outage. Thus, in China, by the end of 2020, an increase of 2.0% is expected (while a year earlier it was 6.1%), and in general in Southeast Asia in 2020, an increase of 0.9% is expected. In the medium term, it is assumed that the economy will gradually recover over several years as the restrictions are finally lifted.

The U.S., meanwhile, is struggling with a drastic short-term recession, with the expected contraction of GDP of approx. -3.6% in 2020, as the hit of the pandemic was harder than expected, and unemployment soared due to the shutdown and social isolation. The pandemic also led to a sharp drop in oil prices, because the demand for fuel dropped dramatically during the shutdown.

According to the European Commission, the EU economy is forecasted to drop by -7.4% in 2020 on the backdrop of the pandemic, hampered by the lockdown, a drop in consumer spending and decreased investment. Russia is also struggling with a sensitive short-term recession, with the expected contraction of GDP of approx. -4.0% in 2020. Current short-term indicators show that the plunge in the first half of 2020 was really deep, but a gradual recovery starts in the third quarter of 2020.

Both the construction and industrial sectors have proven vulnerable to the pandemic. Thus, the above economic prerequisites will have the most negative impact on the expansion of new residential and non-residential construction projects, thereby hampering the demand for electricity. Due to quarantine measures, construction projects were paused, and the drop in incomes of the population makes mortgage loans less affordable.

In addition, the reduced capital investment may lead to the postponement of plans for the building of new infrastructural and industrial facilities. The reduction of capital investments and the shortage in consumer spending also hamper the industrial sector, and metallurgy in particular, which is, on the one hand, an energy-intensive industry, and on the other hand, is also affected severely by the reduced demand for cars and other transport equipment.

Moreover, the disruption of established international supply chains between electric transformer producers and consumers due to asynchronous quarantine measures and restricted transport activity also hampers the market growth.

Taking into account the above, it is expected that in 2020, global consumption of electrical transformers should decline slightly against 2019. In the medium term, as the global economy recovers from the effects of the pandemic, the market is expected to grow gradually. Overall, market performance is forecast to pursue a slightly upward trend over the next decade, expanding with an anticipated CAGR of +0.4% for the period from 2019 to 2030, which is projected to bring the market volume to 163M units by the end of 2030.

Global Imports

Global imports of electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA totaled 16K units in 2019, leveling off at the previous year’s figure. Global imports peaked at 18K units in 2013; however, from 2014 to 2019, imports stood at a somewhat lower figure. In value terms, imports of electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA dropped to $3.4B (IndexBox estimates) in 2019. I

Imports by Country

The U.S. (2.4K units) and Pakistan (2.4K units) represented roughly 30% of total imports of electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA in 2019. Saudi Arabia (862 units) occupied a 5.3% share (based on tonnes) of total imports, which put it in second place, followed by Sweden (4.7%). Malaysia (597 units), the United Arab Emirates (428 units), Norway (411 units), India (395 units), China (346 units), Chile (323 units), Singapore (281 units), Greece (274 units) and Canada (259 units) followed a long way behind the leaders.

From 2013 to 2019, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Pakistan, while imports for the other global leaders experienced more modest paces of growth.

In value terms, the U.S. ($773M) constitutes the largest market for imported electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA worldwide, comprising 23% of global imports. The second position in the ranking was occupied by Pakistan ($283M), with an 8.3% share of global imports. It was followed by the United Arab Emirates, with a 3.2% share.

Source: IndexBox AI Platform