Power Transformer Market Size, Share, Growth, Trends, and Global Industry Analysis: By Power Rating (Small (≤ 60 MVA), Medium (61–600 MVA), and Large (> 600 MVA)), By Voltage Class (≤ 100 kV, 100–200 kV, 200–400 kV, and 400 kV), By Cooling Type (Oil-Cooled, and Dry-Type), By Phase (Single-Phase, and Three-Phase), By Application (Utilities, Industrial, Commercial, and Renewable Energy), and Region Forecast 2024-2031

Power Transformer Market size was valued at US$ 27,520.0 million in 2024 and is projected to reach US$ 42,485.4 million by 2031, growing at a CAGR of 6.4% from 2025-2031. Moreover, in the USA, the Power Transformer Market is expected to grow at a CAGR of 6.7% from 2025-2031.

A power transformer is a static electrical device that transfers energy between circuits via electromagnetic induction, typically operating at high or extra-high voltages (≥ 33 kV). It is essential for stepping up voltage at generation stations for efficient long-distance transmission and stepping it down at substations for distribution. Globally, installed transformer capacity is estimated at ~40,600 ± 4,500 GVA, with transmission and distribution transformers each accounting for just over 40 % of that total. In India, the transformer manufacturing industry comprises over 300 organized and unorganized players, with an installed capacity around 400 GVA.

The country’s alternating-current (AC) transformation capacity across 220–765 kV levels reached 1,158.27 GVA by mid-2023, growing at a CAGR of ~6.9 % (2018–2023), while its high-voltage direct current (HVDC) transformation capacity stood at 33,500 MW, of which 54 % is at ±800 kV, 40 % at ±500 kV, and 6 % at ±320 kV. Recent real-world projects illustrate ongoing innovation: Hitachi Energy delivered India’s first 400 kV, 315 MVA synthetic-ester fluid-filled transformer, marking a step in eco-conscious grid technology. Also, in 2025, Hitachi Energy India secured an order to supply 30 units of 765 kV, 500 MVA single-phase transformers to Power Grid Corporation of India. However, the power transformer sector faces challenges including high initial costs, aging infrastructure, supply chain disruptions, and maintenance complexities.

Facts & Figures

• As of June 2025, India achieved 50.08% of its installed electricity capacity from non-fossil fuel sources, ahead of its 2030 target of 500 GW.
• The Central Electricity Authority (CEA) and the Ministry of Power (MoP) have set a target of 26.6 GW of PSP capacity by 2031-32, with over 200 GW of potential sites identified across India.
• India's solar capacity reached approximately 106 GW as of March 31, 2025, with plans to add 35-40 GW annually to meet the 280 GW target by 2030.

Key Developments

• In October 2025, Waaree Energies Ltd. completed the acquisition of a 64% equity stake in Kotsons Pvt Ltd, a transformer solutions company, for INR 192 crore, making Kotsons a subsidiary.
• In September 2025, WEG, a Brazilian motor manufacturer, announced a $77 million investment to expand its U.S. specialty transformer plant in Washington, Missouri. This investment targets a 50% increase in production capacity by 2028 to meet growing demand from artificial intelligence (AI) and data center sectors.
• In September 2025, Siemens Energy announced a €220 million investment to expand its transformer manufacturing facility in Nuremberg, Germany, over the next three years. This expansion aims to increase production capacity by about 50% and generate 350 new jobs.
• In September 2025, DW Pakistan (Private) Limited acquired shares from IMS Engineering (Private) Limited under a share purchase agreement, forming a conglomerate merger in the power transformer market.
• In August 2025, Eaton acquired Resilient Power Systems Inc., to expand into electric vehicle (EV) charging infrastructure and solid-state transformer technology.
• In June 2025, Hitachi Energy India secured a major contract from the Power Grid Corporation of India to supply 30 units of 765 kV, 500 MVA single-phase transformers, aligning with India's infrastructure development initiatives.
• In June 2025, Heron Power, a California-based manufacturer, has designed a new type of solid-state transformer aimed at modernizing the grid and facilitating the integration of renewable energy sources. 

Power Transformer Market Segmentation

Based on the Power Rating 

• Small (≤ 60 MVA)
• Medium (61–600 MVA)
• Large (> 600 MVA)

The Medium (61–600 MVA) segment dominates the power transformer market due to its balanced capacity, widespread applicability across transmission and distribution networks, and cost-effectiveness. It caters to industrial, utility, and urban infrastructure needs, making it the preferred choice for grid expansions and upgrades worldwide.

Based on the Voltage Class

• ≤ 100 kV
• 100–200 kV
• 200–400 kV
• 400 kV

 The 200–400 kV segment is one of the dominating voltage classes in the power transformer market. It is widely used for regional and national grid transmission due to its balance of high capacity and cost-efficiency. Growing infrastructure projects and renewable energy integration further drive demand for transformers within this voltage range.

Based on the Cooling Type 

• Oil-Cooled
• Dry-Type

The Oil-Cooled segment dominates the power transformer market due to its superior heat dissipation, higher efficiency, and ability to handle heavy loads. Widely used in high-voltage and extra-high-voltage applications, oil-cooled transformers ensure reliable performance, long service life, and better insulation, making them the preferred choice for utilities and industrial installations.

Based on the Application 

• Utilities
• Industrial
• Commercial
• Renewable Energy

The Utilities segment dominates the global power transformer market, as it encompasses transmission and distribution networks essential for delivering electricity to millions of consumers. With rising electricity demand, grid modernization, and integration of renewable energy, utilities require high-capacity, reliable transformers, driving consistent and substantial market growth in this segment worldwide.

Key Takeaways

• The increasing demand for electricity and the need to replace aging infrastructure are driving the growth of the power transformer market globally.
• The shift towards renewable energy sources, such as solar and wind, necessitates the deployment of advanced transformers capable of handling variable power inputs and ensuring grid stability.
• While Asia Pacific leads in market growth, regions like Europe and the Middle East are also investing heavily in power infrastructure, presenting opportunities for transformer manufacturers.