Transformer Manufacturing Company Near Me

Our Blogs

Market Forecast for Transformers, 2022–2027

Top Transformer Supplier in Bangalore, Karnataka

The growth of the transformers market is predominantly propelled by the surging power consumption attributed to the escalating global population and a widespread shift towards renewable energy-based power generation, coupled with corresponding alterations in transmission infrastructure. Nevertheless, the anticipated expansion of the market is expected to encounter impediments in the near future, notably due to the challenges posed by elevated initial investment costs.

Market Overview

Anticipated to register a Compound Annual Growth Rate (CAGR) surpassing 6.5 percent throughout the forecast period, the transformers market has been resilient in the face of challenges. The COVID-19 pandemic exerted a substantial influence on market dynamics, predominantly due to a noteworthy decrease in power demand emanating from the industrial and commercial sectors. This downturn significantly impeded the growth trajectory of the transformers market, leading to interruptions in scheduled power distribution projects and setbacks in projects under construction. The resultant halts in these endeavors translated into reduced demand for power distribution equipment, thereby causing a downturn in growth for manufacturers of such equipment.

  • The transformers market is poised for a shift in dominance as the distribution transformer sector is expected to take the lead over the forecast period, driven by the global expansion of load centers.
  • Technological advancements, notably the integration of smart transformers into smart grids, provide a significant boost to the transformers industry. These advanced electrical transformers, incorporated into power supply systems, offer remote accessibility, enhancing operational control and efficiency.
  • The Asia-Pacific region is positioned to emerge as a dominant force in the transformers market in the coming years. This shift is propelled by the escalating electricity consumption observed in rural and semi-urban areas, highlighting the region's pivotal role in shaping the market landscape.

Key Market Trends

The prevailing expectation is that distribution transformers will assert dominance in the market.

Distribution transformers (DTs) play a crucial role in the electric power distribution system, serving as the final stage for voltage transformation. These transformers are designed to lower the voltage in distribution lines, typically ranging up to 36 kV, to levels manageable by end-users, typically falling between 250 to 435V.

The global expansion of electricity transmission and distribution projects has led to a continuous increase in transformer capacity in recent years. Notably, Mexico's distribution network recorded a transformer capacity of 1,14,807 MVA in 2020, reflecting the trend seen in many countries as they enhance their transmission networks and deploy numerous distribution transformers.

Imefy, a trailblazer in transformer manufacturing based in Europe, secured a significant contract from Enedis, a prominent French power distribution company, in April 2021. The agreement, spanning three years with a potential extension for an additional two years, involves the supply of Cast Resin Distribution Transformers.

Italian power provider Enel announced its strategic entry into the U.S. power distribution sector in April 2021. Over the subsequent two years, Enel plans to invest EUR 16.2 billion (USD 19.52 billion) in distribution networks, with a larger commitment of EUR 60 billion (USD 72.23 billion) by the year 2030. This move underscores Enel's substantial investment and commitment to expanding its presence in the evolving landscape of power distribution in the United States.

Due to these modifications, the distribution transformer market is anticipated to experience significant growth in the near future.

Asia-Pacific Market Will Be the Leader
  • Numerous Asian nations have witnessed the expansion of their power distribution networks, catering to regions lacking access to electricity and reinforcing existing infrastructure in semi-urban areas.
  • China and India stand as power consumption giants, with India recording 1191 TWh in power usage in 2020, while China reached an impressive 6752 TWh. China is poised to extend its electrical networks in the coming years.
  • In January 2022, a recent tender was released for digital 3-phase distribution transformers aimed at Madhya Pradesh's state electricity distribution grid.
  • In June 2021, the State Grid Corporation of China (SGCC) embarked on DC power distribution trials at the Pangdong DC central station, a recent operational facility under SGCC subsidiary State Grid Jiangsu Electric Power Co. Ltd. The Pangdong station boasts the capability to convert 10KV AC to 10KV DC, covering all voltage levels.
  • As a consequence of these dynamics, the Asia-Pacific region is poised to exert significant influence over the transformers market throughout the forecast period.

Competitive Environment

Construction spending and industrial production are key drivers of demand in the transformer market. The profitability of individual companies is intricately tied to efficient manufacturing processes and the realization of purchasing economies of scale.

Large corporations possess the capability to offer a diverse array of transformer products to utility and industrial customers. On the other hand, small businesses can carve out their niche by delivering innovative products to both industrial and consumer goods clients. This diversity underscores a highly fragmented nature in the transformer market on a global scale.

Recent Developments

IMEFY, a prominent transformer manufacturer in Europe, secured a significant contract in July 2021 to provide more than 250 transformers to Energa, a leading Polish power grid operator.

In a parallel development, the Power Grid Corporation of India Limited (PGCIL), the largest state-owned transmission company in India, granted numerous orders to GE Renewable Energy's grid solutions unit for 765 kV transformers and reactors in July 2021. The contractual agreement is expected to remain operational throughout the forecast period.


The global transformer manufacturing industry is characterized by intense competition and fragmentation, boasting numerous well-established companies. These industry players employ a variety of effective strategies to maintain a competitive edge and adapt to evolving customer demands. Noteworthy approaches include robust research and development initiatives, expansive global expansions, strategic partnerships, and timely product launches.

The Transformer Market is segmented based on Power Rating (Large, Medium, and Small), Cooling Type (Oil-cooled and Air-cooled), and Transformer Types (Power Transformer and Distribution Transformer). Geographically, the market is further divided into North America, Asia-Pacific, Europe, South America, and the Middle East and Africa. These comprehensive segments cater to the diverse needs and preferences within the transformer industry, reflecting the dynamic nature of the market on a global scale.