Industry Overview

The transformers manufacturing market consists of establishments engaged in

the manufacturing of power, distribution and specialty transformers. Electrical
transformers are static electrical devices that transform electrical power from one
circuit to another circuit without changing the frequency. Transformers increase
or decrease voltage and current level, increase or decrease capacitor value,
prevent direct current from passing between two circuits and isolate circuits.
Power lines and distribution transformers are used to increase or decrease
voltages. Industrial and household transformers differ in terms of voltage such as
step up and step down transformers. Some equipment manufactured by these
establishments in this industry include fluorescent ballasts, distribution
transformers, substation transformers, transmission and distribution voltage
regulators and electric power distribution.
Transformer manufacturers procure the raw such as resin, copper foils, silicon
steel and other materials from metal manufacturing and electrical material
manufacturing companies and manufacture transformers through processes such
as core construction, transformer winding, insulation of active part, evacuation,
filling and testing. Transformer producers also design and manufacture
transformers as per the specifications of customers. Customers of this market
generally include the establishments carrying out generation, transmission and
distribution of power. Power utilities are the major costumers of customized
transformers. Some consumers of these products also include organizations
which are part of oil and gas, railways, marine, chemical and metal industries.

Market Size
 The global transformer market is projected to be USD 30,387.2 million in
2018 and to reach USD 60, 713 million by 2028 at a CAGR of 7.2%.
 The estimated sales of power and distribution transformers in United
States was more than USD 4.1 Billion in 2017and expected to reach USD
4.4 billion by 2020.
 The global distribution transformer market revenue for 2016 was valued at
over USD 18 billion and the annual installation is set to exceed 80 thousand
units by 2024.
  The dry type Transformer Market for 2016 was valued at over USD 4 billion
and the annual installation is set reach over 600 thousand units by 2024.
Transformer Manufacturing Market Forecast Growth

The global transformer manufacturing market is expected to grow from $47.3 billion in 2017 to $53.8
billion in 2021 at a compound annual growth rate (CAGR) of 3.3%.

Transformer Manufacturing Market Geography Regional and Country Comparison

 Asia Pacific was the largest region in the transformer manufacturing market in 2017, accounting for
$21.3 billion or 45% market share. This can be attributed to high demand for industrial transformers
from a large manufacturing base in China and India.
 North America was the second largest region accounting for $10.3 billion or 21.8% market share.
 Western Europe was the third largest region accounting for $10.1 billion or 21.4% market share.
 Middle East was the smallest region accounting for $0.7 billion or 1.5% market share.

Global Transformer Manufacturing Market, Split By Country, 2017

 China was the largest country in the transformer manufacturing market in 2017,
accounting for $9.8 billion or 20.8%% market share.
 The USA was the second largest country accounting for $8 billion or 16.8% market
share.
 Japan was the third largest country accounting for $4.4 billion or 9.3% market share.
 Australia was the smallest of the featured countries accounting for $0.3 billion or 0.7%
market share.

Transformer Manufacturing Market Competitive Landscape

The top five competitors in the market made up 34.2% of the total market share in 2017.

General Electric Corporation was the largest competitor with 9.6% of the market, followed by ABB Ltd
with 7%, Schneider Electric with 6.9%, Mitsubishi Electric Corporation with 6%, and Toshiba with 4.8%.
United States Transformer Market

The market for this equipment in United States is estimated to be $79.0 million dollars in 2019

and is expected to change by -0.4 percent from 2019 to 2020. The market will be 21.4 million

Dollars in 2019 and is forecast to change by 10.4 percent from 2019 to 2020.
Market Segmentations

By Core

 Closed
 Shell
 Berry

By Product

 Power transformer
  Distribution transformer
 Instrument transformer
 Current transformer
 Potential transformer
 Others

By Winding

 Two-winding
 Auto-transformer

By Installation

 Outdoor
 Indoor

By Cooling

 Dry type
 Self-air
 Air blast
 Oil Immersed
 Self-Cooled
 Water cooled
 Forced oil
 Others

By Insulation

 Gas
 Oil
 Solid
 Air
 Others
By Phase

 Single phase
 3 - phase

By Rating

 ≤ 10 MVA
 11 MVA to 60 MVA
 61 MVA to 600 MVA
 > 600 MVA

By Mounting

 Pad
 Pole
 PC/PCB
 Others

By Application

 Residential & Commercial

 Hotels
 Hospitals
 Apartments
 Others
 Utility
 Industrial
 Railways
 Cement
 Power distribution
 Oil & gas
 Others

Industry Trends and Dynamics

Global Trends
 The emergence of eco-efficient power transformers will gain traction in the
market over the next four years.
 Increasing number of commercial and industrial establishments together
with the increasing use of electrical appliances are driving the global
demand for electricity. Rapid urbanization in the developing countries
along with an increasing need for replacement of transformers, which are
almost at the end of their service life is also further expected to provide a
huge boost to the global transformers market.
 Several countries such as Malaysia, India, and Russia are starting to
undertake capacity expansion programs. This trend is expected to continue
in other countries as well and will positively impact the growth of the
transformer oil market.
 Auxiliary current transformers will help drive the growth of transformer
market size owing to growing preferences because of their ability to enable
high ratio transformers to produce low current.
 The global transformers market is expected to see high growth in the next
years due to the increase in the development of rural areas,
industrialization, and opening new generation plants.
 Also increasing government capital expenditure in the power sector, high
transmission investments and increasing global energy consumption are
some of the other factors that have helped the market to grow with a rapid
pace.
 Due to the increased power generation in emerging nations as well as
developed economies, the market is anticipated to see high growth in the
forecast period.
 The global power transformer market is expected to grow at a CAGR of
7.1% from 2016 to 2022 and reach $37.3 billion by 2022. Increasing
demand for power and cross-border power transmission, global initiative to
utilize more renewable and non-conventional energy sources, smart grids,
and a global need to upgrade transmission networks all boost the global
power transformer market.
 The global liquid-immersed transformer market is projected to grow at a
CAGR of 4.9% during the period 2017-2021. The market is driven by
expansion of power transmission and distribution networks leading to an
 increase in transformer installations. The main market trend is to use
environmentally-friendly and more fire-resistant insulating liquids
 The global dry-type transformer market is projected to grow at a CAGR of
5.3% during the period 2017-2021. The increase in installation of new
transformers and the replacement of old units with new ones is fuelling the
growth of the market.
Transformer Manufacturing Market Trends and Strategies
 Emergence of Smart Transformers
Transformer manufacturing market is moving towards evolution of
independent and self-regulating smart transformers .Smart transformers
are programmed to constantly regulate voltage and maintain contact with
the stakeholders and provide information and feedback on the power
supply. They provide the exact amount of power that is needed and
respond to fluctuations through a process known as voltage optimization.
They significantly reduce greenhouse gas emissions and power
consumption as they supply electrical equipment with the ideal amount of
power. For instance, ABB Ltd.’s Smart-R-Trafo transformer is embedded
with an on-load voltage tap changer that detects voltage changes and
automatically adjusts the voltage ratio.
 Eco-friendly Power Transformers
Transformer manufacturers are producing eco-friendly power transformers
by using non mineral transformer insulating liquids. Eco-friendly power
transformers use ester fluids such as insulating liquids which are extracted
from vegetable oils. Ester fluids also have high flash and fire points suitable
for use in areas requiring high fire safety standards. For instance, Siemens
has a research department dedicated to the testing of thermal and
electrical properties of esters and other insulating fluids for high voltage
direct power transmission.liv.The company will deliver fourteen ester
insulated power transformers to the Glen Canyon Dam in Arizona
 Robots Complementing Workers
Manufacturers are employing robots to complement workers on the
factory floor to increase productivity. Major companies are using robots to
aid factory workers at the shop floor for faster and safer transformer
assembly. This concept is called “cobotics”. Robots perform operations
such as bending metals into sections to form tanks, moving steel sheets and
welding. For instance, ABB transformer manufacturing unit in Athens,
Georgia, USA uses seven robots to automate transformer manufacturing.
Robotics technology in this plant reduces labor costs by half, cycle times by
90% and manufacturing floor space by 60%.

Medical-Grade Power Transformer Applications

Power transformers play an important role in all kinds of medical
equipment. Everything from electronic dental tools to medical lab
equipment and heart monitors needs power transformers in order to
function properly. Medical equipment also requires a stable power supply
that’s protected from power surges and fluctuations.

Some of the most common applications for medical-grade isolation power

transformers include:

MRI and CAT scan machines

Portable medicine drip controls, oxygen pumps, and hospital beds
Monitoring equipment in labs and hospital rooms
Market Dynamics

 By type, Power Transformer segment accounted for the largest market with
a market value of USD 21,092.8 million, in 2017, progressing at the highest
CAGR of 8.55% during the forecast period.
 Based on power rating, Small Power segment dominated the market in
2017, with a market value of USD 19,110.8 million, which is projected to
rise at the highest CAGR of 6.19%.
 Based on cooling type, Oil-Cooled Transformer segment accounted for the
largest market size in 2017, with market value of USD 24,059.5 million, and
is expected to progress at the highest CAGR of 7.68%.
 Based on type, Liquid-Immersed segment accounted for the largest market
size in 2017, with market value of USD 24,628.0 million, and is expected to
progress at the highest CAGR of 7.61%.
 Based on end-user, utility segment accounts for the largest market share of
USD 18,137.4 million and is expected to progress at the highest CAGR of
7.79%.
 Geographically, Asia-Pacific has been projected to have the largest market
share of 42.72% in the global transformer market.
Global Drivers and Constraints
Drivers
 Increasing demand for electricity in emerging and developed countries,
such as China, India, Germany, and the UK, backed by increasing
investment in infrastructure, is expected to drive the transformers market
globally
 Governments have started taking initiatives for improving energy efficiency
and minimizing loss by putting pressure on the utilities to replace old
transformers, and in turn, install technologically advanced power
transformers, thereby, modernizing the existing power grids. Such is the
case in China, India, Germany, and the UK
 Developed countries are integrating wind and other renewable energies,
thereby increasing load flow on aging grids, which may lead to frequent
short-circuit situations, and thus provide more opportunities for the
transformer industry growth
 Improvements in the mining sector is expected to further boost the growth
of the transformer industry in this region
Constraints
 Volatility in steel, copper, and crude oil prices is expected to restrain the
growth of transformers globally
 Such volatility in raw material prices has created pressure on
manufacturers’ profit margin, due to which, some of the global players in
the industry have shifted their production facilities to regions that facilitate
lower cost of manufacturing as well have a higher demand, like China,
India, etc.
 Power transformers are special ordered machineries and require highly
skilled workforces. Low availability of skilled service engineers is likely to
hinder the growth in this industry
 Key Players
The global players of transformer market are:-
o ABB Ltd., (Switzerland)
o Eaton Corporation plc (Ireland)
o Schneider Electric (France)
o Siemens AG (Germany)
o Crompton Greaves Ltd. (India)
o Mitsubishi Electric Corporation (Japan)
o Toshiba Corporation (Japan)
o Bharat Heavy Electricals Limited (India)
o Hyosung Power and Industrial Solutions (South Korea)
o SPX Transformer Solutions, Inc. (U.S.)

Source:
 https://www.marketwatch.com/press-release/global-transformers-market-to-expand-
with-a-cagr-of-72-due-to-growing-adoption-from-power-and-metallurgy-industry-2019-
08-28?mod=mw_quote_news
 https://www.newton-evans.com/estimated-u-s-sales-of-power-and-distribution-
transformers-more-than-4-1-billion-in-2017-4-4-billion-by-2020/
 https://www.gminsights.com/industry-analysis/transformer-
market?utm_source=globenewswire.com&utm_medium=referral&utm_campaign=Paid
_globenewswire
 https://www.marketwatch.com/press-release/global-transformers-market-to-expand-
with-a-cagr-of-72-due-to-growing-adoption-from-power-and-metallurgy-industry-2019-
08-28?mod=mw_quote_news
 https://www.reportlinker.com/p05480644/Global-Transformer-Market-Research-
Report-Forecast-till.html
 https://www.beroeinc.com/category-intelligence/transformers-market/
 https://www.coilwindingexpo.com/berlin/knowledge-hub/global-transformer-market-
trends