High Voltage Power Transformer Market by Power Rating SPT ((= 60 MVA), LPT (> 60 MVA)) Cooling Type (Oil Immersed, Dry Type) End User (Utilities, Commercial, Industrial) Region (North America, Europe, APAC, South America, MEA) - Global Forecast to 2029
[253 Pages Report] The global High voltage power transformer market in terms of revenue was estimated to be worth USD 9.1 billion in 2024 and is poised to reach USD 12.3 billion by 2029, growing at a CAGR of 6.3% from 2024 to 2029. The high voltage power transformer is adopted in many industries due to its ability to change high voltage AC power to low or vice-versa. On the other hand, these transformers play significant roles with respect to the efficient transmission of power, improvement of voltage stability through FACTs systems and testing of electrical power components. Apart from their use in power transmission, these transformers are very commonly employed for SVC, FACTS, HVDC and all other related and sophisticated uses. The reasons include the expansion and modernization of the grid integration programs, the programs addressing the issues related with older substations, and particularly the rising demand for renewable energy.
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High voltage power transformer Market Dynamics
Driver: Pressing need for grid modernization and expansion with increasing electricity demand
The increasing energy consumption is supplementing the high voltage power transformer market. The growing electricity demand calls for expansion and renovation of the grid such as increasing the scope of the existing grids and reinforcing transmission lines to accommodate more power. This results in increased requirements for transformers in substations and transmission lines. Besides, grid renewal cum retrofitting solutions raise the transformer needs for upgraded characteristics such as higher voltage and current ratings, and smart grid and two-way load management systems. The interaction of renewable resources dominate in a considerably different manner, particularly solar and wind generation, in a grid system. These are intermittent and uncontrolable power sources; they depend on climatic conditions to be effective. High voltage power transformers play a lead role in incorporating renewable energy sources into the grid at a transmission level in order to convert solar and wind farm outputs to tussium level. Additionally, they enhance system reliability by regulating the variation of power generation from the said sources. There is a steady demand for transformers all over the world. In advanced countries, increasing the efficiency and reliability of electricity networks is deemed a priority task.
Restraints: Limited budget for grid expansion projects in developing countries
The high voltage power transformer market exhibits huge growth potential but at the same time, has characteristic challenges. Such problems are largely driven by cost pressures and long lead times. Core Problem : Large upfront costs, especially for higher capacity transformers. Nowhere is this dilemma more acute than in the developing world, where limited budgets prevent widespread grid development and upgrades. Meanwhile, one more trouble point that remains to be addressed is the ever-changing prices of vital raw materials including copper and steel. Such volatility in those materials could have a major effect on the high voltage power transformer market, eroding manufacturer profit margins and perhaps causing price increases. This creates uncertainty in the planning and budgeting processes for manufacturers and utilities, which strips some efficiency from these markets too. Also, the long lead times for large high voltage power transformers to be manufactured are restraining market growth. Those extended lead times can cause project delays and slow things down even further during peak periods of demand when there is a need to grow the grid. The market will then be less efficient, if transformer delivery is delayed even further. Such cost pressures and lead time challenges hinder the growth of high voltage power transformer market- especially in emerging countries where grid expansion is one among major initiative. For manufacturers, that means focusing on cost optimization strategies while governments can offer an array of incentives to encourage investment in grid projects despite the obstacles. Evidently, the global energy infrastructure can benefit by leaps and bounds from a thriving high voltage power transformer market if it successfully overcomes these profound challenges.
Opportunities: Development of customized transformers to deploy in HVDC transmission systems
High-voltage direct current (HVDC) transmission systems are in need of transformers that can meet their exacting requirements, necessitating the use of custom designs. HVDC transformers are core elements for power to be transferred with high efficiency and reliability from AC systems to DC transmission networks. The high voltage of dc transformers is distinguished in contrast to the conventional AC transformers by different challenges with reference to insulation stresses under combined ac and dc voltages, load current harmonics as well as specific operational conditions. For shipping, different transformer designs also have varying weight and dimensions in order to meet transport constraints so customization is essential. Engineered specifically for HVDC installations, specialist transformers guarantee the best possible performance and reliability when transmitting power over long distances without heavy losses. In Europe, where there is a major push to incorporate renewable energy and link grids from one country to the next via projects such as North Sea Link (NSL), HVDC solutions require unique transformers that can handle different voltage levels and grid characteristics. Stretching 720 kilometres beneath the North Sea, as deep as 700 metres: The world's longest subsea electricity interconnector. NSL, operates at a voltage of ±525kV and is capable of delivering up to 1400 megawatts. Custom transformer design for high-voltage direct current (HVDC) transmission will proliferate as project and regional specs are tailored into the archives.
Challenges: Cybersecurity threats due to adoption of digital technologies.
The increasing digitalization of power grids introduces a significant challenge for the high voltage power transformer market: information security risks; or in other words information technology or cybersecurity threats. In recent years as the grid infrastructure increases both in terms of connectivity and dependency on digital support systems, so does the vulnerability of transformers and the grid infrastructure as a whole to cyber-attacks. The following contains more information on the often discussed cyber threats : These threats are very dangerous to the reliability and safety of the power grid and can result to insecurity, making it important to put in place measures to counter them. The threats categorised in relation to the transformers and the grid include malware, ransomware, denial of service attack, and access control attack. These attacks can cause degraded normal grid operation, change different parameters on grids, destroy transformers physically, and consequently lead to blackouts, equipment destructions, and possible safety issues. The major issue facing cybersecurity threat in the high voltage power transformer market is the flexibility and design of the grid systems as well as the numerous interconnections that are present in the system. Every transformer, substation, control systems, communication networks and all other components along the grid can be considered as belonging to a family of cyber threats. Coordinating for these expressed elements is a complex and multifaceted process that must consist of extensive technology mixes and management procedures. Some of the technological features of improving the level of cybersecurity in the high voltage power transformer market may include the use of reliable encryption, the use of intrusion detection and prevention systems, dividing networks into segments to prevent the penetration of cyber threats, and the constant upgrade of software, and firmware of devices to eliminate vulnerabilities. Also, new concepts such as multi-factor and biometric authentication prevent unauthorized access to paramount grid facilities.
High voltage power transformer Market Ecosystem
Prominent companies in this market include well-established, financially stable high voltage power transformers. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market are Siemens Energy (Germany), Hitachi Energy Ltd. (Switzerland), Schneider Electric (France), Toshiba Energy Systems & Solutions Corporation (Japan), and General Electric Company (US).
SPT (≤ 60 MVA) segment, by power rating, will be second largest market from 2024 to 2029.
The Small High voltage power transformer segment SPT (≤ 60 MVA) in the high voltage power transformer market is projected to have second largest market, as these transformers are used for applications requiring small and more flexible power capacity which includes local substation support and industrial sector. Owing to the escalating inclination towards renewable based electricity generation capacity across world such as Solar, wind etc., small high voltage transformers are widely used for stepping down (up) the higher lower currents (voltage). The demand for SPT is majorly attributed due to its relatively lesser cost and easy installation compared with above 60 MVA transformers, this factor is driving factor small high voltage power transformer market. Implementation of transmission & distribution projects in rural areas. SPT are used in various application including rural electrification projects achieving human based work process with introduction robust machineries/ equipments.
Utilities segment, by end user, to be the fastest growing segment from 2024 to 2029.
The utilities segment is expected to be the fastest growing segment which contributes to high voltage power transformer market from 2024-2029. Utilities are essential in critical tasks associated with electrical generation and transmission. These utilities support the electrical infrastructure to facilitate growing urban residential households and industrial electricity needs. Additionally, utilities are one of the largest factors to support upgrades to obsolete electrical infrastructure to ensure grid reliability and modern efficiency and environmental standards. Due to the global transition to renewable energy sources, utilities are responsible for integrating these variable energy sources into the grid, which call for high voltage power transformers to support voltage stabilization and regulation. Moreover, ongoing government funding and government programs to build out infrastructure projects to strengthen national grids along with increased penetration of renewable energy from transformation of national grids all positively support growth in the utilities sectors high voltage transformer demand.
Oil immersed segment, by cooling type, to be the fastest growing segment from 2024 to 2029.
The oil immersed section is touted to be the fastest growing segment in the high voltage power transformer market between 2024 and 2029, as oil cooling is more effective in high voltage transformers than dry-type transformers because it has a more rapid heat dissipation, can evenly conduct the power more effectively, and displays superior insulation performance which is critical for safely operating electronic devices at high voltages. Oil cooling is critical to preventing failures and disasters caused by unacceptable levels of heat accumulated in the transformer to ensure effective and safe use for a wide range of applications using high voltage. Oil-immersed transformers use either natural convection or inclined forced circulation to enhance the dissipation of heat away from windings. Natural convection is eventually rendered by the head rise of the oil as a result of heat becoming less dense causing hot oil to rise; while cooled oil that has less density rises in a consistent thermal, energy and momentum driven heuristic flow pattern that aids the transfer of heat. Forced circulation systems utilize pumps or fans to actively circulate oil to effective remove heat and moderate the electrical transformer.
Asia Pacific to account for largest market size during forecast period.
According to the forecast period, the high voltage power transformer market is expected to recline within Asia Pacific with the largest market size, principally as a result of the region's swift economic development, urbanization and industrialization. A number of countries within the region such as China, India, Japan and South Korea are making considerable investments to modernize their electrical infrastructures in response to the increasing electricity demand from urban centers, as well as off the grid in rural areas. In addition to this massive investment in upgrading electrical infrastructure, these nations are making significant investments in renewable energy projects associated with their climate change commitments to reduce carbon emissions, which involve extensive investing improvements to the grid to integrate renewable energy sources into their systems. This will require extensive investments in high voltage power transformers for the efficient transport of energy. In addition, within the Asia Pacific region, government initiatives to improve energy efficiencies; improve reliability in power supply and work towards the establishment of smart grids; and removal of aging and tiring infrastructure along with opportunities to modernize existing infrastructure is also stimulating demand for high voltage power transformers. These factors combined ensure that Asia Pacific is the largest and rapidly expanding high voltage power transformer market.
Key Market Players
The high voltage power transformer market is dominated by a few major players that have a wide regional presence. The major players in the high voltage power transformer market include Siemens Energy (Germany), Hitachi Energy Ltd. (Switzerland), Schneider Electric (France), Toshiba Energy Systems & Solutions Corporation (Japan), and General Electric Company (US) are the key players in the market. Between 2020 and 2024, Strategies such as new product launches, contracts, agreements, partnerships, and expansions are followed by these companies to capture a larger share of the high voltage power transformer market.
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Report Metric |
Details |
|
Market Size available for years |
2020–2029 |
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Base year considered |
2023 |
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Forecast period |
2024–2029 |
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Forecast units |
Value (USD Million/Billion) |
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Segments covered |
By Power Rating, By Cooling Type and By End User |
|
Geographies covered |
Asia Pacific, North America, Europe, Middle East and Africa, and South America |
|
Companies covered |
Siemens Energy (Germany), Hitachi Energy Ltd. (Switzerland), Schneider Electric (France), Toshiba Energy Systems & Solutions Corporation (Japan), and General Electric Company (US), Mitsubishi Electric Corporation (Japan), CG Power & Industrial Solutions Ltd. (India), HYOSUNG HEAVY INDUSTRIES (South Korea), Transformers and Rectifiers (India) Ltd. (India), Ningbo IRONCUBE Works International co., LTD. (China), Fuji Electric Co., Ltd. (Japan), WEG (Brazil), HD HYUNDAI ELECTRIC CO., LTD. (South Korea), and Bharat Heavy Electricals Limited (India), A B C TRANSFORMERS (P) LTD (India), Jiangshan Scotech Electrical Co., Ltd (China), Efacec (Portugal), and Hammond Power Solutions (Canada), LS ELECTRIC Co., Ltd (South Korea), SGB SMIT (Germany), JSHP Transformer (China), CHINT Group (China), Niagara Transformer Corp. (US), Wilson Power Solutions (UK), and Vijay Power (India), ARTECHE (Spain) and CHINA XD GROUP (China), URJA Techniques (India), BEST Transformer (Turkey), Telawne Power Equipments Private Limited (India). |
The market is classified in this research report based on power rating, cooling type, end user, and region.
Based on power rating, the high voltage power transformer market has been segmented as follows:
- SPT (≤ 60 MVA)
- LPT (> 60 MVA)
Based on cooling type, the high voltage power transformer market has been segmented as follows:
- Oil immersed
- Dry type
Based on end user, the high voltage power transformer market has been segmented as follows:
- Utilities
- Commercial
- Industrial
Based on regions, the high voltage power transformer market has been segmented as follows:
- North America
- Asia Pacific
- South America
- Europe
- Middle East and Africa
Recent Developments
- In February 2024, Hitachi Energy Ltd. invested USD 32.1 million in expanding and modernizing its high voltage power transformer manufacturing facility in Bad Honnef, Germany. The investment expands the company’s global footprint and capacity, addressing the accelerating demand for transformers to meet Europe’s energy transition.
- In January 2024, GE Vernova, a subsidiary of General Electric Company, collaborated with Polimex Mostostal, an engineering and construction company, to construct the land-based infrastructure, including a 275/400 kV high voltage substation with STATCOMs and land-based export lines for efficient power transfer to the Polish power system.
- In January 2024, WEG supplied Eletrobras Furnas with a power transformer set of three units of 300 MVA with 550 kV/145 kV and assorted supplies and equipment for infrastructure, maneuvers, supervision, and implementation protection.
- In June 2023, HD HYUNDAI ELECTRIC CO., LTD. was awarded a contract for USD 59.9 Million for the extra-high voltage high voltage power transformers with capacities of 230 kV and 115 kV by the municipal electric utility of Santa Clara, California. The transaction was authorized by the Santa Clara City Council on June 13, 2023.
- In February 2023, Mitsubishi Electric Corporation entered into a share transfer agreement to wholly acquire Scibreak AB. The Corporation's intent is to combine and grow the competitiveness of their business by cooperating on developing DCCB technologies for high-voltage direct current (HVDC) systems in tandem with the rollout of a global capacity of renewable energy.
Frequently Asked Questions (FAQ):
What is the current size of the global high voltage power transformer market?
The global high voltage power transformer market is valued to be USD 8.68 billion in 2023.
What are the major drivers for high voltage power transformer market?
The major drivers of the high voltage power transformer market include the global increase in electricity demand, aging infrastructure requiring upgrades or replacements, and the rapid expansion of renewable energy sources that necessitate advanced grid integration technologies. Furthermore, urbanization and industrialization, particularly in emerging economies, are accelerating the need for robust electricity distribution systems. Additionally, government regulations and initiatives aimed at improving energy efficiency and reducing carbon footprints are pushing utilities and industries to invest in modern, high-efficiency transformers. Lastly, technological advancements such as smart transformers that facilitate more reliable, efficient, and automated power distribution systems are also significant drivers in the market growth.
Which End user has the largest market share in the high voltage power transformer market?
The utilities segment holds the largest market share in the high voltage power transformer market primarily because utilities are the main providers of electricity to both residential and commercial users, necessitating robust, extensive, and reliable grid infrastructures. High voltage power transformers are crucial in these infrastructures for stepping up and stepping down voltage to ensure safe electricity transmission and distribution across vast networks. As utilities continuously work to expand, upgrade, and maintain their grids to meet increasing electricity demand, comply with regulatory standards, and integrate renewable energy sources, their demand for high voltage power transformers remains consistently high.
Which is the largest-growing region during the forecast period in the high voltage power transformer market?
Converging factors are expected to make Asia Pacific the largest-growing market for high voltage power transformers during the forecast period. Rapid urbanization and industrialization in major economies of the region, like China, India, and countries from Southeast Asia, are increasing electricity demand considerably. This upsurge in demand calls for an extensive development in power infrastructure, particularly in substation and transmission line development, in which a high voltage power transformer is an important component.
Which is one of the major restraints for the market to grow?
The limited number of skilled workers for designing, installing and maintaining high voltage power transformers, is an additional barrier to the adoption of advanced transformer technologies in emerging economies. Moreover, the lack of skills creates challenges to the effective application of modern transformer strategies.
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This study undertook an extensive process to determine the current dimensions of the high voltage power transformer market, beginning with an in-depth secondary research phase focused on gathering data from the market, related markets, and the overall industry context. This initial data collection was followed by a thorough validation using primary research, which included discussions with industry experts across the value chain. Market size evaluations were then conducted for each country through a tailored analysis, leading to a detailed breakdown of the market. Data from these analyses were cross-checked to estimate the sizes of different segments and sub-segments. By integrating both secondary and primary research methods, the study ensures the findings are both accurate and reliable.
Secondary Research
Secondary sources referred to for this research study include annual reports, press releases, investor presentations of companies, white papers, certified publications, articles from recognized authors, and databases of various companies and associations. Secondary research has been mainly used to obtain key information about the industry’s supply chain to identify the key players of various products and services, market classification and segmentation according to the offerings of major players, industry trends to the bottom-most level, regional markets, and key developments from market- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from the supply and demand sides have been interviewed to obtain qualitative and quantitative information for this report. Primary sources from the supply side included industry experts, such as chief executive officers (CEO), vice presidents, marketing directors, technology and innovation directors, and related key executives from various companies and organizations operating in the market.
In the complete market engineering process, the top-down and bottom-up approaches and several data triangulation methods have been extensively used to perform the market size estimations and forecasts for all segments and sub-segments listed in this report. Extensive qualitative and quantitative analyses have been conducted to complete the market engineering process and list key information/insights throughout the report.
After the complete market engineering process (which includes calculations for market statistics, breakdown, size estimation, forecasts, and data triangulation), extensive primary research has been conducted to gather information and verify and validate the critical numbers obtained. Primary research has also been conducted to identify segments, industry trends, and the competitive landscape of the HV power transformer market.
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Market Size Estimation
Using a bottom-up & top-down methodology, the high voltage power transformer market size has been carefully estimated and validated. This approach was used extensively to determine the size of several market subsegments. The following crucial phases are included in the research process.
This method has examined national and regional manufacturing statistics for all types of high voltage power transformers.
A significant amount of primary and secondary research has been conducted in order to fully understand the global market situation for various transformer types.
Prominent HV power transformer system development specialists, including major OEMs and Tier I suppliers, have been interviewed in several primary interviews.
When evaluating and projecting the market size, qualitative factors such as market drivers, restraints, opportunities, and challenges have been taken into account.
Global High voltage power transformer Market Size: Bottom-Up Approach
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Global High voltage power transformer Market Size: Top-Down Approach
Data Triangulation
The determination of the overall market size was conducted using the outlined methodologies, which involved dividing the market into various segments and subsegments. To finalize the comprehensive market analysis and obtain accurate statistics for each segment and subsegment, techniques such as data triangulation and market segmentation were employed as needed. Data triangulation included a detailed analysis of different factors and trends from both demand and supply sides within the market ecosystem.
Global High voltage power transformer Market Size: Data Triangulation
Market Definition
High Voltage Power transformers are essential components of electrical infrastructure, facilitating the efficient transmission and distribution of electricity across grids of various scales. These devices are crucial in converting voltage levels to enable electricity transmission over long distances with minimal loss. At their core, these transformers function by inducing changes in voltage through electromagnetic induction, allowing the transfer of electrical energy from one circuit to another. They are integral to the functioning of power systems, enabling the safe and reliable delivery of electricity to homes, businesses, and industries worldwide.
A high volage power transformer which operates at voltage above 69kV consists of two or more coils of insulated wire, known as windings, wound around a ferromagnetic core typically made of laminated steel. The primary winding receives electrical energy from the input voltage source, while the secondary winding delivers the transformed voltage to the output circuit. By varying the number of turns in each winding and the magnetic properties of the core material, transformers can step up or down voltage levels as required for efficient transmission and distribution. This ability to manipulate voltage is essential for balancing load demands, maintaining grid stability, and ensuring optimal performance of electrical systems.
These transformers are classified based on their end user, by power rating, cooling type. Regardless of their size or configuration, they are fundamental to the functioning of electrical grids, serving as indispensable components in the generation and transmission of electricity to meet the necessary demands.
The high voltage power transformer market refers to the year-on-year investments in high voltage power transformer across the five main regions, namely, North America, South America, Europe, Asia Pacific, and Middle East & Africa.
Key Stakeholders
- Field device manufacturers
- Public and private electric utilities
- Distribution companies (DISCOMS)
- Energy & power sector consulting companies
- Government & research organizations
- Independent power producers
- Investment banks
- Electrical equipment associations
- Network and communication service providers.
- Support and maintenance service providers
- Smart grid players
Objectives of the Study
- To describe and forecast the high voltage power transformer market based on component, communication technology, utility and region in terms of value.
- To describe and forecast the market for five key regions: Asia Pacific, North America, Europe, Latin America, and Middle East & Africa, along with their country-level market sizes in terms of value.
- To forecast the hv power transformer market by component and region in terms of volume
- To provide detailed information regarding key drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market size
- To provide the supply chain analysis, trends/disruptions impacting customers’ businesses, market map, ecosystem analysis, tariffs and regulations, pricing analysis, patent analysis, case study analysis, technology analysis, key conferences and events, trade analysis, Porter’s five forces analysis, key stakeholders and buying criteria, and regulatory analysis of the market
- To analyze opportunities for stakeholders in the high voltage power transformer and draw a competitive landscape of the market.
- To benchmark market players using the company evaluation matrix, which analyzes market players on broad categories of business and product strategies adopted by them.
- To compare key market players with respect to product specifications and applications
- To strategically profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as contracts & agreements, investments & expansions, mergers & acquisitions, new product launches, partnerships, joint ventures & collaborations, in the market
Available Customization
With the given market data, MarketsandMarkets offers customizations based on the company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in High Voltage Power Transformer Market