Click Image to Enlarge

Photo: Shutterstock

According to the latest report from Mordor Intelligence, the global power transformer market is set to grow from about USD 24.8 billion in 2025 to nearly USD 33.5 billion by 2030, reflecting a steady CAGR of 6.22%.

With manufacturing backlogs stretching beyond two years, buyers now prioritize delivery as much as technical performance. Major utilities, IPPs, and cloud data center operators are increasingly signing multi-year supply agreements that secure production slots in advance.

Rising Influence of Renewable-Based Power Systems

Growing reliance on wind and solar is reshaping transformer requirements, increasing the need for units that can stabilize rapid voltage changes and manage two-way energy flow. Digital design tools now allow operators to model performance before installation, helping to reduce operational risk.

Grid Modernization and Refurbishment Needs

A significant share of existing transmission equipment is reaching the end of its useful life, driving a wave of replacements and overhauls. Utilities are leaning on advanced condition-monitoring tools to prioritize repairs, yet many assets still show age-related wear that necessitates complete renewal. Refurbishment teams increasingly perform on-site upgrades to reduce delays, though long-deferred maintenance continues to fuel strong demand for new transformer installations.

Strengthening Network Resilience and HVDC Expansion

Growing exposure to extreme weather and cyber threats is prompting tougher reliability standards across power networks. At the same time, the expansion of long-distance HVDC links—particularly for offshore and cross-regional energy transfer—is increasing the need for transformers built to withstand demanding electrical stresses. Producers with advanced testing capabilities and specialized insulation technologies are becoming preferred partners as grid operators plan phased high-voltage upgrades.

Regional Outlook

In North America, the market is stable but often constrained by manufacturing capacity. Policy support encourages domestic output, and major transmission projects are prompting collaboration between local plants and global suppliers. Canada is upgrading hydro-linked networks, and Mexico’s growing industrial base is increasing substation requirements.

The Asia-Pacific region stands out as both the largest and fastest-growing market. This dominance reflects rising electricity demand, ongoing grid expansion, and strong investment in renewable integration across both emerging and developed economies.