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2023

North America and Europe Transformer Market

North America and Europe Transformer Market By Type (Distribution Transformer, Power Transformer, Others), By Power Rating (Small, Medium, Large), By Cooling Type (Air Cooled, Oil Cooled), By Insulation (Dry-type Transformer, Liquid Immersed Transformer), By Application (Commercial & Residential, Utility, Industrial) : Global Opportunity Analysis and Industry Forecast, 2022-2031

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Author's: Mohd Arbaz| Radhika Gupta | Eswara Prasad
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North America and Europe Transformer Market Research - 2031

The North America & Europe Transformers market size was valued at $35.9 billion in 2021 and is projected to reach $60.1 billion by 2031, growing at a CAGR of 5.6% from 2022 to 2031.

Transformer is a device that is used to convert electrical energy from one alternating current to another circuit by using the principle of electromagnetic induction. Transformers are essentially voltage control devices because they are typically used in the transmission and distribution of alternating current electricity. Since transformer uses the electromagnetic induction principle to increase or decrease voltage, it can either decreases AC voltage (Step-down transformer) or increases AC voltage (Step-up transformer). Transformers consist of wide range of application such as boosting electric generator voltage to permit long-distance electricity transmission and lowering the voltage of traditional power circuits to operate low-voltage equipment such as doorbells and toy electric trains.

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Increase in demand for smart transformers used in smart grids, growth in investment for large-scale renewable power plants projects along with increase in demand for electricity generated by renewable energy sources, are expected to be the key factors that drive the growth of the market during the forecast period. According to International Energy Association, the market for renewable energy witnessed a growth rate of 10% in 2022. Also, it has been observed that there is decrease in carbon emission from power industry, which is showing a promising growth toward the renewable energy market. In addition, rapidly growing power generation industries are anticipated to drive the transformers market growth during the forecast period.

However, risk associated with high DC voltages are expected to restrain the growth of the market in the coming years. On the contrary, growing electric vehicles charging stations in the North America and European regions are projected to create opportunities for key players operating in the market from 2022 to 2031. The major industrialized and developed nations have set a variety of goals to achieve zero emissions by 2050, which is expected to boost the growth of the renewable energy and electric car sectors.

The North America and Europe transformers market is segmented on the basis of type, power rating, cooling type, insulation, application, and region. On the basis of type, it is categorized into distribution transformer power transformer, and others. On the basis of power rating, it is categorized into small (500 to 7500kVA), medium (7500kVA to 100MVA), and large (above 100MVA) power rating. On the basis of cooling type, it is classified into Oil cooled, and Air cooled, Whereas, by insulation segmentation, it is divided into two types- dry and liquid immersed insulation.

On the basis of application, it is classified into commercial, and residential sector, utility, and industrial sector. Region-wise, it is analyzed across North America, Europe, North America, and Europe.

The key players operating in the North America & Europe transformers market are Eaton Corporation Plc., Schneider Electric, Siemens AG, ABB Ltd., Toshiba Corporation, Mitsubishi Electric Corporation, MGM Transformer Company, Northern Transformer, VTC/GT, and SGB-SMIT Group which hold significant share of the market. These players have been adopting various strategies to gain higher share and to retain leading positions in the market. These players adopt numerous strategies, including acquisition, and agreement to stay competitive in the Transformers market across the North America and Europe region.

Furthermore North America and European region are several factors expected to drive the growth of the smart transformers market in the coming years. Also, smart transformers find extensive applications in renewable energy, storage, electric vehicles, and other smart devices in smart grids and micro grids.

Although, it is still very difficult for consumers to see how much electricity they are using, but using smart grid devices, the consumer is able to see the consumed electricity. . It is expected that by being able to monitor how much electricity they are using, consumers will use less of it, subsequently cutting energy bills and moreover, pinpointing off-hours to run their energy intensive machines.  Thus, widening application and increasing usage of smart transformation in electric power industry, and other industrial application are expected to fuel the demand for transformers market during the upcoming years.

Moreover, increase in investment by the government and favorable government policies for renewable energy projects is anticipated to boost the market. In 2020, the utility-scale sector accounted for 36% of the total U.S. end use energy consumption. Hence, rapid utility-industrialization across the region will increase the demand for electricity.

Increase in the demand for electricity led to development of green energy source such as solar energy. Rising environmental concerns due to strict laws to reduce GHG emissions have forced companies to adopt effective energy conservation measures, and implementation of stringent government regulations to control carbon footprints have encouraged industries to opt for integration with effective energy conservation method, is expected to lead to rapid expansion of the transformers market during the forecast period.

Additionally growing number of charging stations in Europe and North America region is expected to offer lucrative opportunity for transformers market and its manufacturers to expand their businesses with charging stations. This factor is anticipated to drive the growth of the transformers market during the forecast period. Furthermore, the transformers market in countries, such as the U.S., Germany, Italy, France, and Canada, exhibits potential growth opportunities due to rise in demand for electric vehicles. According to International Energy Agency, Canada accounts for the highest market share in terms of sales of electric vehicle, followed by Europe with 2.3 million units sold in 2021, and the U.S. had 630,000 units sold in 2021. This has resulted in surge in demand for electric vehicle charging stations, which, in turn, is expected to boost the demand for transformers over the upcoming period.

North America and Europe Transformer market, by Type

On the basis of type, the distribution transformers segment dominated the market in 2021, owing to rise in demand for distribution transformers from industrial, commercial, and utility sectors. In addition, rise in demand for continuous flow of electricity and power with any load to carry out continuous manufacturing process in large industries is anticipated to fuel the growth of the North America & Europe transformers market in the future.                                                         

North America and Europe Transformer Market
By Type
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Distribution Transformer is projected as one of the most lucrative segments.

North America and Europe Transformer market, by Power rating

On the basis of power rating, small is the dominating segment during the forecast period. Owing to Increase in utilization of electric appliances in the residential sector has led to increase in the demand for power. Moreover, the gradual increase in usage of electricity in each country of the Europe and North American region has led to an increase in the utilization of smart grid, power grid, electric grid along with off-grid renewable power generation such as solar power has led to an increase in the demand for the transformers market. These factors are expected to boost the growth of the market during the forecast period.

North America and Europe Transformer Market
By Power Rating
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Small is the fastest growing application during the forecast period.

North America and Europe Transformer market, by cooling type

By cooling type, the air-cooled segment dominated the regional market in 2021, in terms of share, owing to increasing use of air-cooled system in the power transformer market. In addition, advantages associated with transformer such as better power services, improved air quality, enhancement in energy security, and other advantages are expected to fuel the growth of the market during the forecast period.

North America and Europe Transformer Market
By Cooling Type
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Air Cooled segment held a dominant position in 2021 and would continue to maintain the lead over the forecast period.

North America and Europe Transformer market, by insulation

By Insulation, Dry is the fastest growing segment during the forecast period. This is attributed to an increasing application of dry type transformers in various application such as residential, commercial, utilities, and industrial sector for residential building, complexes, and manufacturing units, are offering a positive growth.        

North America and Europe Transformer Market
By Insulation
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Dry is projected as the most remunerative segmentover the forecast period.

                                                      

North America and Europe Transformer market, by Application

By application, the commercial and residential segment dominated the regional market in 2021, in terms of share, owing to rise in demand for transformers systems from homes, commercial building, malls, and others across Europe and the U.S.

North America and Europe Transformer Market
By Application
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Commercial and Residentail segemnt witnessed highest market share during the forecast period

North America and Europe Transformer market, by Region

North America garnered the highest transformers market share in 2021, in terms of revenue, and is anticipated to maintain its dominance during the forecast period. This is attributed to expansion of smart grid projects in the U.S., Canada, Germany, and other countries. Moreover, the electric vehicles market across the U.S., which results in rising number of fueling stations is anticipated to boost the growth of the transformers market in the region during the forecast period.

North America and Europe Transformer Market
By Geography
2031
North America 
Europe

North America region would exhibit the highest CAGR of 5.4% during 2021-2031.

Moreover, lockdown imposed owing to outbreak of the COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries, which decreased the demand for various products from consumers. But, transformer market growth was not majorly affected, due to its high demand in transmission and distribution of power supply and electricity during the pandemic. However, the transformers market is growing at a rapid rate in 2022, as COVID-19 vaccination has been completed in various economies across the North America and Europe, which improved the global as well as the regional economy.

Key Strategies

In July 2018, ABB acquired GE Industrial Solutions (GEIS). GEIS is headquartered in the U.S. with a workforce of approximately 13,500 employees and offers technologies that distribute and control electricity and support the data centers, healthcare, mining, renewable energy, oil & gas, water, and telecommunications sectors. This acquisition strengthened the company’s market presence.

Impact of COVID-19

The novel coronavirus is an incomparable global pandemic that has small to over 180 countries and caused huge losses of lives and the economy including North America and Europe region. The Transformers market has a negative impact due to disruption in supply chain of the transformer market, which caused production delays in manufacturing. Owners of the U.S. utilities and nuclear facilities are cancelling events, stopping travel, encouraging remote work, and testing sick employees to curb the new coronavirus.

As per the statement of Grid operators in the U.S., there has not been a significant impact on the demand for electricity, but there has been a change in demand. Since electrical grid plays a very crucial role in generation of electricity, the electric grid (electricity generator house) was never shut down during the pandemic. Thus, the electric grid has worked with good resilience during the pandemic. Therefore, the demand for transformer has seen a stagnant growth in North America and Europe market during the COVID-19 pandemic.

Key benefits for stakeholders

  • Porter’s five forces analysis helps analyze the potential of buyers & suppliers and the competitive scenario of the industry for strategy building.
  • It outlines the current North America and Europe transformers market trends and future estimations from 2021 to 2031 to understand the prevailing opportunities and potential investment pockets.
  • The major countries in the region have been mapped according to their individual revenue contribution to the regional market.
  • The key drivers, restraints, and opportunities and their detailed impact analysis are explained in the study.
  • The profiles of key players and their key strategic developments are enlisted in the report.

North America and Europe Transformer Market Report Highlights

Aspects Details
North America and Europe Transformer Market By Type
By Type
  • Distribution Transformer
  • Power Transformer
  • Others
North America and Europe Transformer Market By Power Rating
By Power Rating
  • Small
  • Medium
  • Large
North America and Europe Transformer Market By Cooling Type
By Cooling Type
  • Air-Cooled
  • Oil-Cooled
North America and Europe Transformer Market By Insulation
By Insulation
  • Dry
  • Liquid Immersed
North America and Europe Transformer Market By Application
By Application
  • Commercial and Residential
  • Utility
  • Industrial 
North America and Europe Transformer Market By Region
By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, UK, Spain, Italy, Rest of Europe)
North America and Europe Transformer Market By Key players in the North America and Europe Transformer are:
By Key players in the North America and Europe Transformer are:
  • Eaton Corporation Plc.
  • Schneider Electric.
  • Siemens AG.
  • ABB Ltd.
  • Toshiba Corporation.
  • Mitsubishi Electric Corporation.
  • MGM Transformer Company.
  • Northern Transformer.
  • VTC/GT.
  • SGB-SMIT Group.

Analyst Review

According to the insights of CXOs of leading companies, urbanization, and growth of the commercial and residential sectors are the key factors attributed to the leading position in North America in the transformers market. Moreover, the transformer market is expected to witness increased demand during the forecast period, the surge in the demand for renewable power resources and the increase in the investment to develop the power generation infrastructure has a positive impact on the market.

The transformers market holds a substantial scope for growth regionally. High risk associated with high DC voltages is a major limitation for the market growth. However, increasing electric vehicles sales is expected to drive the transformer market growth in Europe and North America. In addition, this market received a tremendous boost on account of the increasing application of data centers to save data loss during the transmission of power in various sectors.

The Europe and North America transformers market is analyzed across North America, and Europe. Among the analyzed regions, North America is expected to account for the fastest-growing market throughout the forecast period, followed by Europe. The presence of a huge population and rapid industrialization in these countries has increased the demand for electricity from renewable resources. The presence of demand for renewable energy in this region and government initiatives and investment to develop the smart grids plants in this region have led to the presence of significant importance of the transformers market

Author Name(s) : Mohd Arbaz| Radhika Gupta | Eswara Prasad
Frequently Asked Questions?

The distribution transformer segment was the largest revenue generator in 2021, and is anticipated to grow at a CAGR of 5.4% during the forecast period.

Rising demand for transformer in commercial and utility-sector is the upcoming trends of the transformer market.

The global transformer market is projected to reach $60.1 billion by 2031, growing at a CAGR of 5.6% from 2022 to 2031.

The leading players operating in the global transformer market include, Eaton Corporation Plc., Schnieder Electric, Siemens AG, ABB Ltd., Toshiba Corporation, Mitsubishi Electric Corporation, MGM Transformer Company, Northern Transformer, VTC/GT, and SGB-SMIT Group

The Asia-Pacific is the largest regional market in the global transformers market, contributing more than half of the global market in 2021.

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North America and Europe Transformer Market

Global Opportunity Analysis and Industry Forecast, 2022-2031