Instrument Transformers Market Expected to Reach $17.2 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Instrument Transformers Market," The instrument transformers market was valued at $9.6 billion in 2022, and is estimated to reach $17.2 billion by 2032, growing at a CAGR of 6.1% from 2023 to 2032.

Instrument transformer is a type of transformer used to transform voltage or current levels to standardized, measurable values suitable for instrumentation and protection in electrical power systems. These devices are also used to measure different electrical parameters, including voltage, frequency, current, and power factor in AC systems. It offers several advantages, such as standardization of measuring instruments as well as reduction of measuring costs, assuring safety of operators and creating multiple connections through a single transformer to the power system.

Rise in need for electricity, coupled with rise in concerns pertaining to grid stability boost the global instrument transformer industry. Growth in interest toward rural electrification in line with renovation of existing grid network are expected to favor toward authorities to incorporate an efficient protection and monitoring mechanism. However, rise in competition from the unorganized sector of the instrument transformer market is expected to hamper instrument transformers market growth during the forecast period.

Furthermore, rise in investments in transmission & distribution infrastructure is expected to provide instrument transformers market opportunities during the forecast period. Moreover, integration of digital technologies such as IoT (Internet of Things) and AI (Artificial Intelligence) into power systems will open avenues for smart instrument transformers market trends to offer real-time data analysis, predictive maintenance, and remote monitoring capabilities.

The conventional instrument transformer segment held the highest market share in 2022, and is estimated to maintain its leadership status throughout the instrument transformers market forecast period. Owing to rise in energy demand from various industries such as HVAC systems, substations, railways, and power utilities drives the demand for conventional instrument transformer. The global instrument transformers market is expected to grow due to increase in demand for electricity, grid modernization, renewable energy integration, and the need for accurate monitoring and protection of power systems.

The global instrument transformers market is expected to grow due to increase in demand for electricity, grid modernization, renewable energy integration, and the need for accurate monitoring and protection of power systems. This growth is driven by technological advancements and the indispensable role played by conventional instrument transformers in electrical infrastructure globally. Henceforth, above mentioned all factors drive the demand for conventional instrument transformer market.

The high voltage transmission segment accounted for the largest market share in 2022, as instrument transformers offer electrical protection against overload currents, insulation failure, and emergency switching for residential and commercial infrastructures. The metering and protection segment emerged as the leader in 2022, owing to growth in investments in renewable power generation, electrification of transport systems, and expansion of electrical transmission and distribution systems.

Asia-Pacific accounted for a major instrument transformers market size in 2022, owing to increased power consumption, government initiatives to increase power generation capacity using renewable energy sources, and replacement of aging power plants are expected to drive the instrument transformers market in the region.

Rise in demand for smart grids is expected to be another key feature for development of the global instrument transformer market in the coming years. Moreover, the increasing government investment in building and maintaining a robust energy infrastructure is expected to increase demand for instrument transformers from the power generation sector in coming years. Surge in data center construction fuels the instrument transformer market, as these facilities require reliable and accurate monitoring of high voltage electricity.

The instrument transformers market is segmented on the basis of product type, voltage, application, end-user, and region. By product type, it is bifurcated into conventional instrument transformer and non-conventional instrument transformer. On the basis of voltage type, it is segmented into low voltage (<1kV), medium voltage (1-52kV), high voltage transmission (60/110 kV), extra high voltage transmission (220/380kV), and ultra high voltage transmission (>380kV).

On the basis of application, it is divided into transformer and circuit breaker bushing, switchgear assemblies, relaying, metering, and others. By end-user, it is segmented into power utilities, power generation, railways & metros, industries & OEMs, and others. Region-wise, it is studied across North America, Europe, Asia-Pacific, and LAMEA.

In 2023, Asia-Pacific accounts for the largest instrument transformers market share, followed by Europe and North America. North America plays a pivotal role in propelling the instrument transformer market due to its robust industrial infrastructure and advancing technological landscape. Increasing power demand, reducing transmission and distribution losses, and upgradation of grid network with developing renewable power sources are expected to drive growth of the instrument transformers market during the forecast period.

The report provides a detailed instrument transformers market analysis of these key players. The major companies profiled in this report include ABB Ltd., General Electric, Schneider Electric, Siemens, CG Power and Industrial Solutions Ltd, Mitsubishi Electric Corporation, Instrument Transformer Equipment Corporation, Inc., Arteche, Nissin Electric, Hitachi Ltd, Ritz Instrument Transformers, Pfiffner Group, ALCE Elektrik San. Tic. A.Ş., ELEQ B.V., Enpay, Narayan Powertech Pvt Ltd., Pragati Electricals Pvt Ltd., Dayihu, Epoxy House, and Bharat Heavy Electrical Limited. Further, key strategies adopted by potential market leaders to facilitate effective planning have been discussed under instrument transformers market scope in this report. 

Key Finding of The Study:

• On the basis of product type, the conventional instrument transformer segment accounts for more than three-fourths of the market share, in terms of revenue, in 2022.
• On the basis of voltage, the high voltage transmission segment accounts for less than one-third of the market share, in terms of revenue, in 2022.
• On the basis of application, the transformer and circuit breaker bushing segment accounts for less than one-third of the market share, in terms of revenue, in 2022.
• On the basis of end user, power utilities segment accounts for less than three-fifths of the market share, in terms of revenue, in 2022.
• On the basis of region, Asia-Pacific accounts for nearly two-fifths of the market share, in terms of revenue, in 2022.