North America and Europe Transformer Market Expected to Reach $60.1 Billion by 2031-Allied Market Research

According to a new report published by Allied Market Research, titled, "North America and Europe Transformer market by type, power rating, cooling type, insulation and application: regional opportunity analysis and industry forecast, 2022–2031," The North America and Europe transformer market 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 type of electronic device that transfers electrical energy from one circuit to another circuit without any change in frequency of the circuit. A transformer's primary use is to increase or decrease the level of voltage or current in power plant producing stations, receiving end substations, and distributing electrical power to consumer units for domestic and industrial application.

Increase in application of transformers in residential and commercial areas is expected to fuel the growth of the market in the near future. Moreover, growth in demand for electricity and power and rise in smart grid projects are factors that drive the market. Moreover, growing sales of electric vehicles across the US and Europe has surge demand for electric vehicle fueling stations, which in turn is expected to fuel the transformer market growth. Risk associated with high DC voltages is expected to hamper market growth.

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.

On the basis of the type, the distribution transformers segment garnered the highest market share of about 54.68% in 2021 and is expected to maintain its dominance during the forecast period. This is attributed to rise in demand for distribution transformers from various applications including residential, commercial, and industrial sector, and others.

By cooling type, the air-cooled segment garnered the largest share in 2021, in terms of revenue, and is expected to grow at a CAGR of 5.5%, owing to increase in usage for air-cooled cooling types of transformers in renewable energy projects across the US. In addition, advantages associated with Air cooled, including cost effectiveness, efficiency, and resistance toward both horizontal and vertical surfaces, are expected to fuel the growth of the market during the forecast period.

On the basis of application, the commercial and residential segment garnered the largest share in 2021, in terms of revenue, and is expected to grow at a CAGR of 5.5%, owing to rise in demand for transformer systems from homes, commercial building, and others across the regions. In addition, rise in demand for transformers in utility sector for conversion of higher voltage to medium level voltage is anticipated to drive the growth of the market in the coming years.

Region-wise, it is analyzed across North America, and Europe. North America dominated the market in 2021 and is anticipated to maintain this transformers market trend during the forecast period. This is attributed to rise in investment toward smart grid projects and growth in sales of electric vehicles in Europe and the U.S. In addition, presence of major key players in the North America is further anticipated to fuel the growth of the market in the coming years.

The North America & Europe transformers market analysis covers in-depth information of the major Transformers industry participants. The key players operating and profiled in the report include 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.

Key findings

• In 2021, the distribution transformers segment accounted for about 54.68% of the share in the North America & Europe Transformers market and is expected to maintain its dominance during the forecast period.
• In 2021, the small power rating transformers segment accounted for 46.04% market share, and is anticipated to grow at a rate of 5.6% in terms of revenue.
• In 2021, the Air-cooled segment accounted for 67.53% market share and is anticipated to grow at a rate of 5.5% in terms of revenue.
• The commercial and residential sector is the rapidly growing segment in the North America & Europe Transformers market and is expected to grow at a CAGR of 5.5% during 2022–2031.
• In 2021, North America dominated the North America & Europe Transformers market with more than 54.1% of the share, in terms of revenue.