Transformers Market Outlook:
Transformers Market is estimated to be valued at USD 65.64 billion in 2025 and is expected to grow to USD 175.4 billion by 2040, registering a CAGR of 6.5% during the forecast year 2026-2040. In 2026, the industry size of transformers is estimated at USD 69.97 billion.
The growing demand for modernized power infrastructure is fueling the growth of the global transformers market. Emerging countries and regions are increasingly upgrading their power grids by deploying transformers, which help supply electricity at a stable rate. Rapid population growth has increased the need for high-voltage transformers to enable efficient power transmission and distribution. Demand for transformers in the U.S. is exceptionally high, creating a highly competitive and supply-constrained transformers market. According to estimates from the National Renewable Energy Laboratory, supported by the U.S. Department of Energy’s Office of Electricity and Office of Policy, the U.S. power system comprised approximately 60 to 80 million distribution transformers in late 2024. Furthermore, demand for these transformers is projected to increase by as much as 260% by 2050 compared to 2021 levels, driven by grid modernization, electrification, and rising electricity consumption. Traditional transformers offered limited power capacity, which led to frequent short circuits and restricted service areas. As population levels increased, high-voltage transformers were introduced, enabling wider adoption of transformers. Moreover, improved reliability and reduced maintenance requirements of modern transformers are helping to lower the capital expenditure for governments and utilities. Modernized power systems also incorporate biodegradable oils in coatings, ensuring safety and sustainability, which further supports market growth.
