The oil-filled power transformer market is projected to expand from USD 15.1 billion in 2025 to USD 25.1 billion by 2034, reflecting a 5.8% CAGR, according to Global Market Insights Inc. The market size in 2024 was estimated at USD 14.1 billion.

Growth is being fueled by investments in transmission grid modernization, renewable energy integration, and rising electricity consumption:

• United States: The Department of Energy allocated USD 18 million in 2023 for nine projects under the FITT program to develop modular, thermally efficient oil-filled transformers for grid reliability.

• Europe: The European Commission forecasts USD 555.5 billion in transmission grid upgrades through 2040, supporting offshore wind and renewable integration.

• Asia-Pacific: Identified as both the largest and fastest-growing market, with India a key emerging country. The region's power generation potential is estimated at 3,664 TWh by 2030, accounting for 25% of global renewable capacity.

• Brazil: In April 2024, contracts worth USD 4.06 billion were awarded for 4,471 km of transmission lines and 9,840 MVA of substation capacity, boosting demand for large oil-filled transformers.

• Africa: Electricity demand is expanding at 4% per year, with growing focus on industrialization and regional grid interconnections.

• Japan: The Ministry of Economy, Trade and Industry (METI) has targeted an 11.4% reduction in transformer power loss by FY2026, driving adoption of high-efficiency oil-filled transformers.

In 2024, Siemens Energy led the market with a 13.5% share, while the top five players -- Siemens Energy, Hitachi Energy, GE Vernova, Mitsubishi Electric, and Hyosung Heavy Industries -- collectively accounted for 45%.

Future opportunities include cross-border interconnections, modular transformer designs, and smart grid adoption, all aimed at creating more efficient and resilient power transmission systems.

Source: gminsights.com