Global Isolated Transformer Market Size Likely to Reach at a CAGR of 5.76% By 2034

Global Isolated Transformer Market size was valued at USD 2145.10 Million in 2025 and is expected to reach USD 3163.95 Million by 2034, at a CAGR of 5.76% during the forecast period 2025 – 2034.

Isolated Transformer Market: Overview

An isolated transformer is a device that transfers electrical power from an alternating current source to machinery or equipment while electrically isolating the powered device from the power source. This isolation allows for safety by reducing transients and the risk of electric shock, increasing the reliability of sensitive equipment. Isolated transformers are essential in industries like medicine, electronics, and energy because they provide stable power and protect devices from surges or noise.

The growing energy consumption driven by urbanization and industrial activities is contributed to the adoption of isolated transformers. These transformers enhance power quality and ensure the reliable operation of sensitive electronic equipment, particularly in industries like UPS (Uninterruptible Power Supply) systems and inverters.

For instance, according to the International Energy Agency (IEA), India’s energy consumption is expected to rise by 35% between 2019 and 2030. This drives the demand for reliable power solutions and boosts the adoption of isolated transformers.

The growing acceptance of remote monitoring and smart grid technologies increases the isolated transformers in industrial applications. These transformers support predictive maintenance and operational efficiency in infrastructure like manufacturing plants and power distribution systems.

The rapid growth of data centers offers growth opportunities for the isolated transformer market. Data centers depend on isolated transformers to maintain an uninterrupted power supply and protect sensitive hardware from electromagnetic interference. Companies like Google and Amazon made substantial investments in data center infrastructure, driving the demand for advanced isolation transformers.

The initial cost of isolated transformers is high, and the complexity of installation and maintenance are barriers to market growth, mainly for small and medium-sized enterprises. The need for skilled labor further adds to the challenges organisations face in adopting these systems.

The global isolated transformer market is segmented by phase, by type, by application, and by region. Based on the Phase, the single-phase segment is currently leading the market. It is anticipated to do so for the foreseeable future due to the increasing demand in small commercial and residential applications.

Single-phase transformers are favoured because of their ease of usage, cost, and simplicity of installation, mainly as more residential structures and home automation systems are constructed. The transformers provide a steady and dependable power source suitable for low power requirements. Large commercial buildings, power plants, and manufacturing facilities are important markets for the three-phase segment.

The Asia-Pacific region presents a massive opportunity due to its rapid urbanization, growing demand for electronic equipment, and government initiatives like India’s Integrated Power Development Scheme (IPDS). For example, Taiwan’s production of electric power equipment grew significantly from 2019 to 2022, as noted by the International Trade Administration. This growth drives the demand for isolated transformers globally.

Industry leaders like ABB, Siemens, and Schneider Electric are pursuing mergers, acquisitions, and partnerships to strengthen their market position. For instance, Siemens has focused on expanding its portfolio of smart transformers to meet the rising demand for energy-efficient solutions in the industrial and residential sectors.

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Isolated Transformer Market: Recent Development

In August 2024, HALO Electronics launched a series of low-cost, miniature SMD DC/DC converters with enhanced functionality for diverse applications. Its IEEE802.3ch compliant 2.5GBASE-T1 isolation transformers, declared in January 2022, lead to high-speed Ethernet applications in the automotive and aerospace sectors, marking a significant advancement in transformer technology.