Global Oil Immersed Power Transformer Market Size Likely to Grow at a CAGR of 6.3% By 2033

As per the current market research conducted by CMI Team, the global Oil Immersed Power Transformer Market size is expected to record a CAGR of 6.3% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 23.2 Billion. By 2033, the valuation is anticipated to reach USD 30.3 Billion.

Oil Immersed Power Transformer Market: Growth Factors and Dynamics

• Growing Demand for Oil-Immersed Transformers: Such transformers are now deemed to be inevitable in handling heavy power transmission lines. With increasing energy needs, this expands and develops their grids as it becomes indispensable for these nations to meet their respective power requirements through stable power supply. Rapid urbanization and industrial growth also support the growth because a stable power supply becomes very essential to such economic activities. Advances transformers for existing grids are needed to support variability in power loads coming from renewables and hence there must be constant market demand.

• Renewable Energy: The goal set by various governments in different parts of the world on renewables created a sudden, high demand for oil-immersed transformers that can handle inputs coming from solar and wind power regarding changes in the level of power. In addition, when countries increasingly add renewable capacity, demand for oil-immersed transformers that can absorb variable energy inputs efficiently arises.

• New Trends in Transformer Technology: New cooling technologies, better quality insulation, and digital monitoring have increased the transformer’s life span and reliability. For example, sensors and digital monitoring provide real-time information about the health of transformers, thus allowing predictive maintenance and less outage. Such advancements not only contribute to saving energy but also cut down the operational cost, which makes oil-immersed transformers a good investment. The pressure for cheap yet reliable solutions is forcing manufacturers to take up and develop new technologies.

• Environmental Regulations and Eco-Friendly Oils: More stringent regulations in oil disposal and emission into the environment are driving the industry to seek alternatives for such oils as mineral oils carry risks of pollution when disposed of. Therefore, these bio-based oils are safe and efficient at the same time. It also serves the aim of global sustainability and, in this context, enhances the attractiveness of oil-immersed transformers mainly for those regions demanding stricter regulation. Adopting environmentally-friendly oils not only creates a low environmental impact but also helps companies comply with corporate social responsibility about improving their market position mainly in areas with higher environments.

• High initial investment costs and operating costs: High capital investment and maintenance costs make the adoption of oil-immersed power transformers for some utilities and companies. The cost of installation, transportation, and periodic maintenance is too high, particularly if it is installed in an inaccessible location. Long-term advantages are highly prized in such transformers, but their high upfront cost makes these relatively fewer in number amongst small companies or those without the required finances. Nevertheless, the manufacturers have countered this problem of high up-front investments by making more efficient products and getting greater economies of scale by designing using better technology and innovative design.

• Decentralized Energy Systems: Large oil-immersed transformers are essential for transmission. However, with the necessity of localized grids, compact size, and efficient transformers are in great demand. This would give the innovative manufacturers a stimulus to bring out transformers that are adaptive for both their centralized and decentralized applications hence altering the scenario in the market.

Oil Immersed Power Transformer Market: Partnership and Acquisitions

• In 2023, Hitachi Energy launched the TXpert Hub, a digitalization tool that aggregates and analyzes data from digital sensors. This innovation enhances transformer management and performance, supporting advanced monitoring capabilities.

• In 2022, ABB partnered with Samsung Electronics to develop energy conservation technologies that integrate IoT into residential and commercial buildings, aiming to improve overall energy efficiency.

• In 2021, ABB & Mitsubishi Electric collaborated to manufacture transformers utilizing advanced amorphous metal core technology, enhancing efficiency and reliability for demanding applications.

Report Scope

Oil Immersed Power Transformer Market: COVID-19 Analysis

• Positive Impact: The world focused more attentively on reliable infrastructure- the energy systems-the pandemic forced it. Governments and utilities pushed on with infrastructure plans that increased the resilience of the grid, which therefore increased demand for oil-immersed power transformers. The huge increase in remote work shifted the nature of residential demand to increase significantly, driving up stable transformers that were able to absorb the increase and even constant loads as well. Besides, most stimulus packages were directed at the economy through green initiatives and the modernization of the grid, hence pushing transformer demand upwards. Investments in green infrastructure have increased the demand for the oil-immersed transformer as the shift towards renewable sources of energy will require significant stable integration of renewables, including solar and wind energy.

• Negative Impact: COVID-19 caused a shutdown in the global supply chain that adversely affected the oil-immersed transformer market due to delays in raw material supply, manufacturing, and transportation. Lockdowns in the major manufacturing countries briefly halted production, causing projects to be delayed. Many companies deferred or scaled down infrastructure investments due to the economic crisis, thus lowering the short-term demand for new transformers. Energy-intensive industries suffered due to fluctuating oil prices. In some areas, scheduled grid expansions were put on hold, hence transformer orders and growth stalled in those places. Delays, along with logistical issues, highlighted the fact that energy companies needed robust and diversified supply chains.

• Current Market Scenario: Gradual growth is observed in the oil-immersed transformer market because infrastructure projects have resumed, and high demand for energy reliability because economies are recovering. Renewables integration calls for an investment in grid upgrade activities that support oil-immersed transformers. Manufacturers optimize the efficiency and eco-friendliness of transformers to achieve sustainability goals and emerging environmental standards. Companies diversified their suppliers and increased inventories to avoid future supply shocks. Moreover, pressure is still growing on markets for achieving carbon neutrality, and the management of sustainable traditional and renewable power sources cannot dispense with oil-immersed transformers.

List of the prominent players in the Oil Immersed Power Transformer Market:

• ABB Group
• Siemens AG
• Schneider Electric SE
• General Electric Company (GE)
• Eaton Corporation PLC
• Mitsubishi Electric Corporation
• Hitachi Energy Ltd.
• Toshiba Corporation
• Fuji Electric Co. Ltd.
• Crompton Greaves Power Products Ltd.
• Voltamp Transformers Limited
• Hammond Power Solutions Inc.
• Bharat Heavy Electricals Limited (BHEL)
• SGB-SMIT Group
• North American Electric Reliability Corporation (NERC)
• Others

The Oil Immersed Power Transformer Market is segmented as follows:

By Installation Type

• Pad-Mounted
• Pole-Mounted
• Substation Installation

By Voltage

• Low Voltage
• Medium Voltage
• High Voltage

By Phase

• Single-Phase
• Three-Phase

By End-User

• Industrial
• Residential & Commercial
• Utilities

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America