Global Transformer Core Market Size Likely to Grow at a CAGR of 3.1% By 2034

Transformer Core Market Size

As per the current market research conducted by the CMI Team, the global transformer core market size is expected to record a CAGR of 3.1% from 2025 to 2034. In 2024, the market size is projected to reach a valuation of USD 9.8 billion.  By 2034, the valuation is anticipated to reach USD 12.7 billion.

Transformer Core Market Overview

According to industry experts at CMI, to lower energy losses from eddy currents, laminated sheets of ferromagnetic material—such as silicon steel—are assembled to form the magnetic core of a transformer. It provides the low-reluctance channel’s magnetic flux and allows efficient electromagnetic induction energy transfer between the primary and secondary windings.

Growing power consumption resulting from industrialization and urbanization is driving the demand for transformers and their cores. Public and private sector projects in modernizing old power infrastructure and expanding grid networks also boost transformer core demand.

Transformer Core Market Growth Factors and Dynamics

Technological advancements in transformer core materials

Technological advancements are expected to drive the market growth. By means of Diamond Pattern-Enhanced (DPE) cellulose and Nomex-coated sheets, improvements in insulation materials have raised transformer thermal class by up to 10°C.

This increases transformer lifetime and enhances power-handling capability without adding weight or size. Apart from lower energy losses, transformer efficiency has been significantly boosted by advancements in transformer core materials, hence improving general performance.

Unlike conventional crystalline materials, amorphous metal alloys—like Metglass—reduce core losses by as much as 70–80% by being made by rapidly cooling molten metal to produce a non-crystalline structure that generates low coercivity, low electrical resistance, and high magnetic susceptibility. Thus, technological advancements in transformer core materials drive the market growth.

Stringent energy efficiency regulations

Strict energy efficiency rules have significantly impacted the market for transformer cores by driving material and design innovations to meet higher performance criteria. For instance, the Department of Energy (DOE) modified its energy efficiency standards for distribution transformers in an attempt to reduce energy losses and increase system resilience.

The DOE first proposed that distribution transformers should include roughly 95% amorphous electrical steel. The last rule, however, allows manufacturers greater flexibility by allowing roughly 75% to keep being grain-oriented electrical steel (GOES). The compliance deadline has also been doubled to two years to reflect developments in the sector.

Complex manufacturing process

The complex and time-consuming nature of the transformer core production process has a big impact on the market dynamics. For the best transformer performance, premium materials—like cold-rolled grain-oriented (CRGO) silicon steel—are necessary. To diminish excitation current and core losses, methods such as step-lap stacking are used to decrease local flux concentration.

Report Scope

List of the prominent players in the transformer core market:

• Arteche
• Eilor Magnetic Cores
• Ferroxcube International Holding B.V. (Yageo Group)
• Fuji Electric Co. Ltd.
• KRYFS Power Components Ltd.
• Metglas Inc. (Hitachi Metals Ltd.)
• Nicore Magnetic Cores
• Powercore Industries India Private Limited
• Vilas Transcore Ltd.
• Banmore Electricals Pvt. Ltd.
• NEEL CORE
• CORE Transformers
• Corefficient
• Topline Lamination Pvt. Ltd.
• Others

The Transformer Core Market is segmented as follows:

By Product

• Distribution Transformer
• Power Transformer
• Instrument Transformer

By Winding

• Two Winding
• Auto-transformer

By Cooling

• Dry Type
• Self-Cooled

By Insulation

• Gas
• Oil
• Solid
• Air

By Application

• Residential & Commercial
• Utility
• Industrial

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