Global Oil Immersed Power Transformer Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the global Oil Immersed Power Transformer Market is expected to record a CAGR of 5.4% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 22,616.8 Million. By 2033, the valuation is anticipated to reach USD 36,307.6 Million.

Temperature Rise Limits at Rated Power According to IEC 60076-2

Source: According to UN Environment Org

The oil immersed power transformer market involves the production and deployment of power transformers that use oil for insulation and cooling. These transformers are essential in electrical power systems for stepping up or down voltage levels to ensure efficient power transmission and distribution. They are commonly used in substations, industrial applications, and utility networks.

The market is driven by infrastructure development, increasing energy demands, and technological advancements. Innovations include enhanced insulation materials, digital monitoring, and integration with smart grid systems, aiming to improve efficiency, reliability, and environmental sustainability in power systems globally.

Oil Immersed Power Transformer Market – Significant Growth Factors                  

The Oil Immersed Power Transformer Market presents significant growth opportunities due to several factors:

• Growing Energy Demand: The continuous need for electrical energy for countries’ expanding urbanization and industrialization create the need for an efficient power transmission system including the oil immersed power transformers.

• Infrastructure Development: The investments in new generation and transmission, distribution networks put forward the demand for oil immersed power transformers to meet the development requirement.

• Technological Advancements: Advancements such as better insulating fluids and increased application of digital monitoring systems increase the efficiency of the oil immersed power transformers hence their use.

• Renewable Energy Integration: The shift towards the use of renewable energy resources is an opportunity through which oil immersed power transformers could help in the integration as well as the balancing of fluctuating renewable energy sources in the power systems.

• Modernization of Aging Infrastructure: The aspects such as a requirement for new oil immersed transformers for replacement and upgrade of old power transformers in the existing infrastructure of power transmission and distribution, create opportunities for new advanced power transformers in ageing power networks.

Oil Immersed Power Transformer Market – Key Developments

The Oil Immersed Power Transformer Market has seen several key developments in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of key developments in the Oil Immersed Power Transformer Market include:

• In 2023, Hitachi Energy launched the next-generation TXpert Hub, a key component of its transformer digitalization ecosystem. The TXpert Hub aggregates, stores, and analyzes data from digital sensors, enabling advanced monitoring and enhancing transformer management and performance.

• In 2022, ABB and Samsung Electronics have teamed up to develop technologies focused on energy conservation, efficient energy management, and integrating the Internet of Things (IoT) in residential and commercial buildings, enhancing overall energy efficiency and smart building solutions.

• In 2021, ABB and Mitsubishi Electric have partnered to develop and manufacture transformers using advanced amorphous metal core technology. This collaboration combines their expertise to produce high-performance, compact transformers suited for demanding applications, enhancing efficiency and reliability.

These key developments helped companies expand their offerings, improve their market presence, and capitalize on growth opportunities in the Oil Immersed Power Transformer Market. The trend is expected to continue as companies seek to gain a competitive edge in the market.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

Oil Immersed Power Transformer Market – Significant Threats

The Oil Immersed Power Transformer Market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Environmental Regulations: Increasing environmental regulations and policies on the use of insulating oils can impact the market. Stricter rules on oil disposal and emissions require companies to invest in more sustainable and environmentally friendly alternatives.

• Raw Material Costs: Fluctuations in the prices of raw materials, such as copper and steel, which are essential for transformer manufacturing, can affect production costs and profitability, potentially leading to higher prices for end-users.

• Technological Disruptions: Advances in alternative transformer technologies, such as dry-type transformers or superconducting transformers, could reduce the demand for traditional oil immersed power transformers as industries adopt more innovative solutions.

• Supply Chain Disruptions: Global supply chain issues, including delays in obtaining components and materials, can disrupt production schedules and impact the timely delivery of oil immersed power transformers.

• Market Competition: Intense competition from established and emerging players can pressure profit margins and reduce market share for companies in the oil immersed power transformer industry, necessitating continuous innovation and cost management.

Category-Wise Insights:

By Installation

• Pad Mounted: Pad mounted oil immersed power transformers are mounted on a concrete pad at ground level and are further enclosed in a steel cabinet for safety as well as an appealing look. They are mostly installed in distribution networks of residential, commercial or industrial regions. The global pad-mounted transformers market is being influenced by factors such as rising urbanisation and the requirement for improved safe and efficient power delivery systems. Improvements in insulating material have also been cited as a driving factor, not forgetting integration in smart grids as well.

• Pole Mounted: Residential type oil immersed pole mounted power transformers are mounted on utility poles, usually utilized for the distribution of electrical energy located in the rural or low-density regions. These are small in size and much more suited for working on low voltage systems. The rising interest in advancing rural electricity and upgrading the existing power networks in emergent countries is driving the demand. Moreover, the trends of lighter and more compact solutions are the key drivers for new solutions in pole-mounted transformers.

• Substation Installation: Oil immersed power transformers utility is to step up or step down the voltage level in high-capacity transmission network which is installed in electrical substations. They are also big and are presumed to be highly reliable and very efficient. The increase in electricity consumption along with planned upgrades to the power grid and the addition of renewable energy generation is why substation installed transformers are required. Advancements in cooling systems and new smart monitoring technologies are also defining the market.

By Phase

• Single Phase: Single-phase oil-immersed power transformers are typically used in residential and light commercial applications. They are known for their simplicity, lower cost, and ease of installation. Recent trends emphasize the growing demand for rural electrification and renewable energy integration, driving the adoption of single-phase transformers. Enhanced efficiency and compact designs are key focus areas, catering to the expanding need for decentralized power distribution.

• Three Phase: The large power industrial, commercial power and large power generation systems are dependent on the three-phase oil immersed power transformers. It provides a higher efficiency and power quality in cases of high-load power applications. Some trends in this segment are the use of smart grids and digital monitoring and advancements such as green transformer oils. The growing use of renewable energy options and the need for distribution transformers with higher power ratings are the main factors that will fuel demand.

By Voltage

• Low Voltage: Low voltage oil-immersed power transformers typically operate below 1 kV. These transformers are used in residential and small commercial applications. The market is witnessing trends toward increased energy efficiency and reduced environmental impact, with the adoption of biodegradable oils and enhanced cooling systems. Growth is driven by urbanization and the expansion of smart grids, particularly in developing regions, where reliable and efficient power distribution is essential.

• Medium Voltage: Oil immersed power transformers having voltage ratings from 1 KV to 35 KV are used in industries and large commercial establishments. Some of the trends found in this segment are the incorporation of smart monitoring in the transformers for the prognosis of their necessity for maintenance and other aspects touching on the improvement of transformer losses. The transition to more environmentally friendly energy sources including wind and solar power is also contributing towards the same since these transformers are very essential in transmitting and distributing electricity.

• High Voltage: High voltage oil-immersed power transformers, operating above 35 kV, are critical for large-scale power generation and transmission networks. The market is driven by trends such as the modernization of aging power infrastructure, especially in developed regions, and the growing emphasis on grid stability. Innovations in materials and cooling technologies are enhancing the performance and longevity of these transformers, making them essential for handling the high demands of modern electrical grids.

By End Users

• Industrial: The industrial segment of the Oil Immersed Power Transformer Market includes transformers used in factories, refineries, and manufacturing plants for high-voltage power distribution and machinery operation. Increasing industrialization, particularly in emerging economies, is driving demand. Additionally, the push towards energy-efficient operations and the integration of smart grid technology are boosting the adoption of advanced transformers in industrial settings.

• Residential: The residential segment covers oil-immersed power transformers used in residential areas for electricity distribution, ensuring stable power supply to homes and small communities. Growing urbanization and the expansion of residential infrastructure in developing regions are key drivers. There is also an increasing focus on reliability and reducing energy losses, leading to the adoption of more efficient transformers in residential networks.

• Commercial: The commercial category includes transformers used in offices, malls, hospitals, factories and other commercial spaces as in distribution of power and management of energy. The increase of business-related constructions particularly in urban areas is the main reason for the increase of demand. Furthermore, the increase of green buildings and the necessity for reliable power in commercial facilities also drive the demand for efficient high-capacity transformers.

• Utilities: In the utilities segment, there are transformers which are help utilized by power generation & distribution companies for the distribution & management of power across the various power grids. The gradual updating of rather old grids’ equipment and the connection of renewable power sources. Grid utilities are investing in new advanced transformers to increase the efficiency and reliability to enhance the stability of the grids for accommodating fluctuating generation.

Report Scope

Oil Immersed Power Transformer Market – Regional Analysis

The Oil Immersed Power Transformer Market is segmented into various regions, including North America, Europe, Asia-Pacific, and LAMEA. Here is a brief overview of each region:

• North America: In the North American region, the demand for the oil immersed power transformers is attributed to the modernization of infrastructure and smart grid. Strengthening and upgrading of transformers, substations and other related equipment has been needed due to increasing age and hence these have called for more investments in high technology transformer systems.

• Europe: There are numerous factors affecting the proposed European market including; Stringent environmental policies and social concern over the environment more so in the developed countries. Smaller oil immersed power transformers with better environmental compliance requirements are required by the market in terms of ecofriendly and energy efficiency. European countries are also practising grid modernization, and integration of renewable energy sources which have put pressure on the transformer makers to innovate and come up with new technologies.

• Asia-Pacific: Factors such as; Industrialization and urbanization present in the Asia-Pacific region are some of the growth stimulants for the oil immersed power transformer market. Increasing extensions with infrastructure, especially in developing countries, result in higher demand for efficient power transmission networks. Also, continuous investment in power generation and transmission and government policies foster market growth in this region.

• LAMEA (Latin America, Middle East, and Africa): In LAMEA, the oil immersed power transformer market is driven by increasing infrastructure development and rural electrification efforts. Many countries in this region are investing in power grid expansion and upgrading existing infrastructure to improve energy access and reliability. Additionally, the need for cost-effective and durable transformers is prominent in emerging markets with growing energy demands.

Competitive Landscape – Oil Immersed Power Transformer Market

The Oil Immersed Power Transformer Market is highly competitive, with a large number of manufacturers globally. Some of the key players in the market include:

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

These companies operate in the market through various strategies such as innovation, mergers and acquisitions, and partnerships.

Emerging companies like XCMG Machinery Co., Ltd. and SANY Group are entering the Oil Immersed Power Transformer Market with innovative features such as advanced automation, fuel efficiency, and smart technology integration.

They focus on developing cost-effective solutions and expanding into new geographic markets. Dominant players such as Caterpillar Inc. and John Deere & Company lead the market through extensive R&D, high-performance machinery, and strong distribution networks. Their established reputation, technological advancements, and comprehensive service support solidify their market dominance.

The Oil Immersed Power Transformer Market is segmented as follows:

By Installation

• Pad Mounted
• Pole Mounted
• Substation Installation

By Phase

• Single Phase
• Three Phase

By Voltage

• Low
• Medium
• High

By End Users

• 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