The global transformer market is projected to grow from US$68 billion (R1,26 trillion) in 2025 to US$128,9 billion (R2,38 trillion) by 2035, according to a new report by Future Market Insights (FMI). This reflects a compound annual growth rate (CAGR) of 6,6% over the period.
FMI’s analysis identifies key breakpoints across the decade. Between 2027 and 2028, the market is expected to expand from US$82,4 billion to US$87,8 billion (R1,52 trillion-R1,62 trillion), signalling a shift from incremental upgrades to grid-scale retrofits driven by interconnection projects and smart substation initiatives. The CAGR is projected to rise to 7,1% between 2027 and 2030, reflecting an equipment refresh cycle, before moderating to 6,4% from 2030 to 2035 as the market stabilises beyond the US$100 billion (R1,85 trillion) mark.
By product type, power transformers are expected to account for 46% of market share in 2025 while distribution transformers are projected to make up around 40%. Distribution units are forecast to dominate overall volumes with nearly 60% of the combined power and distribution segment. Utilities are expected to consume close to 50% of distribution transformer demand, industries about 45% and residential/commercial users the remainder.
Within design types, closed-core transformers are projected to lead with a 39% share in 2025 while two-winding transformers are expected to make up 68% of the winding segment. Three-phase systems are forecast to represent about 70% of sales, underlining the dominance of utility-scale and industrial applications. Oil-immersed transformers are anticipated to account for roughly 60-62% of the insulation segment while dry-type units are projected to comprise 38-40%.
