Small Power Transformer Market

The Small power transformer market is anticipated to grow from USD 10,775.3 million in 2023 to USD 14,994.7 million by 2029 with a CAGR of 5.8 % during 2024-2029. Small power transformers are generally those with a capacity of up to 60 MVA (mega-volt-amperes) and are a crucial part of electrical distribution networks. They are very important parts of electrical power distribution systems because they form the final stage in the transference of electricity transmitted through the high-voltage lines to safe levels for use in residential, commercial, and industrial purposes. Small power transformers are properly designed and installed with proper positioning at the distribution level of electricity supply to deliver electricity efficiently to end users. The market is driven by growing demand of renewable energy sources and significant investments in infrastructure development. Small power transformer is essential to integrate renewable energy sources such as solar and wind power into power grid.

Based on cooling type, the small power transformer market has been categorized into oil- cooled and air-cooled. Small power transformers with oil cooling are widely used due to their excellent heat dissipation. One of the main functions of the oil in a small power transformer is to absorb heat generated by the core and windings during electrical energy transformation. As electrical current flows through the transformer, there are losses caused by the resistance in the conductors and hysteresis in the core materials. These losses appear as heat and, if not adequately transferred, may cause the overheating of the transformer's insulating material and even of the transformer components themselves. Oil serves as a thermal transfer fluid, thus sopping up this heat and transferring it away from the central core and windings.

In End User segment, the small power transformer market has been segmented as industrial, utilities, and residential & commercial. Utilities extensively depends on small power transformers in order to transmit and distribute electric power efficiently. small power transformers enable the smooth flow of electricity from generation facilities to distribution substations and, ultimately, to end consumers.

Government initiatives worldwide are transforming the use of small power transformers in the utilities segment. This is primarily through investments in smart grid technologies such as intelligent monitoring and control systems, automation, and grid optimization solutions to deliver efficiency, reliability, and safety of the grid. Moreover, through policies and laws, the governments have made an effort to integrate more renewable sources into the grids. Consequently, power transformers that can sustainably generate electricity from such sources have come into use.

Feed-in tariffs and renewable energy targets encourage utilities to invest in modern grid infrastructure and small power transformers. For example, the European Union’s Clean Energy for All Europeans package encourages utilities to upgrade grid infrastructure to invest in renewable energy integration. Similarly, the US Department of Energy’s Grid Modernization Initiative supports the research and deployment of advanced grid technologies, driving the adoption of next-generation power transformers.

A few of the players operating in the small power transformer market include Hitachi Energy (Japan), Siemens Energy (Germany), Schneider Electric (France), Toshiba Energy System & Solution Corporation (Japan), and General Electric (US), among others.