Electrical Transformer Market

The global electrical transformer market is projected to show positive growth in both consumption and value over the next eight years. Market performance is forecasted to expand with a CAGR of +1.0% for consumption and -6.1% for value from 2022 to 2030, reaching 8.6B units and $4,092.7B respectively by 2030. Consumption surged by 6.6% in 2022 to 7.9B units, with notable fluctuations over the years. Top consuming countries include China, Hungary, and the United States, while top producing countries are China, Thailand, and South Korea. Electrical transformers with liquid dielectric, under 1 kVA, dominate both consumption and production volume, while exports are led by China with a 33% share. Import prices and export prices exhibit significant variations across different products and countries.

Market Forecast

Driven by increasing demand for electrical transformers worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +1.0% for the period from 2022 to 2030, which is projected to bring the market volume to 8.6B units by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of -6.1% for the period from 2022 to 2030, which is projected to bring the market value to $4,092.7B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Electrical Transformers

In 2022, approx. 7.9B units of electrical transformers were consumed worldwide; surging by 6.6% against the previous year. Over the period under review, the total consumption indicated a strong expansion from 2012 to 2022: its volume increased at an average annual rate of +5.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +81.8% against 2013 indices. Global consumption peaked in 2022 and is expected to retain growth in years to come.

The global electrical transformer market revenue dropped sharply to $6,784.2B in 2022, declining by -22.4% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, the total consumption indicated a pronounced increase from 2012 to 2022: its value increased at an average annual rate of +2.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +42.2% against 2020 indices. As a result, consumption attained the peak level of $8,738.5B, and then fell remarkably in the following year.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (1.4B units), Hungary (1.4B units) and the United States (544M units), with a combined 42% share of global consumption.

From 2012 to 2022, the biggest increases were recorded for Hungary (with a CAGR of +53.8%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, Japan ($5,274.3B) led the market, alone. The second position in the ranking was held by the United States ($996.1B). It was followed by China.

In Japan, the electrical transformer market expanded at an average annual rate of +2.7% over the period from 2012-2022. In the other countries, the average annual rates were as follows: the United States (+1.1% per year) and China (-3.6% per year).

In 2022, the highest levels of electrical transformer per capita consumption was registered in Hungary (142 units per person), followed by Singapore (57 units per person), Hong Kong SAR (21 units per person) and the Netherlands (12 units per person), while the world average per capita consumption of electrical transformer was estimated at 1 units per person.

From 2012 to 2022, the average annual growth rate of the electrical transformer per capita consumption in Hungary stood at +54.2%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Singapore (+14.2% per year) and Hong Kong SAR (+33.5% per year).

Consumption By Type

Electrical transformers with liquid dielectric, of power handling capacity under 1 kVA (7.5B units) constituted the product with the largest volume of consumption, accounting for 95% of total volume. Moreover, electrical transformers with liquid dielectric, of power handling capacity under 1 kVA exceeded the figures recorded for the second-largest type, electrical transformers with non-liquid dielectric, of power handling capacity from 1 kVA to 16 kVA (253M units), more than tenfold. Electrical transformers with non-liquid dielectric, of power handling capacity from 16 kVA to 500 kVA (53M units) ranked third in terms of total consumption with a 0.7% share.

From 2012 to 2022, the average annual rate of growth in terms of the volume of electrical transformers with liquid dielectric, of power handling capacity under 1 kVA consumption amounted to +5.3%. With regard to the other consumed products, the following average annual rates of growth were recorded: electrical transformers with non-liquid dielectric, of power handling capacity from 1 kVA to 16 kVA (+8.4% per year) and electrical transformers with non-liquid dielectric, of power handling capacity from 16 kVA to 500 kVA (-2.9% per year).

In value terms, electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA ($1,712.7B), electrical transformers with non-liquid dielectric, of power handling capacity over 500 kVA ($1,257.1B) and electrical transformers with non-liquid dielectric, of power handling capacity from 16 kVA to 500 kVA ($147.9B) were the products with the highest levels of market value in 2022, together accounting for 92% of the global market.

Among the main consumed products, electrical transformers with non-liquid dielectric, of power handling capacity over 500 kVA, with a CAGR of +25.9%, recorded the highest rates of growth with regard to market size over the period under review, while market for the other products experienced more modest paces of growth.

Production

World Production of Electrical Transformers

In 2022, approx. 7.9B units of electrical transformers were produced worldwide; jumping by 28% against the previous year. Over the period under review, production showed buoyant growth. The growth pace was the most rapid in 2021 when the production volume increased by 55% against the previous year. Global production peaked in 2022 and is likely to see gradual growth in years to come.

In value terms, electrical transformer production reached $4,190.4B in 2022 estimated in export price. Overall, the total production indicated measured growth from 2012 to 2022: its value increased at an average annual rate of +2.4% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -16.5% against 2020 indices. The most prominent rate of growth was recorded in 2020 when the production volume increased by 54%. As a result, production reached the peak level of $5,016.8B. From 2021 to 2022, global production growth remained at a somewhat lower figure.

Production By Country

China (3.7B units) constituted the country with the largest volume of electrical transformer production, comprising approx. 47% of total volume. Moreover, electrical transformer production in China exceeded the figures recorded by the second-largest producer, Thailand (522M units), sevenfold. South Korea (409M units) ranked third in terms of total production with a 5.2% share.

From 2012 to 2022, the average annual growth rate of volume in China stood at +9.8%. The remaining producing countries recorded the following average annual rates of production growth: Thailand (+21.2% per year) and South Korea (+18.1% per year).

Production By Type

Electrical transformers with liquid dielectric, of power handling capacity under 1 kVA (7.5B units) constituted the product with the largest volume of production, comprising approx. 96% of total volume. It was followed by electrical transformers with non-liquid dielectric, of power handling capacity from 1 kVA to 16 kVA (213M units), with a 2.7% share of total production. Electrical transformers with liquid dielectric, of power handling capacity from 1 kVA - 650 kVA (55M units) ranked third in terms of total production with a 0.7% share.

From 2012 to 2022, the average annual growth rate of the volume of electrical transformers with liquid dielectric, of power handling capacity under 1 kVA production totaled +10.3%. With regard to the other produced products, the following average annual rates of growth were recorded: electrical transformers with non-liquid dielectric, of power handling capacity from 1 kVA to 16 kVA (+6.6% per year) and electrical transformers with liquid dielectric, of power handling capacity from 1 kVA - 650 kVA (+10.1% per year).

In value terms, electrical transformers with non-liquid dielectric, of power handling capacity from 16 kVA to 500 kVA ($1,955.4B), electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA ($1,775.8B) and electrical transformers with liquid dielectric, of power handling capacity from 1 kVA - 650 kVA ($89.5B) appeared to be the products with the highest levels of production in 2022, together comprising 97% of global production.

Electrical transformers with non-liquid dielectric, of power handling capacity from 16 kVA to 500 kVA, with a CAGR of +6.8%, saw the highest growth rate of market size among the main produced products over the period under review, while production for the other products experienced more modest paces of growth.

Imports

World Imports of Electrical Transformers

In 2022, supplies from abroad of electrical transformers increased by 2.6% to 9.8B units, rising for the fifth consecutive year after three years of decline. Over the period under review, imports posted a prominent expansion. The most prominent rate of growth was recorded in 2021 with an increase of 274%. Over the period under review, global imports attained the maximum in 2022 and are likely to see steady growth in the near future.

In value terms, electrical transformer imports soared to $19.2B in 2022. Overall, imports saw a relatively flat trend pattern. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports By Country

In 2022, Hungary (1,540M units), Hong Kong SAR (1,131M units), China (935M units), Singapore (688M units), the Netherlands (633M units), Mexico (522M units), Japan (519M units), Italy (509M units) and Malaysia (466M units) represented the major importer of electrical transformers in the world, achieving 71% of total import. The following importers - Germany (301M units), Thailand (283M units), India (283M units) and Vietnam (225M units) - together made up 11% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main importing countries, was attained by Hungary (with a CAGR of +57.3%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the largest electrical transformer importing markets worldwide were Germany ($1.1B), China ($740M) and Hong Kong SAR ($691M), with a combined 13% share of global imports. Mexico, Japan, Thailand, Italy, India, the Netherlands, Vietnam, Malaysia, Singapore and Hungary lagged somewhat behind, together comprising a further 17%.

In terms of the main importing countries, the Netherlands, with a CAGR of +9.1%, saw the highest growth rate of the value of imports, over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

The products with the highest levels of electrical transformer imports in 2022 were electrical transformers with liquid dielectric, of power handling capacity under 1 kVA (9.6B units), together resulting at 98% of total import.

Electrical transformers with liquid dielectric, of power handling capacity under 1 kVA was also the fastest-growing in terms of imports, with a CAGR of +14.6% from 2012 to 2022. The shares of the largest types remained relatively stable throughout the analyzed period.

In value terms, electrical transformers with liquid dielectric, of power handling capacity under 1 kVA ($6.3B), electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA ($4.8B) and electrical transformers with liquid dielectric, of power handling capacity from 650 kVA to 10000 kVA ($2.1B) constituted the products with the highest levels of imports in 2022, with a combined 69% share of global imports.

In terms of the main imported products, electrical transformers with liquid dielectric, of power handling capacity from 650 kVA to 10000 kVA, with a CAGR of +3.5%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other products experienced more modest paces of growth.

Import Prices By Type

In 2022, the average electrical transformer import price amounted to $2 per unit, surging by 12% against the previous year. In general, the import price, however, showed a drastic downturn. The most prominent rate of growth was recorded in 2013 an increase of 34% against the previous year. As a result, import price attained the peak level of $9.4 per unit. From 2014 to 2022, the average import prices failed to regain momentum.

There were significant differences in the average prices amongst the major imported products. In 2022, the product with the highest price was electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA ($1,729 per unit), while the price for electrical transformers with liquid dielectric, of power handling capacity under 1 kVA ($0.7 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA (-2.4%), while the other products experienced a decline in the import price figures.

Import Prices By Country

In 2022, the average electrical transformer import price amounted to $2 per unit, picking up by 12% against the previous year. In general, the import price, however, continues to indicate a abrupt contraction. The most prominent rate of growth was recorded in 2013 when the average import price increased by 34% against the previous year. As a result, import price attained the peak level of $9.4 per unit. From 2014 to 2022, the average import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Germany ($3.5 per unit), while Hungary ($0.1 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+3.2%), while the other global leaders experienced a decline in the import price figures.

Exports

World Exports of Electrical Transformers

Global electrical transformer exports skyrocketed to 9.7B units in 2022, with an increase of 18% compared with the previous year. Overall, exports enjoyed a significant increase. The growth pace was the most rapid in 2021 when exports increased by 526%. Over the period under review, the global exports hit record highs in 2022 and are likely to see steady growth in years to come.

In value terms, electrical transformer exports expanded significantly to $18B in 2022. In general, exports saw a relatively flat trend pattern. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

Exports By Country

China was the key exporter of electrical transformers in the world, with the volume of exports amounting to 3.2B units, which was approx. 33% of total exports in 2022. Hong Kong SAR (1,212M units) took a 12% share (based on physical terms) of total exports, which put it in second place, followed by Thailand (6.9%). The following exporters - the Netherlands (420M units), Singapore (361M units), Malaysia (344M units), Mexico (328M units), South Korea (315M units), Italy (307M units), Vietnam (302M units), India (291M units), Japan (244M units) and the Czech Republic (216M units) - together made up 32% of total exports.

From 2012 to 2022, average annual rates of growth with regard to electrical transformer exports from China stood at +46.0%. At the same time, Vietnam (+59.6%), the Netherlands (+50.7%), India (+42.6%), Hong Kong SAR (+40.3%), Singapore (+34.5%), Mexico (+31.7%), the Czech Republic (+28.5%), Italy (+27.5%), Thailand (+23.7%), Japan (+19.3%), Malaysia (+14.5%) and South Korea (+14.2%) displayed positive paces of growth. Moreover, Vietnam emerged as the fastest-growing exporter exported in the world, with a CAGR of +59.6% from 2012-2022. From 2012 to 2022, the share of China, Hong Kong SAR, the Netherlands, Vietnam and India increased by +24, +7.4, +3.5, +2.8 and +2 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($4.4B) remains the largest electrical transformer supplier worldwide, comprising 25% of global exports. The second position in the ranking was held by Mexico ($1.3B), with a 7% share of global exports. It was followed by Italy, with a 4.9% share.

From 2012 to 2022, the average annual rate of growth in terms of value in China stood at +4.6%. In the other countries, the average annual rates were as follows: Mexico (+1.7% per year) and Italy (+0.5% per year).

Exports By Type

Electrical transformers with liquid dielectric, of power handling capacity under 1 kVA (9.6B units) represented roughly 98% of total exports in 2022.

Electrical transformers with liquid dielectric, of power handling capacity under 1 kVA was also the fastest-growing in terms of exports, with a CAGR of +28.9% from 2012 to 2022. While the share of electrical transformers with liquid dielectric, of power handling capacity under 1 kVA (+5 p.p.) increased significantly, the shares of the other products remained relatively stable throughout the analyzed period.

In value terms, the largest types of exported electrical transformers were electrical transformers with liquid dielectric, of power handling capacity under 1 kVA ($5.9B), electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA ($4.5B) and electrical transformers with liquid dielectric, of power handling capacity from 650 kVA to 10000 kVA ($2.2B), together accounting for 70% of global exports.

Electrical transformers with liquid dielectric, of power handling capacity from 650 kVA to 10000 kVA, with a CAGR of +3.6%, saw the highest rates of growth with regard to the value of exports, among the main exported products over the period under review, while shipments for the other products experienced more modest paces of growth.

Export Prices By Type

In 2022, the average electrical transformer export price amounted to $1.9 per unit, with a decrease of -2.8% against the previous year. Overall, the export price showed a dramatic decrease. The growth pace was the most rapid in 2016 an increase of 16%. The global export price peaked at $24 per unit in 2013; however, from 2014 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by the product type; the product with the highest price was electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA ($2,446 per unit), while the average price for exports of electrical transformers with liquid dielectric, of power handling capacity under 1 kVA ($0.6 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by electrical transformers with liquid dielectric, of power handling capacity over 10000 kVA (+16.0%), while the other products experienced a decline in the export price figures.

Export Prices By Country

The average electrical transformer export price stood at $1.9 per unit in 2022, waning by -2.8% against the previous year. Overall, the export price showed a dramatic setback. The most prominent rate of growth was recorded in 2016 an increase of 16% against the previous year. Over the period under review, the average export prices reached the peak figure at $24 per unit in 2013; however, from 2014 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Mexico ($3.9 per unit), while Singapore ($0.2 per unit) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Thailand (-17.2%), while the other global leaders experienced a decline in the export price figures.

Source: IndexBox Market Intelligence Platform