Instrument Transformer Market

Market Definition

The market focuses on equipment used to convert high voltage or current levels into measurable and standardized values suitable for meters and protection relays. These transformers are essential for monitoring electrical systems, ensuring safety and operational accuracy.

Widely used in substations, switchgear, and grid monitoring, instrument transformers support fault detection, energy metering, and power system analysis. The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Instrument Transformer Market Overview

The global instrument transformer market size was valued at USD 7,262.7 million in 2024 and is projected to grow from USD 7,634.7 million in 2025 to USD 11,295.1 million by 2032, exhibiting a CAGR of 5.75% during the forecast period. 

Market growth is driven by the rising demand for high voltage transmission systems and technological advancements in transformer design. Utilities are upgrading grid infrastructure to handle higher voltages efficiently, while manufacturers are introducing compact, high-precision transformers to improve reliability, performance, and integration in modern substations.

Major companies operating in the instrument transformer industry are ABB, Siemens, General Electric Company, Schneider Electric, ARTECHE, Pfiffner, ITL, CG Power, Mitsubishi Electric, Končar INSTRUMENT TRANSFORMERS Inc., Dyncatech, Horizon Electric, EMEK, REDUR GmbH & Co. KG, and NISSIN ELECTRIC Co., Ltd.

Governments and utilities are investing heavily in grid modernization initiatives to improve the efficiency, reliability, and safety of electricity networks.

These initiatives include upgrades in substation automation, smart monitoring, and real-time fault detection, all of which require high-performance instrument transformers. This increased need for advanced current and voltage measurement devices is contributing significantly to market growth.

• In August 2024, the Government of India approved a USD 433 million investment to modernize power distribution infrastructure in Gurugram and Faridabad under the Revamped Distribution Sector Scheme. The project includes the installation of 20 new gas-insulated substations, 3,500 km of underground cabling, and approximately 5,000 new distribution transformers or compact substations.

Key Highlights

1. The instrument transformer market size was valued at USD 7,262.7 million in 2024.
2. The market is projected to grow at a CAGR of 5.75% from 2025 to 2032.
3. Asia Pacific held a market share of 36.33% in 2024, with a valuation of USD 2,638.5 million.
4. The current transformers (CTs) segment garnered USD 3,356.8 million in revenue in 2024.
5. The liquid-insulated segment is expected to reach USD 4,994.0 million by 2032.
6. The transformer & circuit breaker bushing segment secured the largest revenue share of 39.12% in 2024.
7. The railways & metros segment is estimated to grow at a CAGR of 7.46% through the forecast period.
8. North America is anticipated to grow at a CAGR of 6.63% over the forecast period.

Market Driver

Growing Demand for High Voltage Transmission Systems

The rising need to transfer power over long distances has increased the adoption of high-voltage transmission systems. Instrument transformers are essential for ensuring accurate measurement and relay protection within these networks. 

Their ability to function in extreme electrical environments makes them vital for high-voltage applications. This is boosting deployment volumes and accelerating the growth of the market in global transmission networks.

• In February 2025, construction commenced on the Eastern Green Link 1 (EGL1) project, a significant high-voltage direct current (HVDC) transmission system in the United Kingdom. EGL1 aims to transfer 2 GW of renewable energy from Scotland to England via a 525 kV subsea cable utilizing voltage source converter (VSC) technology.

Market Challenge

High Costs and Complexity of Advanced Instrument Transformers

A significant challenge limiting the growth of the instrument transformer market is the high cost and technical complexity of advanced transformers, particularly those designed for high-voltage and digital applications. These factors deter the utilities and industries from upgrading their equipment promptly.

To address this challenge, key market players are investing in research to develop cost-effective, modular designs that simplify installation and maintenance. They also focus on improving manufacturing processes to reduce expenses while maintaining quality. Additionally, providers offer tailored solutions and strong technical support to help customers navigate complexities.

Market Trend

Technological Advancements in Transformer Design

Advances in insulation materials, compact designs, and smart monitoring capabilities have enhanced the performance and life cycle of instrument transformers. Manufacturers are developing products with higher accuracy, reliability, and thermal stability to meet evolving grid standards. 

These improvements are prompting utility companies to adopt newer models, thereby contributing to the increasing demand for instrument transformer across several voltage levels and configurations.

• In June 2023, Straton Electricals introduced a new line of cycloaliphatic cast resin instrument transformers designed for outdoor applications. These transformers comply with IEC 61869 and IS 16227 standards and feature very low partial discharge levels, enhancing reliability and efficiency in energy transmission and distribution systems.

Instrument Transformer Market Report Snapshot

Segmentation	Details
By Type	Current Transformers (CTs), Potential Transformers (PTs), Combined Instrument Transformers (CITs)
By Dielectric Medium	Liquid-insulated, Gas-insulated, Solid-insulated
By Application	Transformer & Circuit Breaker Bushing, Switchgear Assemblies, Metering & Protection, Primary Metering Units, Others
By End User	Power Utilities, Railways & Metros, Original Equipment Manufacturers (OEMs), Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Current Transformers (CTs), Potential Transformers (PTs), and Combined Instrument Transformers (CITs)): The current transformers (CTs) segment earned USD 3,356.8 million in 2024, mainly due to its critical role in accurate current measurement and protection across diverse power systems.
• By Dielectric Medium (Liquid-insulated, Gas-insulated, and Solid-insulated): The liquid-insulated segment held a share of 48.12% in 2024, due to its superior thermal performance, longer operational life, and cost-efficiency in handling high voltage applications.
• By Application (Transformer & Circuit Breaker Bushing, Switchgear Assemblies, Metering & Protection, Primary Metering Units, and Others): The transformer & circuit breaker bushing segment is projected to reach USD 3,878.5 million by 2032, owing to its critical role in high-voltage insulation and accurate measurement within compact substation designs.
• By End User (Power Utilities, Railways & Metros, Original Equipment Manufacturers (OEMs), and Others): The railways & metros segment is estimated to grow at a CAGR of 7.46% through the forecast period, largely attributed to its continuous investments in electrification and high-reliability power systems, which require accurate monitoring and protection equipment.

Instrument Transformer Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Asia-Pacific instrument transformer market share stood at around 36.33% in 2024, valued at USD 2,638.5 million. Rapid electrification in the region, fueled by population growth and urbanization, is boosting demand. 

Large-scale power infrastructure projects, including new substations and transmission lines, rely heavily on instrument transformers for safe voltage and current measurement. Moreover, governments in Asia Pacific are implementing smart grid programs aimed at improving power reliability and efficiency. 

Smart substations equipped with digital instrument transformers enable better data collection and real-time monitoring. These initiatives increase the adoption of advanced transformer technologies, aiding regional market expansion.

• In March 2025, the State Grid Corporation of China (SGCC) completed the first phase of its ultra-high-voltage (UHV) transmission project, featuring digital instrument transformers for enhanced monitoring and control. This project is part of China's broader strategy to modernize its power infrastructure and support the integration of renewable energy sources.

The North America instrument transformer industry is set to grow at a CAGR of 6.63% over the forecast period. North America’s aging electric grid infrastructure, including substations and transmission lines, is prompting utilities to replace old equipment with modern instrument transformers to improve reliability and safety. 

This large-scale upgrade is boosting demand for advanced, durable measurement devices. Furthermore, the region leads in deploying smart grid solutions, with a major focus on automation, remote monitoring, and digital communication. Instrument transformers compatible with smart substation systems are essential for real-time data and fault detection.

• In January 2025, the U.S. Department of Energy's Grid Deployment Office launched an initiative to modernize the aging electric grid. The program focuses on replacing outdated substations and transmission lines with advanced technologies, including modern instrument transformers that are compatible with smart grid systems. It aims to enhance grid reliability, safety, and efficiency through automation, remote monitoring, and digital communication.

Regulatory Frameworks

• In the U.S., the instrument transformer industry follows guidelines set by the American National Standards Institute (ANSI) and the Institute of Electrical and Electronics Engineers (IEEE). Notably, ANSI/IEEE C57.13 outlines performance requirements for current and voltage transformers, including accuracy classes and testing procedures.
• In Europe, the instrument transformer industry is governed by standards developed by the European Committee for Electrotechnical Standardization (CENELEC). The EN 61869 series, aligned with IEC 61869, specifies requirements for instrument transformers, including accuracy classes, insulation levels, and testing methods.
• In China, the instrument transformer industry is regulated by standards issued by the Standardization Administration of China (SAC). Key standards include GB/T 20840.103-2020, which focuses on the use of instrument transformers for power quality measurement, and JJG 1021-2007, which provides verification regulations for instrument transformers in power systems.
• The Bureau of Indian Standards (BIS) governs the instrument transformer industry in India through standards such as IS 2705 for current transformers and IS 3156 for voltage transformers. These standards outline specifications for design, construction, testing, and performance, aligning with international practices.

Competitive Landscape

Major players in the instrument transformer market are adopting strategies, such as launching advanced, application-specific products, and focusing on high-performance designs to meet evolving grid challenges. 

These efforts are aimed at strengthening product portfolios, building technical credibility, and addressing the growing demand for durable solutions in harsh environments. By prioritizing innovation tailored to high-voltage and extreme operations, companies are expanding their customer base and reinforcing brand reliability.

• In February 2025, Arteche introduced the URNR-TR-36, a VFTO-resistant dry-type outdoor voltage transformer designed for durability in extreme conditions. This strengthens Arteche’s position in high-power voltage instrument transformers, enhancing its credibility, market reach, and expertise in VFTO-resistant technology.

List of Key Companies in Instrument Transformer Market:

• ABB
• Siemens
• General Electric Company
• Schneider Electric
• ARTECHE
• Pfiffner
• ITL
• CG Power
• Mitsubishi Electric
• Končar INSTRUMENT TRANSFORMERS Inc.
• Dyncatech
• Horizon Electric
• EMEK
• REDUR GmbH & Co. KG
• NISSIN ELECTRIC Co., Ltd.

Recent Developments (Expansion)

• In January 2025, CG Power and Industrial Solutions Limited approved the establishment of a greenfield transformer manufacturing facility in Western India, with an annual capacity of 45,000 MVA. The plant will produce power transformers ranging from 220 kV to 765 kV for domestic and international markets.
• In April 2024, Hitachi Energy announced an investment of over USD 1.5 billion to expand its global transformer manufacturing capacity by 2027, including a USD 180 million facility in Finland. The expansion focuses on meeting the growing demand for high-power voltage instrument transformers while promoting digitalization, sustainability, and innovation.