As per the report published by Kings Research, the global Converter Transformer Market Market was valued at USD 2,130.0 million in 2023. The market is projected to reach USD 7,636.3 million by 2031, growing at a CAGR of 17.57% from 2024 to 2031.
The global converter transformer market is experiencing robust growth, mainly driven by the burgeoning demand for electric vehicles (EVs) and the expansion of electric transportation infrastructure. The automotive industry's notable shift toward electrification, coupled with favorable government initiatives to reduce carbon emissions and promote sustainable mobility, is driving the adoption of EVs on a global scale. Converter transformers play a crucial role in EV charging infrastructure, facilitating efficient power transmission and distribution.
Moreover, rapid digitization and automation of industries are increasing the need for reliable and high-performance converter transformers. Industries are increasingly adopting HVDC technology to enhance energy efficiency and reduce transmission losses, thereby augmenting the demand for converter transformers. Additionally, the growing focus on renewable energy microgrids and distributed generation systems is contributing to market growth, as these systems require specialized converter transformers for grid integration.
Key Insights
- Based on capacity, the 401-600 kV segment held the largest market share of 46.78% in 2023
- Based on application, the grid connections segment generated the highest revenue of USD 892.5 million in 2023
- On the basis of region, North America is projected to garner a revenue of USD 1,949.1 million by 2031
Northern Transformer Corporation Acquires VRT Power Ltd from Tel Aviv
May 2023: Northern Transformer Corporation, a prominent Toronto-based manufacturer specializing in power transformers catering to the North American utility sector, acquired products, and designs from VRT Power Ltd. VRT Power Ltd. is widely recognized for its top-notch technology, with over 300 utility-grade power transformers and mobile substations installed across North America. Renowned for its low noise, compact footprint, customized solutions, and demonstrated reliability, VRT Power's offerings have garnered significant attention from leading utility clients.
Modernizing the Grid with Advanced Technology to Drive Market Growth
Converter transformers offer a compelling solution by providing improved efficiency, reliability, and performance compared to traditional transformers. By leveraging advanced technologies and materials, converter transformers enhance energy transmission capabilities, reduce losses, and mitigate downtime, thereby optimizing grid operations. The need for upgrading and replacing aging transformers presents a significant opportunity for the growth of the converter transformer market.
Utilities and grid operators are increasingly investing in modernizing their infrastructure, leading to an increased demand for converter transformers globally. Moreover, regulatory mandates aimed at improving grid resilience and reducing carbon emissions propel the adoption of advanced transformer technologies.
Expansion in Developing Economies Presents Growth Opportunities
The developing regions such as Asia Pacific and Latin America experience burgeoning energy demand driven by population growth and economic development, there is a critical need to expand and modernize their power grids. Converter transformers play a vital role in enabling efficient energy transmission and distribution, particularly in emerging markets charaterized by diverse geographical and environmental challenges.
Additionally, the expansion of renewable energy projects in these regions is resulting in the surging demand for converter transformers, as they facilitate the integration of intermittent renewable sources into the grid. Collaborative efforts focused on knowledge sharing, technology transfer, and capacity building are driving sustainable development and promoting the extensive adoption of converter transformers in emerging markets.
North America to Record Robust Growth, Depicting a CAGR of 19.42% Over 2023-2031
Based on region, the global converter transformer market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. North America is anticipated to register significant growth in the forthcoming years. The rising focus on grid modernization and resiliency in the region, driven by aging infrastructure and the need to bolster reliability, especially in the face of extreme weather events, is propelling regional market growth.
- For instance, during the Texas winter storm of 2021, the vulnerability of the power grid underscored the pressing need for modernization efforts. Converter transformers play a crucial role in enhancing grid resilience and performance, making them indispensable components of modernization projects.
Additionally, the deployment of microgrids presents a promising opportunity for the growth of the North America converter transformer market. Microgrids offer localized power generation and distribution, thereby enhancing grid resilience and supporting energy independence. Converter transformers tailored for smaller-scale applications enable efficient energy flow management within microgrids, thereby facilitating their widespread adoption in various sectors, including universities, military bases, industrial complexes, and remote communities.
Companies Launch Cutting Edge Products to Expand Their Market Reach
The global converter transformer market is fragmented with key players such as Siemens Energy, Schneider Electric, Mitsubishi Electric Corporation, Hitachi Energy Ltd., Emerson Electric Co., Bharat Heavy Electricals Limited, GE Grid Solutions, LLC, ALSTOM SA, ABB, HD HYUNDAI ELECTRIC CO., LTD., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.