Smart Transformers Market Size, Share, Growth, Trends, and Global Industry Analysis: By Type (Power, Distribution, Specialty and Instrument), By Application (Traction Locomotive, Smart Grid, Electric Vehicle Charging), By Components (Converters, Switches, Hardware) and Region

Smart Transformers Market size was valued at US$ 2,413.8 million in 2023 and is expected to grow at a CAGR of 11.3% from 2024-2030. The smart transformers are the devices that are placed between the power grid and the external system location as a buffer. These devices have advanced technologies which can be used to support the power grid. Smart transformers are mainly used for controlling the voltage fluctuations that occur in the power grid. Digitalization of the power grid and the production of alternative current are the key advantages of smart transformers. Increasing investments in developing smart grids, and adopting digitalization in the power sector, are the key driving factors in the growth of the smart transformer market.

In addition to that the primary power grid is connected to renewable solar energy to alter its operation fueling the growth of the global smart transformer market. The increasing focus of the public on generating renewable energy and the integrity of the energy mix drives the market growth in the forecasted years. The use of smart transformers reduces consumption thus saving energy, reducing the balancing cost, helping to level the peak demand of energy, and providing accurate electric bills which provides more opportunities to modernize the grid. The application of transformers in the power grid will make the smart grid work more efficiently and more reliably by regulating the voltage fluctuations at the end user thus making the power grid more efficient. Digitalization is also incorporated into the equipment. This helps the system to improve efficiently like transformers, an integral part of the smart grid which allows it to control the voltage fluctuations independently. whereas the installation cost of smart transformers is way too expensive which is expected to hinder the growth of the smart transformer market. Geographically, the Asia Pacific region held the major market share in 2022 and is expected to dominate the global smart transformers market in the forecasted years.

Smart Transformers Market Key Developments

• In April 2021, Siemens introduced a digital transformer, equipped with digital intelligence and sensors for the transmission of the flow of information which enhances the flexibility and optimizes the operation of the grid.
• In November 2021, ABB launched the world’s 1^st dry oil-free type of digital transformer where the coil and the core are cooled by non-flammable insulation material and air which makes it more compatible with off-shore applications.