Transformer Monitoring Market

Transformer Monitoring Market Overview

The Transformer Monitoring Market size was valued at USD 2.76 billion in 2023 and is predicted to reach USD 5.34 billion by 2030 with a CAGR of 9.3% from 2024-2030. Transformer monitoring or transformer diagnostics refers to the set of technologies, solutions, and services designed for efficient and reliable operation of power transformers. It involves the continuous monitoring and analysis of various parameters such as temperature, oil level, vibration, and electrical characteristics of transformers.

By employing sensors, communication systems, and advanced analytics, these solutions enable real-time detection of anomalies, predictive maintenance, and optimization of transformer performance. The consumers of this market are the utilities, industrial facilities, and energy infrastructure operators, whose purpose is to improve overall operational efficiency and reduce maintenance costs. 

Market Dynamics and Trends

The transformer monitoring market growth is experiencing significant demand, propelled by increasing investments in the electricity grid infrastructure. As more funds are allocated to enhance the electricity grid, there arises a pressing need for advanced monitoring solutions for ensuring the grid reliability, early fault detection, minimizing downtime, and optimizing transformer performance. 

According to data from the World Economic Forum (WEF), global investments in the electricity grid are projected to grow from USD 300 billion in2023 to USD 680 billion by 2030 and about 1 trillion by 2040. Such huge growth in the clean energy investment drives the demand for robust monitoring systems to safeguard the integrity and efficiency of the grid, boosting market growth. 

Also, the worldwide surge in renewable energy capacity, aimed at fulfilling the growing need for clean energy sources such as wind and solar power, further propels the transformer monitoring industry. These monitoring systems play a crucial role in ensuring the efficient operation of renewable energy assets by closely tracking their performance and optimizing energy production. 

According to the data from the International Energy Agency (ITA), the global investment in renewable power rose from USD 596 billion in 2022 to USD 659 billion in 2023. This substantial investment indicates a strong commitment to transitioning towards sustainable energy systems, driving the demand for advanced monitoring solutions to support this transition.

Moreover, the growing urban population across the globe is further boosting the market expansion by increasing the demand for reliable and efficient power supply in densely populated areas. As per the projections from the World Bank, the global urban population is expected to increase by 1.5 times, reaching 6 billion by 2045. As urbanization accelerates, the strain on existing power infrastructure intensifies, necessitating advanced monitoring solutions to ensure continuous and stable electricity distribution. 

However, the high installation costs of transformer monitoring systems pose a significant barrier to adoption, particularly among smaller entities such as local power utilities and small-scale industries, restraining the growth of the market. On the contrary, the integration of cloud computing is expected to create ample opportunities in the transformer monitoring market expansion in the coming years. Cloud-based solutions offer advanced data analytics, real-time monitoring, and remote management capabilities, enhancing the efficiency and reliability of transformer operations. 

Market Segmentations and Scope of the Study

The transformer monitoring market report is segmented on the basis of component, type, services, voltage, application, and region. On the basis of components, the market is segmented into hardware and software.  On the basis of type, the market is classified into oil-immersed, cast-resin, and others. On the basis of services, the market is divided into oil monitoring, bushing monitoring, partial discharge monitoring, OLTC monitoring, and others. On the basis of voltage, the market is categorized into low voltage, medium voltage, and high & extra high voltage. On the basis of application, the market is distributed into distribution transformers, power transformers, and others. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Geographical Analysis

Asia-Pacific region dominates the transformer monitoring market share and is expected to continue its dominance during the forecast period. This is attributed to the growing investments in clean energy such as solar and wind, that require transformers for maximizing energy production from renewables. 

A report from Carbon Brief stated that China is experienced a 40% year-on-year surge in clean energy investment, reaching USD 890 billion in 2023. With such rise in the investments in renewable energy infrastructure, the need for reliable and efficient transformer monitoring is poised to rise, boosting the market growth in this region. 

Furthermore, the rapid expansion of the manufacturing sector in the Asia-Pacific region is further driving the growth of the market in this area. According to a recent report by the Government of India (GoI) published in December 2022, the manufacturing sector grew at an annual rate of 11.8% for the year 2021-22. 

This robust growth in manufacturing activities is contributing to the increased demand for various industrial technologies and solutions, including transformer monitoring, thereby fueling market expansion across the region.On the other hand, North America is expected to show a steady rise in the transformer monitoring market. This is due to the growing urban population and the increasing demand for electricity in the region.

According to estimates released by the U.S. Census Bureau in November 2023, the overall population of the U.S. is anticipated to expand by 9.7% from 2022. This population growth, coupled with the corresponding rise in urbanization, is boosts the demand for efficient electricity distribution and reliable transformer monitoring systems, thereby boosting the market in the coming years.

In addition, the increasing electricity generation in the North American region is making power utility providers shift towards effective and dependable power generation infrastructure. This focus on reliability and efficiency is one of the main factors behind the expansion of the market in the region. 

According to a report from Our World Data, the per capita electricity generated in the U. S. rose from 12,325-kilowatt/hour in 2021 to 12,672-kilowatt/hour in 2022.  As electricity demand continues to rise in this region, the need for efficient transformer diagnostics becomes crucial, boosting the growth of the market in this region.

Competitive Landscape

Various key market players operating in the transformer monitoring industry include General Electric, Siemens Energy AG, Schneider Electric, ABB Ltd., Eaton Corporation plc., Honeywell International Inc., KONCAR Group, Bitlismen, Mitsubishi Electric Automation, Inc., Qualitrol and Others. 

These market players continue to adopt various market development strategies including business expansion and partnership to maintain their dominance in the market. For instance, in October 2023, Eaton expanded its manufacturing capacity with 85 million USD investment plan in Queretaro, Mexico. The investment aims to meet the growing demand for solutions vital to undergrounding power lines and enhancing energy resilience, supporting electric grid infrastructure projects.

Moreover, in September 2023, GE Vernova's Grid Solutions business partnered with Amprion, a German transmission system operator for twelve 400 KV power transformers. The partnership was aimed at increasing the power supply with a capacity exceeding 5,000 MVA in Germany. 

Key Benefits

• The report provides quantitative analysis and estimations of the transformer monitoring market from 2024 to 2030, which assists in identifying the prevailing market industry.

• The study comprises a deep-dive analysis of the current and future transformer monitoring market trends to depict prevalent investment pockets in the industry.

• Information related to key drivers, restraints, and opportunities and their impact on the transformer monitoring industry is provided in the report. 

• Competitive analysis of the key players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated on the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Transformer Monitoring Market Key Segments

By Component 

• Hardware Solutions

• Software Solutions

By Type 

• Oil-Immersed
• Cast-Resin
• Others

By Services

• Oil Monitoring

• Bushing Monitoring

• Partial Discharge Monitoring

• OLTC Monitoring

• Others

By Voltage

• Low Voltage

• Medium Voltage

• High & Extra High Voltage

By Application

• Distribution Transformers

• Power transformers

• Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 2.76 Billion
Revenue Forecast in 2030	USD 5.34 Billion
Growth Rate	CAGR of 9.3% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The increasing investments in the electricity grid infrastructure is driving the market. The worldwide surge in renewable energy capacity, further boost the market. The growing urban population is propelling the market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

Key Players

• General Electric

• Siemens Energy AG

• Schneider Electric

• ABB Ltd.

• Eaton Corporation plc.

• Honeywell International Inc.

• KONCAR Group

• Bitlismen

• Mitsubishi Electric Automation, Inc.

• Qualitrol