electricity from one voltage level to
another for safe and efficient trans-
mission and distribution. Their
functionality spans across power
generation
plants,
transmission
lines, substations, and industrial
complexes. India’s ambition to
ensure 24/7 electricity for all,
integrate renewables into the grid,
and move toward digital infrastruc-
ture makes transformers indispens-
able.
2. Key Market Trends Driving
Capacity Expansion
Market Size and Share Overview
Current Market Size
As of 2024, the Indian transformer
market is valued at approximately
USD 2.3 billion and is expected to
cross USD 4.6 billion by 2030,
growing at a CAGR of around 6.5%.
This growth is largely driven by
new infrastructure projects, aging
grid
replacement
needs,
and
integration of renewable energy
sources.
Market Share by Type
The Indian transformer industry can
be broadly classified into:
• Power Transformers (used in
transmission networks): Account
for about 35% of the market.
• Distribution Transformers (used in
distribution networks): Constitute
50–55% of the market.
• Instrument Transformers (used for
measurement/protection):
Hold
about 10–15% market share.
Distribution transformers domi-
nate the market due to the
government's
ongoing
rural
electrification initiatives and the
growth of urban distribution
networks.
Market Share by Voltage Class
• Low voltage (<33 kV): Dominates
due to rural electrification and
household/industrial needs.
• Medium voltage (33–220 kV):
Significant
in
industrial
and
commercial zones.
• High voltage (>220 kV): Gaining
momentum due to bulk transmission
needs.
2.1 Surge in Renewable Energy
Integration
India’s commitment to install 500
GW of non-fossil fuel capacity by
2030 is directly influencing the
transformer
market.
Renewable
energy plants, especially solar and
wind farms, require step-up trans-
formers to integrate with the nation-
al grid. This is creating demand for
high-voltage, smart, and grid-inter-
active transformers.
2.2 Urbanization and Infrastruc-
ture Growth
Rapid urban expansion is triggering
massive upgrades in power infra-
structure, including the moderniza-
tion of substations and installation
of distribution transformers in new
urban settlements. Smart cities,
metros, and large-scale housing
projects
are
further
propelling
demand.
2.3 Electrification of Transporta-
tion and Industries
With India’s push toward electric
mobility, charging infrastructure
development needs transformers
with high efficiency and thermal
performance. Simultaneously, the
industrial sector’s modernization,
under the “Make in India” and
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57 | June 2025 | www.industrialoutlook.in