Isolated Transformer Market Size, Share, Trends, Growth 2034

Isolated Transformer Industry Prospective:

The global isolated transformer market size was worth around USD 2.2 billion in 2024 and is predicted to grow to around USD 3.8 billion by 2034, with a compound annual growth rate (CAGR) of roughly 5.6% between 2025 and 2034.

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Isolated Transformer Market: Overview

An isolated transformer is a type of transformer that transfers electrical power from an alternating current (AC) source to a device or piece of equipment, while keeping the powered device separate from the power source. This is usually done for safety or to cut down on transients and harmonics. Isolation transformers provide galvanic isolation by cutting off any conductive channels between the source and the load. This separation is used to keep people from getting shocked, to cut down on electrical noise in sensitive equipment, and to move power between two circuits that shouldn't be connected.

A transformer that is offered for isolation often has more insulation between the primary and secondary windings. It is also made to handle a high voltage between them.

Key Insights

• As per the analysis shared by our research analyst, the global Isolated Transformer market is estimated to grow annually at a CAGR of around 5.6% over the forecast period (2025-2034).
• In terms of revenue, the global Isolated Transformer market size was valued at around USD 2.2 billion in 2024 and is projected to reach USD 3.8 billion by 2034.
• The expansion of the healthcare sector, especially in developing regions, is expected to drive the isolated transformer industry over the forecast period.
• Based on the phase, the single phase segment is expected to hold the largest market share over the forecast period.
• Based on the type, the dry isolation transformer segment is expected to dominate the market expansion over the projected period.
• Based on the application, the power transmission & distribution segment is expected to dominate the market expansion over the projected period.
• Based on region, the Asia Pacific is expected to dominate the market during the forecast period.

Isolated Transformer Market: Growth Drivers

Growing application in the medical field drives market growth

The isolated transformers are employed in the medical field because they protect users from electric shock and lessen electrical noise that could harm delicate equipment by preventing accidental human contact with a live conductor.

Among the most common devices that require medical-grade isolation power transformers are MRI scanners and CT scanners. New facilities are being built in many countries across the world, which facilitates the increased adoption of MRI systems and accelerates market expansion.

For instance, a state-of-the-art MRI facility was unveiled at the National Brain Research Centre (NBRC) in Manesar, Haryana, India. The Siemens MRI Scanner PRISMA 3T MRI is now in use at the National Brain Research Centre (NBRC). Growing rates of cancer will lead to more people using MRIs, which will accelerate the isolated transformer market expansion.

Isolated Transformer Market: Restraints

High initial investment & complexity hinder market growth

The isolated transformers industry is quite limited, as they are expensive to set up and the systems are hard to understand. This makes them hard to use in industries and regions that are sensitive to cost. Isolation transformers need high-quality materials, such as copper or aluminum windings, silicon steel or amorphous metal cores, and insulating materials that work well. This results in a higher price for each unit compared to simpler or non-isolated transformers.

Because they have two windings, magnetic shielding, and extra insulation, isolated transformers are usually bigger and heavier. This makes them more difficult to move and set up, and they are less suitable for situations with limited space.

Isolated Transformer Market: Opportunities

Innovative product launch offers a lucrative opportunity for market growth

The innovative product launch is expected to provide a lucrative opportunity for the isolated transformer market growth during the forecast period.

For instance, in October 2024, Bourns, Inc. is a top maker and supplier of electronic parts for power, protection, and sensor solutions. They just came up with a new AEC-Q200-compliant, automotive-grade, low-profile, high-creepage isolation transformer. The Bourns® Model HVMA03F4A-LP8S Series flyback transformer is made to work with high power density in a small space for better efficiency.

A variety of different applications, like gate drive and high-voltage battery management systems (BMS), need these features. This new range of flyback transformers adds to Bourns' collection of low-power, high-creepage isolation transformers. This series works with a standard 12 V power supply and has a wider input voltage range of 10 to 24 V. It also has a new mechanical coil design that improves system performance and safety.

The Model HVMA03F4A-LP8S Series is perfect for use with Silicon Carbide (SiC), IGBT, and Gallium Nitride (GaN) switching elements in automobiles, manufacturing facilities, and energy storage systems.

Isolated Transformer Market: Challenges

Competition from alternative technologies poses a major challenge to market expansion

Alternative technologies that are smaller, more energy-efficient, and easier to integrate are putting stress on the isolated transformer sector, especially in applications where space and cost are important.

For instance, Solid-State Transformers (SSTs) employ semiconductors instead of electromagnetic cores to transmit and condition energy. They offer several benefits over isolated transformers, including being smaller and lighter, operating more efficiently at partial loads, allowing electricity to flow in both directions (ideal for smart grids and EV charging), and featuring digital control and communication capabilities. Therefore, the presence of alternative technology poses a major challenge to the industry's expansion.

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Isolated Transformer Market: Report Scope

Isolated Transformer Market: Segmentation

The global isolated transformer industry is segmented based on phase, type, application, and region.

Based on the phase, the global market is bifurcated into single phase and three phase. The single phase segment is expected to hold the largest market share over the forecast period. The advent of automated manufacturing and smart grid deployments underscores the necessity for reliable, isolated power for sensitive electronics, driving demand for high-quality single-phase units.

Based on the type, the global isolated transformer industry is bifurcated into dry isolation transformer, ultra isolation transformer, constant voltage transformer, and others. The dry isolation transformer segment is expected to dominate the market over the projected period. Dry-type transformers are non-flammable and oil-free, making them appropriate for installation in hospitals, schools, and indoor/underground facilities. Thus, driving the segment expansion.

Based on the application, the global isolated transformer market is bifurcated into power transmission & distribution, medical equipment, electrical and electronic circuits, telecommunication equipment, and others. The power transmission & distribution will capture a prominent market share over the projected period. The expansion of solar and wind power, which are frequently coupled to rural substations, necessitates reliable and clean voltage transformation. Dry-type units are preferred because of their resistance to fluctuating loads and harsher environments. Thereby, driving segment growth.

Isolated Transformer Market: Regional Analysis

The Asia Pacific dominates the market over the projected period

The Asia Pacific is expected to dominate the global isolated transformer market during the forecast period. The regional expansion of the isolated transformer market is growing due to the rising rate of industrialization and urbanization, as well as increasing production of electric equipment, particularly in China, India, Japan, Taiwan, and South Korea.

Moreover, government regulations are designed to promote foreign direct investment, which is predicted to open new doors for manufacturers in several industries, including the energy sector. This is anticipated to enhance demand for energy and increase the production of equipment that requires isolated transformers, and hence boost the market growth.

Isolated Transformer Market: Competitive Analysis

The global isolated transformer market is dominated by players like:

• Schneider Electric SE
• ABB Ltd.
• General Electric Company
• Siemens AG
• CG Power and Industrial Solutions Limited
• Eaton Corporation Plc
• Mitsubishi Electric Corporation
• Hitachi Ltd.
• Toshiba Corporation
• Virginia Transformer Corp.
• Fuji Electric Co. Ltd.
• Hyundai Heavy Industries Co. Ltd.
• Nissin Electric Co. Ltd.
• SPX Transformer Solutions Inc.
• Weg SA
• Hyosung Heavy Industries
• Kirloskar Electric Company
• TBEA Co. Ltd.

The global Isolated Transformer market is segmented as follows:

By Phase

• Single Phase
• Three Phase

By Type

• Dry Isolation Transformer
• Ultra Isolation Transformer
• Constant Voltage Transformer
• Others

By Application

• Power Transmission & Distribution
• Medical Equipment
• Electrical and Electronic Circuits
• Telecommunication Equipment
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa