Oil Immersed Power Transformer Market Size, Share, Trends, Growth 2034

Oil Immersed Power Transformer Industry Perspective:

The global oil immersed power transformer market size was worth around USD 22.48 billion in 2024 and is predicted to grow to around USD 45.49 billion by 2034, with a compound annual growth rate (CAGR) of roughly 7.30% between 2025 and 2034.

Request Free Sample

Key Insights:

• As per the analysis shared by our research analyst, the global oil immersed power transformer market is estimated to grow annually at a CAGR of around 7.30% over the forecast period (2025-2034)
• In terms of revenue, the global oil immersed power transformer market size was valued at around USD 22.48 billion in 2024 and is projected to reach USD 45.49 billion by 2034.
• The oil immersed power transformer market is projected to grow at a significant rate due to the rising investments in renewable energy across the globe
• Based on the product type, the wound type segment is growing at a high rate and will continue to dominate the global market, as per industry projections
• Based on the application, the power distribution segment is anticipated to command the largest market share
• Based on region, the Asia-Pacific is projected to dominate the global market during the forecast period

Oil Immersed Power Transformer Market: Overview

Oil-immersed power transformers are voltage-transforming devices that use the oil cooling method to reduce transformer temperature. The body of the transformers, consisting of core and windings, is immersed in a welded steel oil tank filled with insulation oil. When the oil-immersed power transformer is in operation, the heat from the iron core and coil is initially transferred to the insulating oil, allowing cooling of the energy-producing device. Oil-immersed power transformers use the convection method, facilitating oil movement around and through the transformers, allowing them to cool off.

According to industry research, optimal performance of the transformers can be maintained by keeping the transformer oil below 85°C. Liquid-filled transformers are generally used in high-voltage and high-capacity applications such as industrial power systems and large commercial facilities. During the forecast period, demand for oil-filled power transformers is expected to continue growing due to the increasing end-user applications, especially in renewable energy infrastructure. However, the industry growth trends may be impacted by the safety risks associated with the transformers, along with the high cost of maintenance.

Oil Immersed Power Transformer Market: Market Dynamics

Growth Drivers

How will increasing demand for renewable energy fuel the oil immersed power transformer market growth rate during the forecast period?

The global oil-immersed power transformer market is expected to grow due to the rising investments in renewable energy across the globe. According to industry analysis, oil-immersed power transformers are considered more effective in terms of cooling the transformer compared to their dry counterparts. In addition to this, liquid-immersed transformers are considered eco-friendly since they can be easily recycled.

Additionally, these transformers are ideal for outdoor settings, and they can also handle extreme power loads. In large-scale installations, the average cost of developing and maintaining oil-immersed power transformers is relatively low. These advantages of installing oil-cooled power transformers are expected to play a crucial role in the development of robust renewable energy infrastructure worldwide. The global power demand is growing rapidly, and conventional means of energy generation are unable to keep up with the demand rate.

Additionally, the environmental impact of non-renewable energy has become a major global issue, leading to higher investments in renewable energy infrastructure such as solar and wind farms.

Industrialization and urbanization are expected to influence industry revenue during the projection duration

Rapid industrialization and urbanization worldwide have resulted in increased demand for reliable energy across the globe. Emerging nations have registered a sharp increase in energy demand in the last decade. The surging investments in the development of modern urban residential areas, especially smart cities, will fuel demand in the global oil-immersed power transformer market during the forecast duration. These machines are easy to install and maintain. Additionally, they are highly energy efficient and can meet the scaling needs of modern residential and industrial zones.

Restraints

Safety risks associated with the industry may impede market expansion trends in the future

The global oil immersed power transformer industry is expected to face growth restrictions due to the safety risks associated with the technology. A common safety hazard related to oil-cooled transformers includes the risk of explosion or fire. The oil used in liquid-immersed power transformers is inflammable and can lead to serious accidents in case of overheating or aching.

Furthermore, they also pose the threat of electrical hazards such as electrocution or electrical shock when exposed to high voltages. These factors may impact market expansion in the long run.

Opportunities

What are the latest innovations in the oil immersed power transformer industry that may accelerate market expansion?

The global oil-immersed power transformation market is projected to generate growth opportunities due to the ongoing innovation in the industry. Some of the key areas of focus for oil-immersed power transformers include improving overall performance output, using eco-friendly insulating liquids or fluids, and eliminating hazard-related risks.

For instance, in August 2024, CHINT, a leading supplier of smart energy solutions, announced the launch of a 750kV ester oil-immersed power transformer. According to official reports, the new solution is expected to redefine performance and safety standards. The 750kV ester oil-immersed power transformer is equipped with an ignition point above 355°C. It is also 99% biodegradable and produced using renewable raw materials.

Rising strategic collaborations in heavy industries are opening new doors for higher growth

Major heavy industries such as chemical processing, steel manufacturing, and the oil & gas sector are leading users of oil-immersed power transformers. These sectors are registering increasing strategic collaborations and partnerships that are expected to create expansion possibilities for oil-immersed power transformers. Growing end-user demand in heavy industries, especially steel production, in the backdrop of a surge in infrastructure development projects, may escalate revenue for oil-immersed power transformers.

Challenges

Environmental damage and competition from dry alternatives challenge industry growth

The global oil-immersed power transformer industry is projected to be challenged by the environmental damage caused by oil-cooled transformers. Poor quality transformers may cause oil leaks in case of seal failures and cracks. Additionally, oil-immersed transformers often release toxic gases due to combustion. Furthermore, growing advancements in dry power transformer technologies may lead to client fragmentation in the near future.

Oil Immersed Power Transformer Market: Report Scope

Oil Immersed Power Transformer Market: Segmentation

The global oil immersed power transformer market is segmented based on product type, voltage rating, application, and region.

Based on product type, the global market segments are bar type, toroidal, wound type, and others. In 2024, the wound type segment showed the highest growth, thanks to its excellent performance compared to other variants. Wound-type oil-immersed power transformers are highly reliable and accurate. It can be used for high-voltage applications. According to industry research, certain oil-immersed power transformers can handle ultra-high voltage ranging between 400 kV and over 1,200 kV.

Based on voltage rating, the global oil-immersed power transformer industry is divided into more than 66kV, between 33kV & 66kV, and less than 66kV.

Based on application, the global market is segmented into manufacturing, power distribution, oil & gas, infrastructure development, and others. In 2024, the power distribution segment was leading the revenue trends primarily due to the higher demand for liquid-cooled transformers in the utilities sector. The growing investments in renewable energy infrastructure, including onshore and offshore projects, may aid segmental expansion in the future. The global offshore renewable energy market is expected to grow at a CAGR of over 17% during the forecast period.

Oil Immersed Power Transformer Market: Regional Analysis

Which factors will contribute to growth in Asia-Pacific in the oil immersed power transformer market during the forecast period?

The global oil-immersed power transformer market is expected to be driven by Asia-Pacific during the forecast period. The regional growth rate will be influenced by surging investments in urbanization and industrialization. China and India are projected to emerge as the highest revenue generators in the region.

In addition to this, a surge in electricity demand will facilitate higher use of oil-immersed power transformers in the region. Other factors, such as favorable government policies and rising steel production, may aid impressive growth in the Asia-Pacific.

North America is another prominent region in the oil immersed power transformer industry with high growth potential. The rapid expansion of power distribution systems in the region will facilitate the acceleration of the North American industry. Moreover, the rising inclination of North America toward sustainable solutions in the utilities sector may facilitate increased adoption of oil-immersed power transformers.

However, the regional players may face growth limitations due to the rising cost of raw materials as the US registers trade barriers with other economies in the coming years. For instance, the cost of steel procurements and other electrical devices is expected to increase in the US, resulting in challenges for the regional industry players.

Oil Immersed Power Transformer Market: Competitive Analysis

The global oil immersed power transformer market is led by players like:

• BHEL (Bharat Heavy Electricals Limited)
• ABB
• General Electric (GE)
• Fuji Electric
• Hyundai Electric
• ZTR (Zaporozhtransformator)
• Schneider Electric
• Mitsubishi Electric
• Crompton Greaves
• Efacec
• Siemens
• Eaton
• Hitachi Energy
• SGB-SMIT
• WEG

The global oil immersed power transformer market is segmented as follows:

By Product Type

• Bar Type
• Toroidal
• Wound Type
• Others

By Voltage Rating

• More than 66 kV
• Between 33 kV & 66 kV
• Less than 66 kV

By Application

• Manufacturing
• Power Distribution
• Oil & Gas
• Infrastructure Development
• 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