Two Winding Air Insulated Transformer Market Size - By Rating (<= 10 MVA, > 10 MVA to <= 100 MVA, > 100 MVA to <= 600 MVA, > 600 MVA), By Application (Residential, Commercial & Industrial, Utility), Regional Outlook & Forecast, 2024 - 2032

Global Two Winding Air Insulated Transformer Market will register over 5.4% CAGR from 2024 to 2032, catapulted by increasing investments in the energy sector. The demand for efficient and reliable power transmission solutions is pushing the adoption of air insulated transformers. Their ability to provide high performance with minimal maintenance and their suitability for medium voltage applications contribute significantly to their demand.

Additionally, the focus on upgrading existing power infrastructure and the expansion of renewable energy sources further accelerate the market growth. Quoting an instance, in April 2023, ABB invested $170 million in a new Wisconsin facility, enhancing its electrification and automation capabilities. This move supports the U.S. clean energy transition and reshoring trends, driven by increased customer demand and the Inflation Reduction Act.

Furthermore, innovations in transformer technology, such as improved insulation materials and design innovations, enhance the operational efficiency and longevity of AITs. This technological evolution supports market growth by catering to the challenges associated with traditional transformers.

The two winding air insulated transformer market is grouped based on rating, application, and region.

The > 100 MVA to <= 600 MVA rating segment is set for decent growth through 2032, because of the rapid expansion of power infrastructure in emerging economies and the ongoing upgrade of existing grids. These transformers can handle high-capacity power transmission, essential for supporting large-scale industrial operations, renewable energy integration, and urban development projects. They offer robust performance and reliability, meeting the growing need for efficient power distribution in both new and retrofitted infrastructure, favoring adoption in > 100 MVA to <= 600 MVA rating segment.

The residential segment will hold a notable market share by 2032, driven by the demand for efficient power distribution solutions in urban and suburban developments. As residential areas expand, there is an increasing need for transformers that ensure stable power supply while managing medium voltage levels effectively. AITs are particularly suited for these applications owing to their durability, low maintenance needs, and high performance, which align with the growing requirements for enhanced power infrastructure in new housing projects and upgrades to existing residential networks.

Europe two winding air insulated transformer market will record a remarkable CAGR over the study period, attributed to the push for energy infrastructure modernization and sustainability goals. The focus on upgrading aging power grids to enhance efficiency, coupled with ambitious renewable energy integration targets, fuels demand for advanced AITs across Europe. Strict regulations and incentives supporting clean energy and reducing carbon footprints encourage investments in high-performance transformers. The commitment to digitalization and deploying smart grid technologies will shape the regional market dynamics.