PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1678860
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1678860
Global converter transformers market is projected to witness a CAGR of 14.09% during the forecast period 2025-2032, growing from USD 2.68 billion in 2024 to USD 7.71 billion in 2032. The converter transformers market has experienced significant growth in recent years due to modern power systems and the transition toward cleaner and more efficient energy solutions and is expected to maintain a strong pace of expansion in the coming years. Converter transformers are vital equipment in various energy transmission systems, renewable energy integration, and grid modernization which drive its market demand. Additionally, increased investment in renewable energy installations such as offshore wind farms and big solar plants increases the need for premium converter transformers in the market. The large renewable energy plants are installed in remote areas which require the installation of converter transformers for transmission of energy. The converter transformers aid in ensuring that electricity is efficiently supplied from remote power generation points to urban load centers. Furthermore, the increasing focus on grid reliability and stability is compelling utilities to invest in HVDC systems that increase the demand for convert transformers in the market.
Other prominent drivers include the growing requirement for cross-border power transfer and interconnections, especially in markets such as Europe and Asia, where nations are coming together to exchange renewable energy resources as well as increase energy security. Every HVDC interconnection necessitates converter transformers, hence contributing additional to the demand. Additionally, upgrading power infrastructure as well as electrifying remote and underdeveloped regions are stimulating opportunities for growth in the converter transformer market. Technical progress in transformer construction, including better efficiency and smaller losses, are also increasing converter transformers' attractiveness for contemporary power systems. Finally, government policy support and encouragement of renewable power and grid investment are spurring investments in transmission power projects and hence raising demand for converter transformers.
For instance, in October 2024, the US Department of Energy (DoE) determined to invest about USD 1.5 billion in four transmission projects under development by members of the American Council on Renewable Energy (ACORE). The transmission project of power will be developed in the states of Louisiana, Maine, Mississippi, New Mexico, Oklahoma, and Texas with the capacity of 7.1GW. This development underscores that the government is set to invest in the transmission power project that fuels the demand for converter transformers in the market.
Expansion of HVDC Transmission Networks Amplify Market Growth
Globally, the utility industry is seeking to invest in high-voltage direct current (HVDC) transmission lines for the efficient flow of current in various industries which fuels the demand for converter transformers in the market. Converter transformers are essential devices in HVDC systems as transformers enable the conversion of alternating current (AC) to direct current (DC). The current conversion is necessary for the effective transmission of power and bringing renewable sources into existence which induces the demand for converter transformers within the market. Transmits systems are well favored to transmit power across longer distances as the system reduces power loss on the transmission of electricity across longer distances. HVDC systems are well suited for the interconnection of distant energy generation points, like offshore wind farms or large solar parks to various end-use industries. Additionally, increased investment in the development of HVDC networks to address increasing electricity needs and renewable energy integration boosts the demand for converter transformers considerably in the market.
In addition, HVDC transmission is increasingly becoming an important solution for cross-border power exchange and connecting grids between nations, especially in countries such as Europe and Asia. HVDC transmission necessitates converter transformers at both ends, further increasing market demand. The interconnections via converter transformers improve energy security and grid stability which propel its demand in the market. Furthermore, the upgrading of power infrastructure and the emphasis on grid efficiency and resiliency are fueling the use of HVDC technology that drives the requirement for converter transformers in the market.
For instance, in November 2024, the U.S. Department of Energy's (DOE) Office of Electricity (OE) and Office of Energy Efficiency and Renewable Energy (EERE) decided to invest around USD 11 million in integrating more renewable energy generation into the grid via HVDC lines. The investment will be used for the program named Innovative Designs for high-performance Low-cost HVDC Converters (IDEAL HVDC) which will help to reduce transmission system costs by 35 percent by 2035 and promote widespread technology adoption. This development helped to highlight the rising investment in HVDC projects which will drive the demand for converter transformers in the market.
Rise in Integration of Renewable Energy Creates Market Opportunity
Converter transformers are crucial in the solution of issues related to handling a more intricate and dynamic energy environment. Converter transformers enable high-voltage electricity produced from renewable energy to be converted into distributable levels to different end users. Moreover, converter transformers stabilize current flow so that electricity produced is at grid standards, which avoids power outages and ensures a steady supply. Moreover, converter transformers are used to step high voltage levels to medium voltage which could be delivered on the transmission grid. Converter transformers are able to convert renewable energy and incorporate it directly into the available electrical infrastructure in a seamless way without inducing any instability which forms a substantial opportunity for development of the converter transformer market over the forthcoming years.
Globally every sector is highly prioritizing the adoption of renewable energy sources into the electrical grid. Governments and companies are setting up ambitious renewable energy targets as part of the climate commitments and sustainability goals which could be attained by adopting the proper energy mix. As regions focus on shifting toward decarbonization and energy transition results an opportunity for growth for innovative electrical equipment and technologies that could integrate the different sources of energy with less energy loss, thus creating the demand for converter transformers in the market.
For instance, in August 2024, Department of Energy (DOE) of the United States decided to invest USD 2.2 billion in the nation's power grid. This investment supports eight major projects across 18 states to enhance grid resilience. This development highlights the inclination towards renewable energy integration which drives the demand for converter transformers in the market.
High Voltage to Dominate the Market Share
The high voltage range is highly demanded in the global converter transformers market due to widespread use in high-voltage transmission projects. The rising investment in offshore wind farms and solar farm projects further fuels the demand for high-voltage converter transformers. High voltage converter transformers are becoming an essential component for connecting remote renewable energy sources to urban centers and industrial hubs which drive their demand in the market. Moreover, the grid modernization initiatives and the rising need for efficient long-distance power transmission with minimal losses contributed to the growth of high-voltage converter transformers in the market.
Asia-Pacific Leads the Converter Transformers Market
Asia-Pacific leads the converter transformers market with the largest market share. Asia-Pacific consists of developing nations which are investing mainly in renewable power generation and distribution industries, hence increasing the demand for converter transformers in the region. China and India are a few of the largest energy consumers that make the Asia-Pacific contribute a larger portion of the world's energy market. Countries are investing in the modernization of electricity grids to enhance energy efficiency and minimize loss in transmission over distances which propels the demand for converter transformers in the market.
Developing nations are greatly concerned with the manufacturing industry and rural electrification which promotes the need for converter transformers in the region. Also, the increase in interest in the transport sector electrification in developing nations is likely to be a key driver of growth over the forecast period. Utility companies are looking to invest in the transmission sector which is driving the demand for converter transformers in the market.
For instance, in February 2025, Hitachi Energy India received a Letter of Intent (LoI) from Rajasthan Part I Power Transmission Limited to design and execute a High Voltage Direct Current (HVDC) link. The project will be undertaken in partnership with Bharat Heavy Electricals Ltd (BHEL) with the aim to transmit renewable energy from Bhadla III in Rajasthan to Fatehpur in Uttar Pradesh. The HVDC system will have a capacity of 6,000 MW, with associated AC substations to support efficient power transmission. This development highlights the rising power transmission project which drives the demand for converter transformers in the market.
Future Market Scenario (2025 - 2032F)
Massive investments in infrastructure projects across the region are driving the demand for converter transformers in the coming years.
Governments are focusing on modernizing existing facilities and constructing new ones, renewable power plants fostering the demand for converter transformers in the forecast period.
The adoption of smart technologies in the development of HVDC lines drives the demand for converter transformers in the market.
The industrial sector heavily investing in automation which drives the demand for converter transformers in the market.
Key Players Landscape and Outlook
Companies are adopting several strategies and focusing on partnerships, mergers and acquisitions, and product innovations to expand product portfolios and increase market shares in the converter transformers industry. Additionally, companies are establishing new service delivery centers and optimizing service processes to improve customer satisfaction and retention rates. The market outlook remains positive, owing to increased demand for the integration of renewable energy and rising investment in the power distribution sector.
For instance, in September 2024, GE Vernova Inc. decided to expand its existing manufacturing facilities in Stafford, UK. The expansion is aimed at supporting the fast-growing demand for high-voltage direct current (HVDC) transmission systems which help to power renewable energy projects throughout Europe, Asia, and North America. This development highlights that the companies are investing in the manufacturing expansion of transmission systems which drives the demand for converter transformers in the market.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.