Oil Immersed Current Transformer Market Size, Share and Trends 2025 to 2034

Oil Immersed Current Transformer Market Size and Forecast 2025 to 2034

The global oil immersed current transformer market size was estimated at USD 1.90 billion in 2024 and is predicted to increase from USD 2.02 billion in 2025 to approximately USD 3.51 billion by 2034, expanding at a CAGR of 6.32% from 2025 to 2034. The high demand for high-performance and cost-effective electrical components is the major driver of the global oil immersed current transformer market. The need for oil immersed current transformers in power generation, transmission, and distribution sectors is contributing to expanding the market.

Oil Immersed Current Transformer Market Key Takeaways

• Asia Pacific is the largest shareholder of the oil immersed current transformer market.
• North America is estimated to expand the fastest CAGR between 2025 and 2034.
• By product, the wound type segment has held the largest market share in 2024.
• By product, the toroidal segment is anticipated to grow at a remarkable CAGR between 2025 and 2034.
• By voltage rating, the > 33 kV to ≤ 66 kV segment dominated the global market in 2024.
• By application, the power distribution segment generated the biggest market share in 2024.
• By application, the manufacturing segment is expected to expand at the fastest CAGR over the projected period.

Artificial Intelligence (AI) Path in Electricity Infrastructure and Oil Immersed Current Transformers

Artificial intelligence (AI) has been the edge platform in every exciting technology. The integration of AI into utility is an exciting factor floating in the industry. Automation is the key factor driving the focus on leveraging modern technologies in electricity infrastructure. The self-adaptive capabilities of AI algorithms in exciting technology or systems significantly impact electricity infrastructure. AI algorithms have proved essential for activities, including predictive maintenance, optimizing transformer utilization, and preventing failures in the oil immersed current transformer market.

The integration of AI in electricity manufacturing is well known for helping to optimize design, predict maintenance needs, and improve overall grid reliability. Additionally, the leverage of graph convolutional network (GCN) and common vector approach (CVA) in oil immersed transformers has provided good results. The ongoing surge in the integration of cutting-edge AI algorithms to improve the diagnostic performance of oil immersed transformers is likely to lead to novel and significant market trends in the upcoming period.

• In June 2024, at the Bosch Connected World conference, Elon Musk announced an AI roadmap in electricity and transformers in the year 2025. Elon Musk has projected AI to be the biggest technology revolution in electricity infrastructure.

Market Overview

As the demand for electricity increases in modern homes or offices, the need for and adoption of cutting-edge technologies is surging. The oil immersed current transformer market has witnessed spectacular growth in its adoption to handle sensitive electricity measurements. Oil immersed current transformers are electric transformers filled with insulating mineral oil that help to measure high currents in power grids and cooling oil. Prior demands for renewable energy sources are driving the need for cutting-edge technologies like oil immersed current transformers.

Several factors, like the need for real-time data collection, power management, load balancing, the conversion of high transmission voltage to suitable for distribution, accurate current measurements, and steady power supply to the heavy electrical systems, are responsible for shifting end-users focus on oil immersed current transformers. Additionally, the government and regulatory pressure is shifting manufacturers toward a sustainability emphasis. Manufacturers commitment to reducing environmental impacts and carbon emissions is impacting the overall production process, including material sourcing, manufacturing processes, operation, and end-of-life management, leading to the development of more efficient and cost-effective oil immersed current transformers.

The major challenge for the oil immersed current transformer market is to maintain high-voltage environments. However, the leverage of cutting-edge technologies is transforming its conditions and is well-suited to such challenges. Technology advancements are allowing the integration of advanced technologies with exciting systems of oil immersed current transformers, including sensors and communication capabilities, to transform them into smart transformers. The access to real-time monitoring of transformer health, temperature, and load in oil immersed current transformers provides more accuracy, efficiency, waste management properties, and safety of the oil immersed current transformers.

Oil Immersed Current Transformer Market Growth Factors

• Electricity demand: The growing electricity demand has created an increased need for electricity transmission and distribution infrastructures, including oil immersed current transformers.
• Urbanization and industrialization: Rapidly growing urbanization and industrialization have increased the adoption of electricity, making it essential for oil immersed current transformers to provide efficiency and accuracy in measurements with safe applications.
• Grid modernization: The growing need for renewable energy sources has led to advancements in grid infrastructure. The development of advanced grid modernizations to comply with growing electricity demands is emerging in the market.
• Environmental and sustainability concerns:The rising emphasis on environmental impacts and sustainability concerns has been responsible for increased demands for eco-friendly oil immersed current transformers, providing novel success opportunities for the oil immersed current transformer market.
• Technology advancements: Technology advancements are allowing the integration of smart grids and other advanced renewable energy sources with the existing oil immersed current transformers. Additionally, access to advanced technologies enables access to high-voltage and high-performance current transformers.
• Government initiatives in energy infrastructure: Government initiatives and policies for advancing energy infrastructure and promoting the adoption of renewable energy sources are playing a crucial role in the market growth.

Market Scope

Market Dynamics

Drivers

The demand for renewable energy solutions

Growing urbanization, construction, and infrastructure development are driving the need for renewable energy sources to provide clean energy and energy-efficient applications. The increased utilization of electric households is responsible for the rise in electricity consumption, making it essential for the availability of alternative solutions. The growing utilization of oil and its impact on sustainability and the environment, including challenges of leakage and disposal, are driving a shift toward the adoption of high-voltage oil immersed current transformers with sustainable applications. Furthermore, government initiatives and funding to promote the adoption of renewable energy transformers are driving innovations and developments in the oil immersed current transformer market.

Restraint

High initial cost

The need for high-voltage oil immersed current transformers is the major factor impacting the initial costs. High initial costs regarding materials, manufacturing complexity, testing, certifications, and installations are restraining the adoption of high-voltage oil immersed current transformers. High initial cost hampers the adoption of the oil immersed current transformer market by small and medium-sized utilities, leading to hindering market computations. Furthermore, costs related to installation and maintenance are also influencing the adoption rate.

Opportunity

Increased investments in grid modernization

The shift of utility toward smart grid technology integration, including advanced sensors and IoT devices, is driving demand for modernized grid infrastructures. End-users surged the demand for renewable energy integrations and energy-efficient solutions. Investments in solar and wind power are emerging, and the adoption of grind modernization is being adopted to maintain efficient and reliable energy transformations. Additionally, the ability of grid modernizations to reduce energy waste and improve efficiency helps to enhance its investments and support.

The growing investments in government and manufacturing companies in grid expansion and modernization projects to comply with demands for high-quality current transformers have increased, leading to significant opportunities for the development of oil immersed current transformer market. The growing investments in grid modernization to provide efficient energy transformation and distributions are boosting the utilization of high-voltage oil immersed current transformers.

• In August 2024, the U.S. Department of Energy (DOE) invested USD 2.2 billion in the United States grid for eight projects across 18 states to protect against extreme weather, lower costs, and prepare for growing demand and growth stemming from an increase in manufacturing and data centers.

Product Insights

The wound type segment has held the largest oil immersed current transformer market share in 2024. The segment growth is attributed to the great demand for wound-immersed current transformers due to their high accuracy, reliability, and versatility. The growing demand for high voltage powers requires highly accurate and reliable electric current measuring. The demand for safe, efficient, and cost-effective applications in electric systems is the major reason behind the high adoption of wound-type current transformers.

The toroidal segment is anticipated to grow at a remarkable CAGR between 2025 and 2034 due to its high accuracy advantages and unique design. Toroidal-type current transformers provide safe monitoring of actual electric current flow in devices. Their compact designs allow them to be opened, installed, and closed without disconnecting the circuits. Low maintenance and less installation complexity make them popular.

Voltage Rating Insights

The > 33 kV to ≤ 66 kV segment dominated the global oil immersed current transformer market in 2024 because of the increased demand for electricity due to rapidly growing industrialization and urbanization. Factors like technological advancements in transformer design and materials and the expanding renewable energy sector are fueling the segment expansion. The > 33 kV to ≤ 66 kV current transformers are the highest system voltage with rated frequency standards. The need for transmission and distribution infrastructures and grid modernizations is driving the adoption of > 33 kV to ≤ 66 kV oil immersed current transformers. The > 33 kV to ≤ 66 kV current transformers provide higher electrical withstand capability than the external insulation.

Application Insights

The power distribution segment generated the biggest oil immersed current transformer market share in 2024 due to increased demand for power distribution infrastructure in rapidly expanding urbanization and industrialization. The expansion of renewable energy sources and integration of smart grid technology increased the need for current transformers for power distribution to meet the rising electricity demand. Power distributors improve grid reliability and safety, which makes them ideal for electricity infrastructure.

On the other hand, the manufacturing segment is expected to expand at the fastest CAGR over the projected period. The segment is driving market growth due to the need for oil immersed current transformers for high-capacity and reliable electrical instruments to support varied manufacturing processes. The manufacturing process requires a highly reliable and efficient power supply, making it essential for the adoption of oil immersed current transformers. Furthermore, the ability of oil immersed current transformers to reduce downtime, provide accurate measurement, and improve operational efficiency makes them popular in manufacturing applications.

Regional Insights

Asia Pacific is the largest shareholder of the oil immersed current transform market due to various factors, such as the large demand for electricity in rapidly growing urbanizations and industries. Government investments in grid modernization and integration of renewable energy sources with oil immersed current transformers are playing a crucial role in the Asian market. This initiative is further encouraging development and access to innovative and advanced oil immersed current transformers in the region.

Countries like China and India are contributing a significant share of the regional market due to their rapidly growing urbanization and industrialization. China is leading the regional market because of the country's well-established technology infrastructure and standards and government policies for electricity infrastructure. India is the second largest country, leading the Asian oil immersed current transformer market due to the country's urbanization and increased demand for electricity in expanded industries.

• In September 2023, Straton's wide range of current transformers was tested and certified by CORE (Central Organization for Railway Electrification), Ministry of Railways, Government of India. According to CORE approval, the transformers of Straton have met specific standards, specifications, and performance requirements set by the Indian Railways for use in their electrification projects, locomotives, signaling systems, and other railway applications.

North America is estimated to expand the fastest CAGR in the oil immersed current transformer market between 2025 and 2034 due to the region's well-established energy sector. The surge in the development and adoption of sustainable technologies in the energy sector to reduce environmental impact and carbon footprints is a prior factor leveraging key companies' determination to advance electricity technologies, including oil immersed current transformers. Moreover, the presence of key manufacturers is driving regions' technological advances in electricity infrastructure. Availability and access to cutting-edge technologies are enabling their integration with oil immersed current transformers to improve their efficiency and performance, making them a priority choice by end-users of North America.

The United States leads the regional market due to environmental regulatory pressures for sustainable practices and increased demand for grid modernization and the adoption of smart grid technologies. Developments of AI-driven data centers, unprecedented electrification, and the adoption of reusable technology in manufacturing are influencing the adoption of oil immersed current transformers in the country. Countries' commitment to complying with advanced power infrastructure and regulatory standards to reduce carbon emissions is projected for extreme market potential in the forecast period.

• Between Jan. 1, 2021, and March 1, 2023, more than 150 onshore manufacturing facilities in the United States have used an annual electricity exceeding 13,000 GWh, half of which is expected to be operational by 2025. Additionally, in 2024, renewable energy, particularly solar, in the United States experienced 30% growth, compared to 13% in 2023.

Oil Immersed Current Transformer Market Companies

• ABB
• Amran
• General Electric
• ARTECHE
• Automatic Electric
• Hitachi Energy
• CG Power and Industrial Solutions
• Dalian Huayi Electric Power Electric Appliances
• Samata Electricals
• Siemens Energy
• Instrument Transformers

Leader's Announcements

• In February 2024, David Pownall, Vice President, Services, Schneider Electric UK and Ireland, unveiled their excitement to work with CERN to successfully solve their transformer challenges. He further announced that the the use of EcoStruxure Transformer Expert service will help companies to enhance transformers' lifespan and reduce waste to decrease carbon footprints.
• In May 2024, Joshua Yun, senior vice president of Sales and Marketing at Virginia Transformer, the largest U.S.-owned transformer manufacturer in North America, during the 2024 IEEE PES T&D Conference & Exposition in Anaheim, California, announced that increased post-pandemic pent-up demands for transformers have unveiled a “big tsunami” to provide a “perfect storm” of drivers to transformers.

Segments Covered in the Report

By Product

• Wound type
• Toroidal
• Bar type
• Others

By Voltage Rating

• ≤ 33 kV
• > 33 kV to ≤ 66 kV
• > 66 kV

By Application

• Power distribution
• Manufacturing
• Others

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa