GVR Report cover Data Center Transformer Market Size, Share & Trends Report

Data Center Transformer Market Size, Share & Trends Analysis Report By Insulation Type (Oil Immersed, Dry), By Voltage, By Channel Partners (OEMs, Distributors, Online Retailers, Electrical Contractors), By Region, And Segment Forecasts, 2023 - 2030

  • Report ID: GVR-4-68038-563-2
  • Number of Pages: 110
  • Format: Electronic (PDF)
  • Historical Range: 2017 - 2021
  • Industry: Technology

Data Center Transformer Market Trends

The global data center transformer market size was valued at USD 7.02 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 6.2% from 2023 to 2030. A transformer is an electrical device that transforms and distributes electrical energy from one circuit to another. The function of a transformer is to step up (increase) or step down (decrease) the voltage levels before distributing it to the next circuit. Transformers used in data center facilities are typically three-phase medium voltage step-down transformers. The increasing number of data centers across different industries, such as IT and telecom, BFSI, retail, and government and defense, is expected to drive the market for data center transformers over the forecast period.

U.S. data center transformers Market size and growth rate, 2023 - 2030

The data centers have witnessed unprecedented growth in technologies and services over the years. There has been an increase in IT spending by organizations to simplify operations and data storage capabilities. Rapidly growing data traffic is driving data storage demand, which has resulted in the continuous expansion of the global data center market. Data center structures are associated with more power consumption and are increasing in proportion and size day by day. Furthermore, the growing workload on the data centers has, in turn, increased the demand for better quality power supply. These factors further justify the presence of transformers in a data center and have been contributing to the growth of this market.

The data center industry measures a facility’s efficient use of electrical energy in terms of power usage effectiveness (PUE). The PUE value is impacted negatively if there are a high number of electrical losses in the distribution of power. Therefore, data center manufacturers across the U.S. are focused on providing energy-efficient equipment by constantly making improvements in the transformer designs to meet the requirements of the U.S. Department of Energy (DOE) set in the year 2016. Changes in design with respect to impedance, in-rush current, and short-circuit current is expected to improve the efficiency of the transformers by reducing electrical losses. These design improvements are expected to propel the adoption of data center transformers in the near future.

Need to ensure effective power distribution across data centers has led to the advent of smart transformers. Smart transformers are equipped with intelligent electronic devices and control systems that allow the operator to remotely monitor the behavior of the transformer core, bushings, and windings, among other components of the transformer. The smart transformer also has a system that sends feedback about the power fluctuations to the grid so that voltage can be optimized according to the load requirement. The transformer also responds instantly to the fluctuations across the grid and acts as a voltage regulator, thus ensuring an optimum amount of voltage distribution across the data center. Thus, the market is anticipated to witness an elevated demand for smart transformers over the next few years.

Data center architecture is becoming more and more complex owing to the implementation of energy-efficient equipment. The complex designs have increased the overall cost and resulted in high initial investment, which is expected to pose a challenge to the data center transformer industry. However, the increased efficiency and life of the transformer promise a shorter payback period, thus justifying the high initial cost. An increase in the adoption of mobile phones and cloud computing services by several businesses requires a large amount of data storage. This has led to the development of IT facilities and an increase in the construction of hyperscale data centers, which is further expected to support the growth of this market. Additionally, several colocation service providers have increased the production of data centers owing to rising demand for edge data centers across the globe.

Insulation Type Insights

The oil immersed segment dominated the data center transformer market with a 77.5% share of the overall revenue in 2022. The oil immersed type insulation transformer offers effective heat removal, thus reducing electrical losses and optimizing the performance of the system. It also ensures low noise levels, resulting in quieter operation. The oil immersed type transformer is designed to work at higher loads and offers better efficiency and service life, which is expected to boost the segment growth.

The dry insulation segment is projected to expand at the fastest CAGR of 7.1% over the forecast period. Dry type insulation transformer ensures a safe working environment with zero fire hazard risks as it uses air as a cooling medium. Additionally, the dry insulation type transformers have no moving parts, and thus need less maintenance. Although the initial investment cost associated with dry insulation is high, it offers long-term cost benefits and is considered to be a one-time investment by the users. Moreover, the dry type transformers use Underwriter Laboratories (UL) and CSA Group (CSA) based environmentally safe temperature insulation systems and are eco-friendly, which is expected to bolster the growth of the dry type segment.

Voltage Insights

The1,250-3,750 kVA segment accounted for the largest revenue share of 42.1% in 2022. This size range offers a good balance of power capacity and efficiency, making it ideal for a wide range of data center sizes and configurations. Additionally, transformers in this size range are relatively affordable, making them a cost-effective option for many data center operators.

The over 3,750 kVA segment is estimated to register the fastest CAGR of 7.9% over the forecast period owing to its increased use in large data centers. The demand for large data centers is growing rapidly, as more and more businesses and organizations rely on data centers to store and process information. These large data centers need more power than smaller data centers, and transformers in this size range can provide the necessary power.

Channel Partners Insights

The OEMs segment accounted for the largest revenue share of 56.1% in 2022 and is expected to grow at the fastest CAGR of 6.8% during the forecast period. OEM transformers are typically designed and manufactured specifically for data center applications, and they come with a warranty and support from the manufacturer.

Global data center transformers Market share and size, 2022

The distributors segment is expected to grow at a significant CAGR of 5.9% over the forecast period. Distributors typically have a wide range of transformers in stock, which can save data center operators time and money. Distributors also offer technical support and other services that can be helpful to data center operators.

Regional Insights

North America accounted for the largest revenue share of 38.5% in 2022. This is attributed to the presence of major players such as Eaton and General Electric. Advanced technological development and technical awareness amongst the users in the region are also expected to have a positive impact on market growth. Moreover, the presence of several data centers in the region is a crucial factor expected to drive the regional market.

data center transformers Market Trends, by Region, 2023 - 2030

Asia Pacific is the fastest-growing regional market for data center transformers with a CAGR of 8.7% over the forecast period. Increasing demand for data storage and cloud-based applications is contributing to the growth of the regional market. Implementation of cloud-based services in sectors, like education and healthcare, coupled with support from the governments, has increased the construction of data centers in this region. Furthermore, the high penetration of smartphones and internet availability, along with increased demand for mobility, is projected to increase the number of data centers in this region, which is expected to directly contribute to the growth of the market.

Key Companies & Market Share Insights

The leading players in the market are undertaking strategies such as product developments, mergers and acquisitions, strategic partnerships, and business expansions to maintain their stronghold on the market. For instance, in April 2023, Eaton, U.S.-based a power management organization acquired a 49% ownership in China's Jiangsu Ryan Electrical, a Nantong-based company that specializes in dry-type transformers. Ryan's high-quality products, combined with Eaton's global distribution, enable the company to enhance service to customers in Asia Pacific and around the world.

Key Data Center Transformer Companies:

  • ABB
  • Eaton
  • General Electric
  • Legrand
  • Schneider Electric
  • Siemens
  • VTC/GT
  • Vertiv Group Corp.

Recent Developments

  • In November 2022,Vertiv Group Corp., a U.S.-based manufacturing company of equipment and services for data centers, launched a new Liebert APM Plus, transformer-free uninterruptible power supply (UPS) system having high-efficiency. The Liebert APM Plus is available in 50 to 500kW capacities and is currently available in Asia Pacific, including New Zealand, Australia, and India.

  • In October 2022, Schneider Electric launched EcoStruxure Transformer Expert, a new transformer condition monitoring solution that uses IoT sensors to assess, track, and forecast the insulation state and life left of transformers. This solution is expected to help extend the lifespan of transformers by providing users with early warnings of potential problems.

  • In April 2022, Siemens Energy introduced CAREPOLE, a new dry-type single-phase transformer for pole applications. The transformer is developed to meet the technological contemporary requirements of the American grid and offers a more reliable and ecological alternative of oil-filled type transformer.

Data Center Transformer Market Report Scope

Report Attribute


Market size value in 2023

USD 7.37 billion

Revenue forecast in 2030

USD 11.21 billion

Growth rate

CAGR of 6.2% from 2023 to 2030

Base year for estimation


Historical data

2017 - 2021

Forecast period

2023 - 2030

Report updated

November 2023

Quantitative units

Revenue in USD million/billion and CAGR from 2023 to 2030

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Insulation type, voltage, channel partners, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; UK; Germany; France; China; Japan; India; Australia; South Korea; Brazil; Mexico; Saudi Arabia; South Africa; UAE

Key companies profiled

ABB; Eaton; General Electric; HYOSUNG HEAVY INDUSTRIES; Legrand.; Schneider Electric; Siemens; VTC/GT.; Vertiv Group Corp.

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope

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Segments Covered in The Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global data center transformer market report based on insulation type, voltage, channel partners, and region:

Global data center transformers Market Report Segmentation

  • Insulation Type Outlook (Revenue, USD Million, 2017 - 2030)

    • Oil Immersed

    • Dry

  • Voltage Outlook (Revenue, USD Million, 2017 - 2030)

    • Below 625 kVA

    • 625-1,250 kVA

    • 1,250-3,750 kVA

    • Over 3,750 kVA

  • Channel Partners Outlook (Revenue, USD Million, 2017 - 2030)

    • OEMs

    • Distributors

    • Online Retailers

    • Electrical Contractors

  • Regional Outlook (Revenue, USD Million, 2017 - 2030)

    • North America

      • U.S.

      • Canada

    • Europe

      • UK

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

      • South Korea

    • Latin America

      • Brazil

      • Mexico

    • Middle East and Africa

      • Saudi Arabia

      • South Africa

      • UAE

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