India Transformer Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

India Transformer Market Trends and Insights

Modernisation & expansion of T&D infrastructure

The India transformer market benefits most strongly from large-scale grid build-outs authorized in the National Electricity Plan, which envisages 123,577 circuit km of new lines between 2022-2027. More than 193,000 circuit kilometers were already completed between 2014 and 2024, and 3,000 new substations were commissioned, creating consistent demand for power and auto-transformers across 220 kV to 800 kV classes. Power Grid Corporation’s Pan-India HVDC corridors, such as the Raigarh–Pugalur link, rely on specialized converter transformers, cementing domestic capability upgrades. The Green Energy Corridor-II, set to evacuate 33 GW of renewables, further tilts specifications toward 765 kV equipment, stimulating high-margin orders for extra-large units. Manufacturers with test bays above 800 kV are thus favored in utility tenders.

Surge in renewable-energy grid integration

Installed renewable capacity increased from 76.37 GW in 2014 to 226.79 GW by June 2025, with an additional 176.70 GW under construction.^{[2]Press Information Bureau, “Year-End Review 2024: Renewable Energy,” pib.gov.in} Solar additions alone soared to 110.9 GW, necessitating step-up transformers at solar parks, while wind farms totaling 51.3 GW require units capable of managing variable reactive loads. The Central Electricity Authority also calls for 236.22 GWh of battery storage, implying the upcoming demand for converter transformers suited to bidirectional power flow. Hybrid wind-solar plants, which outpaced standalone solar bids in 2024, need transformers that integrate power electronics, creating new product niches. States with high renewable targets are therefore fast-tracking grid-connected transformer procurements.

Government funding under RDSS, IPDS, Saubhagya

A record INR 12,585 crore allocation under RDSS in FY 2024-25 equals 61% of the Ministry of Power budget, directly earmarked for distribution transformer upgrades. The program aims to reduce AT&C loss to 12-15%, mandating the use of low-loss amorphous-core or CRGO-grade replacements across feeders. Only 0.83 lakh of 52.7 lakh sanctioned distribution-transformer meters were installed by 2025, underscoring latent demand for new smart DTs. Rural water supply expansion under the Jal Jeevan Mission and one-crore rooftop installations under PM Surya Ghar both increase low-voltage transformer requirements. Procurement cycles are therefore front-loaded into the next two fiscal years.

Growing industrial & commercial power demand

Cargo-handling capacity almost doubled to 1,630 Mtpa in 2024, and 35 multimodal logistics parks worth INR 46,000 crore are underway, each needing dedicated substation assets. The length of the metro rail network grew fourfold to 993 km across 23 cities, driving sustained orders for traction transformers and 25 kV feeder systems. Rail electrification reached 93.83% of the broad-gauge network, but corridors in Assam and northeastern states still require autotransformers, keeping tender pipelines active.^{[3]Indian Railways, “Status of Electrification 2025,” indianrailways.gov.in} Data center, airport, and commercial real estate investments cluster around the Delhi-Mumbai and Chennai-Bangalore industrial corridors, reinforcing demand for medium-power transformers. These capital projects translate into a predictable offtake over the medium term.

Volatile prices of CRGO steel & copper

CRGO steel and copper account for up to 70% of production costs, exposing manufacturers to annual price swings of 25-30% on global exchanges. Limited global CRGO suppliers heighten import risk during trade frictions, prompting makers to hedge or seek long-term contracts. The Ministry of Steel’s PLI scheme encourages domestic CRGO production, but capacity additions remain at least two years away. In the meantime, OEMs use price-variation clauses in tenders, although state utilities often cap pass-throughs, thereby squeezing margins. Some vendors substitute amorphous alloys; however, the higher initial costs limit their use to select distribution transformers.

Utility cap-ex delays & bid-price pressures

DISCOM debts constrain ordering cycles, leading to postponed tenders and aggressive L1 pricing norms. Between 2020 and 2024, 38.3 GW of renewable tenders were cancelled, resulting in shifts in transformer delivery schedules. States with healthier books, such as Gujarat, keep steady procurement, but others award contracts in spikes, complicating factory capacity planning. Vendors counter by diversifying into commercial and export markets, but thin margins persist when base-metal costs rise.

Segment Analysis

By Power Rating: Larger units accelerate grid modernization

In 2024, medium-rating transformers (10-100 MVA) held the largest 41.23% slice of the India transformer market. They underpin sub-transmission grids that feed rapidly growing industrial zones and metropolitan areas. Utilities favor these sizes for 220 kV substations that bridge generation clusters to urban loads. The India transformer market size for large units above 100 MVA is poised to climb 9.89% CAGR, thanks to HVDC corridor roll-outs and renewable evacuation mandates. Each 800 kV-rated link displaces multiple 400 kV circuits, resulting in fewer but higher-value contracts that lift average selling prices. Vendors are expected to ensure that the India transformer market continues to shift, with a 600-ton test bay capacity enjoying a competitive edge in this premium tier.

Demand for smaller units, below 10 MVA, remains steady in rural feeders and for rooftop solar interconnections. Programs such as PM KUSUM create pockets of growth by subsidizing agricultural pump electrification, but thinner margins offset volume gains. Overall, rising voltage levels and corridor lengths ensure the India transformer market continues shifting toward higher-capacity products over the forecast period.

Note: Segment shares of all individual segments available upon report purchase

By Cooling Type: Environmental rules shape adoption

Oil-cooled transformers held a dominant 62.58% share in 2024, reflecting their cost efficiency at high power levels. They remain indispensable for 220 kV and above, where thermal loads are extensive. However, air-cooled units are expanding at an 8.97% CAGR, aided by urban fire safety norms and lower maintenance cycles. City metros and data centers are increasingly specifying dry-type or cast-resin designs to mitigate the risk of oil leaks. Ester-based fluids further diversify demand, particularly where environmental clearances dictate biodegradable coolants. Given growing policy emphasis, vendors are redesigning tank geometries and insulation systems to accommodate multiple cooling media within the same production line, maximizing flexibility in the India transformer industry.

By Phase: Three-phase systems remain the backbone

Three-phase products commanded 72.69% of shipments in 2024 and are projected to outpace single-phase units at an 8.72% CAGR. Their efficiency and load-balancing capability align with India’s three-phase AC grid. Single-phase equipment will continue serving last-mile rural connections, but ongoing household electrification saturation limits incremental volumes. Smart-grid pilots increasingly require three-phase monitoring for harmonic analysis, tilting future tenders in their favor.

Note: Segment shares of all individual segments available upon report purchase

By Transformer Type: Distribution units stay pivotal

Distribution transformers captured 59.45% of the market value and are also expected to grow at the fastest rate of 8.98% CAGR, as RDSS targets curbs in AT&C losses. Only 2% of sanctioned DT meters have been installed, guaranteeing retrofits across the installed base. Power-transformer orders parallel transmission projects, such as the 123,577 circuit km plan, but their growth pace trails that driven by DT. Digital monitoring and amorphous cores are becoming standard bid specifications, lifting the average selling price within the India transformer market.

By End-User: Commercial demand leads growth

Utilities still accounted for 47.29% of revenues in 2024, supported by central funding mechanisms. Yet, commercial segment revenues will log an 11.13% CAGR, buoyed by data centers, logistics hubs, metropolitan areas, and airports. Cargo port expansion and multi-modal parks demand compact, high-capacity substations, which draw premium pricing. Industrial offtake remains steady as automotive and steel plants expand, while residential additions stabilize after saturation with Saubhagya.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Highly industrialized western and southern states—Maharashtra, Gujarat, Tamil Nadu, and Karnataka—generate roughly 60% of India's transformer market annual demand. Maharashtra's automotive belts and metro expansions sustain both medium and distribution class orders, whereas Gujarat's solar parks and petrochemical complexes tilt demand toward step-up and specialty units. Tamil Nadu integrates wind-farm evacuation with port electrification projects, creating a balanced mix of cooling types.

Northern states such as Uttar Pradesh and Haryana contribute significant volumes through agricultural feeders and industrial corridor substations. Rajasthan's 18 GW solar base requires collector-station transformers and 765 kV inter-state links to transport power to load centers. Eastern hubs—West Bengal, Odisha, and Jharkhand—leverage mining electrification and steel capacity additions, but face DISCOM-driven capital expenditure delays that hinder procurement.

Northeastern states remain under-penetrated yet strategic. Hydro potential and incomplete rail electrification create future tender opportunities for ruggedized designs on tough terrain. Export activity clusters around manufacturing bases in Tamil Nadu, Gujarat, and Karnataka, where the Production Linked Incentive scheme encourages outbound shipments of power equipment, positioning India as an emerging hub for transformer exports.