Global Data Center Transformer Market Size, Share & Trends Analysis Report By Insulation Type (Oil Immersed and Dry), By Voltage (1,250-3,750 kVA, 625-1,250 kVA, Below 625 kVA, and Over 3,750 kVA), By Channel Partners, By Regional Outlook and Forecast, 20

Global Data Center Transformer Market Size, Share & Trends Analysis Report By Insulation Type (Oil Immersed and Dry), By Voltage (1,250-3,750 kVA, 625-1,250 kVA, Below 625 kVA, and Over 3,750 kVA), By Channel Partners, By Regional Outlook and Forecast, 2024 - 2031

The Global Data Center Transformer Market size is expected to reach $11.5 billion by 2031, rising at a market growth of 6.0% CAGR during the forecast period.

As per the International Trade Administration (ITA), Singapore is set to invest between US$7.5 billion and US$9 billion in new data centers over the next decade. This investment will increase the need for transformers to handle increased power demands while supporting high-tech operations like cloud computing and AI. The country's growing number of data centers will create substantial demand for advanced power solutions, including transformers. Thus, in 2023, the Asia Pacific region generated 27% revenue share in the market. This growth is fueled by the rapid expansion of data center infrastructure in countries like China, India, and Japan, driven by the region’s booming digital economy, increased internet penetration, and significant investments in cloud services and IT infrastructure. The demand for data centers in Asia Pacific is expected to continue rising, propelling the need for transformers to meet the region’s power requirements and support its expanding digital ecosystem.

The cloud service providers are also focused on improving their infrastructure’s reliability and energy efficiency to reduce operational costs and meet sustainability targets. As a result, data centers supporting cloud services are increasingly adopting high-performance transformer systems that can support growing workloads, provide redundancy, and help lower overall energy consumption, all of which drive the market for data center transformers. Additionally, hyperscale data centers are at the forefront of digital infrastructure and technological advancements. Their role in supporting global tech giants and cloud service providers has increased demand for reliable and redundant power systems to ensure minimal downtime. Transformers play a critical role in maintaining uninterrupted power flow. As hyperscale data centers continue to expand globally, the need for advanced transformer systems will persist, driving the growth of the data center transformer market. Therefore, the surge in hyperscale data center developments with robust power requirements and increased demand for cloud services propels the market's growth.

However, edge data centers' modular and scalable nature means they often deploy a mix of power equipment, relying on distributed energy systems like batteries and local generators rather than traditional transformers. This trend in edge computing further hampers the growth of the data center transformer market, as these facilities do not always require the sophisticated transformer solutions used by larger, more centralized data centers. Thus, limited focus on transformer integration in smaller, edge data centers hinder the market's growth.

Insulation Type Outlook

Based on insulation type, the market is divided into oil immersed and dry. In 2023, the oil immersed segment garnered 76% revenue share in the market. Oil-immersed transformers are preferred for their high efficiency, ability to handle larger loads, and superior cooling properties, making them ideal for data centers that require reliable and continuous power. These transformers are often used in applications where long-term durability and performance are essential, as they offer enhanced insulation and heat dissipation capabilities, contributing to their widespread use in the data center sector.

Voltage Outlook

On the basis of voltage, the market is segmented into 1,250-3,750 kVA, 625-1,250 kVA, below 625 kVA, and over 3,750 kVA. In 2023, the 625-1,250 kVA segment attained 31% revenue share in the market. This range is ideal for small to mid-sized data centers that require moderate power levels to support their operations. The popularity of this segment is driven by the increasing number of mid-tier data centers, which rely on these transformers for efficient power distribution while managing energy costs.

Channel Partners Outlook

By channel partners, the market is divided into OEMs, distributors, online retailers, and electrical contractors. In 2023, the OEMs segment registered 54% revenue share in the market. OEMs provide specialized transformers designed to meet the unique power needs of data centers, ensuring high performance, reliability, and customization. This segment’s leading market share reflects the increasing demand for tailored, high-quality solutions from data center operators and the growing complexity of modern data center operations.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 37% revenue share in the market in 2023. North America remains a key player in the global data center industry due to the growing demand for data storage, cloud computing, and digital infrastructure. The presence of major data center operators, tech giants, and a high level of investment in digital services has significantly driven the demand for reliable and efficient power solutions. The region’s strong revenue share reflects the increasing number of large-scale data centers and their need for high-capacity transformers.

Recent Strategies Deployed in the Market

• Jun-2024: Schneider Electric SE has signed an agreement with Compass Data Centers, which specializes in data center design and construction. This five-year deal aims to address the increased demand for data centers driven by the AI boom. The collaboration extends their joint venture to deliver prefabricated modular data center equipment from a new manufacturing facility in Texas, enhancing construction efficiency and quality across the U.S.
• May-2024: Eaton acquired Exertherm, a U.K.-based provider of thermal monitoring solutions for electrical equipment. This acquisition enhances Eaton's capabilities in continuous thermal monitoring, improving safety and reliability in critical markets such as data centers. By integrating Exertherm's innovative technology into its Brightlayer software suites, Eaton aims to help customers optimize operations and enhance business performance through effective data utilization.
• Mar-2024: Eaton has launched its SmartRack modular data center solution, designed to accommodate up to 150kW of equipment load, catering to the rising demand for edge computing and AI. The modular units can be rapidly deployed in various facilities, enabling organizations to meet the challenges of modern computing needs efficiently. This offering integrates seamlessly with Eaton's cooling systems, PDUs, UPSs, and Brightlayer software for enhanced management and monitoring.
• Feb-2024: Schneider Electric SE introduced EcoStruxure Transformer Expert service, a comprehensive service that utilizes advanced analytics to monitor, assess, and optimize the performance of transformers, ensuring efficient operations and minimizing downtime. The EcoStruxure is crafted to enhance the longevity of oil transformers and adhere to regulatory standards, this service, which operates on a subscription basis, utilizes IoT sensors and sophisticated software analytics to oversee the well-being of transformers.
• Nov-2023: Hitachi Energy Ltd, a subsidiary of Hitachi, Ltd, Launched Liquid-filled Transformers with Transient Voltage Protection (TVP) Technology. The new transformers provide effective protection to downstream magnetic and transformer equipment and are compatible with a variety of network designs.

List of Key Companies Profiled

• Schneider Electric SE
• Siemens AG
• General Electric Company
• Eaton Corporation plc
• ABB Group
• Hitachi, Ltd
• Toshiba Corporation
• Mitsubishi Electric Corporation
• Legrand S.A. (Legrand Group)
• Vertiv Holdings Co.

Global Data Center Transformer Market Report Segmentation

By Insulation Type

• Oil Immersed
• Dry

By Voltage

• 1,250-3,750 kVA
• 625-1,250 kVA
• Below 625 kVA
• Over 3,750 kVA

By Channel Partners

• OEMs
• Distributors
• Online Retailers
• Electrical Contractors

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA