Smart Transformers Market Size

Global Smart Transformers Market size was valued at USD 2.34 billion in 2023 and is poised to grow from USD 2.58 billion in 2024 to USD 5.61 billion by 2032, growing at a CAGR of 10.2% during the forecast period (2025-2032). 

The most significant driver for the global smart transformers market growth is the increasing application of smart grids globally. Smart grids require advanced transformer technology to enhance energy efficiency, facilitate real-time monitoring of data, and increase power reliability. These transformers facilitate dynamic voltage regulation, energy conservation, and bidirectional power flow, mirroring the increasing focus on incorporating renewable energy. Government initiatives promoting energy modernization and carbon emission reduction also contribute to the demand for smart transformers.

For instance, Parliament approved the EU Climate Law, establishing legally binding 55% cuts in emissions by 2030 and climate neutrality by 2050, reasserting EU leadership on the fight against climate change. As urbanization and industrialization increase electricity demand, the utilities are spending on intelligent grid infrastructure, further underpinning the adoption of smart transformers as a key component of new energy systems.

Will Smart Transformers Powered by AI Shape the Future of Energy Management?

Technological advancements in Internet of Things (IoT) and artificial intelligence (AI) technologies are revolutionizing the smart transformer market by enabling better monitoring, predictive maintenance, and optimization. IoT sensors embedded in smart transformers facilitate real-time measurement of parameters like temperature, voltage, and load. AI-driven algorithms process the data to forecast failure and optimize operational efficiency. These technologies reduce time and maintenance costs, which makes them highly sought after by utilities and industrial consumers.

• For instance, Hammond Power Solutions' launch of HPS Smart Transformers in October 2024. The transformers feature Industrial IoT (IIoT)-enabled power monitors to provide critical data insights, allowing users to predict and remedy future problems before they result in costly downtime. This preventive approach enhances operational efficiency and reliability in energy management systems.

How are Startups Enhancing Grid Efficiency with Smart Transformers?

Some of the start-ups in smart transformers are taking full advantage of technologies, which can be adopted for the most cost-efficient sustainability and resilience and grid efficiency. With the help of smart control systems, AI-based monitoring, and solid-state transformer technology, they have indeed been innovated. Modernization in power distribution and the forthcoming integration of electricity-based renewable energy sources in the smart grid are all supposed to depend considerably upon the contribution of these companies.

• IONATE Limited (2019): The Hybrid Intelligent Transformer (HIT) is a modern technology developed by IONATE. It incorporates the advanced development of the control system along with a radical core-coil design. HIT technology enables in real-time controlling the electric factor, which enhances the grid stability, its efficiency, and removes the requirement for external devices greatly. It is now possible to integrate dispersed sources of energy-from the wind and the sun, optimize the power flow as well as minimize energy loss usage via HIT technology from IONATE. This shows the company's contribution to the smart transformer market as having characteristics of power quality and resilience and access to a more intelligent and responsive grid infrastructure.

• Amperesand (2023): Amperesand leading-edge solid-state transformer (SST) technology is transforming the smart transformer industry. With better power conversion and load balancing, Amperesand maximizes grid efficiency through silicon carbide devices and high-frequency transformers. With the ability to integrate renewable sources, including electric car charging infrastructure, their SST solutions enable the shift towards decentralized energy systems. The future generation of intelligent power distribution systems is being actively designed by Amperesand with the emphasis on higher grid flexibility, smaller footprint design, and better efficiency.