Current Transformer Market

Current Transformer Market Outlook 2025 to 2035

The global current transformer market is projected to increase from USD 2.1 billion in 2025 to USD 3.6 billion by 2035, with a CAGR of 5.6% during the forecast period. Growth is driven by rising energy consumption from industrial expansion, grid modernization, and renewable integration. Current transformers are ideal for efficient, real-time power monitoring, metering, protection, and control in industrial expansion, grid modernization, and renewable integration projects, including smart grids and emerging economies.

What are the Drivers of Current Transformer Market?

Rapid population growth drives increasing demand for reliable electricity, fueled by a growing home-based workforce, businesses, and other sectors; with global electricity consumption reaching 24,398 terawatt-hours in 2022, durable monitoring solutions like current transformers, which convert primary to secondary current, are essential, leading to growth in the transformer market.

The push for smart grid development is driving up demand for advanced current transformers. These devices are essential for grid automation because they enable real-time monitoring and fault detection, which increases system efficiency and reduces downtime.

The expansion of renewable energy installations, particularly wind and solar power, is also fueling market growth. Current transformers facilitate the integration of these sources into the grid by providing stable and safe current measurement under variable output conditions.

Metric	Value
Industry Size (2025E)	USD 2.1 billion
Industry Size (2035F)	USD 3.6 billion
CAGR (2025-2035)	5.6%

What are the Regional Trends of Current Transformer Market?

North America's power grid modernization will drive market growth in the coming years. Sensors, communication systems, and digitalization are driving the North American transformer market. These innovations enable real-time monitoring, predictive maintenance, and operational efficiency, supporting grid modernization. Advanced current transformers are needed for renewable energy and smart grids, which will boost the market in the coming years.

The demand for transformers in Asia-Pacific is propelled by rapid industrialization, urban growth, and government-driven electrification initiatives, with countries like China, India, Japan, and South Korea investing in grid upgrades and large-scale renewable energy projects; current transformers are widely used in high-voltage transmission and medium-voltage distribution networks, while rural electrification and smart grid developments further expand the market.

European transformer sales are rising as renewable and decentralized energy become more popular. The EU's Clean Energy for All Europeans Package and national decarbonization strategies are forcing utilities and industries to upgrade grid assets. Energy storage, renewable energy, and electric mobility infrastructure use current transformers. Digitalization, grid stability, and cybersecurity integration make next-generation CTs with smart monitoring popular in Germany, the U.K., France, and the Nordics.

The Middle East & Africa transformer market is growing as countries diversify energy portfolios and improve grid reliability. Regional power systems are using more current transformers due to solar and wind energy investments. Saudi Arabia and the UAE lead Vision 2030 and Energy Strategy 2050 energy infrastructure projects. African rural and remote areas are electrified with small, affordable current transformers. Recent developments and rising industrial automation demand should boost regional growth.

What are the Challenges and Restraining Factors of Current Transformer Market?

One of the most significant challenges in the current transformer market is the high cost of advanced and digital current transformers. Although these provide greater accuracy and monitoring capabilities, their adoption is limited in cost-sensitive markets, particularly in developing countries where budget constraints frequently result in the use of traditional models.

Environmental concerns also present a challenge, particularly for oil-immersed current transformers. Leaks or spills can contaminate soil and water, necessitating stricter regulations for their use and disposal. This raises operational costs for businesses and may prompt them to investigate alternative insulation methods, which can be more costly.

Technical limitations, such as saturation and nonlinearity under high current loads, can affect measurement accuracy. This is especially important in sensitive applications like smart grids and renewable energy integration, where real-time and accurate data are required.

Country-Wise Outlook

Countries	CAGR (2025 to 2035)
United Kingdom	3.5%
China	7.1%
India	4.2%

U.K. Accelerating Grid Transformation with High-Accuracy Current Transformers

The U.K. current transformer market is heavily influenced by its commitment to transition to a low-carbon energy system. The country's goal of reaching net-zero emissions by 2050 is driving upgrades to grid infrastructure, particularly through large-scale renewable integration. Renewable energy sources supplied approximately 70% of the U.K.'s electricity in 2023, increasing the demand for high-accuracy current transformers for stable grid operation and real-time monitoring.

Another key factor driving market growth is offshore wind energy development. The U.K. leads Europe in offshore wind capacity, with more than 14 GW installed as of early 2024. This necessitates high-voltage current transformers to monitor energy flow from offshore turbines to the mainland grid, particularly as new transmission corridors are built.

Smart grid development is also advancing in the U.K., due to the government's Digitalizing Energy initiative. Utilities are increasingly using smart meters and automated substations based on digital current transformers to improve system control, reduce losses, and support demand-side management.

China Expanding UHV Infrastructure Boosts Demand for High-Performance Current Transformers

The China current transformer market is driven by its massive power generation and transmission capacity, which is among the world's largest. With the State Grid Corporation of China and China Southern Power Grid investing heavily in ultra-high voltage (UHV) transmission lines, the demand for high-performance current transformers capable of handling voltages of up to 1,100 kV has increased dramatically.

A major driver is the rapid expansion of renewable energy. By the end of 2023, China had installed more than 430 GW of solar and wind capacity. These renewable projects necessitate advanced current transformers to handle variable loads, grid synchronization, and fault detection, particularly in hybrid and remote installations throughout provinces such as Inner Mongolia and Qinghai.

Regulations in China, such as those issued by the National Energy Administration (NEA), require strict adherence to energy efficiency and grid reliability standards. These regulations are especially important in urban and industrial areas where energy quality and load stability are critical.

India Renewable Energy Expansion Drives Current Transformer Deployment

India's ambitious goal to achieve 500 GW of non-fossil fuel capacity by 2030 has been a key driver of the country's renewable energy push. Large-scale solar and wind projects are underway in states such as Rajasthan and Gujarat, with current transformers being used for grid integration, monitoring, and protection.

Digitalization of the power sector is an emerging trend. Programs such as the "Smart Grid Mission" and the "Ujwal DISCOM Assurance Yojana (UDAY)" encourage utilities to implement advanced metering and monitoring systems. This has increased demand for digital current transformers that enable real-time data collection and remote diagnostics.

Regulations enacted by bodies such as BIS and CEA ensure that only certified and standardized current transformers are used, particularly in high-voltage and metering applications. These standards are critical for reducing power losses and increasing energy efficiency at both state and private utilities.

India's EV ecosystem is rapidly expanding, with annual sales expected to reach 10 billion by 2030. Current transformers are critical for providing a safe and balanced power supply to EV charging stations in cities and highways.

Category-wise Analysis

Oil-Immersed to Exhibit Leading by Type

Oil-immersed current transformers dominate the current transformer market, due to their durability, high insulation capabilities, and reliable performance in high-voltage applications. They are widely used in power generation plants, transmission substations, and large industrial installations, where stability and safety are critical.

The oil provides superior cooling and insulation, making these transformers ideal for heavy-duty continuous operations. Their long lifespan and lower maintenance costs further contribute to their preference among utility companies and large infrastructure projects.

Gas-insulated current transformers are the fastest-growing segment, particularly in space-constrained and high-density urban substations. These transformers use SF6 gas for insulation, enabling compact designs, excellent arc-quenching capabilities, and minimal maintenance. Their rising adoption is driven by demand for modern grid infrastructure, increased renewable energy integration, and stringent safety and space optimization requirements in smart cities. As utilities seek efficient, compact, and eco-friendly equipment, gas-insulated models are becoming increasingly popular.

Wound to Exhibit Leading by Construction

Wound-type current transformers hold the largest revenue share, mainly due to their accuracy and compatibility with both protection and metering applications.

They are commonly employed in transmission and distribution networks where precise current measurement is essential. Their versatility allows usage across various voltage ratings and sectors, making them a popular choice among electric utilities and industrial plants. Their robust construction also ensures durability and longevity in high-load environments.

Bar-type current transformers are the fastest-growing, due to their compact size, ease of installation, and suitability for retrofitting. These transformers are increasingly used in modern electrical panels and switchgear, especially in commercial and residential infrastructure projects. Their low-profile design and ability to handle high currents without core saturation make them ideal for smart grids and decentralized energy systems. Growing demand for intelligent power monitoring systems is further driving this segment.

Solid to Exhibit Leading by Core

Solid core current transformers dominate the market, due to their stability, wide adoption, and straightforward design. These transformers are extensively used in traditional power generation and distribution systems where installation space is not a constraint. They provide consistent performance under various load conditions and are preferred for long-term fixed installations. Their reliability and low cost also make them an ideal choice for conventional electrical infrastructure.

Split core current transformers are the fastest-growing segment, particularly in the retrofit and smart grid segments. Their key advantage lies in easy installation without disconnecting existing wiring, which is crucial for live systems and commercial buildings. These transformers are increasingly used in energy management, monitoring, and IoT-based smart metering systems. Their flexibility and compatibility with modern energy monitoring devices drive adoption across both new and legacy systems.

High to Exhibit Leading by Voltage Rating

Medium voltage current transformers hold the largest market share in the current transformer market, due to their widespread use in distribution substations, manufacturing plants, and utility networks. They provide reliable insulation and measurement capabilities across a broad range of applications. Medium voltage infrastructure forms the backbone of most national grids, ensuring consistent demand. These transformers are essential in both protection and metering roles, maintaining balance and safety across the grid.

Low voltage current transformers are the fastest-growing segment, due to the surge in residential and commercial developments, renewable energy installations, and the proliferation of low-voltage smart systems. Their compact size, affordability, and ease of installation make them ideal for solar inverters, EV chargers, building automation systems, and more. Increasing focus on energy efficiency and real-time monitoring in low-voltage applications is fueling this segment's rapid expansion.

Outdoor to Exhibit Leading by Use Case

Outdoor current transformers dominate the largest revenue share in the current transformer market, driven by their use in power plants, substations, and high-voltage transmission networks. Built with robust enclosures and superior insulation, these transformers can withstand harsh environmental conditions, such as temperature extremes and moisture. Their role in maintaining grid stability and supporting large-scale energy infrastructure makes them critical for utility operators and power distribution companies.

Indoor current transformers are the fastest-growing segment, due to rising adoption in commercial buildings, data centers, and smart homes. These transformers are ideal for applications requiring compactness, low noise, and indoor safety standards. Their increasing use in low and medium-voltage panels, combined with the demand for energy monitoring in offices and institutions, is accelerating their adoption. The shift toward intelligent buildings is further fueling this trend.

Metering to Exhibit Leading by Application

Protection applications dominate the current transformer market, due to the critical role of current transformers in fault detection, circuit isolation, and preventing equipment damage. They are extensively deployed in substations, power plants, and industrial systems to ensure safety and grid stability. Accurate and real-time current sensing enables quick circuit breaker response during overloads, making protection CTs indispensable across all voltage levels.

Metering applications are the fastest-growing segment, driven by the global push toward smart grids and accurate energy billing. Current transformers used in metering must offer precision and reliability. Their rising integration into advanced metering infrastructure (AMI), demand-side energy management, and building automation systems is expanding their market footprint. The move toward real-time usage tracking and optimization is enhancing the importance of metering CTs.

Energy to Exhibit Leading by End-Use Vertical

The energy sector dominates the current transformer market, especially across power plants, transmission substations, and distribution substations. These facilities require accurate monitoring and protection to maintain reliability and operational safety. As countries upgrade their aging power infrastructure and integrate renewables, the need for robust CTs in grid protection and energy accounting is growing. Government investments in grid modernization and electrification further support this dominance.

The manufacturing sector is the fastest-growing vertical, due to increased industrialization, automation, and energy consumption monitoring. Current transformers are essential in protecting machinery, monitoring energy usage, and improving operational efficiency. With the rise of Industry 4.0, factories are increasingly deploying CTs in control panels and smart systems to track electrical loads and prevent downtime. The demand for reliable and data-driven energy management is boosting CT adoption.

Competitive Analysis

The current transformer market is becoming increasingly competitive, with both established players and regional manufacturers vying not only on price but also on quality, innovation, and efficiency. Current transformer suppliers have strengthened their market position through substantial investments in R&D, advanced core materials, and precision manufacturing technologies.

Smart grid infrastructure requires advanced CTs with improved accuracy and digital communication, shaping this market. Manufacturers develop remote monitoring, high-frequency measurement, and IEC and IEEE-compliant products as utilities upgrade their networks. These non-intrusive split-core CTs offer new possibilities for retrofitting legacy systems with minimal downtime.

In emerging economies, where price-sensitive customers value affordability over premium features, cost competitiveness is crucial. Local companies often offer low-cost, good-performing alternatives for smaller applications. However, premium manufacturers maintain market share by offering high-reliability CTs with long service life for grid protection and fault detection.

Key players in the market include GE Electric, Schneider Electric, ABB Limited., Siemens, CG Power and Industrial Solutions Limited, CGS Instrument Transformers, Continental Control System, Nissin Electric, VAC, Trench Group, Hammond Manufacturing, Dalian Huayi Electric Power Electric Appliances Co., Ltd., Appendix and other players.

Recent Development

• In February 2024, Schneider Electric, a leader in digital energy management and automation, launched the EcoStruxure™ Transformer Expert service for UK and Ireland businesses.
• In February 2024, Siemens Energy announced an investment of USD 150 billion to expand its operations in Charlotte, North Carolina, specifically for a large power transformer (LPT) manufacturing and service facility. This expansion marks Siemens Energy's first power transformer manufacturing facility in the U.S...

Segmentation of Current Transformer Market

• By Type :

  • Dry
  • Oil-immersed
  • Gas-insulated

• By Construction :

  • Wound Type
  • Toroidal
  • Bar Type
  • Summation

• By Core :

  • Solid Core
  • Split Core

• By Voltage Rating :

  • Low Voltage
  • Medium Voltage
  • High Voltage

• By Use Case :

  • Indoors
  • Outdoors

• By Application :

  • Protection
  • Metering

• By End-use Vertical :

  • Energy Sector
    • Power Plants
    • Transmission Substations
    • Distribution Substations
  • Manufacturing Sector

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa