- Summary
- Table Of Content
- Methodology
Traction Transformer Market Size:
Traction Transformer Market Size is estimated to reach over USD 2.83 Billion by 2032 from a value of USD 1.71 Billion in 2024 and is projected to grow by USD 1.81 Billion in 2025, growing at a CAGR of 6.5% from 2025 to 2032.
Traction Transformer Market Scope & Overview:
Traction transformers are specialized transformers used in electric transportation systems to convert high-voltage grid power to the lower voltage required for the vehicle's traction motors. Traction transformer are a critical core element of transport systems due to the distribution of massive amounts of electrical energy to the engines. It is used to convert the 25k high voltage obtained on the contact network into the voltage suitable for the operation of traction motors and other motors and electrical appliances.
Traction Transformer Market Dynamics - (DRO) :
Key Drivers:
Shift towards more reliable and cost-effective cooling solutions, with a focus on eliminating traditional fan-based systems is driving the traction transformer market growth
The compact size of conventional traction transformers is subject to significant energy loss which heats up internal windings. This requires an external 'cooling system' with a heat exchanger and motorized ‘air-fans’ - adding to maintenance and energy consumption for train operators. The advanced transformer eliminates air-fan based cooling system resulting in reduced costs, energy consumption and maintenance of the cooling system by train operators. Further, this elimination of fan-based cooling system reduces risk of failure and improves reliability with no downtime for the fans, motors, and their supply system. It also reduces operating energy costs and associated carbon emissions of trains by up to 10 percent.
- For instance, the resibloc rail 25kV and natural cooling Effilight Traction Transformer are designed to improve reliability by upto 20% and reduce total operating costs. Also, reduces operating energy costs and associated carbon emissions of trains by up to 10 percent.
Thus, as per the analysis, the enhancement in traction transformer weight and overall costing is driving the traction transformer market size.
Key Restraints:
Standardization and compatibility issues with the older systems hinder the traction transformer market growth
The lack of standardization and compatibility issue poses a significant restraint on traction transformer market due to electrical standard variation, diverse railway network requirement, and complexities in retrofitting of modern transformers. Additionally, railway networks vary widely in their operational needs such as high-speed trains require high speed power capacity, urban transits need lightweight and compact transformers. Retrofitting older systems with modern transformers is complex as it often requires significant modifications to power supply and with outdated or region-specific standards.
Thus, the lack of global standardization and compatibility issues further hinders traction transformer market expansion.
Future Opportunities :
Doubling the voltage to deliver higher power to the train due to the higher traffic density is expected to create traction transformer market opportunities
Due to increasing train speeds and higher traffic density, raising power rating within this system will cause voltage imbalances, and higher power losses, resulting in reduced efficiency and infrastructure limitations. Additionally, by doubling the voltage, the system will deliver significantly higher power levels to trains, enabling increased speeds and capacities without the drawbacks of increasing current in a single-phase system. Moreover, doubling the voltage significantly improves voltage regulation and reduces voltage imbalances in the network compared to conventional single-phase traction power transformers with similar power capacity.
- For instance, Hitachi’s Scott-connected and V-connected transformers Implementing the 2x27 kV these systems are capable of efficient power conversion and distribution offering benefits such as better voltage regulation and reduced voltage imbalances in the network.
Thus, as per the analysis, voltage doubling for better efficiency, and better power conversion is creating the traction transformer market opportunities.
Traction Transformer Market Segmental Analysis :
By Type:
Based on the type, the market is segmented into tap changing and rectifier.
Trends in the Type:
- The increasing trend of rectifier transformers due to its numerous applications such as electrolysis process, aluminium smelting, graphitizing etc.
- Tap changers contribute to improving power quality by limiting difficulties like voltage sags, swells, and flickers, which can come from rapid load changes or variations in power supply.
Rectifier segment accounted for the largest revenue share in 2024
- A transformer rectifier contains thyristors or diodes within the same tank and also includes voltage regulation.
- Rectifier transformers are associated with very high secondary currents encompassed with huge harmonic content caused by semiconductors devices connected to transformer.
- Moreover, these rectifier transformers are highly reliable and flexible, and cost-efficient.
- For instance, ENVILINE (TCR) traction controlled rectifier, to power trains, metros and trams, for maximizing the distance, balance and stability of the DC line, offering high reliability and flexibility, and cost-efficiency.
- Thus, as per the traction transformer market analysis, the capabilities of rectifier transformer is driving the traction transformer market demand.
Tap changing is registered as the fastest CAGR in forecast period.
- The most significant advantage of tap changers is their ability to dynamically respond to changes in load or input voltage without interrupting the power supply.
- The operation and control mechanism of tap changers is important for ensuring the effective and dependable distribution of electrical power under a variety of load conditions, regardless of whether the tap changer is operating on-load or off-load.
- For instance, Hitachi Energy's T-Sync tap-changer manufacturer, EthosEnergy, installed compact three-phase star point tap-changers as part of the T-Sync platform. This innovative solution has enabled a significant reduction in the overall dimensions of the transformer, enhancing its compactness and potentially improving its installation and maintenance.
- Thus, based on the analysis, the capability of tap changing transformer to distribute power effectively is driving the traction transformer market expansion.
By Voltage Line:
Based on the voltage line, the market is segmented into AC and DC.
Trends in Voltage Line:
- AC is commonly used for power distribution in homes and businesses because it is more efficient for long-distance transmission.
- DC power is widely used in low voltage applications such as charging batteries, automotive applications, aircraft applications and other low voltage
AC segment accounted for the largest revenue share in 2024 as well as the fastest CAGR in forecast period.
- AC systems are more efficient for longer distance power transmission, due to lower power losses when electricity is transmitted over longer distance.
- AC transformers handle higher power capacities, which is essential for high-speed trains, and metros.
- For instance, AC traction power supply from Siemens is typically built as oil-immersed transformers with air-natural or air-forced cooling with a nominal power between 5 to 85 MVA.
- Thus, based on the analysis, due to the capability of AC traction supply to transmit power over longer distances is driving the traction transformer market size.
By Vehicle type:
Based on the vehicle type, the traction transformer market is segmented into electric locomotives, high-speed trains, metro, and others.
Trends in Vehicle Type:
- The transformer is one of the most critical electrical devices on high-speed-trains, supplying power to four 625 kW traction motors.
- The increasing trend of electric locomotives due to its highly efficient electric motors.
Electric Locomotive accounted for the largest revenue share of 64.4% in the year 2024.
- Locomotives are advanced rail vehicle are powered by electricity drawn from overhead lines or third rails offering high efficiency.
- Electrical energy required for running electric locomotives is taken either from hydro-electric power station or thermal power station which uses low grade coal for electricity generation.
- Increasing investments in electric locomotives for their environmental benefits such as no direct emissions, improving air quality in confined spaces, such as underground mines for workers safety and ventilation.
- For instance, Hitachi ABB Power Grids won orders worth USD 23 million to power electric freight locomotives for Indian Railways, contributing to the ongoing modernization of the fourth-largest rail network in the world.
- Thus, as per the traction transformer market analysis, the increasing modernization in electric locomotives is driving the market growth.
Metro segment is projected to witness the fastest CAGR in forecast period.
- Traction transformer in metros are critical components in the traction chain, affecting both train performance and operator services.
- The design of electrical system for providing safe, reliable & stable power and efficient performance of electrical system.
- For instance, Hitachi Energy is the largest supplier of dry-type and liquid-filled transformers, with over 1,000 RESIBLOC Rail transformers in operation covering over 750 million km worldwide.
- Thus, based on the analysis, the safety and reliability offered by this transformers in metro is driving the market demand.
By Mounting Position:
Based on the mounting position, the traction transformer market is segmented into machine room, underframe, and roof.
Trends in Mounting Position:
- The underframe mounting of transformers leads to increased space for passenger capacity and their luggage, increased comfort level of passenger.
- Installation if traction transfer on roof, maximizes the space available for passengers while reducing the train’s power consumption.
Underframe accounted for the largest revenue share in the year 2024.
- Underframe-mounted transformers are designed for low-profile applications, allowing for better aerodynamics and reduced drag, which is particularly important for high-speed trains.
- The Transformer main function is to transfer energy coming from the catenary to the traction converters.
- For instance, the four-car trainsets are designed to carry around 1,100 passengers, and hitachi energy delivering two rugged, integrated underframe transformer for each to ensure reliable service and comfort despite heavy daily use. Hitachi Energy’s environmentally friendly units are a low-noise, energy-efficient transformer solution.
- Thus, the wide usage of underframe transformers in high-speed trains is driving the market growth.
Machine room segment is expected to register the fastest CAGR in forecast period.
- Machine room provides a controlled environment that protects the transformer from external elements such as rain, dust, extreme temperature and physical damage.
- Mounting a transformer in a machine room allows for easier access, maintenance, and repair.
- For instance, Hitachi’s train transformer for electrical multiple unit which can be mounted in machine room, weighs upto 2,500 - 4,500 kg, and made of steel, low and high-temperature steel, or aluminium.
- Thus, the increase in machine room mounting systems due to safety concerns is driving the traction transformer market trends.
Regional Analysis:
The global market has been classified by region into North America, Europe, Asia-Pacific, MEA, and Latin America.
North America region was valued at USD 0.41 Billion in 2024. Moreover, it is projected to grow by USD 0.44 Billion in 2025 and reach over USD 0.68 Billion by 2032. Out of these, U.S. accounted for the largest segment of 81.1% in 2024.
North America traction transformer market share is growing due to advanced technology adoption and a robust industrial base. The presence of key market players and substantial investments in research and development further bolster this region's position. These types play a pivotal role in shaping market dynamics, with their adoption influenced by factors such as cost-effectiveness, performance, and government investments for enhancing railways services and infrastructure.
- For instance, the US Federal Railroad Administration (FRA) made USD 153 Million in funding for the establishment and enhancement of intercity rail services across the country.
Asia Pacific region was valued at USD 0.54 Billion in 2024. Moreover, it is projected to grow by USD 0.57 Billion in 2025 and reach over USD 0.91 Billion by 2032.
The Asia-Pacific region traction transformer market share is driven by the growing focus on electrification and sustainable transport solutions in transformer technology. This market's growth is further supported by government initiatives aimed at modernizing rail networks, making it a critical component of the region's transportation strategy.
- For instance, in 2024, according to PIB, in the Union Budget 2024-25, presented by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, a record capital expenditure of USD 30.4 billion has been allocated to the Railways.
Companies are expanding their reach into Europe to capitalize on their technological advancements and consumer base. The interconnected global economy, supported by Europe's efficient logistics and favorable business environment, is driving significant traction transformer market trends and opportunities in the region. The Latin America traction transformer market is witnessing robust growth over the coming years, driven by factors such as technological advancements, increasing consumer demand for sustainable solutions, and favorable government regulations. The Middle East and Africa (MEA) regions are undergoing significant economic growth and urbanization, which is pushing up electricity demand. The traction transformer market has become an important component of the region's power infrastructure as nations in the region continue to engage in infrastructure development, industrialization, and the expansion of their energy sectors.
Top Key Players and Market Share Insights:
The traction transformer market is highly competitive with major players providing traction transformer to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the market. Key players in the Traction Transformer industry include-
- ABB (Switzerland)
- Siemens (Germany)
- JST Transformateurs (France)
- International Electric Co., Ltd. (South Korea)
- Mitsubishi Electric Corporation (Japan)
- Schneider Electric (France)
- Wilson Transformers (Australia)
- GE (U.S.)
- Setrans Holding (France)
- Hitachi (Japan)
Recent Industry Developments :
Partnerships & Collaborations:
- In 2023, Siemens’ partnership with the Indian Railways (IR) to deliver reliable, safe, efficient, and intelligent technologies. Siemens Mobility is set to deliver 1,200 Electric Locomotives of 9000 HP and provide 35 years of full-service maintenance. Total order value is approximately USD 3,003 million (approximately). Siemens Mobility to design, manufacture, and commission the Locomotives to carry freight on the Rail network across the country.
- In 2024, Indian railway covers up to 132,310 kilometers of tracks, out of which 58,074 kilometers are electrified. This is due to the growing demand for efficient transportation solutions to cater to India's expanding population and economy.
Traction Transformer Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2019-2032 |
| Market Size in 2032 | USD 2.83 Billion |
| CAGR (2025-2032) | 6.5% |
| By Type |
|
| By Voltage line |
|
| By Vehicle Type |
|
| By Mounting position |
|
| By Region |
|
| Key Players |
|
| North America | U.S. Canada Mexico |
| Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
| APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
| Middle East and Africa | GCC Turkey South Africa Rest of MEA |
| LATAM | Brazil Argentina Chile Rest of LATAM |
| Report Coverage |
|
Key Questions Answered in the Report
How big is the traction transformer Market? +
Traction transformer market size is estimated to reach over USD 2.83 Billion by 2032 from a value of USD 1.71 Billion in 2024 and is projected to grow by USD 1.81 Billion in 2025, growing at a CAGR of 6.5% from 2025 to 2032.
What specific segmentation details are covered in the Traction Transformer report? +
The traction transformer report includes specific segmentation details for type, voltage line, vehicle type, mounting position, and regions.
Which is the fastest segment anticipated to impact the market growth? +
In the traction transformer market, the metro segment is the fastest-growing segment during the forecast period.
Who are the major players in the Traction Transformer Market? +
The key participants in the Traction Transformer Market are, ABB (Switzerland), Siemens (Germany), JST Transformateurs (France), International Electric Co., Ltd. (South Korea), Mitsubishi Electric Corporation (Japan), Schneider Electric (France), Wilson Transformers (Australia), GE (U.S.), Setrans Holding (France), Hitachi (Japan), and others.
