Transformers for Data Centers Market Research：the market size is projected to reach USD 3 billion by 2031

Transformers for data centers are specialized electrical devices designed to manage and distribute power efficiently within high-load, mission-critical environments. As the global digital economy accelerates, the demand for robust, reliable, and high-efficiency transformers in data centers is expanding rapidly. In 2024, the data center transformer market has seen steady growth, supported by rising demand from both traditional enterprise facilities and the explosive expansion of AI-driven data centers. Global leaders such as Hitachi Energy, Siemens Energy, and Schneider Electric are at the forefront, providing scalable solutions for modern power-hungry workloads.
According to the new market research report “Transformer for AI Data Centers - Global Market Share and Ranking, Overall Sales and Demand Forecast 2025-2031”, published by QYResearch, the global Transformers for Data Centers market size is projected to reach USD 3 billion by 2031, at a CAGR of 12.2% during the forecast period.

Figure. Global Transformers for Data Centers Market Size (US$ million), 2025-2031

Source: QYResearch, "Transformer for AI Data Centers - Global Market Share and Ranking, Overall Sales and Demand Forecast 2025-2031”

The average price of transformers for data centers has experienced moderate fluctuations in recent years, reflecting changes in raw material costs and product mix. From USD 15.10/kVA in 2020, prices rose to USD 17.92/kVA by 2023, before slightly retreating to USD 16.59/kVA in 2024. Despite inflationary pressures on copper, steel, and magnetic materials, technological improvements in thermal design, insulation systems, and modular production have helped stabilize costs. Looking ahead, manufacturers are expected to focus on enhancing efficiency, lifecycle durability, and digital monitoring capabilities while managing cost competitiveness.

The transformer market for data centers is moderately concentrated, with global heavyweights and emerging Chinese players shaping the competitive landscape. In 2024, Schneider Electric leads with a 15.03% market share, followed by Hitachi Energy (10.23%), Siemens Energy (9.75%), and GE (8.38%). Chinese players like Hainan Jinpan Smart Technology (4.46%), TBEA (4.05%), Igor (2.37%), and Guangdong Shunna Electric (2.74%) are steadily gaining ground. These companies benefit from growing local demand, government support, and increasing expertise in designing compact, energy-efficient, and AI-optimized transformer systems.

Data center transformers are broadly categorized into dry-type and oil-immersed variants. In 2024, dry-type transformers dominate with a 79.22% share, thanks to their superior fire safety, compact footprint, and ease of indoor installation—ideal for high-density computing environments. By 2031, this share is projected to rise further to 84.02%, driven by rapid adoption in AI data centers and edge computing nodes. On the application front, non-AI data centers currently represent the bulk of demand (73.65% in 2024), but AI data centers are rapidly catching up. Their share is expected to nearly double from 26.35% in 2024 to 46.32% by 2031, reflecting the soaring power demands of AI training clusters and GPU-intensive workloads.

North America and Asia-Pacific are the dominant markets for data center transformers. North America benefits from high data center density, strict energy efficiency standards, and early adoption of AI infrastructure. Meanwhile, China and Southeast Asia are emerging as global data hub regions, supported by hyperscaler investments and national digital economy strategies. European demand is also rising, especially in Nordic countries where green power and data sovereignty are key drivers. Regional supply chain shifts—triggered by geopolitical tensions and the need for resilience—are leading to increased local production, especially in the U.S., India, and Eastern Europe.

Next-generation data centers demand transformers that offer not only high reliability and safety, but also digital intelligence, modularity, and energy efficiency. Smart transformers with real-time thermal monitoring, predictive maintenance, and remote control capabilities are gaining traction. Innovations in high-temperature insulation, amorphous core materials, and low-loss designs are enhancing performance and sustainability. Furthermore, transformer manufacturers are developing AI-optimized models capable of handling dynamic, high-frequency loads typical of modern AI data clusters. Modular dry-type transformers, pre-installed in prefabricated containers or power skids, are being rapidly adopted to accelerate deployment and reduce commissioning time.

Transformers for data centers are no longer commodity power components—they are strategic enablers of digital transformation, energy efficiency, and AI performance. With increasing demand from hyperscale and AI-driven applications, coupled with advances in dry-type technology and policy backing, the global data center transformer market is poised for sustainable, intelligent growth. Manufacturers who innovate for safety, scalability, and digital readiness will shape the future of data center power infrastructure.




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