The transformer industry has long been considered a niche market, with slow innovation compared to other sectors. However, evolving energy networks, material advancements and automation are now forcing the industry to rethink transformer design and functionality. Here Ales Bertuzzi, CWIEME Berlin advisory board member, explains how we are entering a new era in transformer technology.

Having spent years in the energy sector, I have witnessed numerous market fluctuations. However, nothing compares to the past five or six years, particularly in North America, where the industry has experienced unprecedented growth.

The drive to reduce carbon emissions and combat global warming has significantly accelerated the transition towards electric energy, with nuclear and renewable sources taking precedence over fossil fuels. This shift creates a need for more efficient and reliable transformers to support modern energy networks.

Despite its crucial role in power distribution, transformer technology remains largely unchanged. Transformers still rely on traditional materials such as copper and silicon steel, both of which are becoming increasingly expensive and scarce.

Additionally, transformers suffer from energy losses of between five and ten per cent, which are dissipated into the air due to inefficiencies. There is a huge opportunity to rethink transformer design and innovate beyond current limitations. By collaborating and embracing new technologies, we can accelerate progress and enhance energy reliability.

Material innovations

One of the most promising areas for transformer innovation is materials. While silicon steel has long been the industry standard for transformer cores, alternative materials are gaining traction. Amorphous materials, for instance, have been used in specialised applications for years due to their low energy loss properties. Chinese manufacturers have already integrated amorphous materials extensively into their distribution networks, leading the way in transformer efficiency.

The key challenge is sourcing these materials at scale. Every era has had its defining material — whether it was salt, gold, steel or oil. Today, we must identify and invest in the materials that will define the future of energy infrastructure. Lithium, once abundant, is now facing supply constraints, leading to the exploration of sodium as an alternative. Similarly, as copper prices rise, aluminium is becoming a viable substitute. By embracing new materials and creating economies of scale, we can drive down costs and improve efficiency.

Introducing automation

Historically, the transformer industry has resisted automation due to the flexibility required for custom designs and the relatively low production volumes. However, this is changing. The demand for transformers is surging, and manufacturers face delivery times of two to three years. This backlog highlights the urgent need for automation to streamline production and meet growing demand.

Automation offers several advantages beyond increased efficiency. It allows for greater customisation, ensuring that transformers can be tailored to specific energy network requirements. It also addresses the critical skills gap in the industry — machine manufacturers must invest in automation to bridge this divide.

However, one of the biggest challenges is the automation of transformer production itself. Currently, every machine manufacturer is highly specialised in their field, making it difficult to integrate automated processes across the entire supply chain. Collaboration between manufacturers could provide a solution, ensuring that automation is implemented holistically rather than in isolated segments.

Additionally, 3D printing of transformers, while not feasible anytime soon due to technical complexity, remains an exciting prospect for long-term innovation. In the meantime, automation can significantly improve the production process, making transformers more accessible and cost-effective.

Regulatory barriers

One of the primary barriers to automation in the transformer industry is the lack of standardisation across markets. In Europe, for example, each government enforces different specifications for transformers, effectively creating trade barriers. This fragmentation makes large-scale automation impractical, as manufacturers must produce small batches of varied designs rather than high volumes of standardised units.

If governments were to align their specifications, it would lead to greater efficiency, lower costs and more competitive pricing for consumers. Standardisation would enable manufacturers to automate production more effectively, benefiting both energy providers and end users.

Looking ahead

To stay competitive in this rapidly evolving market, we must embrace innovation at every level. Whether through advanced materials, automation or regulatory changes, the transformer industry has the potential to change in ways that were previously unimaginable. However, for this to become a reality, we must shift our mindset from maintaining the status quo to actively seeking new opportunities for efficiency and sustainability.

The next few years will be critical in defining the future of transformer technology. By fostering collaboration between manufacturers, material scientists and policymakers, we can drive meaningful change and ensure that transformers continue to play a pivotal role in the global energy transition.

The energy landscape is shifting, and so must we. The time for innovation is now. That’s why events like CWIEME Berlin are so important. It’s a place for industry leaders to come together and discuss how to move the industry forward. For more information, visit https://berlin.cwiemeevents.com/home.