Electrification is increasing demand for one of the power sector’s most essential assets: transformers. 

Renewable energy integration, grid investment, transport and industrial electrification, and data centre expansion are creating sustained requirements for both power and distribution transformers. Yet increasing manufacturing capacity alone will not necessarily solve the supply challenge. 

At CWIEME Berlin 2026, Hassan Zaheer, Managing Partner and COO at PTR Inc., examined the supply and demand dynamics shaping the global transformer market and the constraints affecting manufacturers, suppliers and utilities. Supply-Demand Dynamics in the T… 

Transformer demand is undergoing structural growth 

The figures presented during the session point towards long term market expansion. 

Global transformer demand was projected to grow from $55 billion in 2022 to $83 billion by 2030, representing annual growth of more than 8%. Europe was identified as a significant growth market, supported by renewable energy targets and investment in grid infrastructure. Supply-Demand Dynamics in the T… 

Power and distribution transformers, however, face different market conditions. 

Large power transformers are particularly affected by extended lead times, with the session highlighting delivery delays reaching as far as 2031 in some regions. Distribution transformer markets are more localised, with significant regional differences in availability and lead times. 

For utilities planning grid expansion, that means procurement decisions increasingly need to account for supply several years ahead. 

The capacity paradox 

One of the most significant findings is that installed production capacity does not tell the full story. 

The session estimated global power transformer production utilisation at around 60%, despite strong demand and extended delivery schedules. This apparent contradiction reflects constraints elsewhere in the value chain. 

Manufacturers may have factory capacity, but they still need skilled people and critical components to turn that capacity into finished transformers. 

Bushings and tap changers were identified as particular bottlenecks. Skilled labour shortages and regulatory requirements are adding further pressure. 

The result is a capacity challenge that cannot be addressed by factory expansion in isolation. 

Supply chain visibility is becoming more important 

These pressures create different priorities across the transformer value chain. 

For OEMs, supplier diversification and workforce development can help reduce exposure to individual bottlenecks. The session also highlighted the potential role of AI assisted workflows in addressing skills constraints. 

Component suppliers face growing expectations around visibility and material traceability, particularly where these requirements influence eligibility for tenders. 

Utilities, meanwhile, may need to rethink procurement strategies. The discussion highlighted strategic sourcing, vendor approval processes and predictive asset monitoring as areas where changes could help organisations manage constrained supply. 

Repairing and retrofitting existing transformers also has an important role to play while new equipment remains difficult to source. 

Building resilience across the transformer value chain 

There is no single intervention that will resolve the transformer supply challenge. 

Increasing production without securing components leaves capacity unused. Expanding the supplier base without addressing qualification requirements can limit its impact. Ordering more equipment without long term visibility can add further pressure to already constrained supply chains. 

Greater coordination across the value chain will therefore be essential. 

That is particularly relevant at CWIEME Berlin, where transformer manufacturers, component specialists, materials suppliers and organisations across the power sector come together to address shared industry priorities. 

The transformer market is expanding because electricity infrastructure is becoming more important to economies worldwide. The opportunity now is to translate that demand into reliable supply. 

Doing so will require investment in manufacturing, but also stronger supplier relationships, more skilled people, greater visibility and procurement strategies designed around the realities of a market under sustained pressure.