Transformer Monitoring System Market By Type (Hardware, Software, Services); By Monitoring Type (Dissolved Gas Analysis [DGA], Bushing Monitoring, Partial Discharge Monitoring); By Voltage Range (Low Voltage, Medium Voltage, High Voltage); By Application (Power Transformers, Distribution Transformers, Generator Step-Up Transformers); By End-Use Industry (Utilities, Oil & Gas, Mining, Manufacturing); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The transformer monitoring system market was worth USD 2.94 billion in 2023 and will be worth USD 5.36 billion by 2030, growing at a CAGR of 7.8% during the forecast period.

 

The Transformer Monitoring System market growth is fueled by the need for optimized supply of electricity and the efforts to avoid transformer failures or to extend their working time. With the growth in the global power consumption, utility companies are embracing the latest monitoring technologies to improve on the power distribution networks. Transformer monitoring systems plays major role in identifying probable failures and avoiding major faults that are expensive in sectors like healthcare, manufacturing, data centers, etc. where continuous power supply is mandatory. For instance, the use of smart grids all around the world has helped to advance the use of transformer monitoring systems which offer real-time information of transformer’s condition as well as the likelihood of a fault. Some of the developments seen in this area are connectivity of IoT to transformer systems to be used in transformer health check from a distance which enhances operational safety and efficiency. In addition, technologies in artificial intelligence are being employed to analyze data obtained from monitoring systems to anticipate and alert transformer failures.

 

The global Transformer Monitoring System market offers considerable prospects due to certain trends, such as the growing global need for strong and efficient power delivery network along with the transition towards smart grids. The global electricity generation is projected to increase by more than 40% and hence, calls for a more efficient transformer monitoring technique to avoid efficiency-related downtimes. Smart transformer monitoring systems living temperature, humidity, and levels of oil that can cut down maintenance expense up to a great extent and maximize the life of transformers. New monitoring platform of Siemens implemented in 2023 includes an application of AI technology to predict transformers’ failures and thus, prevent SDT by utilities. Accompanying technological development, the shift toward renewable energy generating technologies shows a huge opportunity for growth as they integrate smart grid solutions add to energy reliability and efficiency for utilities and industries.

 

 

Market Segmentation

By Type

• Hardware

• Software

• Services

 

By Monitoring Type

• Dissolved Gas Analysis (DGA)

• Bushing Monitoring

• Partial Discharge Monitoring

 

By Voltage Range

• Low Voltage

• Medium Voltage

• High Voltage

 

By Application

• Power Transformers

• Distribution Transformers

• Generator Step-Up Transformers

 

By End-Use Industry

• Utilities

• Oil & Gas

• Mining

• Manufacturing

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

Segment Analysis for the Transformer Monitoring System Market

By Type:

Leading Segment: Hardware

Hardware dominates the market, holding a 55% share, as it encompasses essential components such as sensors, relays & monitoring devices required for real-time transformer health assessment. With the rising demand for grid reliability, utilities are heavily investing in hardware solutions to minimize unplanned outages. Siemens provides advanced transformer monitoring hardware to utilities, enhancing predictive maintenance. The segment is projected to expand at a CAGR of 8.2% during the forecast period.

Fastest-Growing Segment: Software

Software solutions for transformer monitoring are growing at a CAGR of 10.5%, driven by the increasing adoption of AI and IoT-based analytics. Predictive maintenance software, such as those offered by GE Grid Solutions, helps utilities analyze transformer performance and prevent failures. The rising need for remote monitoring capabilities is accelerating software adoption in smart grid applications.

 

By Monitoring Type:

Leading Segment: Dissolved Gas Analysis (DGA)

DGA holds the largest market share at 40%, as it is the most effective method for detecting faults in transformers by analyzing gas levels in insulating oil. Major power companies, such as National Grid, rely on DGA to identify potential failures early, ensuring uninterrupted power supply. The segment is expected to maintain steady growth with a CAGR of 8%.

Fastest-Growing Segment: Partial Discharge Monitoring

Partial discharge monitoring is experiencing the highest growth at a CAGR of 11%, as it enables real-time detection of insulation breakdowns, reducing catastrophic failures. With the adoption of high-voltage substations, companies like ABB are integrating partial discharge monitoring systems into their transformer solutions to improve grid reliability.

 

By Voltage Range:

Leading Segment: High Voltage

High-voltage transformers account for 50% of the market share, as they are crucial for long-distance power transmission & major grid infrastructure projects. Governments worldwide are investing in high-voltage grid expansion. China’s State Grid Corporation is deploying high-voltage transformers with real-time monitoring capabilities. The segment is expected to grow at a CAGR of 7.9%.

Fastest-Growing Segment: Medium Voltage

The medium-voltage segment is growing at a CAGR of 10%, driven by the rising adoption of smart grids and distributed energy resources. Medium-voltage transformers are widely used in industrial plants and renewable energy integration. Companies like Schneider Electric are developing digital monitoring solutions to enhance the efficiency of medium-voltage transformers.

 

By Application:

Leading Segment: Power Transformers

Power transformers dominate the market, accounting for 45% of total revenue, as they are essential for electricity transmission & substations. With increasing investments in power infrastructure, utilities are deploying advanced monitoring systems to extend transformer lifespan. Duke Energy is implementing remote monitoring for its fleet of power transformers.

Fastest-Growing Segment: Generator Step-Up Transformers

Generator step-up transformers are growing at a CAGR of 10.8%, fueled by the expansion of renewable energy projects. These transformers are critical for stepping up voltage from power generation sources like wind & solar farms. Companies like Siemens Energy provide advanced monitoring solutions for generator step-up transformers in renewable power plants.

 

By End-Use Industry:

Leading Segment: Utilities

The utilities sector holds a 60% share, as grid modernization and reliability improvements drive the demand for transformer monitoring systems. Government initiatives to reduce power outages are fueling adoption. The U.S. Department of Energy has invested heavily in smart grid technologies, including transformer monitoring.

Fastest-Growing Segment: Oil & Gas

The oil and gas industry is growing at a rate of 10.3% each year because offshore and remote facilities need dependable power distribution. If transformers fail in these places, it can cause major disruptions. Companies like Shell are using AI-based monitoring systems to prevent transformer failures and keep their energy operations running smoothly.

 

By Region:

Leading Region: North America

North America leads the market with a 35% share, driven by aging grid infrastructure & increasing investments in smart grids. The U.S. government has committed billions to modernize its power transmission systems, boosting demand for transformer monitoring solutions. For instance, utilities like PG&E are deploying AI-driven monitoring for grid resilience.

Fastest-Growing Region: Asia Pacific

Asia Pacific is the fastest-growing region, with a CAGR of 12%, due to rapid urbanization, industrial expansion, and large-scale grid development projects in countries like China and India. The Indian government’s "Revamped Distribution Sector Scheme" aims to modernize its grid infrastructure, accelerating the adoption of transformer monitoring technologies. Companies like Hitachi Energy are expanding their footprint in Asia to meet this growing demand.

 

Key Players

• Siemens AG

• General Electric (GE)

• Schneider Electric

• ABB Ltd.

• Eaton Corporation

• Mitsubishi Electric Corporation

• Hitachi Energy

• Dynamic Ratings

• Qualitrol

• Koncar Group

 

Transformer Monitoring System Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 2.94 billion
Revenue Forecast in 2030	USD 5.36 billion
Overall Growth Rate	CAGR of 7.8%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 - 2030)
Segmentation	By Type, By Monitoring Type, By Voltage Range, By Application, By End-Use Industry, By Region
By Type	Hardware, Software, Services
By Monitoring Type	Dissolved Gas Analysis (DGA), Bushing Monitoring, Partial Discharge Monitoring
By Voltage Range	Low Voltage, Medium Voltage, High Voltage
By Application	Power Transformers, Distribution Transformers, Generator Step-Up Transformers
By End-Use Industry	Utilities, Oil & Gas, Mining, Manufacturing
By Region	North America, Europe, Asia-Pacific, LAMEA
Country Scope	US, Canada, Mexico, UK, Germany, France, China, Japan, India, South Korea, Australia, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.