Global Data Center Transformer Market Insights Forecasts to 2033

• The Global Data Center Transformer Market Size was Valued at USD 9.10 Billion in 2023
• The Market Size is Growing at a CAGR of 6.95% from 2023 to 2033
• The Worldwide Data Center Transformer Market Size is Expected to Reach USD 17.82 Billion by 2033
• Asia Pacific is Expected to Grow the fastest during the forecast period.

The Data Center Transformer Market Size is Anticipated to Exceed USD 17.82 Billion by 2033, Growing at a CAGR of 6.95% from 2023 to 2033.

Market Overview

A data center is a division of an organization that controls and manages the IT infrastructure for one or more businesses, including the devices and services used for data management. It is the company's technology backbone since it ensures the continued functioning of all systems, interactions, processes, and services and supports a business's daily activities and overall productivity. A transformer's purpose is to distribute voltage to the current circuit by stepping it up increase or stepping it down reduction. Three-phase medium voltage step-down transformers are commonly utilized in data center facilities. Datacenter transformers are going to be in high demand during the estimated time frame due to the growing number of data centers in many industries, including retail, BFSI, government and defense, IT and telecom, and retail. The remarkable global expansion of data center infrastructure should have a positive effect on the dynamics of the data center transformer market. Building and expanding data centers is increasing due to the growing demand for cloud services, processing power, and electronic storage.

Report Coverage

This research report categorizes the market for the data center transformer market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the data center transformer market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the data center transformer market.

Driving Factors

The data center transformer market is propelled by a combination of factors including the expansion of data centers has led to a rise in IT expenditures for process optimization and data storage growth. The data center transformer market has been steadily expanding primarily due to the increase in data traffic. The need for complex transformers is highlighted by the corresponding rise in power consumption that results from data center structures evolving to accommodate greater capacity. The growing workload in data centers highlights the need for superior electricity sources, which fuels the expansion of the data center transformer market.

Restraining Factors

The data center transformer market is hindered by several restraining factors including the companies in the data center power sector are severely limited because of the high upfront costs. Adopting current power systems in data centers requires a transition from antiquated to newer and more modern data center components. This transition process requires a large initial investment.

Market Segmentation

The data center transformer market share is classified intoinsulation type and end user.

• The liquid type (oil-immersed) segment dominates the market with the highest market share through the forecast period.

Based on the insulation type, the data center transformer market is categorized into dry type and liquid type. Among these, the liquid type (oil-immersed) segment dominates the market with the highest market share through the forecast period. The liquid type (oil-immersed) segment dominance is fueled by several factors including the insulation converter that uses oil immersion effectively minimize electrical losses and improve the overall proficiency of the system to efficiently transferring heat. By reducing noise levels low, it also ensures smoother operations. The oil immersed type transformer is expected to fuel the market expansion since it is built to operate at higher loads and provides improved effectiveness and long service life.

• The IT & telecom segment is anticipated to grow at the highest CAGR during the forecast period.

Based on the end user, the data center transformer market is categorized into IT & telecom, BFSI, healthcare, energy, government, travel & transport, and retail. Among these, the IT & telecom segment is anticipated to grow at the highest CAGR during the forecast period. This is primarily due to the industry's growing reliance on digital services, the exponential expansion in data traffic, and the growing range of cloud-based applications. The requirement for modern transformers to provide dependable and efficient power management is increasing as IT and telecom companies develop and improve their data center infrastructure to meet demand. This has led to the segment's dominance in the market.

Regional Segment Analysis of the Data Center Transformer Market 

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

North America is anticipated to hold the largest share of the data center transformer market over the predicted timeframe.

North America is projected to hold the largest share of the data center transformer market over the predicted timeframe. The region's dominance is attributed to the region's users' technical awareness and advanced technological developments are also anticipated to positively affect market expansion. Furthermore, a key element anticipated to propel the regional market is the existence of multiple data centers in the area.

Asia Pacific is expected to grow at the fastest CAGR growth in the data center transformer market during the forecast period. The Asia Pacific region's rapid expansion is attributed to the regional market expanding as a result of rising consumer demand for cloud-based apps and data storage. The building of data centers in this area has expanded as a result of the adoption of cloud-based services in industries including healthcare and educational assistance.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the data center transformer market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• ABB Ltd
• Eaton
• Cisco
• General Electric
• HYOSUNG HEAVY INDUSTRIES
• Legrand
• Microsoft
• Vatransformer
• Schneider Electric
• Siemens
• Tripp Lite
• IBM
• VTC/GT
• Vertiv Group Corp.
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In June 2024, JFE Steel Corporation disclosed that their JGreeX green steel, a grain-oriented electrical metal with lower environmental effects, has been approved by the world's leading producer of IT data center transformers in the US. This is the initial use of JGreeX in the United States.

• In February 2023, Virginia Transformer (VTC), a leading US-owned transformer producer in North America, declared that it had won a contract for supplying converters to one of the world's largest data center operators, adhering to a rigorous qualification process that has paved the way for future collaboration between the two companies.

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the data center transformer market based on the below-mentioned segments: 

Global Data Center Transformer Market, By Insulation Type

• Dry Type
• Liquid Type (oil-immersed)

Global Data Center Transformer Market, By End User

• IT & Telecom
• BFSI
• Healthcare
• Energy
• Government
• Travel & Transport
• Retail

Global Data Center Transformer Market, By Regional Analysis

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa