Market Size (2017)
2017
$724.35M
Vertical: EnPBase Year: 201810 Sections
Market Size (2017)
2017
$724.35M
Projected (2025)
2025
$1.07B
CAGR (2017–2025)
5.0%
5.0%Key Players
111+
The global traction transformer market is projected to grow at 5.15% CAGR during the forecast period, 2019–2025. In 2018, the global traction transformer market was dominated by Asia-Pacific with a 34.64% share, followed by Europe and Middle East & Africa with shares of 23.21% and 17.26%, respectively. The demand for traction transformers is growing rapidly owing to various factors, including the increasing demand for public transport infrastructure and the growing need to upgrade electrical systems in rolling stock.
The global traction transformer market has been segmented based on type, overhead line voltage, mounting position, rolling stock., and region. On the basis of type, the global traction transformer market has been segmented into tap changing and rectifier. The tap changing segment is expected to grow at a faster rate during the forecast period. In 2018, the tap changing segment held a 57.68% share of the global traction transformer market.
On the basis of overhead line voltage, the global traction transformer market has been divided into AC system and DC system. The AC system segment is expected to grow at the faster rate during the forecast period. In 2018, the DC system segment held a 41.23% share of the global traction transformer market.
On the basis of mounting position, the global traction transformer market has been segmented into underframe, machine room, and roof. The underframe segment is expected to grow at the fastest rate during the forecast period. In 2018, the underframe segment held a 45.46% share of the global traction transformer market.
On the basis of rolling stock, the global traction transformer market has been segmented into electric locomotives, high-speed trains, and metros. The electric locomotives segment is expected to grow at the fastest rate during the forecast period. In 2018, the electric locomotives segment held a 47.56% share of the global traction transformer market.
On the basis of region, the global traction transformer market has been segmented into the North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2018, Asia-Pacific held a 34.64% share of the global traction transformer market.
The Traction Transformer Market market is projected to grow at a CAGR of 5.0% from 2017 to 2025.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansTraction transformers are primarily used in the railway industry to power electric locomotives. Traction transformers convert electric power supplied by the power company to an appropriate voltage to power the traction motors of the engine and other auxiliaries. The traction transformer converts high voltage AC to low voltage DC, which is fed to the rectifier to run the DC traction motors.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2017 – 2018
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansTHREAT OF NEW ENTRANTS
The research and development cost in traction transformer is high and span of developing traction transformer is lengthy, which lowers the threat of new entrants in the market. The high technological complexity also acts as an entry barrier in the market, due to dimension restrictions defined by the default dimensions of rolling stocks. The industry is dominated by a few large players, who maintain a substantial market share. Therefore, the threat of new entrants in the market is low.
BARGAINING POWER OF SUPPLIERS
There are a substantial number of suppliers of raw materials and components in the traction transformer market, making the supplier concentration high. Raw materials and components for power transformers, including aluminum, copper, iron, windings, insulating materials, and bushing metal parts are easily available in the market. Further, raw material differentiation is very less, limiting the bargaining power of suppliers in the market. Hence, the bargaining power of suppliers in the traction transformer market is low.
BARGAINING POWER OF BUYERS
The buyers in this market have a high concentration due to concentrated authorities as the buyers consists of only the authorized railway department. In most cases, buyers procure traction transformer through competitive bidding, giving them a considerable power in the traction transformer market. However, many end users are willing to pay a premium price for quality products in the market, which again leverages the bargaining power to the buyers. Such factors determine the bargaining power of buyers in the traction transformer market high.
THREAT OF SUBSTITUTES
There are no substitutes for the traction transformers due to limitations on the construction of the traction transformer. Transportation & infrastructure networks depend on the traction transformer to step-down the voltage of the motors fitted in the rolling stocks to feed power for running the traction motors, to minimize transmission losses. Such factors are expected to lead to a low threat of substitutes in the market.
RIVALRY
The growth of the traction transformer market is growing with the increasing demand for transportation across the world. There are a few large players in the market, which makes the market highly competitive. Also, the product differentiation is moderate in the traction transformer market due to the need for manufacturing more efficient traction transformers. This makes the intensity of rivalry in the market high.
Market estimates by geography (2025)
InsightAsia Pacific leads with $384.20M by 2025.
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View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Middle East and Africa | $125.81M | $146.84M | $176.18M | 4.3% | 17% |
| North America | $107.91M | $127.15M | $154.03M | 4.5% | 14% |
| Asia Pacific | $249.52M | $305.37M | $384.20M | 5.5% | 36% |
| Europe | $167.72M | $202.64M | $251.70M | 5.2% | 24% |
| South America | $73.39M | $85.03M | $101.29M | 4.1% | 9% |
| Total | $724.35M | $867.03M | $1.07B | 5.0% | 100% |
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View Subscription PlansTotal Market Size
$1.07B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Tap Changing | $617.00M | 5.0% | 66% |
| Rectifier | $450.40M | 5.0% | 60% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Traction Transformer Market covering market dynamics, competitive landscape, and strategic outlook.
The Traction Transformer Market market is projected to reach $1.07B by 2025, growing at 5.0% CAGR. The Tap Changing segment holds the largest share.
The global traction transformers market is expected to grow at a steady rate during the forecast period and is primarily due to the growth of intracity railway infrastructure and upgrade of electrical systems in rolling stocks. However, the high initial investment in the electrification of rail networks is expected to restrain the growth of the global traction transformer market during the forecast period.
The various developments in transport systems buses, trains, cars, and motorbikes could be used for public commute. However, in the recent years due to the increasing awareness among people about climate change and growing pollution levels, commuters are choosing public transport over private transport. Since the International Union of Railways specified that trains are 2 to 5 times more energy efficient than road, inland shipping, and aviation, it is one of the most popular means for passenger commute. Furthermore, intracity public transport, especially the metro enables faster rides compared to buses and cars. Additionally, metros are much safer for as they run on specified routes, eliminating the risk of accidents. These are some of the major factors driving the demand for metros in major cities across the world. For instance, the Indian government is introducing intracity metro services in the cities including Pune, Coimbatore, Surat, Kanpur, Patna, and Guwahati to reduce traffic congestions and improve public transport. Most of these railway networks are expected to be operational by 2025. Such growth of metro transit is expected to drive the demand for the global traction transformer market during the forecast period, as such infrastructures are supported by electricity.
According to the International Association Public Transport (UITP), as of December 2017, 178 metro systems include an installed asset base of 642 lines covering a length of 13,903 km. This increase in the length of metro lines is primarily due to the new metro line added in 19 cities in China, addition of metro lines of 577 Km in India and Iran, and addition of new metro lines covering a length of 820 Km in established metro cities. According to statistical data from UITP, globally metro ridership grew by 19.5% between 2011 and 2017 amounting to 53.7 billion. The below figure depicts the growth in global metro readership between 2011 and 2017.The metro ridership is expected to witness further growth globally during the forecast period, primarily due to the rising economic development in Asia-Pacific, which accounts for a major share of the metro networks, globally. In turn, an increasing number of commuters opt for public traffic infrastructure, due to increased savings and shorter commute duration. Metros operate on electricity, and traction transformers are used to step down the voltage of electricity before transmitting the electricity to the electric motors to drive the engine. Hence, the growth of intracity railway infrastructure is estimated to drive the growth of the global traction transformer market during the forecast period.
Many developed countries in North America, Europe, and Asia-Pacific have an extensive network of metros and high-speed rail. For instance, according to the UK government, the London metro had a ridership of 1.3 billion passengers in 2018, making it one of the busiest metro systems in the world. Additionally, Japan has a strong network of high-speed rail network connecting various parts of the country. The network extends to a length of about 2,800 km. The Japanese bullet train is one of the major renowned high-speed rail networks in the world and can reach speeds of about 320 Km per hour.
Economically developing countries are such as China, India, and South Africa, are currently developing their network of metros and high-speed rail network to provide its citizens with convenient transport infrastructure. For instance, in September 2018, the Chinese government announced that it is developing a plan to build a high-speed rail service between Kunming and Kolkata, which will also pass through the countries of Myanmar and Bangladesh. Additionally, in the recent years, countries in the Middle East have been developing various projects to strengthen their network of metro trains. For instance, in May 2019, Qatar Rail inaugurated the metro red line, in preparation for the football world cup 2022. Many more metro networks are estimated to be added to the network during the forecast period.
Traction transformers are a major component in both metros and high-speed rail, as they power the engines and various electrical components in the coaches. Thus, growing metros and high-speed rail in developing countries are expected to increase the demand for traction transformers. Therefore, the growing metro and high-speed rail in the developing countries is expected to create opportunities for key players in the traction transformer market during the forecast period.
Operating electric trains is more cost-effective in comparison to diesel locomotives. However, electrification of the railway track is highly capital intensive, which significantly increases the investments in railway electrification. In the US, where the railroads are primarily operated by private companies, investing in diesel fuel rail networks is generally preferred over electrical networks.
Electrification of railways offers numerous benefits, including low fuel costs and zero carbon emission. However, the construction of overhead line equipment, obtaining electrical clearances, and building substations can cost hundreds of millions, due to which government authorities across the world are reluctant to invest in electrification of railway network. In the past 50 years, electrification of railways has been dependent on the economic stability in various countries. Due to the lack of sufficient resources for electrification and developing the railway infrastructure, many countries refrain from electrifying their railway networks. This hinders the wide adoption of electrified railway, restraining the use of traction transformers, which are primarily used in electric locomotives. Therefore, high initial investment in the electrification of railway networks is expected to restrain the growth of the global traction transformer market during the forecast period.
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Profiles of 111 companies operating in the Traction Transformer Market market, including revenue, employee count, and market positioning where available.
Showing 111 of 111 companies
WEG
Company Headquarters: Brazil Founded: 1961 Workforce: ~31000 Company Working: WEG is a global electric-electronic equipment company that operates mainly in the capital goods sector. It offers solutions for electric machines with applications in construction, steel, pulp & paper, oil & gas, and mining industries. The company operates through four business segments, which are industrial electro-electronic equipment, energy generation, motors for domestic use, and paints and varnishes. It offers synchronous condensers under its energy generation segment. Some of the other products and services offered under the energy generation segment are electric generators for hydraulic and thermal power plants (biomass), hydro turbines, wind turbines, transformers, substations, control panels, and system integration services. WEG Electric Corp., Electric Machinery Company Inc., Zest Electric Motors (Pty) Ltd., WEG Colombia SAS, and WEG Tintas Ltd are some of the subsidiaries of the company. Siemens (Germany), Eaton (Ireland), ABB (Switzerland), and General Electric (US) are some of its key competitors. WEG has a presence in more than 135 countries with manufacturing units in 12 countries around the world.
CG POWER AND INDUSTRIAL SOLUTIONS LIMITED
CG Power and Industrial Solutions Limited is a leading company that is engaged in supplying products, such as switchgear, transformers, motors, drives, power automation products, control gears, and circuit breakers. It operates through two business segments, namely, power systems, and industrial systems. The company offers traction transformers in the special transformers product category under the power system segment. Instrument transformers, reactors, switchgear, circuit breakers, vacuum interrupters, transmission & distribution turnkey systems, and automation control systems are some of the other key products also offered by the company under the power system business segment. CG Power and Industrial Solutions Limited has a presence in several countries across the world, including Australia, China, Indonesia, India, New Zealand, the UAE, Belgium, France, Ireland, Saudi Arabia, Kuwait, Germany, the Netherlands, Sweden, Spain, the UK, Brazil, and the US. It has manufacturing offices in many countries, including India, Belgium, France, Indonesia, Hungry, Ireland, the UK, and the US. The company has a research and development center located in India. The company is a subsidiary of Avantha Group (India). CG-PPI Adhesive Products Limited (India), CG Power Equipment Limited (India), CG Holdings Belgium N.V. (Belgium), CG Sales Networks France SA (France), CG Power Systems Canada Inc. (Canada), CG Power USA Inc. (US) are some of its subsidiaries.
HIND RECTIFIERS LIMITED
Hind Rectifiers Limited has long standing tradition and experience in developing, designing, manufacturing and marketing power semiconductors, power electronic equipment and railway transportation equipment. It is offering various products such as converters, control electronics, transformers, rectifiers, inverters, and semi-conductor devices. It caters to a wide range of applications such as electronics, railway transportation, power, telecommunication, and core sector industries such as steel, non-ferrous metals, cement, chemicals, metal finishing, and other industries. The company provides its products through three business divisions namely, equipment division, traction division, and semiconductor division. Traction transformers are offered under the traction division. The company has its sales operation in Mumbai, Chennai, Kolkata, and New Delhi in India with offices in Dehradun and Nashik.
Emco Limited
Emco Limited manufactures and provides a wide range of transformers such as power transformers, distribution transformers, rectifier transformers, traction power transformers, and locomotive transformers. The company provides transformers to a clientele comprising power utilities, oil & gas sector, petro chemical industries, steel industries, cement industries, mining industries, and EPC contractors. It offers transformers, energy metering systems, substations, and tranmission towers & lines under its products and solutions category. The company offers traction transformers under the transformers product category. The company is one of the few transformer manufacturers that have been approved by the Indian Railways, and supplies traction power transformers up to 42 MVA, 220 kV class to the Indian Railways. Emco limited has its manufacturing plants located in Thane, Jalgaon, Vadodara in India. The company manufactures products under IEC, ANSI, BS, and other international standards. It offers products for power industry across 50 countries in the regions of North America, Europe, Middle East, and Asia.
ALTRAFO SRL
Altrafo Srl specializes in manufacturing electrical transformers for electric energy use in medium voltage. It has thirty years of experience in the electrical and electromechanical field. It designs all the components of the transformers such as magnetic core, insulation system, and active parts. It also offers services such as technical and design assistance, logistics, post-sales assistance, and maintenance and repair. It has gained expertise in the production of transformers for special applications such as traction, co-generation, mines, hydroelectric, test rooms, motor control, ovens, power generator exciters, auto-transformers, reactors, inductors, and isolation transformers. The company supplies traction transformers to the companies and projects such as Schneider Electric (France), Siemens (Germany), Rolls Royce’s German factory, Alenia Italian plants, and Gamesa Spanish plant. The company’s plant is situated in Matera industrial area and is extended on a surface of 20,000 square meters, of which 7,000 square meters of area is dedicated to production, 1,200 square meters to office space, and the remaining areas to warehouse and logistics.
MITSUBISHI ELECTRIC CORPORATION
Company Headquarters: Japan Founded: 1921 Workforce: ~ 146,518 Company Working: Mitsubishi Electric Corporation is a multinational electronics and electrical equipment company. Mitsubishi Electric Corporation has a diverse range of products and services, including power generation and transmission systems, industrial automation systems, electronic devices, home appliances, information and communication systems, and space systems. Its products are used in a wide range of industries, including automotive, aerospace, energy, and telecommunications. Mitsubishi Electric Corporation is a major player in the robotics arms market, with a range of products that includes SCARA robots, vertical articulated robots, and collaborative robots. The company's robots are designed to be highly versatile and easy to integrate with other systems, making them suitable for a wide range of applications. Mitsubishi Electric Corporation's robots are known for their precision and speed, and they are used in a variety of industries, including automotive, electronics, and food and beverage. The company has a strong focus on research and development, and it invests heavily in developing new technologies and improving existing ones. This has enabled Mitsubishi Electric Corporation to remain competitive in the robotics arms market and to meet the evolving needs of its customers. In addition to its robotics arms products, Mitsubishi Electric Corporation also offers a range of other automation solutions, including programmable logic controllers, human machine interfaces, and industrial robots. The company's commitment to innovation, quality, and customer satisfaction has helped it to establish a strong reputation in the global automation industry. The company has grown to become one of the largest and most respected electronics companies in the world, with operations in over 40 countries and regions.
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Traction Transformer Market