Average power transformer lead times rose from about 50 weeks in 2021 to 120 weeks in 2024. Large grid equipment makers report record backlogs, including USD 42.2 billion at GE Vernova Electrification.
Why this market is moving now
- Global grid investment is projected to grow a further 17% in 2026 after reaching nearly USD 450 billion in 2025.
- In August 2026 Hitachi Energy announced USD 300 million of new transformer capacity in China under a USD 9 billion global plan.
- GE Vernova's Electrification equipment backlog rose 60% in the year to the third quarter of 2026.
- Grid equipment makers raised capital spending by 12% in the first three quarters of 2025 to add capacity.
Key figures
Global figures for this market, with the year each one describes. Use Cite to copy a reference to this page.
| Figure | Value | Year | Cite |
|---|---|---|---|
| Global investment in electricity grids, including transformers, cables and lines, rose by USD 45 billion in 2025 to nearly USD 450 billion. | 450 USD billion | 2025 | |
| Global grid investment is projected to grow by a further 17% in 2026, driven by higher equipment prices and expanding system needs. | 17 % | 2026 | |
| Makers of transformers, switchgear, cables and other grid equipment earned an average return on investment of 11% in the fourth quarter of 2025, as demand outpaced supply. | 11 % | 2025 | |
| Grid equipment manufacturers spent 12% more on capital expenditure in the first three quarters of 2025 than in 2024 to expand capacity. | 12 % | 2025 | |
| Average power transformer lead times rose from about 50 weeks in 2021 to 120 weeks in 2024. | 120 weeks | 2024 | |
| Transformer prices rose by 60% to 80% on average between January 2020 and early 2024. | 60 to 80 % | 2024 | |
| GE Vernova's Electrification segment equipment backlog reached USD 42.2 billion in the third quarter of 2026, up 60% year on year, including USD 5 billion from transformer maker Prolec GE. | 42.2 USD billion | 2026 | |
| Hitachi Energy announced a USD 300 million expansion of power transformer and component capacity in China in August 2026, part of a USD 9 billion global investment plan. | 9 USD billion | 2026 | |
| Siemens Energy expects comparable revenue growth of 25% to 27% in its Grid Technologies business in fiscal year 2026. | 25 to 27 % | 2026 | |
| Eaton reported year-on-year total backlog growth of 46% in its global Electrical businesses in the third quarter of 2026. | 46 % | 2026 |
Calculated figures (shares, changes and prices per kilogram) are plain arithmetic on the reported values. Read how we work.
Companies to watch
GE Vernova
Electrification segment equipment backlog of USD 42.2 billion in the third quarter of 2026, up 60% year on year.
Prolec GE
Transformer maker now part of GE Vernova Electrification; it contributed USD 5 billion of the USD 42.2 billion equipment backlog.
Hitachi Energy
Expanding power transformer capacity in China under a USD 9 billion global investment plan announced as the largest in the industry.
Siemens Energy
Expects 25% to 27% comparable revenue growth in Grid Technologies in fiscal year 2026.
Eaton
Electrical backlog up 46% year on year in the third quarter of 2026.
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the global market - 03Global market size, 2021 to 2025
Historical series and growth rates - 04Countries and regions
Demand, supply and trade by country and region - 05Outlook to 2031
Base, low and high scenarios with stated assumptions - 06Rules, policy and deadlines
Regulation and programmes that change demand - 07Drivers and barriers
What accelerates or slows adoption, by customer segment - 08Prices, costs and margins
Unit economics where public data allows - 09Competitive landscape
8 to 12 company profiles with recent moves - 10Opportunities and risks
For new entrants, suppliers and investors - 11Method and assumptions
How every figure was built
Included with the full report
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Frequently asked questions
How big is the global power transformer market?
No single world market value for transformers was found. Global grid investment, which covers transformers, cables and lines, rose to nearly USD 450 billion in 2025.
How long are power transformer lead times?
Average power transformer lead times rose from about 50 weeks in 2021 to 120 weeks in 2024.
Are transformer prices rising?
Transformer prices rose by 60% to 80% on average between January 2020 and early 2024. Grid equipment makers earned an 11% return on investment in late 2025 as demand outpaced supply.
Which companies are expanding transformer production?
Hitachi Energy is expanding transformer capacity in China under a USD 9 billion global plan. GE Vernova added transformer maker Prolec GE, and its Electrification backlog reached USD 42.2 billion in 2026.
What is the outlook for grid equipment demand?
Global grid investment is projected to grow a further 17% in 2026. Eaton reported 46% Electrical backlog growth and Siemens Energy expects 25% to 27% Grid Technologies revenue growth.
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