Electrical transformers market in Germany

Earlier Report Observations

From 2018 to 2020, the German electrical transformer market was shaped by the country's rapid expansion of renewable energy capacity, which increased demand for transformers to integrate green power into the grid. In 2018, the introduction of technologically advanced transformers, such as vacuum-cast coil units for harsh environments, supported production valued at 2 009 M $ US. Although market size dipped to 1 334 M $ US in 2019, it recovered to 1 355 M $ US by 2020, aided by the continued growth of renewables and the rising relevance of hybrid transformers capable of handling both conventional and renewable sources.

Between 2021 and 2024, rising investments in grid infrastructure to support the energy transition further boosted demand. The solar energy sector, which saw a 22% capacity increase in 2022, created strong demand for PV transformers, contributing to a market size of 1 798 M $ US that year. Supply constraints emerged, with lead times for power transformers extending to 2–4 years by 2023 due to material shortages and high production utilization. Major players like ABB and Siemens responded with innovations: ABB launched new closed-core transformers for renewable projects, while Siemens pursued partnerships to digitalize substations. By 2024, the transformer shortage had become acute, with a reported 15% capacity gap for grid expansion by 2030 and lead times reaching 3–4 years, driving the market for special transformers above 4.1 B $ US.

Production electrical transformers in Germany

In value, 2017-2020, M $ US

After two years of decline, electrical transformer production in Germany increased in 2020. Output was valued at 1 809 million US dollars, representing a slight advance of 2.8% over the previous year. Over the 2017-2020 period, production decreased by 10.9%, with a compound annual growth rate of 3.8%. The lowest value was recorded in 2019 at 1 761 million US dollars, which also saw the largest decline of 12.4%.

Annual dynamics of production in Germany in value, 2017-2020, M $ US

Exports electrical transformers from Germany

Exports in kind, M unit

Electrical transformer export volumes from Germany declined for the third consecutive year. In 2020, exports totaled 130.4 million units, marking a year-over-year decrease of 10.6%. Over the 2017-2020 period, exports decreased by 32%, with a compound annual growth rate of 12.1%.

Annual dynamics of product's exports from Germany in kind, 2017-2020, M unit

Between 2017 and 2020, there was no single dominant market for electrical transformer exports from Germany. Spain accounted for 19.5% of exports in kind, France for 18.3%, and Hungary for 10.8%, together representing 48.7% of total exports. Many smaller partners each held modest individual shares.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Germany in kind, 2017-2020

Exports in value, M $ US

Germany exported 1 252 million US dollars worth of electrical transformers in 2020, amounting to a slight gain of 0.9% relative to the prior year. Over the 2017-2020 period, exports decreased by 10.9%, with a compound annual growth rate of 3.8%. The minimum value was recorded in 2019 at 1 241 million US dollars, while the maximum value was in 2018 at 1 412 million US dollars. The largest decline occurred in 2019, at 12.1%.

Annual dynamics of product's exports from Germany in value, 2017-2020, M $ US

From 2017 to 2020, exports in value terms were distributed across a wide set of partner countries. The United States accounted for 8.0% of exports in value terms, France for 6.9%, and China for 6.1%, jointly representing just 21.0% of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Germany in value, 2017-2020

Imports electrical transformers to Germany

Imports in kind, M unit

Germany's volume of electrical transformer imports declined for the third consecutive year. In 2020, imports amounted to 231.5 million units, which is 10.1% smaller than the year before. Between 2017 and 2020, imports decreased by 33.3%, equating to an annualized rate of 12.6%.

Annual dynamics of product's imports to Germany in kind, 2017-2020, M unit

From 2017 to 2020, China remained the main source for electrical transformers imported into Germany, taking 71.5% of total imports in kind. The remaining volume was distributed among other countries.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Germany in kind, 2017-2020

Imports in value, M $ US

Electrical transformer shipments to Germany from abroad declined for the second consecutive year. In 2020, imports totaled 798 million US dollars, down by 2.1% year-over-year. Between 2017 and 2020, imports increased by 8.2%, equating to an annualized rate of 2.6%. The maximum value was recorded in 2018 at 830 million US dollars, which also saw the largest increase of 12.6%.

Annual dynamics of product's imports to Germany in value, 2017-2020, M $ US

Over the 2017-2020 period, the geographical structure of imports in value terms was highly diversified. China accounted for 25.6% of imports in value terms, Austria for 13.8%, and Switzerland for 10.4%, together representing 49.8% of total flows. The remaining 50.2% was distributed among numerous smaller partner countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Germany in value, 2017-2020