Liquid dielectric electrical transformers market in Germany

Earlier Report Observations

From 2018 to 2021, Germany's market for liquid dielectric electrical transformers experienced rising import volumes, driven by increasing electricity demand and regulatory initiatives promoting grid modernization. The COVID-19 pandemic in 2020 caused supply chain disruptions and production delays, yet demand remained robust due to ongoing renewable energy projects. A key shift occurred in July 2021 with the implementation of Stage 2 of the EU Ecodesign Directive, which set stricter loss limits for transformers, prompting manufacturers to invest in technical upgrades and more energy-efficient models.

Between 2022 and 2024, the domestic market volume showed volatility, reaching 31 447 units in 2022 before declining to 27 708 units in 2023. This drop was primarily due to a sharp contraction in imports, influenced by persistent supply chain challenges and lead times that extended to an average of 120 weeks. During this period, significant capacity expansions by major players, such as Hitachi Energy's over €30 million investment in Bad Honnef and Siemens' investments in German production facilities, bolstered domestic output. The market continued to be shaped by strict environmental regulations, including the Ecodesign Regulation, and the introduction of new product lines featuring biodegradable insulating liquids, reinforcing a trend toward higher efficiency and sustainability.

Production liquid dielectric transformers in Germany

In value, 2017-2020, M $ US

After two years of decline, Germany's production of liquid dielectric electrical transformers showed signs of recovery. In 2020, output reached 903.5 million US dollars, representing a 13.0% increase compared to the previous year. Looking at the broader period from 2017 to 2020, production overall decreased by 8%, with a compound annual growth rate of -2.7%. The lowest production value was recorded in 2019 at 799.7 million US dollars, which also saw the largest annual decline of 15.9%.

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

Exports liquid dielectric transformers from Germany

Exports in kind, unit

Germany's exports of liquid dielectric electrical transformers declined for the second consecutive year. In 2020, the country exported 9 098 units, showing little change from the previous year. Over the period from 2017 to 2020, exports increased by 4.6%, translating to an annualized growth rate of 1.5%. The peak export volume occurred in 2018 with 9 606 units, which also saw the largest annual increase of 10.4%. The largest annual decline was recorded in 2019 at 5.0%.

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

Between 2017 and 2020, Germany's exports of liquid dielectric electrical transformers were distributed across a diverse range of partners. The top three destinations—Czechia with 15.5% of exports, France with 15.2%, and the Netherlands with 11.6%—collectively accounted for 42.3% of total flows. The remaining 57.7% was spread among numerous smaller markets, indicating a broad and varied export landscape.

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

Following a two-year contraction, Germany's exports of liquid dielectric electrical transformers in value terms began to recover. In 2020, exports amounted to 465.6 million US dollars, reflecting a modest uptick of 1.6% compared to the previous year. From 2017 to 2020, exports decreased by 20%, with an annualized decline rate of 7.2%. The lowest export value was recorded in 2019 at 458.2 million US dollars, which also experienced the largest annual drop of 19.6%.

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

From 2017 to 2020, Germany's export value for liquid dielectric electrical transformers was spread across multiple countries without a single dominant partner. The United States accounted for 12.2% of exports, France for 9.5%, and the Netherlands for 6.3%, together making up just 28.0% of total flows. This distribution highlights a fragmented market with no clear leader.

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

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

Imports liquid dielectric transformers to Germany

Imports in kind, unit

Germany's imports of liquid dielectric electrical transformers increased for the third year in a row. In 2020, imports totaled 14 833 units, marking a strong rise of 10.4% compared to the prior year. Over the period from 2017 to 2020, imports grew by 55.2%, equating to an annualized growth rate of 15.8%.

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

Between 2017 and 2020, Switzerland, Hungary, and Poland were the main sources for Germany's imports of liquid dielectric electrical transformers in volume terms. Switzerland contributed 24.9% of imports, Hungary 20.7%, and Poland 14.3%, together accounting for 59.8% of total flows. This concentration indicates a reliance on a few key suppliers for these products.

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

Germany's imports of liquid dielectric electrical transformers in value terms rose for the third consecutive year. In 2020, imports reached 307.8 million US dollars, constituting a substantial increase of 11.4% year-over-year. From 2017 to 2020, imports increased by 49.7%, with a compound annual growth rate of 14.4%.

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

Throughout 2017 to 2020, Austria, Switzerland, and the Netherlands formed the core of Germany's imports in value terms for liquid dielectric electrical transformers. Austria accounted for 27.8% of imports, Switzerland for 23.7%, and the Netherlands for 7.9%, together taking 59.5% of total flows. This shows a significant concentration among these three key partners.

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

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