Delray Beach, Fla. -- Aug. 31, 2026 -- The global transformer monitoring market will grow from $3.11 billion in 2026 to $4.98 billion by 2031, a 9.9% compound annual growth rate, according to MarketsandMarkets. The firm placed the 2025 market size at $2.84 billion. Utilities and industrial operators are driving the expansion by prioritizing transformer reliability and asset health as aging fleets and rising renewable integration strain existing grid infrastructure.
Oil-immersed transformers post the fastest growth rate through 2031
The oil-immersed segment is projected to grow at a 10.1% CAGR between 2026 and 2031, the fastest rate among transformer types tracked in the report. Operators are expanding use of these units in high-voltage transmission and distribution networks and in high-capacity substation facilities. Because insulating oil handles both cooling and dielectric insulation, operators must continuously track oil condition, dissolved gas levels, and temperature to keep the units running safely.
Hardware captures the largest component share in 2026
Hardware, including sensors, monitoring devices, communication gateways, and data acquisition systems, is set to hold the largest share of the market in 2026. MarketsandMarkets attributed this to grid modernization spending and utilities' push toward predictive maintenance and asset life extension. The software segment is expected to grow faster, at a 10.8% CAGR, as IoT-enabled monitoring infrastructure gets tied into digital substations.
Asia Pacific leads regional growth at a 10.8% CAGR
Asia Pacific is set to record the highest regional growth rate, at 10.8% between 2026 and 2031, on the back of rapid urbanization, industrial expansion, and new transmission and distribution buildouts. China, India, Japan, South Korea, and Southeast Asian markets are investing in grid modernization and digitalization, according to the report, which is pushing adoption of new sensors, diagnostic techniques, and asset management systems. Growing renewable energy capacity in the region is adding pressure on transformer reliability as generation output becomes more variable.
Dissolved gas analysis and above-230kV segments dominate service and voltage categories
Within services, dissolved gas analysis is expected to post the highest growth rate through the forecast period. By voltage rating, transformers rated above 230 kV are projected to hold the dominant market position. Power utilities are set to record the highest end-user growth rate from 2026 to 2031, while newly installed monitoring systems are expected to outpace retrofits in installation-type growth.
GE Vernova, Siemens, and Schneider Electric lead a fragmented vendor field
MarketsandMarkets named GE Vernova, Schneider Electric, Siemens, Vaisala, Eaton, Mistras Group, Reinhausen GmbH, Hitachi Energy, Qualitrol Company, and Doble Engineering as leading suppliers in the transformer monitoring industry. These companies are expanding monitoring portfolios, pursuing acquisitions, and investing across power utility, industrial, commercial, and data center applications, per the report.