Global transformer manufacturing capacity reached 4,700 gigavolt-amperes (GVA) in 2025, supported by around 400 plants operated by more than 260 manufacturers. These statistics are from a new report by Rystad illustrating the global energy market’s dependence on access to critical grid equipment.
Rystad Energy’s white paper on grid equipment published in late May 2026, examined pricing, lead times, and procurement for transformers, high-voltage circuit breakers and switchgears.
The report highlighted that intermittent renewables are expected to account for nearly 48% of global generation by 2040 – up from just 2% of the share in 2010. Meanwhile, traditional power sources are expected to fall from 67% of global generation in 2010 to 29% by 2040.
However, system reliability depends on the availability of grid equipment to accommodate the projected increase in solar and wind capacity.
Global grid capex is set to surpass $650 billion this year – up 5% from last year and more than double the investments recorded in 2020. This six-year increase can be attributed to price inflation, said Rystad. The firm highlighted the strong surge in demand for grid gear in recent years, although it said the supply constraints that plagued the market are showing signs of easing thanks to new investments by OEMs into diversified production lines.
