Advancements in Transformer Monitoring: IoT and Intelligence Shaping the Future

The worldwide Transformer Monitoring Market is evolving rapidly, with innovations like IoT and digital systems enhancing asset reliability and operational efficiency in power infrastructures. The industry revenue is predicted to reach USD 5.99 billion by 2030 with a CAGR of 8.50%.

Latest Developments in the Transformer Monitoring Market (2024–2025)

In recent years, the focus has shifted toward smarter, data-driven monitoring solutions. As of March 6, 2025, IoT-based distribution transformer monitoring unit (DTMU) solutions are being used to continuously monitor oil temperature, oil humidity, and oil level to detect early warning signs of potential failures, allowing utilities to take preventive measures and protect assets.

Smart substations, designed with built-in protection systems, monitoring tools, and automated controls, enable unmanned operation and real-time tracking of transformers and other substation equipment, improving power reliability and reducing system losses.

Additionally, Hitachi Energy has deployed online monitoring and diagnostics devices, including the TXpert™ Hub and TXpert™ Ready CoreSense™ sensors, on critical transformers to bolster operations.

Applications Across Industries

Transformer monitoring finds broad use in enhancing reliability and efficiency.

IoT-driven solutions are helping utilities enhance transformer monitoring, improve operational efficiency, reduce costs, and assist in building smarter grids.
Applicable for all transformer applications across the energy value chain from generation, transmission, distribution, industries and infrastructure, it helps to reduce costs, optimize operations, extend life-expectancy and enhance environmental performance.
Smart substations are equipped with energy metering systems for energy audits and automatic theft detection, allowing utilities to track power usage, prevent unauthorized connections, and optimize electricity distribution.

These applications support critical sectors like utilities and heavy industries, where downtime can be costly.

Analysis of Dominating and Fastest-Growing Regions

Asia-Pacific emerges as a key region in the transformer monitoring market, driven by rapid urbanization and infrastructure initiatives. India stands out as the top country in Asia-Pacific for both dominating and fastest-growing aspects.

The region leads due to government programs and economic growth. As India’s economy grows and urbanization rises, smart power technology will be required to manage the country’s energy infrastructure, enabling it to actively support the country’s growth story.

In urban areas, a large number of distribution transformers have been equipped with communicable meters featuring automated meter reading (AMR) capabilities under government programmes such as R-APDRP and the Integrated Power Development Scheme, with meters read remotely at data centres for seamless energy accounting and auditing.

Distribution transformers in rural areas generally do not have any metering facility (AMR/advanced metering infrastructure), but the Revamped Distribution Sector Scheme aims to address this with planned installations.

Under the Revamped Distribution Sector Scheme, launched in July 2021, the installation of 250 million smart meters across the country is planned, along with smart system meters on all feeders and distribution transformers within a specified timeline for accurate energy audit and accounting, expected to enable transformer failure analysis using artificial intelligence/machine learning.

Region	Top Country	Why It Leads
Asia-Pacific (Fastest-Growing)	India	Economic growth, urbanization, and schemes like Revamped Distribution Sector Scheme enabling smart metering and AI analysis.
Asia-Pacific (Dominating)	India	Widespread adoption of AMR in urban areas and plans for rural expansion.

Key Players with Recent Strategies/Deals

The transformer oil industry comprises various market players such as Hitachi Energy, General Electric, Siemens Energy AG, Schneider Electric, ABB Ltd., Eaton Corporation plc., Honeywell International Inc., KONCAR Group, Bitlismen, Mitsubishi Electric Automation, Inc., and Qualitrol, among others. These companies are adopting various business strategies including product launches and partnerships across various regions to maintain their dominance in the sector.

For instance, Hitachi Energy provided online monitoring and diagnostics devices, the TXpert™ Hub (based on CoreTec™ 4) and TXpert™ Ready CoreSense™ sensors that will be installed on the transformers. As a start these will be deployed on five critical transformers at Tata Steel’s flagship Jamshedpur plant in Jharkhand. The TXpert™ Hub and sensors are part of Hitachi Energy Power Grid TXpert™ Ecosystem - an open, scalable, manufacturer agnostic ecosystem for digitalization of transformers with a complete suite of products, software, services and solutions.

Future Prospects and Examples

The transformer monitoring market holds promise for enhanced intelligence and sustainability.

The use of IoT for transformer monitoring is expected to prevent wear and tear, with solutions like cooling fans triggered by temperature rise (first fan at 65 °C, second at 70 °C) and data storage in local memory for alerts.
DTMUs are recommended to be simple, durable, capable of tracking all key parameters, and include built-in GPS, GPRS, IoT, or RF modem for seamless data transfer, with the ability to detect sensor failures or disconnections, enhancing security against theft.
Smart substations support remote monitoring and control using GPRS, IoT, and RF-based communication technologies, ensuring smooth integration with existing systems and automatic protection mechanisms for transformers.
The Revamped Distribution Sector Scheme is expected to enable transformer failure analysis and identify causes of failure using artificial intelligence/machine learning, aiding in decision-making for repairs and replacement.
Intelligent solutions embedded in critical assets are key for enhancing industrial productivity and efficiency.
The TXpert™ Ecosystem is yet another example of Hitachi Energy commitment to shaping the future of sustainable energy, enabling a stronger, smarter and greener future.

Transformer monitoring refers to systems that track parameters like temperature and oil levels in electrical transformers to prevent failures, without assuming specialized knowledge.

About Next Move Strategy Consulting:

Next Move Strategy Consulting is a premier market research and management consulting firm that has been committed to provide strategically analysed well documented latest research reports to its clients. The research industry is flooded with many firms to choose from, what makes Next Move different from the rest is its top-quality research and the obsession of turning data into knowledge by dissecting every bit of it and providing fact-based research recommendation that is supported by information collected from over 500 million websites, paid databases, industry journals and one on one consultations with industry experts across a diverse range of industry sectors. The high-quality customized research reports with actionable insights and excellent end-to-end customer service help our clients to take critical business decisions that enables them to move beyond time and have competitive edge in the industry.

We have been servicing over 1000 customers globally that includes 90% of the Fortune 500 companies over a decade. Our analysts are constantly tracking various high growth markets and identifying hidden opportunities in each sector or the industry. We provide one of the industry’s best quality syndicate as well as custom research reports across 10 different industry verticals. We are committed to deliver high quality research solutions in accordance to your business needs. Our industry standard delivery solutions that ranges from the pre consultation to after-sales services, provide an excellent client experience and ensure right strategic decision making for businesses.