High-Frequency Transformer Market Size & Share | Industry Report 2023 - 2026

The global high-frequency transformer market size is projected to reach USD 2.3 billion by 2026, at a compound annual growth rate (CAGR) of 6.1%.

The key driving factor fueling the demand for high-frequency transformers is the growing adoption of advanced technologies such as IIoT, factory automation, 5G, and cloud computing in the consumer electronics, automotive, manufacturing, IT & telecommunications, and military & defense verticals. The rising trend of miniaturization of electronics and small form factor components in the consumer electronics and automotive verticals are projected to drive the growth of the high-frequency transformer industry from 2021 to 2026. However, the increasing prices of raw materials and their cascading effect on the final prices of high-frequency transformers are expected to hamper their adoption rate in some industries or sectors.

DRIVERS: Positive growth outlook of automotive industry and growth in adoption of electric vehicles

High-frequency transformers find applications in various systems, such as electric compressors, DC-DC converters, LED lighting, battery management systems, inverters, electric vehicle charging systems, and on-board chargers, of automobiles (both gas and electric) manufactured today. The growing trend of component miniaturization and the need for high performance and reliability are the major reasons for the rising adoption of high-frequency transformers in the automotive industry. Moreover, the positive growth outlook of the global automotive industry based on trends such as connected vehicles, IoT, autonomous control, electric and hybrid vehicles, and alternative fuel vehicles is expected to create immense growth opportunities for the high-frequency transformer market.

RESTRAINTS: Increasing prices of raw material used in the manufacturing of high-frequency transformers

The key raw materials used in the manufacturing of high-frequency transformers include copper, iron, and ferrite, which feature high electrical conductivity. Copper is used to make foils and wires of high-frequency transformers, and it forms one of the key components of the transformer design. Similarly, ferrite forms the transformer’s core in the overall design. Any fluctuation or increase in the prices of these materials can result in an increase in the final costs of high-frequency transformers. As per the data by Trading Economics, in the past 10 years, the price of copper globally has witnessed fluctuations in the range of USD 2/Lbs to more than USD 4.5/Lbs. In mid-2021, it has reached its highest level of USD 4.7/Lbs. Thus, the increasing prices of raw materials and their cascading effect on the final prices of high-frequency transformers are expected to hamper their adoption rate in some industries or sectors.

OPPORTUNITIES: Rising Trend of automation and adoption of advanced technologies in industrial sector

With the growing adoption of various technologies in the industrial sector for advanced control and automation, the demand for high-frequency transformers is also expected to rise at a significant pace. High-frequency transformers find applications in motor drives, inverters, robotics, battery chargers, UPS, and other industrial equipment. The industrial robotics industry has been growing at an impressive rate in the past few years, with robots being used for applications such as machine tending, welding, cutting, grinding, soldering, and assembly. Automotive and electronics are the two major end-user industries of industrial robots, such as stand-alone robots, collaborative robots, and mobile robots. The increasing penetration of automation technologies and robotics into the industrial sector is expected to create lucrative opportunities for the players offering high-frequency transformers during the forecast period.

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CHALLENGES: Trade-off between small form factor and skin and proximity effects

Technological advancements in electronic systems and equipment, coupled with the rising trend of component miniaturization, are fueling the demand for high-frequency transformers that are small, lightweight, and exhibit high-power density. However, the development of small size and lightweight high-frequency transformers also has design challenges. Some of these challenges include losses from skin effects and proximity effects in high-frequency transformers. Losses due to skin effects are caused by the property of high-frequency currents that flow on the conductor’s surface. Proximity effects, also called eddy current losses, cause an excessive level of resistance within the transformer’s wire and result in power losses. Besides, they also create heat dissipation issues. Hence, selecting high-quality raw materials and components (Litz wires) for minimizing skin and proximity effects is a crucial requirement for manufacturers nowadays.

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