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Oct 14 2026
Production of generators, transformers & switchgears likely to increase
Overview
The Centre for Monitoring Indian Economy (CMIE) expects production of generators, transformers and switchgears to increase during the second half of the 2026–27 financial year. Growth is likely to be supported by electricity-network expansion, renewable-energy integration, industrial electrification and rising demand from data centres.
Performance is expected to vary across individual product segments. Transformer production may benefit particularly from investments in transmission and distribution infrastructure. Imports and exports of electrical equipment are also projected to rise, while company order books indicate that demand could remain strong into 2027–28.
Details
Report Information
Report: Production of Generators, Transformers & Switchgears Likely to Increase
Publisher: Centre for Monitoring Indian Economy
Division: Industry Outlook
Sector: Electrical equipment
Products covered: Generators, transformers and switchgears
Outlook period: Second half of 2026–27, with demand potentially continuing into 2027–28
Associated analysis: Imports and exports are also expected to increase.
Production Outlook
Expected direction: Production across the generators, transformers and switchgears industry is likely to increase during the second half of 2026–27.
Segment variation: Growth rates may differ among generators, transformers and switchgears because each segment serves different markets and investment requirements.
Order-book visibility: Existing company order books suggest that demand may continue beyond 2026–27 and extend into the following financial year.
Manufacturing activity: A sustained pipeline of power, industrial and digital-infrastructure projects could support capacity utilisation among electrical-equipment manufacturers.
Electricity-Network Expansion
Grid development: Expansion and modernisation of India’s electricity network are expected to create demand for transformers, switchgears and related equipment.
Transmission infrastructure: Investments in high-voltage transmission systems may support orders for power transformers and associated control equipment.
Distribution infrastructure: Improvements in electricity-distribution networks may increase demand for distribution transformers and switching systems.
Network reliability: Utilities require upgraded equipment to improve electricity availability, manage loads and reduce operational interruptions.
Renewable-Energy Integration
Grid connection: New solar, wind and other renewable-energy projects require transformers and switchgears to connect generating capacity to transmission and distribution networks.
Power management: Electrical equipment is needed to control, protect and distribute power from renewable sources.
Infrastructure investment: Continued renewable-energy deployment is expected to support demand across several electrical-equipment categories.
System stability: Grid-modernisation projects may require advanced equipment to manage intermittent renewable-energy generation safely and reliably.
Industrial Electrification
Industrial demand: Expansion and electrification of manufacturing facilities are expected to support orders for generators, transformers and switchgears.
Power distribution: Industrial plants require transformers and switching equipment to distribute electricity across machinery, production lines and supporting facilities.
Backup power: Businesses may continue investing in generators and related systems to maintain operations during interruptions.
Capital expenditure: New factories and industrial-capacity additions can create demand for a broad range of electrical equipment.
Data-Centre Demand
Power-intensive operations: Data centres require substantial and continuous electricity supplies, creating demand for specialised power equipment.
Reliable infrastructure: Transformers, switchgears and backup generators are essential for maintaining stable and uninterrupted data-centre operations.
Redundancy requirements: Data centres generally require multiple layers of backup and protection, which can increase equipment demand per facility.
Digital expansion: Growth in cloud computing, data storage and digital services may support further investment in data-centre power infrastructure.
Transformer Segment
Favourable outlook: Transformer production is expected to benefit strongly from investments in electricity transmission and distribution.
Network expansion: New substations, transmission lines and distribution projects require additional transformer capacity.
Replacement demand: Modernisation and replacement of ageing electricity infrastructure may provide further support to manufacturers.
Renewable projects: Transformers are also required to connect renewable-energy facilities to the wider power grid.
Generator Segment
Backup-power requirements: Demand for generators may be supported by industries, commercial establishments, infrastructure projects and data centres requiring reliable backup power.
Operational continuity: Generators provide an alternative power source during outages or disruptions.
Industrial applications: Manufacturing, construction and other industrial activities may contribute to segment demand.
Growth variation: Generator production may grow differently from transformers and switchgears depending on project activity and power-supply reliability.
Switchgear Segment
Electrical protection: Switchgears are used to control, isolate and protect electrical circuits and equipment.
Infrastructure demand: Network expansion, renewable-energy projects and industrial electrification are expected to support demand.
Import dependence: The report indicates that imports may rise particularly in the switchgear segment.
Technology requirements: Demand for specialised or advanced switching equipment may contribute to increased imports.
Import Outlook
Expected increase: Imports of generators, transformers and switchgears are likely to rise along with domestic demand.
Switchgear imports: The increase is expected to be particularly noticeable for switchgears.
Domestic supply gaps: Imports may help meet demand for specialised products, components or technologies not available in sufficient quantities domestically.
Project requirements: Large infrastructure and industrial projects may require equipment that meets specific technical and performance standards.
Export Outlook
Overseas demand: Exports are expected to benefit from demand for power equipment in international markets.
Market opportunities: Electricity-network expansion and energy infrastructure investment in other countries may create opportunities for Indian manufacturers.
Product categories: Export growth may involve transformers, switchgears, generators and associated electrical components.
Competitive position: Domestic manufacturers may benefit where they can provide reliable equipment at competitive prices.
Demand Beyond 2026–27
Extended outlook: Demand could continue into 2027–28 based on the order books reported by companies in the sector.
Project pipeline: Long-duration electricity, renewable-energy, industrial and data-centre projects may provide continued revenue visibility.
Execution schedules: Orders received during the current period may be manufactured and delivered over several quarters.
Further information: The complete industry analysis is available through the report linked in the original CMIE Industry Outlook communication.
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