Optical Current Transformer Market Size, Share, and Industry Analysis By Application (Power Transmission Line, Electric Power System, Digital Substations, and Others), By End-Use (Power and Distribution, Industrial, Commercial, Railway and Metro, and Others), and Regional Forecast 2025-2032

The global optical current transformer market is propelled by the growing demand for electricity and the heightened need for quick, precise, and dependable current measurement tools in power generation and distribution networks.

According to the International Energy Agency, in 2022, India announced a USD 36.8 billion scheme for power generation and distribution companies to enhance electricity distribution infrastructure, which includes the installation of smart meters, which will cover 250 million devices by 2025.

An optical current transformer serves as an alternative to traditional current transformers. It offers a sophisticated measurement solution for both metering and protection applications. Their use has been identified in sectors such as power generation, transmission, and distribution, where accurate high-voltage measurement is essential. The increase in investment in smart grid infrastructure is anticipated to boost the industry growth.

Optical Current Transformer Market Driver

Advantages of Conventional Transformers to Fuel Market Expansion

Optical current transformer offers superior measurement accuracy, even in high-voltage and high-current environments. OCTs are significantly compact and lighter compared to conventional transformers. Their compact design reduces the space required in substations and power generation facilities, making them more suitable for modern infrastructure. OCTs operate using low-power optical signals, significantly reducing the risk of electrical hazards associated with high-voltage systems. This feature is essential for ensuring the safety of the workforce and equipment in high-risk environments.

In January 2025, the Dubai Electricity and Water Authority (DEWA) announced the launch of a strategic initiative worth USD 1.9 billion to boost efficiency and sustainability. Such initiatives are expected to foster market growth in the coming years.

Optical Current Transformer Market Restraint

High Initial Costs May Limit Market Growth

Optical current transformers rely on fiber optics and photonic components, which are inherently more expensive than the magnetic cores and conductive windings used in conventional transformers. Utilities, specifically in cost-sensitive markets or developing regions, often operate under tight budgets. The higher cost of OCTs compared to conventional transformers makes them a less appealing option for utilities aiming to maximize returns on investment while minimizing expenditure.

Optical Current Transformer Market Opportunity

Shift toward Grid Modernization to Offer New Opportunities

The market is anticipated to grow owing to the global shift toward grid modernization. Optical current transformers help utilities achieve higher accuracy in load management and power flow control, reducing energy losses and improving grid reliability. Grid modernization also involves the increasing automation of grid operations. Optical current transformers can be integrated with this automated ecosystem as their design enables easy integration.

In May 2022, Japan announced plans to invest USD 155 billion to encourage the adoption of the latest power grid technologies with a focus on smart grid connection with regional power grids. Such investments are expected to create lucrative opportunities in the near future.

Segmentation

Key Insights

The report covers the following key insights:

• Recent Advancements in Optical Current Transformer
• Key Industry Trends
• Regulatory Landscape for Optical Current Transformer
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)
• Impact of COVID-19 on the Market

Analysis By Application

Based on application, the market is divided into power transmission lines, electric power systems, digital substations, and others.

The digital substations segment is growing due to a surge in modern power grid infrastructure designed to enhance efficiency, reliability, and safety. Optical current transformers are integral for digital substations owing to their advanced features that address the evolving needs of these systems.

Analysis By End-Use

Based on end-use, the market is segregated into power and distribution, industrial, commercial, railway metro, and others.

Optical current transformers are gaining popularity in the power and distribution sector due to their ability to meet the growing need for modern grid systems. Aging infrastructure and the increasing complexity of modern power grids are pushing utilities to adopt advanced technologies such as optical current transformers.

Regional Analysis

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Based on region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

The North America market is expected to surge owing to growing investments by utilities in smart grid technologies to improve grid reliability and efficiency. OCTs, with their high accuracy and real-time monitoring capabilities, are essential for these advanced systems. Further, the need to replace outdated transformers with more advanced and efficient alternatives boosts the demand for optical current transformers.

The Europe market is anticipated to grow due to the region’s focus on decarbonization and renewable energy integration, driving the adoption of optical current transformers for grid management. Further, stringent environmental and safety rules, along with the push for efficient energy management, support the deployment of optical current transformers.

In the Asia Pacific region, growing industrialization and urbanization in countries such as China, India, and Southeast Asia are driving investments in power infrastructure, including optical current transformers. Policies aimed at smart grid development and infrastructure upgrades are also anticipated to contribute to the growth of the optical current transformers market.

In Latin America and the Middle East & Africa, the market is anticipated to grow owing to increasing investments in power infrastructure projects. Further, increasing energy demand and the need for grid stability are also anticipated to drive optical current transformer market growth. Moreover, the expanding economies in the region also attract foreign investments in energy sectors and infrastructure, further supporting the market growth.

Key Players Covered

The global optical current transformer market is fragmented in terms of the number of providers. Various market initiatives, R&D activities, and others, are anticipated to drive market growth. For instance, in January 2023, GE Grid Solutions secured a multimillion-dollar contract from the Nepal Electricity Authority (NEA) to automate 39 substations of varying ratings located across Nepal.

The report includes the profiles of the following key players:

• Trench Group (Germany)
• Hitachi Energy Ltd. (Switzerland)
• ARTECHE (Spain)
• GE Vernova (U.S.)
• Siemens AG (Germany)
• Yangtze Optical Electronic Co., Ltd (China)
• NR Electric Co., Ltd. (China)
• Comcore Technologies (China)
• PROFOTECH (Russia)
• Sieyuan Electric Co., Ltd. (China)

Key Industry Developments

• In June 2024, Bharat Heavy Electricals Ltd (BHEL) commissioned India’s first digital substation with locally designed 420kV fiber optical current transformers (FOCTs) and IEC61850-compliant intelligent electronic devices (IEDs).
• In April 2023, Halliburton Testing and Subsea (TSS) Nigeria’s Optical Current Transformer reached a production milestone of 10 million barrels of oil.