Japan's power and distribution transformer market is expanding amid efforts to modernize its aging electricity infrastructure and improve grid resilience. The integration of renewable energy sources like solar and wind necessitates smart transformers and grid upgrades. Emphasis on disaster-proof and compact designs is prominent, given Japan’s vulnerability to natural disasters. Energy-efficiency regulations and advancements in transformer monitoring systems are spurring innovation. Urban redevelopment projects also contribute to rising demand. Eco-friendly transformers with low losses are gaining strong traction in the market.