Pivot tables in SQL are a powerful technique for transforming data from a row-oriented format to a column-oriented format. Imagine you have a table of sales data with columns for product, region, and sales amount. Using a pivot table, you can easily aggregate sales figures by region for each product. This transformation makes it much easier to compare sales across different regions for a specific product or to see total sales for each region across all products. The key idea is to aggregate data based on one column and display it in different columns. Pivot tables are often used in conjunction with aggregate functions like SUM, AVG, COUNT, MAX, and MIN to calculate summary statistics. The process involves specifying the column to pivot (the column that will become the new column headers), the column to aggregate (the column whose values will be aggregated), and the column to group by (the column that determines the rows in the output). This process can be complex, but the result is a table that is much more easily understood and analyzed.