North America Transformer Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 8.86 Billion |
| Market Size (2029) | USD 11.54 Billion |
| CAGR (2024 - 2029) | 5.41 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
North America Transformer Market Analysis
The North America Transformer Market size is estimated at USD 8.86 billion in 2024, and is expected to reach USD 11.54 billion by 2029, growing at a CAGR of 5.41% during the forecast period (2024-2029).
- Over the medium term, factors such as increasing energy demands from the industries and upgrading old transmission and distribution systems are likely going to drive the North America transformer market.
- On the other hand, delay in the implementation of the projects is expected to restrain the North America transformer market.
- Neverthless, a smart grid is seen as a highly efficient and economical technology that is able to reduce carbon emissions into the environment. Such upgradation for now existing networks in the region can create several opportunities for the North America transformer market in the future.
North America Transformer Market Trends
Power Transformer Expected to Dominate the Market
- A power transformer is a non-moving electrical apparatus that utilizes electromagnetic induction to transfer electrical energy between two or more circuits. Its primary purpose is to alter the voltage level of an AC power system.
- Power transformers find common usage in power transmission systems, where they are employed to either increase (step up) or decrease (step down) the voltage level of the power being transmitted. They can also function as a means of isolating one circuit from another or as a neutral point for grounding purposes.
- With the recent growth in renewable energy generation, there has been a growing need to install power transformers at the generation sites to facilitate transmission. In recent years, the North American region has seen a significant increase in electricity generation from renewable energy sources.
- According to the International Renewable Energy Agency, the total installed renewable energy capacity in North America in 2022 was 489.22 GW, which was an increase of 6.3% compared to 2021.
- In addition, the demand for transformers in the region is expected to be driven by the refurbishment of the aging infrastructure of the transmission network and the increasing renewable power generation, which necessitate the installation of new power transformers.
- For instance, in January 2023, four New England states, including Connecticut, Maine, Massachusetts, and Rhode Island, submitted a preliminary proposal for the transmission network in response to a DOE request for concept papers issued under the 2021 bipartisan infrastructure law. The proposal aims to leverage the state's offshore wind energy potential to reduce costs and enhance energy security in the region. If the proposal is approved, it is expected to increase the demand for power transformers in the region during the forecast period.
- Therefore, due to the increasing deployment of renewable energy in the region and the refurbishment of aging infrastructure, the power transformer segment is expected to dominate during the forecasted period.
United States Expected to Dominate the Market
- The power infrastructure in the United States is one of the largest and oldest in the world. Its importance cannot be overstated, as it plays a crucial role in supporting the country's financial stability, public health, and national security by providing electricity to industries, commercial establishments, residences, the government, and military organizations. With the increasing demand for electricity across the country, the demand for transformers is expected to rise in the forecast period.
- According to the Energy Information Administration, the country was expected to increase its electricity generation from 4,243.14 TWh in 2022 to 4,164.68 TWh in 2023. Additionally, it aims to increase the proportion of renewable energy in the power generation mix from 20.1% in 2021 to 80% by 2030 and then 100% by 2035.
- This indicates that the country's power generation mix is expected to change in the coming years, requiring subsequent developments in transmission and distribution systems. This scenario is expected to create a massive demand for transformers during the forecast period.
- Moreover, according to the Energy Information Administration, major electricity utilities in the United States spent USD 15.87 billion on transmission operations in 2022, up from USD 6.94 billion in 2010. The distribution network budget has grown from USD 3.64 billion in 2010 to USD 5.97 billion in 2022. Power delivery spending has continuously climbed as utilities replace aging equipment and build transmission infrastructure to handle new renewable generation.
- Therefore, due to the above-mentioned points, the United States is expected to dominate the North American transformer market during the forecasted period.
North America Transformer Industry Overview
The North American transformer market is fragmented. Some of the key players in this market include (in no particular order) Siemens Energy AG, Eaton Corporation PLC, General Electric Company, Schneider Electric SE, and Emerson Electric Co., among others.
In April 2022, Siemens Energy strategically launched a new product named Carpole dry type single-phase distribution transformer, which is designed to handle high overloads to facilitate power flow balancing. It provides a reliable and sustainable alternative to oil-filled transformers. The product is environmentally friendly, more reliable, and cost-efficient. This equipment is crucial for power distribution in sophisticated places, such as IT hubs, hospitals, shopping malls, etc.
North America Transformer Market Leaders
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General Electric Company
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Schneider Electric SE
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Emerson Electric Co.
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Eaton Corporation PLC
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Siemens Energy AG
*Disclaimer: Major Players sorted in no particular order
North America Transformer Market News
- February 2023: Virginia Transformer completed the inauguration of its fifth transformer manufacturing facility in Mexico. The new facility was expected to reduce the time consumed in manufacturing transformers. The plant is located on an area of approximately 300,000 square feet and has a substantial area for further expansions in the future.
- October 2022: Hitachi Energy announced its plan to invest approximately USD 37 million in its power transformer factory located in South Boston, United States. The investments are aimed at increasing the factory size to support the growing utility and renewable energy sectors in the region.
North America Transformer Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.1.1 Substantial Investments and Efforts to Modernize the T&D Grid
4.5.2 Restraints
4.5.2.1 Rising Distributed Energy Generation
4.6 Supply Chain Analysis
4.7 Porter's Five Forces Analysis
4.7.1 Bargaining Power of Suppliers
4.7.2 Bargaining Power of Consumers
4.7.3 Threat of New Entrants
4.7.4 Threat of Substitute Products and Services
4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Power Rating
5.1.1 Small (10 KVA - 750 KVA)
5.1.2 Medium (751 KVA - 100 MVA)
5.1.3 Large (above 101 MVA)
5.2 Cooling Type
5.2.1 Air-Cooled
5.2.2 Oil-Cooled
5.3 Transformer Type
5.3.1 Power Transformer
5.3.2 Distribution Transformer
5.4 Geography
5.4.1 United States
5.4.2 Canada
5.4.3 Rest Of North America
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaboration and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 Siemens Energy AG
6.3.2 WEG SA
6.3.3 General Electric Company
6.3.4 Mitsubishi Electric Corporation
6.3.5 Schneider Electric SE
6.3.6 Toshiba Corporation
6.3.7 Hitachi, Ltd.
6.3.8 Emerson Electric Co.
6.3.9 Eaton Corporation PLC
6.3.10 Northern Transformer Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Developing Greener Alternatives to SF6
North America Transformer Industry Segmentation
A transformer is a device that transfers electric energy from one alternating-current circuit to one or more other circuits, either increasing (stepping up) or reducing (stepping down) the voltage. Transformers are usually of two types: power and distribution transformers. In order to create the final voltage transformation from the level the consumer uses in the distribution lines, the power distribution system uses distribution transformers.
The North American transformer market is segmented by power rating, cooling type, transformer type, and geography (United States, Canada, and Rest of North America). By power rating, the market is segmented into small, medium, and large; by cooling type, the market is segmented into air-cooled and oil-cooled; by transformer type, the market is segmented into power transformers and distribution transformers; and by geography, the market is segmented into the United States, Canada, and the rest of North America. For each segment, market sizing and forecasts have been done based on revenue (USD) .
| Power Rating | |
| Small (10 KVA - 750 KVA) | |
| Medium (751 KVA - 100 MVA) | |
| Large (above 101 MVA) |
| Cooling Type | |
| Air-Cooled | |
| Oil-Cooled |
| Transformer Type | |
| Power Transformer | |
| Distribution Transformer |
| Geography | |
| United States | |
| Canada | |
| Rest Of North America |
North America Transformer Market Research FAQs
How big is the North America Transformer Market?
The North America Transformer Market size is expected to reach USD 8.86 billion in 2024 and grow at a CAGR of 5.41% to reach USD 11.54 billion by 2029.
What is the current North America Transformer Market size?
In 2024, the North America Transformer Market size is expected to reach USD 8.86 billion.
Who are the key players in North America Transformer Market?
General Electric Company , Schneider Electric SE, Emerson Electric Co., Eaton Corporation PLC and Siemens Energy AG are the major companies operating in the North America Transformer Market.
What years does this North America Transformer Market cover, and what was the market size in 2023?
In 2023, the North America Transformer Market size was estimated at USD 8.41 billion. The report covers the North America Transformer Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the North America Transformer Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
North American Transformer Industry Report
Statistics for the 2024 North American Transformer market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. North American Transformer analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
