US Oil Filled Transformer Market Size Likely to Grow at a CAGR of 7.2% By 2034

As per the current market research conducted by the CMI Team, the US Oil Filled Transformer Market size is expected to record a CAGR of 7.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 13,487.5 Million. By 2033, the valuation is anticipated to reach USD 25,216.4 Million.

US Oil Filled Transformer Market: Growth Factors and Dynamics

• Infrastructure Development: The ongoing undertaking of broadening and improving the electric system in the U.S. is one of the reasons why the oil-filled transformer market is growing. The expansion of cities and the coming up of new residential, commercial, and industrial areas increases the need for effective power distribution systems. Oil-filled transformers are particularly used to lower high transmission voltages and deliver electrical power to consumers safely. This is especially true in the cities, where the infrastructure has become old and needs to be replaced or refurbished.

• Increased Renewable Energy Integration: The transition from non-renewable energy towards renewable energy, for instance, the energy from wind and solar sources, has led to more demand for oil-filled transformers. Such as transforming tubes are important in placing a renewable energy system within the grid as they help manage electricity voltages transmitted from the renewable energy sources. In recent days, and thanks to projects focused on renewable energy sources like solar and wind, there has been a high requirement for oil-filled transformers to sustain these systems, thereby helping market growth.

• Increased Electricity Consumption: Given the ongoing electrification of non-power sectors, including transportation, industry, and households, the overall need for electricity is increasing. This increases the need to deploy oil-filled transformers to cater to higher loads and maintain stable network performance. The expansion in adoption of electric vehicles and smart energy facilitates will require more robust transformer systems in the market since this will create higher energy demand, swelling the oil-filled transformer market.

• Technological Advancements: Developments in transformer technologies, including the use of better insulation materials and monitoring systems, are factors that are fuelling the growth of the oil-filled transformers market. Today’s transformers incorporate additional features like connections to the Internet of Things and real-time monitoring systems, which enhance machine performance and prevent breakdowns. Such growth in technology boosts the reliability of oil filled transformers and the efficiency of their operations, thus attracting more utilities and industrial users who want to make power systems work better.

• Government Regulations and Incentives: Government regulative measures or promotions that advocate for efficient energy use and lowering carbon emissions positively affect the oil filled transformer market. Awareness campaigns and the infrastructural development of modern investment in high-performance transformers add to the upward pressure on demand. In addition, mechanisms that provide financial support to utilities to develop green technologies and clean energy sources make the market more favourable; hence, there are oil-filled transformers with lower environmental degradation effects.

• Reliability and Performance: Oil-immersed transformers offer high reliability and performance levels, important for maintaining stability in power distribution networks. Due to their strong structure and oil insulation provide good cooling, so they can work under different loading conditions without problems. This dependability is the reason why oil filled transformers are widely used in the utility and industrial sectors where availing continuous power supply is a must and this in turn boosts the growth of oil filled transformer market.

• Increasing Industrialization: The intensive industrialization of several sectors in America is driving the demand for oil-immersed transformers. The manufacturing, mining, and data center industries consume a lot of energy during their operations, therefore necessitating high-efficiency transformers to handle high voltage and provide constant power. As more and more industry sectors grow, easy access to oil-filled transformers to facilitate their workings will become a crucial necessity.

• Replacement of old equipment: Several oil-filled transformers installed across the U.S. are aging and running out of time, causing the demand for replacement to increase. Old systems create a threat of outages as well as inoperativeness making the electric utilities and operators buy new transformers which can work better and serve longer without retardation. Upgrading and replacing such transformers forming the backbone of the oil-filled transformer market is one of the major reasons for sustaining the operational effectiveness of power distribution systems.

US Oil Filled Transformer Market: Partnership and Acquisitions

• In 2024, Hyundai Electric will benefit from the guaranteed order to AEP for the supply of 3,500 distribution Oil Transformers, which the company won in 2022 for USD 86.3 million, which is to be executed over three states of Texas, Ohio, and Oklahoma. This will consequently improve factors such as the demand for Oil Filled Transformers and the market’s growth rate during the forecasting period.

• In 2022, Hitachi Energy intends to utilize more than USD 37 million in the enhancement and modernization of the existing power Oil Filled Transformer manufacturing site in South Boston, Virginia. This investment aims to satisfy broad utility customer demand and new growth areas in renewable energy generation and data centers.

Report Scope

US Oil Filled Transformer Market: COVID-19 Analysis

The negative impact on the US Oil Filled Transformer Market during the COVID-19 pandemic can be attributed to factors such as holding off supply chain mechanisms, halting manufacturing processes, and putting the progress of projects on hold, which touch the industry and its players.

Coronavirus threats, protective mandates, viral infections, and control measures forced many manufacturers to close their doors temporarily or operate at reduced capacity. This was responsible for delayed production of electric transformers.

No assembly came to specialize in fitting new products or modernization of the affordable cables due to the ban on building and external working activities, thus leading to suspensions or cancellations of these activities.

Domestic economic conditions triggered by the disease lowered utilities and industrial players’ investment concerns, revising budgets downwards, thus freezing the construction of new transformers financing. Besides, there was a lack of other supporting materials and parts crucial for transformer manufacturing, further hurting the market potential.

List of the prominent players in the US Oil Filled Transformer Market:

• Celme S.r.l.
• CG Power & Industrial Solutions Ltd.
• Eaton
• Elsewedy Electric
• General Electric
• Hyosung Heavy Industries
• Kitashiba Electric Co. ltd
• Lemi Trafo Transformers
• LS ELECTRIC Co. Ltd
• MGM Transformer Company
• Northern Transformer
• Ormazabal
• Schneider Electric
• Siemens Energy
• Toshiba International Corporation
• Others

The US Oil Filled Transformer Market is segmented as follows:

By Core

• Berry
• Shell
• Closed

By Winding

• Auto-Transformer
• Two Winding

By Product

• Instrument Transformer
• Power Transformer
• Distribution Transformer
• Others

By Mounting

• Foundation
• Pad
• Pole
• Others

By Substation Connectivity

• Transmission
• Distribution

By Rating

• ≤ 5 MVA
• > 5 MVA to ≤ 10 MVA
• > 10 MVA

By Application

• Commercial & industrial
• Residential
• Utility