US Transformer Market Size Likely to Grow at a CAGR of 7.2% By 2033

The CMI Team’s most recent market research predicts that from 2024 to 2033, the US Transformer Market will experience a CAGR of 7.2%. 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 Transformer Market: Growth Factors and Dynamics

• Increasing Demand for Electricity: Due to population growth, industrialization, and advancing technology, there is an increasing energy demand within the United States, and this has several implications, especially in terms of electricity consumption. This increasing energy demand encourages utilities to construct and upgrade transmission and distribution systems. Since proper electricity distribution needs these devices, the transformers remain one of the components directly dependent on this growth of demand.

• Expansion of Renewable Energy Projects: Focusing on improving energy efficiency and investments in grid infrastructure, the US is aggressively increasing the share of non-carbon-intensive energy sources, such as wind and solar energy. Electricity transmission and distribution networks include transformers that interconnect grid generation facilities. The constant pull for specialized transformers that will support the uptake of variable renewable power is already causing growth in the market as state and federal policies push for cleaner energy uptake.

• Grid Modernization Initiatives: As part of wider strategies aimed at improving the reliability and operational efficiency of the grid, there is an increasing utility shift towards rebuilding outdated infrastructure. This, among other things, entails installing new and efficient transformers to replace the obsolete ones. Relatively better load efficiency will likely make modern transformers more effective at shifting toward smart grids and allocating resources toward distributed generation techniques.

• Urbanization and Infrastructure Development: The settlement causes urbanization, which leads to the implementation of more housing developments, commercial complexes, and infrastructure improvements that consume a lot of electric power. Transformers are significant in facilitating electricity distribution from the power generation sites to the residential, commercial, and industrial zones. This trend, with the growth of new urban centers, comes with the high need for more of such equipment as electrification becomes a more important component of these developments.

• Growth of Electric Vehicle (EV) Charging Infrastructure: As electric vehicles are becoming more popular in the US, it is important to address the charging infrastructure market. Pressure regulators are incorporated within charging stations to adjust the voltage and enhance the flow of electric energy. The increasing use of EVs and the growing necessity of deploying additional charging points nationwide are projected to bolster the transformer market for such applications.

• Technological Advancements in Transformers: Increasing investments in the development of novel transformer technologies, such as smart transformers and solid-state transformers, have been beneficial to the growth of this market. Such innovations improve electricity load monitoring, control, and optimization, thus enhancing the grid’s resilience and efficiency. The trend of deploying modern advanced transformers in the transformer market aligns with increasing digital transformation and smart grid deployment.

• Resilience Against Natural Disasters: Several natural disasters, such as hurricanes, wildfires, and floods, have brought to light the shortcomings of the US electrical grid. Utilities are spending more and more on reliable transformers focused on the extreme nature of weather. This trend also increases demand for more dependable and durable transformers, guaranteeing uninterrupted total power flow even during interruptions.

With electric vehicles (EVs) gaining popularity in the US, expanding EV charging infrastructure is crucial. Charging stations require transformers to regulate the voltage and ensure safe and efficient energy distribution. The growing adoption of EVs and the need for more charging stations nationwide are expected to drive the demand for transformers designed for these applications.

US Transformer Market: Partnership and Acquisitions

• In 2023, Hyundai Electric will benefit from the guaranteed order to AEP for the supply of 3,500 distribution transformers, which the company won in 2022 for USD 86.3 million. The order is to be executed over three states: Texas, Ohio, and Oklahoma. This will consequently improve factors such as the demand for transformers and the growth rate of the market during the forecasting period.

• In 2022, Hitachi Energy intends to invest more than USD 37 million in the enhancement and modernization of the existing power 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 Transformer Market: COVID-19 Analysis

The COVID-19 pandemic had adverse implications for the USA’s transformer market due to supply chain issues, a dearth of industrial activity, and postponed infrastructure programs. The swift and severe containment measures and restrictions on manufacturing facilities in the US resulted in a halt in production and serious shortages of even fundamental transformer raw materials like copper, steel, and insulating oil.

Moreover, even for those two listed segments, their demand for new-looking transformers eventually decreased due to the relocation or stripping off of several significant energy and, even more so, infrastructure undertakings due to budget slashing and economic instability.

Utility companies and industrial sectors also reduced or delayed upgrades to power grids and equipment in their bid to respond to decreasing market revenues and opt for more immediate and pandemic-focused needs.

Finally, the upgrade and expansion of electric grid networks have been delayed due to shifted energy consumption patterns associated with moving workplaces to people’s homes. Therefore, the growth of the transformer market in the US has been hampered by new sales and installations, but the market started recovering as economic activities resumed after the pandemic.

List of the prominent players in the US Transformer Market:

• General Electric Company (GE)
• ABB Ltd.
• Siemens AG
• Schneider Electric SE
• Mitsubishi Electric Corporation
• Eaton Corporation plc
• SPX Transformer Solutions Inc.
• Howard Industries Inc.
• Virginia Transformer Corp.
• Waukesha Electric Systems
• Hammond Power Solutions Inc.
• CG Power and Industrial Solutions Limited
• Toshiba Corporation
• Hyundai Electric & Energy Systems Co. Ltd.
• Hitachi Energy Ltd.
• Others

The US Transformer Market is segmented as follows:

By Type

• Power Transformers
  • Step-up Transformers
  • Step-down Transformers
• Distribution Transformers
  • Pole-mounted Transformers
  • Pad-mounted Transformers
• Specialty Transformers
  • Isolation Transformers
  • Instrument Transformers
  • Auto Transformers

By Power Rating

• Small (up to 60 MVA)
• Medium (61 MVA to 600 MVA)
• Large (above 600 MVA)

By Insulation Type

• Dry-type Transformers
• Liquid-immersed Transformers

By Phase

• Single-phase Transformers
• Three-phase Transformers

By Cooling Type

• Oil-cooled Transformers
• Air-cooled Transformers

By End Users

• Residential
• Commercial
• Industrial
• Utility
• Renewable Energy