US Oil Filled Transformer Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the US Oil Filled Transformer Market 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.

The market for oil-filled transformers in the United States is highly significant in the country’s overall energy setup as it is very important in the transmission and distribution of electricity. Due to their reliable performance, these transformers are popular for high-voltage applications in power utilities, industrial plants, and renewable energy.

The market contains both the old and the new entrants, hoping to keep pushing the boundaries of technology and economic prospects while dealing with environmental challenges. More recent dynamics suggest that there is a growing embrace of the use of eco-friendly insulating oils and smart technologies that help monitor and maintain the transformers.

Moreover, with an increasing focus on generating electricity from cleaner sources, the oil-filled transformer market is also changing to fit the new grid requirements, emphasizing its relevance in the growing energy economy.

US Oil Filled Transformer Market – Significant Growth Factors

The US Oil Filled Transformer Market presents significant growth opportunities due to several factors:

• Rising Energy Demand: The growing consumption of electric power across residential, commercial, and industrial sectors is one of the key factors promoting the oil-filled transformer market. With the rising population and expansion of cities, the demand for efficient power transmission and distribution systems is high. This results in upgrading the existing systems and procuring new transformers to achieve efficiency in power supply management.

• Transition towards Renewable Energy: The increasing use of green energy, such as wind and sun power, requires further transformer systems to connect these sources to the power grid. In this regard, oil-immersed transformers are essential since they allow for the increase and decrease of the renewable energy systems’ voltages to help in the energy distribution efficiently and reliably.

• Technological Advancements: The other factor accelerating the development of the oil filled transformer market is the advancement in transformer technology in particular smart transformers and other advanced monitoring systems directly connected to the transformers. These technologies optimize operational performance, minimize maintenance expenses, and improve service reliability, leading to a higher uptake of oil-filled transformers by power utilities and other industries.

• Aging Infrastructure: Electrical infrastructure in many places, especially in the United States, is old and needs upgrading. There is a need to replace the deteriorating transformers with new oil filled transformers to avoid compromising the reliability of the power grid. This need for infrastructure renewal provides considerable scope for developing the oil-filled transformer market.

• Government Regulations and Initiatives: Participation by both levels of government and federal and state policies to encourage energy efficiency and limit greenhouse gas emissions contribute to developing the oil-filled transformer market. Policies subsidizing the cost of upgrading energy systems and providing stricter policies on environmental standards push utilities and industries to adopt new environmentally friendly transformer solutions, hence enhancing the market’s growth.

US Oil Filled Transformer Market – Key Developments

The oil-filled transformer Market in the US has undergone various changes in the past, where the companies are trying to increase their chance on the market and exploit synergies to enhance their products and improve their profitability. Some examples of M&A activities that can be noted in the US Oil Filled Transformer Market include:

• In 2023, 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, to be executed over three states of Texas, Ohio, and Oklahoma. This will 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.

These developments have, in turn, enabled the companies to augment their product range, increase their presence in the market, and take advantage of the opportunities for growth in the US Oil Filled Transformer Market. The tendency will also remain as the companies in question will try to receive a competitive advantage over their rival companies in the future.

US Oil Filled Transformer Market – Significant Threats

The US oil-filled transformer market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• High Initial Costs: The high cost incurred in procuring and installing oil-filled transformers will likely restrain the market growth. There is a chance that the utilities and industrial players may be reluctant to buy new transformers because of the costs incurred in purchasing new transformers, especially in regions with tight budgets. Such a cost can limit the frequency and range of new technology and infrastructure upgrades used within an organization.

• Environmental Concerns: Despite the advancements experienced in the field of oil-filled transformers, environmental issues regarding the commercialization of mineral oil for use as insulation persist. The fear of oil spillage and pollution will likely raise some regulations and make some operators shy away from the traditional oil filled transformers. This concern is creating a movement towards alternative types of insulation technology, which may alter the market dynamics.

• Competition from Dry-type Transformers: In recent years, dry-type transformers that do not use insulating oil but are effective have gained widespread acceptance over oil filled transformers. This is a threat to competition. Dry-type transformers do not employ combustible insulating liquids, making them suitable for metropolitan settings and institutions with high safety standards. This may restrict the expansion of the oil-filled transformer market, a potential growth area.

• Supply Chain Constraints: There are pressing supply constraints owing to issues in acquiring raw materials and components even for oil-filled transformer manufacturers in the post-COVID-19 period. Such supply challenges have the effect of causing production delays and increasing operational costs thus making it hard to expand the market and even harder for the manufacturers to satisfy the growing market demand.

Category-Wise Insights:

By Core

• Berry: The berry core, which consists of the core assembly and additional components in an oil-filled transformer, is one of the most significant parts that influences the functioning and efficiency of the transformer. The berry core is primarily made of laminated silicon steel formed in such a way as to avoid energy losses due to hysteresis and eddy currents so that the transformer can work efficiently. The core also helps transfer the magnetic flux between the primary and secondary winding during the voltage conversion process, effectively transforming the voltages.

• Shell: Shell is one of the cores of an oil-filled transformer, which enhances the performance of the internal structural feature of the transformer. Instead of a traditional arrangement of cores, the shell core configuration allows the windings to be surrounded by the core, forming a magnetic field in the closure. The design limits the amount of dispersed magnetic field and enhances the magnetic ability of the transformer, resulting in minimal energy waste in the energy conversion process.

• Closed: The closed core of an oil filled transformer is a design that not only increases the functionality but also the efficiency of the transformer. Thanks to these two techniques, the core is formed in a closed rectangular loop, which draws the magnetic circuit fence in the core and the walls of the core with minimal magnetic leakage- the magnetic circuit is fully ingested within the coring material. This configuration enhances greatly the magnetic efficiency of the transformer because the parts of the magnetic field that are not used and escape are minimized.

By Winding

• Auto-Transformer: The auto-transformer winding within an oil-filled tank is a unique feature used primarily in improving the voltage transformation ratio and for optimal reduction of the material bulk. In addition, most traditional transformers have primary and secondary windings, which are separate from each other. An auto-transformer has, in a simple sense, one winding that does both jobs simultaneously.

• Two-Winding: As the name suggests, the two-winding compartment of an oil-filled transformer is the simplest form of construction, whereby primary and secondary windings are provided, which perform different functions concerning voltage conversion. This conventional design allows for the effective coupling of electrical power between circuits using electromagnetic induction without needing a physical connection between the two circuits.

By Product

• Instrument Transformers: Instrument transformers are the special products in oil-filled transformer constructions used for the functional and analytical safety of electrical systems. These products mostly consist of current transformers (CTs) and voltage transformers (VTs) for measuring and controlling electrical power in substations and industries worldwide.

• Power Transformer: Power transformers, which are also oil-filled transformer products, are made for high voltage electricity transmission and are crucial elements of oil-filled transformers. In supplying power between transmission systems, these transformers assist in altering the voltage from a certain level to another to allow the transmission of electric power to more than a reasonable distance with little or no electric power wastage.

• Distribution Transformer: Distribution transformers are one of the key components found in an oil-filled transformer where the primary function is to reduce high-voltage electricity transmitted over long distances through a transmission network to lower voltages that can be used at homes, commercial centers, or industries. Therefore, these transformers are very important because they represent the consumers’ last stage in electricity distribution.

• Others: Besides power and distribution transformers, the oil-filled transformer classification also includes different specific devices that cater to various industrial and commercial activities. Such are the phase-shifting transformers known to reduce the power flows between several generators integrated in one grid system. Also, the rectifier transformer, which plays a key role in AC/DC conversion needs for processes like electroplating or battery charging, is another noteworthy product.

By Mounting

• Foundation: The mounting of oil-filled transformers on their foundations is of utmost importance to the value and safety of the transformer itself and its effective working. Proper consideration shall be given to the design of the foundation, particularly given the transformer’s substantial weight, largely due to the oil and robust design for oil-filled units. A reinforcement concrete pad is the most common type of foundation used, where it offers a flat and solid surface to evenly spread the load and reduce any sinking effects over a period.

• Pad: Pad mounting of oil fill transformers is a popular installation method that offers the necessary structural support to this input/output equipment in electrical systems. In this arrangement, a transformer is placed on a concrete slab to cushion its weight evenly and avoid sinking or moving due to vibrations. The thick concrete structure is typically reinforced to carry the load requirements of the transformer and, more so, its inner oil load.

• Pole: Pole mounting of oil filled transformers is another popular installation method used especially in the countryside and suburbs that have many overhead power lines and little ground space available. The transformer, in this case, is placed on a utility pole that elevates the transformer and conveniently connects it with other overhead lines. This method of mounting also enables full utilization of space available and minimizes flooding threats as well as threats from fallen objects or vehicles.

• Others: The other segment comprises skid mounting and ground mounting. In this technique, the transformer is mounted on a firm. Yet, a portable support structure or skeletal frame called a skip makes its design ideal for short-term applications or sites where the transformer is subjected to reinstallation. In-ground mounting, transformers are placed on a soil-prepared area, often incorporating gravel for drainage at a minimal cost. This is ideal in situations where land is not the limiting factor.

By Substation Connectivity

• Transmission: Connecting a transmission substation is an important feature of oil-filled transformers, allowing the effective transition of electrical energy from more extensive high-voltage transmission lines to a lower-voltage distribution line. These transformers are an essential element of the electrical power network and perform the function of reducing the voltage for the delivered current to be fit for use amongst consumers.

• Distribution: The distribution substation connection is the last oil-filled transformer that connects a distribution system with end-users, which has ever been referred to as an electric power delivery system. These transformers bring the voltage down from the very high levels used in the transmission system to lower levels appropriate for use in homes, businesses and industries.

By Application

• Commercial & Industrial: In commercial and industrial settings, reliance on oil-filled transformers is common due to their detailed architecture and purpose, which reveal high performance in an aggressive and sustained manner. In commercial establishments, such transformers reduce the high voltage electricity from the transmission lines to levels that can be used within building structures and office blocks without any risk of overload.

• Residential: Oil-filled transformers in residential applications are very important, especially in areas connected to overhead distribution lines. They are used to reduce the high voltage from the transmission system into nonlinear voltages, which can be supplied to households so that the power supplied to the homes is clean and reliable.

• Utility: Oil-filled transformers are very important in utility applications, mostly as part of the electrical infrastructure that allows the transfer and supply of electricity to consumers from generating stations. These transformers have very high power ratings and are used to reduce the high transmission voltage levels by stepping these high voltage levels down to lower levels for distribution.

Report Scope

Competitive Landscape – US Oil Filled Transformer Market

The US Oil Filled Transformer Market is highly competitive, with many manufacturers and retailers operating in the US. Some of the key players in the market include:

• 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

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

The increasing number of new players in the U.S. oil-filled transformer market is making them shift their focus towards innovation and sustainability compared to the existing market players. Most of these new entrants are adopting advanced manufacturing processes, including but not limited to automation and digital manufacturing processes, to improve the efficiency of production processes and lower the costs of operations.

They are also delighted with the promotion of the eco-friendly transformer designs that comprise biodegradable oils and advanced insulation for environmental and regulatory compliance. These new entrants also use data analytics and IoT solutions for smarter transformer systems with real-time data governance capabilities for better operational efficiency and predictive maintenance. Besides, they are also targeting ‘oil-filled’ transformer markets like renewable energy systems where such ‘oil-filled’ transformers are redeployed to step the voltage down from solar thermal or wind power facilities.

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