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North America Distribution Transformer Market - By Core (Closed, Shell, Berry), By Winding (Two Winding, Auto Transformer), By Installation (Outdoor, Indoor), By Cooling (Dry Type, Oil Immersed), By Insulation (Gas, Oil, Solid, Air), By Phase (Single, Three), By Rating, By Mounting, By Application, 2023 – 2032

  • Report ID: GMI6583
  • Published Date: Aug 2023
  • Report Format: PDF

North America Distribution Transformer Industry Analysis

North America Distribution Transformer Market size was valued at around USD 10.3 billion in 2022 and is estimated to reach over USD 25 billion by 2032. An escalating emphasis on revitalizing and enhancing aging power infrastructure, in tandem with the seamless integration of cutting-edge smart grid technologies, emerges as a prominent catalyst for the market growth across North America.

North America Distribution Transformer Market

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With shifting electricity consumption patterns, the call for adept and dependable power distribution solutions gains momentum. The momentum further amplifies as renewable energy assimilation and the expansion of electric vehicle charging networks prompt the optimization of distribution grids, instilling heightened vigor into the market. Augmenting the drive, regulatory directives advocating energy efficiency and reduced carbon footprint invigorate the replacement of outdated transformers with their more resource-efficient counterparts. Additionally, the escalating requisition for dependable power supply in residential, commercial, and industrial realms fuels both the substitution of obsolete transformers and the implementation of fresh units to meet the escalating electricity demand. Collectively, these synergistic forces coalesce to underpin the consistent expansion of the market.

COVID-19 Impact

The North America distribution transformer market witnessed a discernible impact due to the COVID-19 pandemic. The outbreak led to disruptions in supply chains, manufacturing operations, and workforce availability, causing delays in production, delivery, and installation of distribution transformers. Lockdown measures and economic uncertainties also curtailed industrial activities, temporarily diminishing demand for new transformers. As construction projects were put on hold and utilities postponed non-essential projects, the market experienced a slowdown.

However, amidst the challenges, the sector's criticality ensured that utilities maintained and repaired existing infrastructure. Remote work and digital solutions gained prominence, aiding in maintaining operations. Additionally, as economies gradually reopen and adapt to the new normal, the need to reinforce power grids, accommodate growing renewable integration, and upgrade aging infrastructure is expected to drive the resurgence of the market in North America.

North America Distribution Transformer Market trends

The market is witnessing several significant trends. The growing focus on grid modernization and the integration of renewable energy sources is driving the adoption of advanced distribution transformers equipped with smart monitoring and communication capabilities. As utilities aim to enhance grid reliability and optimize operations, digital solutions and predictive maintenance technologies are gaining prominence. The transition towards electric vehicles (EVs) is also influencing the market, with increased demand for distribution transformers to support EV charging infrastructure.

Moreover, energy efficiency regulations and sustainability goals are prompting the replacement of aging transformers with more energy-efficient models. The rise of distributed energy resources, such as solar panels and energy storage systems, is reshaping power flow patterns, necessitating transformers that can handle bidirectional power flows. The convergence of these trends underscores the evolution of the market towards smarter, more efficient, and environmentally conscious solutions.

North America Distribution Transformer Market, Core Segmentation

North America Distribution Transformer Market, by Core, (USD Billion)

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The realm of distribution transformer technology encompasses various core types, including closed, berry, and shell cores. As of 2022, shell core distribution transformers held a substantial market valuation, exceeding USD 3.9 billion. Projections indicate a prospective escalation, reaching over USD 9.4 billion by 2032. In recent times, shell core distribution transformers have significantly gained ground in the market, attributed to their heightened efficiencies and cost benefits when juxtaposed with conventional closed core counterparts. The surge in the adoption of shell core transformers can be attributed to their remarkable product adaptability and the incorporation of intelligent monitoring systems, thereby propelling escalated demand.

Shell core transformers, by definition, house windings enveloped by the core. These transformers offer inherent merits, including augmented resilience against short-circuit events, improved kVA-to-weight ratios, and heightened resilience to transportation-related damages. These advantageous traits contribute to the burgeoning predilection for shell core transformers in comparison to other available alternatives in the market.

North America Distribution Transformer Winding Segmentation

North America Distribution Transformer Market Revenue Share, By Winding, 2022

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The North America distribution transformer market can be categorized into two-winding and auto-transformer segments based on winding configurations. As of 2022, the market value of two-winding distribution transformers exceeded USD 5.7 billion and is projected to exhibit a CAGR surpassing 9% by 2032. Traditional electrical grids have experienced notable integration of two-winding distribution transformer solutions. Nonetheless, the emergence of cutting-edge transformer technologies has presented challenges to the widespread acceptance of these conventional units. Furthermore, the increasing technological refinement and swift functional enhancements within the industry might further hinder their broad-scale adoption. Despite these obstacles, two-winding distribution transformers persist in maintaining a substantial foothold in the market, especially within developing economies. This enduring market presence in emerging economies is anticipated to bolster the continual utilization and demand for these particular transformer units.

North America Distribution Transformer Installation Segmentation

Distribution transformer technology encompasses various installation options, including both outdoor and indoor settings. In 2022, the outdoor installation sector secured a dominant market share, surpassing 53%, and is predicted to demonstrate a CAGR exceeding 9.5% until 2032. The rapid expansion of high-voltage electrical networks is a direct response to the surging demand for energy in remote or underserved load centers. These load centers, mostly situated in isolated or challenging-to-reach regions, necessitate the establishment of efficient and robust power transmission and distribution systems. Consequently, the demand for outdoor transformers experiences a boost, as these transformers play a pivotal role in stepping down voltage levels and ensuring dependable power supply to these locales.

Furthermore, the ongoing augmentation of cross-border energy networks facilitates the amalgamation and exchange of electricity resources across diverse regions. Such integration mandates the strategic installation of outdoor transformers at pivotal transmission junctures to enable seamless power transfer between countries or regions. The escalating trend of interconnectivity and cross-border energy trade thus propels the requirement for outdoor transformers.

Moreover, the enhancement and reorganization of existing grid infrastructure in suburban areas stand essential for augmenting the efficiency and reliability of power distribution. In this pursuit, the deployment of outdoor transformers assumes significance, as they contribute to the modernization of distribution networks, thereby ensuring efficient conveyance of power to residential, commercial, and industrial consumers. The demand for outdoor transformers is poised to ascend in tandem with the increasing number of suburban areas undergoing grid infrastructure enhancements.

North America Distribution Transformer Cooling Segmentation

Distribution transformer technology is categorized into dry type and oil immersed configurations based on cooling methodologies. Within this segmentation, oil immersed distribution transformers command a substantial portion of the market due to their superior cooling attributes and compatibility with high-tension applications. Transformer oil, renowned for its exceptional dielectric properties, furnishes effective insulation between the transformer windings and the core. This insulation prowess ensures the dependable and secure operation of the transformer, even when exposed to heightened electrical stress.

Moreover, oil-immersed transformers exhibit inherent advantages in terms of robust short-circuit strength. The oil acts both as a coolant and as a source of additional mechanical reinforcement, thereby enhancing the transformer's capacity to endure short-circuit currents without incurring damage. Furthermore, appropriately maintained oil-immersed transformers boast an extended operational lifespan in comparison to alternative options. The oil's role in preventing the degradation of insulation materials contributes to the prolonged viability of the transformer's operational functionality.

North America Distribution Transformer Insulation Segmentation

Distribution transformers utilize diverse insulation types, including oil, gas, solid, air, and others. In the year 2022, oil-insulated distribution transformers accounted for a market value of USD 5.9 billion, with further projections indicating an increase to over USD 13.7 billion by 2032. The incorporation of oil insulation within distribution transformers yields effective safeguarding against moisture and contaminants. This plays a crucial role in upholding the integrity of insulation materials, extending the operational lifespan and averting degradation of the transformer. These units exhibit inherent attributes that empower them to withstand short-circuit currents without incurring harm. The oil acts both as a mechanical reinforcement and a coolant, adeptly dissipating the heat generated during short-circuit incidents. This dynamic assists in preserving the structural soundness of the transformer. Additionally, in cases of minor electrical faults, the oil insulation within transformers can manifest self-healing characteristics. The oil is capable of insulating and segregating the faulted region, thwarting further impairment and maintaining the operational resilience of the transformer.

Furthermore, oil-insulated transformers offer versatility across a wide spectrum of distribution applications, including both high and medium voltage networks. Their adaptability renders them suitable for deployment in substations, industrial complexes, and commercial structures. They stand out by offering an array of power capacities, voltage ratings, and adaptability to diverse environmental conditions. These attributes collectively contribute to their prominence over alternative options, driving their adoption.

North America Distribution Transformer Mounting Segmentation

In the year 2022, the North America distribution transformer market value of pad-mounted distribution transformers exceeded USD 3.3 billion, and predictions indicate a further expansion at a CAGR surpassing 9.5% by 2032. The robust presence of pad-mounted distribution transformers within the market landscape is attributed to their pivotal role in fulfilling the prerequisites of robust foundation and earthing arrangements, particularly for larger-scale installations. These transformers, designed for ground-mounted application, are securely enclosed within a steel cabinet and situated on a concrete pad. Predominantly utilized within medium voltage distribution systems, they serve as essential suppliers of electricity to households and small-scale enterprises. The adoption of pad-mounted transformers is propelled by a host of factors that include minimized land space demands, heightened safety attributes, elevated aesthetics, and economically viable installation expenses. These units have gained extensive utility across industrial and utility settings, prominently addressing the requirements of short-distance power distribution scenarios. This holds particularly true for the North American market.

North America Distribution Transformer Application Segmentation

Distribution transformers find application across a range of sectors, including utility, industrial, and residential and commercial establishments. As of 2022, the utility sector commands a substantial market share exceeding 50%, primarily attributed to surging electricity demands and ongoing endeavors to modernize global transmission and distribution infrastructure. In North America, this sector holds significant importance.

The utility sector is on track for robust growth, driven by its response to rapid advancements in grid networks. These advancements stem from the imperative to meet the ever-growing global energy requirements. Consequently, utility companies are proactively involved in revamping existing networks to elevate their capacity, efficiency, and dependability. Moreover, the expansion of cross-border electrical networks significantly contributes to the utility sector's expansion in North America. The establishment of interconnected power grids spanning international borders facilitates efficient electricity exchange and trading between countries or regions. This expansion not only fortifies energy security but also fosters regional collaboration and integration, further augmenting the sector's growth prospects in the North American context.

North America Distribution Transformer Country Analysis

U.S. Distribution Transformer Market Size, 2021 - 2032, (USD Billion)

U.S. distribution transformer market is anticipated to witness rise in market value to over USD 16.6 billion in 2032, owing to the increasing integration of renewable energy sources into the power grid, which necessitates the deployment of distribution transformers to accommodate the variable nature of these sources. Additionally, the ongoing modernization of the aging grid infrastructure, driven by factors like grid resilience and efficiency improvement, demands the installation of advanced distribution transformers. The rise of electric vehicles (EVs) also contributes, as the charging infrastructure requires robust transformers to handle the increased demand for electricity.

Moreover, the implementation of smart grid technologies, aimed at enhancing grid management and efficiency, further propels the demand for innovative distribution transformers equipped with monitoring and control capabilities. Lastly, efforts to enhance energy efficiency and reduce energy losses across the distribution network amplify the requirement for high-performance transformers in the U.S. market.

North America Distribution Transformer Market Leaders

Notable companies operating in the distribution transformer market include Hitachi Energy Ltd., Siemens, Toshiba Energy Systems & Solutions Corporation, HYOSUNG HEAVY INDUSTRIES, ERMCO, General Electric, Elsewedy Electric, ABB, Schneider Electric, Mitsubishi Electric Corporation, Eaton Corporation, ORMAZABAL, CG Power & Industrial Solutions Ltd., and Celme S.r.l.

North America Distribution Transformer Market News:

  • In April 2022, Siemens, via its subsidiary Siemens Energy, has unveiled CAREPOLE, a single-phase dry type distribution transformer. This innovative product brings forth enhanced durability, reliability, and eco-friendly operations in comparison to oil-filled transformers. The transformer boasts a cast resin construction, which adds a fire and explosion-resistant quality. The application of this product is targeted at the American distribution grid, thereby bolstering Siemens' foothold within the North American distribution sector.
  • In September 2019, Celme announced the introduction of 10 MVA hermetic type transformer, specifically engineered for the food industry. The product features hermetic type design cooled with detachable controllers and has passed various routine tests required by customers including noise level measurement and lightning impulse & temperature rise test.

North America Distribution Transformer Market report includes an in-depth coverage of the industry with estimates & forecast in terms of Units & USD Million from 2019 to 2032, for the following segments:

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By Core (Units, USD million)

  • Closed
  • Shell
  • Berry

By Winding (Units, USD million)

  • Two - Winding
  • Auto - Transformer

By Installation (Units, USD million)

  • Outdoor
  • Indoor

By Cooling (Units, USD million)

  • Dry Type
  • Oil Immersed

By Insulation (Units, USD million)

  • Gas
  • Oil
  • Solid
  • Air
  • Others

By Phase (Units, USD million)

  • Single Phase
  • Three Phase

By Rating (Units, USD million)

  • ≤ 2.5 MVA
  • 2.6 MVA to 10 MVA
  • > 10 MVA

By Mounting (Units, USD million)

  • Pad
  • Pole
  • Others

By Application (Units, USD million)

  • Residential & Commercial
  • Utility
  • Industrial

The above information has been provided for the following countries:

  • U.S.
  • Canada
  • Mexico


Authors: Ankit Gupta, Vishal Saini

Frequently Asked Questions (FAQ) :

North America distribution transformer industry size was USD 10.3 billion in 2022 and will reach over USD 25 billion by 2032 due to the escalating emphasis on revitalizing and enhancing aging power infrastructure.

North America two-winding distribution transformer industry share exceeded USD 5.7 billion in 2022 and may foresee over 9% CAGR from 2023-2032 owing to the emergence of cutting-edge transformer technologies.

U.S. distribution transformer market size may surpass USD 16.6 billion by 2032, owing to the rising integration of renewable energy sources into the power grid.

Hitachi Energy Ltd., Siemens, Toshiba Energy Systems & Solutions Corporation, ERMCO, General Electric, Elsewedy Electric, ABB, Schneider Electric, Mitsubishi Electric Corporation, and Eaton Corporation are some of the key distribution transformer firms in North America.

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  • Base Year: 2022
  • Companies covered: 15
  • Tables & Figures: 421
  • Countries covered: 3
  • Pages: 345
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