North America Oil Filled Transformer Market - By Core (Closed, Shell, Berry), By Product (Distribution Transformer, Power Transformer, Instrument Transformer), Winding, Modes of Cooling, Mounting, Rating, Substation Connectivity, Application & Forecast, 2024 – 2032

North America Oil-Filled Transformer Market size

North America Oil-Filled Transformer Market surpassed USD 10.2 billion in 2023 and it is expected to grow at 7.1% CAGR from 2024 to 2032. The industry is being propelled by the rising demand for electricity across various sectors, including residential, commercial, and industrial, which serves as a significant driver for the oil-filled transformer industry in the region.
 

The replacement of outdated transformers with advanced models is fueling the oil-filled transformers market demand in the North America.  Additionally, the expansion of the renewable energy sector, characterized by the installation of wind farms and solar power plants, is driving a substantial product demand to facilitate the seamless integration of renewable energy into the grid.

 

Government initiatives and regulations aimed at improving grid reliability, efficiency, and sustainability are also playing a vital role in accelerating the adoption of these transformers. These initiatives include comprehensive grid modernization programs, renewable energy targets, and energy efficiency mandates. Moreover, the necessity for uninterrupted power supply and increasing investments in the transmission and distribution infrastructure are further bolstering the growth of the oil-filled transformer market in North America.
 

COVID-19 Impact

Despite the adverse impact of COVID-19 on a wide range of industries, the development, construction, and maintenance of power infrastructure across North America continued their operations owing to no or limited prohibitions imposed by the government on new energy projects. The recommencement of operations in major energy intensive industries, manufacturing facilities, and infrastructure projects, facilitated by government measures in order to tackle the economic downturn, has contributed to the growth of the energy sector due to increased energy demand from such industries.

While the pandemic has caused some alterations in the fundamentals of the sector, including business revenues and customer behaviour, governmental efforts to effectively manage the situation have positively influenced the North America oil-filled transformer market outlook. Furthermore, the healthcare facilities globally experienced a high demand for electricity during the pandemic, which further contributed to the industry growth. The ongoing vaccination drives, and the reopening of global operations have led to an overall improvement in the market scenario, resulting in product upsurge in the near future.

North America Oil Filled Transformer Industry Trends

The electricity business in North America presents diverse prospects due to variations in operational areas, network characteristics, customer base, and ownership structures. Tariff and revenue review models take this diversity into account, allowing for effective comparisons across different entities. Despite this diversity, Distribution System Operators (DSOs) and Transmission System Operators (TSOs) generally strive to provide high-quality and reliable electricity supply to their customers.

However, these operators face challenges in ensuring efficient and cost-effective grid operation. To address these challenges, grid operators and governments are prioritizing the revamping, modernization, and expansion of existing electricity networks. The increasing demand for electricity, along with favorable regulatory reforms aimed at expanding the grid infrastructure, will boost the growth of the North America oil-filled transformer market.

According to the International Energy Agency (IEA), global electricity demand rose by 6% in 2021, with a 2.4% increase in demand across the Americas region. Regulators are placing significant emphasis on providing affordable and uninterrupted electricity, driving the implementation of reforms and policies in the sector. In addition, government efforts to enhance energy efficiency and increase power generation capacity will further contribute to the business development.

North America Oil-Filled Transformer Market Analysis

The berry core oil-filled transformer market is projected to witness 8% growth rate between 2023 and 2032, on account of the lower core losses and higher efficiency than other alternatives. This product is advantageous in applications where space is limited, which in turn boost its adoption across various industries. These units are preferred across commercial and residential environments owing less audible noises during operations on account of its low energy losses. Moreover, berry core oil filled transformers can withstand higher temperatures without significant degradation in performance, thereby making them suitable for demanding environments and further driving its market penetration.

Distribution transformer holds a major market share of 68% in 2022 and will cross valuation of USD 14 billion in 2032. The growing demand for electricity in residential, commercial, and industrial sectors is a major driver for the expansion of distribution oil-filled transformer market in North America. As the population grows and economies develop, there is a greater need for reliable and efficient power distribution infrastructure. Countries across the region are undertaking grid modernization initiatives to enhance the reliability and efficiency of their power distribution networks. This includes the replacement and upgrade of aging infrastructure, including transformers, with more advanced and efficient models, which in turn propels the product deployment.
 

Furthermore, the integration of renewable energy sources, such as solar and wind, into the power grid requires the expansion and upgrade of distribution infrastructure, therefore driving the product demand from distribution transformers. These units play a vital role in facilitating the integration of renewable energy by stepping up or stepping down the voltage as needed, which in turn favors the oil-filled transformer market development by 2032. Global instrument transformers industry is likely to cross USD 7 Billion in the coming seven years.
 

The auto transformers have gained a substantial demand growth and is further attain 7.5% gains between 2023 and 2032 in North America oil-filled transformer market. Moreover, Auto-transformers have higher efficiency compared to conventional transformers on account of a single winding that serves both the primary and secondary sides of the transformer. As a result, there are fewer losses associated with the separate windings and their connections. Higher efficiency translates to reduced energy losses and improved overall system performance, which in turn complements the technology diffusion in the region.

The utility sector captured over 55% in 2022 and will foresee 7% growth till 2032. This sector is expected to experience robust growth as a result of rapid advancements in grid networks to meet the rising energy demand. The ongoing retrofitting of existing networks, coupled with the expansion of cross-border electrical networks, will play a significant role in driving the industry's growth. Also, there is a growing focus on the development of energy-efficient and renewable electricity corridors across the region, which will further drive the oil-filled transformer market demand.

U.S. market is estimated to grow 6.5% CAGR till 2032 credited to the ongoing refurbishment of the existing grid infrastructure along with rising demand for reliable supply energy across the country. The region has experienced a growing product demand in the power sector, driven by increased investments in the development of long-distance electricity networks. The implementation of a stringent framework for grid modernization, along with support mechanisms and funding provided by state-owned utilities, will further accelerate the North America oil-filled transformer market growth. The rise in power load has put stress on the system and raised the risk of widespread blackouts. To address these concerns, there has been a focus on modernizing and retrofitting existing transmission and distribution (T&D) systems with technologies that prioritize performance and cost-effectiveness. The European market for oil filled transformer is likely to cross USD 12.5 billion by 2032.

North America Oil-Filled Transformer Market Share

Major players operating across the North America oil filled transformer business landscape include :

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

North America Oil Filled Transformer Industry News:

• In October 2021, General Electric (GE) and Prolec GE have formed a JV with a 50-50 partnership, in collaboration with the private sector company Xignux, to introduce the world's first flexible power transformer. In the power grid system, the components other than the transformers play a crucial role in elevating the voltage from power plants and transmitting it through high-voltage wires. The project has received funding from the U.S. Department of Energy, which aims to activate the device and assess its performance.
   
• In February 2020, Siemens AG acquired MultiMechanics, Inc., a leading developer of finite material software. The company’s digital software segment expanded its Xcelerator and Simcenter portfolio through this acquisition. This product expansion enhanced the ability of monitoring & control devices to predict & alert end-users regarding upcoming failure activities across electrical equipment including such as transformers, switchgears, cable lines, and circuit breakers.
   

The North America oil-filled transformer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of ‘000 Units & USD Million from 2019 to 2032, for the following segments:

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Market, By Core

• Closed
• Shell
• Berry

Market, By Product

• Distribution Transformer
• Power Transformer
• Instrument Transformer
• Others

Market, By Winding

• Two Winding
• Auto-transformer

Market, By Modes of Cooling

• Oil Natural Air Natural (ONAN)
• Oil Natural Water Forced (ONWF)
• Oil Natural Air Forced (ONAF)
• Others

Market, By Mounting

• Pad
• Pole
• Foundation
• Others

Market, By Rating

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

Market, By Substation Connectivity

• Distribution
• Transmission

Market, By Application

• Residential
•  Commercial & Industrial
• Utility

The above information has been provided for the following countries:

• U.S.
• Canada
• Mexico