North America Oil Filled Transformer Market

North America Oil Filled Transformer Market Size

According to a recent study by Global Market Insights Inc., the North America oil filled transformer market was estimated at USD 11 billion in 2024. The market is expected to grow from USD 11.9 billion in 2025 to USD 22.5 billion in 2034, at a CAGR of 7.3%.

• The aging U.S. electrical grid is one of the most significant drivers for oil-filled transformer demand, as utilities endeavor to upgrade old components. In 2023, according to the U.S. Energy Information Administration, utilities invested USD 50.9 billion in distribution infrastructure, USD 7.5 billion of which was for line transformers, a 23% increase from 2022. This growth indicates the desperation to upgrade old systems and enhance reliability.
  
• Grid modernization efforts in the U.S. are hastening the adoption of future-proof oil-filled transformers. In 2024, USD 20 million was awarded by the Department of Energy to nine projects targeted towards new transformer technologies under the FITT program. By promoting grid flexibility and resilience, oil-filled transformers with enhanced thermal and monitoring features become critical to the process of grid modernization.
  
• Increasing electricity demand resulting from urbanization and electrification trends is fueling the demand for strong transformer infrastructure. The EIA reported that in 2023, USD 7.5 billion went into line transformers by utilities for growing urban grids and new residential developments. Oil-filled transformers are favored due to their strength and high-load capacity, which makes them essential for powering urban distribution.
  
• The commitment of Canada to a clean future of electricity is driving transformer demand. The Clean Electricity Strategy provides for USD 58 billion of yearly investments by 2030 to decarbonize and grow the grid. Such investments include the upgrade of transmission networks with oil-filled transformers to handle higher loads from transport and heating electrification to support grid reliability and efficiency.
  
• Canada's initiative towards smart grid technologies is fueling the demand for oil-filled transformers with sophisticated monitoring capabilities. As part of its Smart Grid Program, the government pledged USD 100 million to implement integrated systems featuring transformer upgrades. These systems offer greater flexibility and reliability to the grid, particularly in distant and Aboriginal communities, where oil-filled transformers are crucial in ensuring stable power supply.
  
• Indigenous-led clean energy projects are growing transformer deployment in Canada. The Smart Renewables and Electrification Pathways Program (SREPs) cleared USD 830 million for 71 projects with a total of 2,772 MW of renewable capacity and 496 MW of energy storage. Most of the projects need oil-filled transformers to provide stable voltage regulation and effective power distribution.
  
• Mexico's expanding industrial base is growing electricity requirements, requiring transformer upgrades. The IEA 2023 Latin America Energy Outlook recognizes Mexico as the second-largest economy in the region, with increasing energy demand fueled by manufacturing and urbanization. Oil-filled transformers are critical to providing reliable power to industrial areas, underpinning economic development and grid reliability.
  
• Development of Mexico's transmission grid is a key driver of transformer demand. During October 2024 to February 2025, the Federal Electricity Commission (CFE) initiated 59 projects to upgrade the National Transmission Network. The projects need oil-filled transformers to manage additional loads and enhance voltage stability in the grid.
  

North America Oil Filled Transformer Market Trends

• The U.S. oil-filled transformer industry is being reshaped by grid modernization and supply chain resilience efforts. In response to Executive Order 14017, the Department of Energy (DOE) released a 2022 report identifying large power transformers (LPTs) as critical infrastructure. The report emphasized the aging transformer fleet, averaging 40 years, and the need for domestic manufacturing to support grid expansion and decarbonization goals.
  
• In April 2024, the DOE finalized new energy efficiency standards for distribution transformers. These standards aim to save USD 824 million annually in electricity costs and reduce 85 million metric tons of CO₂ emissions over 30 years. The rule also supports domestic steel production and extends compliance timelines to five years, addressing supply chain and workforce concerns while enhancing grid reliability.
  
• Canada’s oil-filled transformer demand is influenced by industrial energy efficiency initiatives. Natural Resources Canada (NRCan) maintains a directory of programs offering financial incentives, retrofits, and technical support for energy-efficient equipment, including transformers. These programs align with Canada’s net-zero goals and encourage modernization of industrial infrastructure, indirectly boosting demand for efficient oil-filled transformers.
  
• Mexico’s transformer market is expanding due to national infrastructure projects. According to the Ministry of Energy (SENER), the government has prioritized grid reliability and modernization through its national electricity system development program. These efforts include upgrading substations and transmission lines, which require oil-filled transformers to support growing industrial and residential demand.
  
• The DOE’s Office of Electricity has launched multiple R&D initiatives to address transformer supply and innovation. In 2023, the Flexible Innovative Transformer Technologies (FITT) program allocated USD 18 million to develop modular, scalable, and hybrid transformers. These efforts aim to enhance grid flexibility, reduce lead times, and support electrification and renewable integration.
  
• A 2024 study by the National Renewable Energy Laboratory (NREL) and DOE projects a 160–260% increase in U.S. distribution transformer capacity by 2050. This surge is driven by electrification, aging infrastructure, and extreme weather events. The study highlights the need for resilient oil-filled transformers to meet future grid demands and ensure reliable power delivery.
  
• To address transformer shortages, Ex-President Biden invoked the Defense Production Act in 2022, accelerating domestic manufacturing of transformers and grid components. This move supports national security, job creation, and energy independence. It also ensures a stable supply of oil-filled transformers critical for grid modernization and disaster resilience.
  

North America Oil Filled Transformer Market Analysis

• Based on product, the market is segmented into instrument transformer, power transformer, distribution transformer and others. The market was valued at USD 9.3 billion, USD 10.1 billion, and USD 11 billion in 2022, 2023 and 2024 respectively. The distribution transformer segment dominated over 69% market share in 2024 and is expected to grow at a CAGR of 7.8% through 2034.
  
• Distribution transformers play a crucial role in extending local grids to satisfy increasing electrification. As of the EIA's Form EIA-861, more than 1,700 U.S. utilities reported higher deployment of distribution circuits and voltage optimization systems from 2020 to 2024. This indicates increased demand for stable electricity in residential and commercial areas, particularly with the increased use of electric vehicles and heat pump.
  
• Growing adoption of AMI systems is creating demand for smart distribution transformers. Data from EIA indicates a consistent increase in AMI installations in all U.S. states since 2007, with millions of meters currently in service to enable real-time energy management. The systems need transformers that can support dynamic loads and two-way communication, facilitating increased grid efficiency and consumer control.
  
• Demand response programs increasingly utilize distribution transformers. According to EIA's 2024 survey statistics, utilities are enrolling an increasing number of customers in time-of-use and real-time pricing programs. Such programs rely on transformers that have the capability to enable load shifting and peak shaving, assisting utilities in managing grid stress and lowering operational costs.
  
• Power transformers are at the core of transmission grid developments and the power transformer market is expected to expand with CAGR of 4.8% till 2034. The IEA's 2025 report points out that international procurement times for large power transformers have more than doubled since 2021 owing to concurrent grid development projects. In North America, this illustrates heightened investment in long-distance transmission to facilitate integration of renewable energy and interconnectivity across regions.
  
• Growing data centers and industrial electrification are driving demand for large-capacity transformers. According to the IEA, electricity use from AI-powered data centers and electrified industrial processes is growing rapidly, demanding strong transmission infrastructure. Power transformers play a crucial role in providing stable voltage and enabling high-load operation.
  
• With transportation and space heating electrification in North America, instrument transformers are being utilized more to control dynamic loads. The IEA 2025 report identifies growing electricity demand from EVs, heat pumps, and data centers powered by AI. Precise load measurement is crucial for supply and demand balance, and instrument transformers are central to this. Through their installation, voltage levels are ensured to be stable, and the automated grid response to variable consumption is facilitated.
  
• Instrument transformers market was worth USD 229 million in 2024 and is anticipated to reach more than USD 417 million by 2034. Instrument transformers aid in meeting safety and operational standards. The EIA's Electricity Data Browser contains detailed statistics on grid performance and reliability, which are contingent upon proper instrumentation.
  
• Instrument transformers assist utilities in compliance with regulatory standards for fault isolation, protection relays, and system audits. Their accuracy guarantees the safe functioning of transmission lines and substations, particularly in high-voltage conditions where measurement inaccuracies will cause equipment failure or outages.
  
• Special transformers are vital for industrial use where constant power is necessary. The EIA's report on performance characteristics points out their utilization in powering heavy-load equipment such as motors and furnaces. They are designed to be long-lasting and efficient, guaranteeing low downtime in manufacturing and resource extraction industries.
  

• Based on winding, the North America oil filled transformer market is segmented into auto transformer and two winding. Two winding oil filled transformers across North America holds a market share of 54.9% in 2024 and is anticipated to cross over USD 11.8 billion by 2034. Growing transmission interregional connections across North America will stimulate a substantial growth in the industry in the coming years.
  
• Two-winding transformers play a pivotal role in separating various voltage levels and providing operational safety in utility-scale power plants. Their function to separate generation from distribution systems is essential for protecting against fault events. The EIA 2024 report on utility-scale electric power technologies lists two-winding transformers as typical components in electrical and control systems, which denotes their significance in upholding safe and efficient grid operation across varied generation sources.
  
• The installation of emission control systems in fossil and biomass facilities necessitates transformers that will protect sensitive monitoring equipment. Two-winding transformers are desirable for this application as they can be used to isolate control circuits from high-voltage systems. The capital cost report of EIA describes their implementation in scrubber- and catalytic reduction unit-equipped facilities in ensuring environmental standards compliance.
  
• Utilities prefer two-winding transformers because of their versatility in different geographic and regulatory climates. The EIA's modeling for the Annual Energy Outlook 2025 incorporates regional cost adjustments for transformer deployment, with two-winding units largely prevalent because they are compatible with various grid systems and local labor environments.
  
• Auto transformers are used extensively in high-voltage transmission grids for efficiency and space-saving, hence propelling their market value to USD 10.6 billion by 2034. Auto transformers minimize losses when electricity is transported over long distances. The IEA 2025 report on transmission grid evolution observes that procurement durations for large transformers such as auto types doubled since 2021 due to higher demand from grid expansion projects worldwide.
  
• The growth in electric vehicles is placing greater demands on transformers that will handle varying loads in charging infrastructure. Auto transformers are the best solution for this because of their ability to regulate voltage. The IEA's Global EV Outlook 2025 sees a quadrupling in EVs by 2030, stressing the necessity for resilient grid equipment supporting transport electrification.
  
• Auto transformers are favored in urban substations and industrial locations where space is less. It has a single core so that the footprint may be reduced but at no expense to performance. On this point, the transmission infrastructure report by the IEA emphasizes the urgent need for compact components to overcome land-use and permitting challenges.
  

• The U.S. oil filled transformer market was at USD 6.4 billion, USD 6.9 billion and USD 7.5 billion in 2022, 2023 and 2024 respectively. The nation held a share of 68.5% in 2024 across North American market and is projected to witness a noteworthy growth in the coming years.
  
• The increasing use of electric space heating, cooking, and cooling units is driving transformer demand. The U.S. Department of Energy's 2022 Buildings Energy Data Book is promoting a move to electric appliances in residential and commercial structures. With this trend toward electrification, there is a need for improved distribution infrastructure, such as oil-filled transformers, to carry heavy load and maintain voltage stability throughout neighborhoods and business areas.
  
• Transformer modernization is being motivated by grid cybersecurity demand. The DOE's Office of Cybersecurity, Energy Security, and Emergency Response (CESER) initiated programs to make grid components, such as transformers, resistant to cyber threats. Oil immersion transformers with built-in monitoring devices are being installed to identify anomalies and avert service outages, ensuring national security and grid reliability.
  
• New agricultural operations more and more depend on electric irrigation, processing, and storage systems. The USDA's Rural Energy for America Program (REAP) aids in electrification among farm communities, indirectly increasing demand for oil-filled transformers to supply power to distant and high-load farming areas. These transformers provide consistent service in areas with sparse grid infrastructure.
  
• The trend to electrify U.S. ports is driving the need for high-capacity transformers. Infrastructure upgrades to mitigate ship and cargo handling emissions are funded by the DOE's Clean Ports Program. Oil-filled transformers are needed to supply shore-to-ship infrastructure and electric cranes to advance decarbonization and operational efficiency in marine logistics.
  
• Canada's move to electrify rural and Indigenous communities is adding to the deployment of transformers. Natural Resources Canada's Clean Energy for Rural and Remote Communities Program supports microgrid and renewable power projects that involve oil-filled transformers for voltage management and integration into the grid. The installations promote energy equity and decrease dependence on diesel fuel in remote areas.
  
• Canada’s mining sector is transitioning to electric equipment and renewable energy sources. NRCan’s Green Mining Initiative promotes electrification to reduce emissions and improve efficiency. Oil-filled transformers are used to power electric drills, conveyors, and ventilation systems, supporting sustainable resource extraction in remote and high-demand environments.
  
• Mexico’s development of industrial parks and export zones is driving transformer demand. The Ministry of Economy’s 2023 infrastructure plan includes new manufacturing hubs requiring robust electrical systems. Oil-filled transformers are deployed to support high-load operations and ensure stable power for factories, logistics centers, and export facilities, aligning with Mexico’s economic growth and trade goals.
  

North America Oil Filled Transformer Market Share

• The top 5 companies across the North America oil filled transformer industry include GE Vernova, Siemens Energy, Schneider Electric, Hitachi Energy, and Eaton, collectively contributing around 45% of the market in 2024.
  
• GE Vernova commands a strong position in the North American transformer market through its extensive product range, including distribution, power, and grid transformers. Its U.S.-based manufacturing facilities allow it to meet domestic demand efficiently, especially amid global supply chain disruptions. The company’s ability to deliver custom high-voltage solutions for utilities and industrial clients reinforces its market leadership and reliability in large-scale grid modernization projects.
  
• Backed by GE’s global infrastructure and financial strength, GE Vernova has invested heavily in R&D and digital grid technologies. Its transformer systems integrate smart monitoring and predictive maintenance, aligning with utility needs for resilient and intelligent infrastructure. With billions in annual revenue and long-term contracts with major utilities, GE Vernova’s financial capacity enables it to scale production and maintain a competitive edge in both public and private sector projects.
  
• Hitachi Energy holds a substantial market share due to its advanced transformer technologies tailored for smart grids and renewable integration. Its offerings include eco-efficient transformers with biodegradable insulation and digital monitoring systems. These products are widely adopted by North American utilities seeking to modernize infrastructure and meet sustainability goals, positioning Hitachi as a leader in next-generation grid solutions.
  
• With a strong presence across North America and global operations, Hitachi Energy benefits from economies of scale and strategic partnerships with transmission operators and renewable developers. Its financial robustness and consistent investment in innovation allow it to deliver high-performance transformers for complex applications, including offshore wind, HVDC systems, and industrial electrification. This breadth of capability secures its role as a preferred supplier in large infrastructure projects.
  

North America Oil Filled Transformer Market Companies

Major players operating in the North America oil filled transformer industry are:

• CG Power & Industrial Solutions
• Celme S.r.l.
• Elsewedy Electric
• Eaton
• Emerald Transformer
• GE Vernova
• Hyosung Heavy Industries
• Kitashiba Electric
• LS ELECTRIC
• Lemi Trafo Transformers
• MGM Transformer Company
• Neeltran
• Niagara Power Transformer
• Northern Transformer
• Ormazabal
• Siemens Energy
• Schneider Electric
• Toshiba International
• Virginia Transformer
• WEG
  
• CG Power & Industrial Solutions is active in North America’s oil-filled transformer market, offering high-voltage and extra-high-voltage units for utilities and industrial clients. The company’s engineering capabilities support custom solutions for grid modernization and renewable integration. Its affiliation with the Murugappa Group enhances its financial strength and global reach, enabling participation in large-scale infrastructure projects and positioning it as a competitive supplier in the region.
  
• Eaton contributes to the North American oil-filled transformer market through its medium-voltage liquid-filled transformer offerings. These products support utility and industrial applications, aligning with energy transition goals. Eaton’s U.S.-based manufacturing and service network ensures compliance with DOE efficiency standards and timely delivery. With global revenue exceeding USD 23 billion in 2024, Eaton’s financial strength and strategic focus on sustainability reinforce its leadership in transformer deployment across the continent.
  
• Virginia Transformer is a leading U.S.-based manufacturer of custom oil-filled transformers, serving utilities, renewables, and industrial sectors. Its facilities in Virginia, Idaho, and Mexico allow it to meet domestic demand with short lead times and tailored solutions. The company specializes in high-reliability transformers for mission-critical applications, including data centers and transit systems. Its engineering-driven approach and strong domestic production capacity make it a preferred supplier for complex grid projects.
  
• Niagara Power Transformer manufactures medium and large oil-filled transformers for utility and industrial clients across North America. Based in Buffalo, New York, the company emphasizes U.S.-made products and rapid turnaround for custom orders. Its expertise in high-voltage and specialty transformers supports grid upgrades, renewable integration, and substation expansions. Niagara’s vertically integrated operations and engineering capabilities make it a reliable partner for utilities seeking quality and flexibility.
  
• MGM Transformer Company is a prominent supplier of oil-filled transformers in North America, serving utilities, data centers, and industrial facilities. Following its acquisition of VanTran in 2024, MGM expanded its manufacturing footprint with a 430,000-square-foot facility in Texas. This move strengthens its ability to meet domestic demand and address supply chain gaps. MGM’s focus on high-performance, DOE-compliant oil-filled transformers and its commitment to U.S.-based production reinforce its competitive position in the regional market.
  

North America Oil Filled Transformer Industry News

• In February 2025, Eaton announced a USD 340 million investment in a new manufacturing facility in Jonesville, South Carolina, dedicated to producing three-phase transformers. Scheduled to open in 2027, the facility will create 700 jobs and become Eaton’s eleventh location in the state. This expansion aims to meet rising demand from utilities, data centers, and industrial sectors. Since 2023, Eaton has invested over USD 1 billion in North American manufacturing to strengthen its electrical solutions supply chain and production capacity.
  
• In January 2025, GE Vernova announced a nearly USD 600 million investment over two years to upgrade its U.S. manufacturing facilities, addressing growing global electricity demand. This initiative will create over 1,500 factory and engineering jobs nationwide. Key investments include nearly USD 300 million for gas turbine production, with over USD 160 million allocated to the Greenville, South Carolina facility, adding 650 jobs. Additionally, almost USD 20 million will expand Grid Solutions plants in Pennsylvania and Florida, while the Niskayuna, New York Advanced Research Center will also see growth, reinforcing GE Vernova’s commitment to energy innovation.
  
• In October 2024, CG Power & Industrial Solutions Ltd.’s board approved expanding power transformer manufacturing capacity from 35,000 MVA to 40,000 MVA with a USD 3.1 million investment. In FY24, CG approved expanding its Malanpur “T3” unit from 25,000 MVA to 35,000 MVA, set for commissioning by March 2025. Earlier, in FY23, capacity rose from 17,000 MVA to 25,000 MVA with a USD 14.6 million investment, including expanding distribution transformer capacity in Bhopal, India from 6,900 MVA to 9,900 MVA.
  
• In February 2024, Elsewedy Electric partnered with the Electric Supply Co., Energy Vault, and Wellhead Electric to support a major energy storage project in Southern California. EEEP supplied 28 pad-mounted transformers with 2600 KVA, ensuring delivery within 18 weeks despite supply chain challenges. Wellhead Electric and Energy Vault installed a 68.8 MW (275.2 MWh) battery storage system at the Stanton, California’s W Power Energy Reliability Center, providing flexible, cost-effective energy storage for a more reliable power infrastructure.
  

The North America oil filled transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) and volume (‘000 Units) from 2021 to 2034, 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