North America Transformer Market size was valued at USD 16.4 billion in 2023 and is projected to grow at a CAGR of 8.1% up to 2032. The North American transformer industry is significantly influenced by initiatives aimed at modernizing and upgrading the current electrical grid infrastructure.
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In accordance with the U.S. Department of Energy's definition, the electrical grid encompasses a complex network involving manufacturers, owners of assets, government entities at the federal, state, and local levels, as well as service providers. For instance, the Office of Electricity Delivery & Energy Reliability (OE) has been engaged in partnerships with both private and public stakeholders to enhance, enhance, and reshape energy infrastructure. The primary goal is to guarantee consistent access to secure, environmentally friendly, and dependable energy resources.
|North America Transformer Market Size in 2023:
|USD 16.4 Billion
|2024 to 2032
|Forecast Period 2024 to 2032 CAGR:
|2032 Value Projection:
|USD 33.2 Billion
|Historical Data for:
|2018 to 2023
|No. of Pages:
|Tables, Charts & Figures:
|Core, Product, Winding, Cooling, Insulation, Rating, Mounting, Application
|Pitfalls & Challenges:
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A transformer is a static electrical apparatus employed to transmit electrical energy between two or more circuits by harnessing the principles of electromagnetic induction. When a varying electric current flows through one coil of the transformer, it generates a changing magnetic field. Consequently, this magnetic field induces an electromotive force, commonly referred to as "voltage," across a second coil. Despite recent challenges and resistance, there have been notable advancements in acknowledging the importance of investing in infrastructure throughout the United States. For instance, there is an estimated $4.6 trillion allocated for the enhancement of U.S. infrastructure by 2025, specifically earmarked for the Highway Trust Fund (HTF). The HTF plays a critical role in funding improvements to the nation's transportation infrastructure.
The industry faces certain challenges, including the substantial upfront expenses and rising replacement costs for transformers. The technology employed in transformers is subject to strict regulations and labeling standards, which have led to higher production costs for advanced products. Transformers play a crucial role within the Transmission and Distribution (T&D) network, particularly concerning voltage regulation and current-carrying capabilities. Components used in transformer manufacturing are vital for critical electricity applications and require substantial investments in quality control and automated production processes. The utilization of advanced electrical components and growing requirements for energy efficiency are also contributing factors driving up transformer prices.