U.S. Transformer Market Size & Share 2025 to 2034

U.S. Transformers Market Size

The U.S. transformer market was valued at USD 12.2 billion in 2024 and is estimated to grow at a CAGR of 7.7% from 2025 to 2034, fueled by the growing demand for power. In the year 2023, the projected utilization of electricity generation in the country was expected to exceed 4100 hours, kWh. Some countries are beginning to replace traditional transformers with more modern advanced types with greater relevance.

Several economies have started prioritizing the replacement of older transformers which do not meet current specifications with modern versions that project future demands. For instance, in October of 2024, Lightsource BP, a BP subsidiary, has further grown its network in the onshore renewable energy sector with a 62GW development pipeline and operations in 19 countries, which include 28 solar projects in the US. These initiatives are bound to increase the need for transformers in the U.S. considerably.
 

In 2023, the U.S. Department of Energy (DOE) proposed funding worth USD 18 million for the development of Flexible Innovative transformer Technologies (FITT). This announcement concerns funding opportunities (FOA) under which DOE expects to award doze grants to parties that will be able to research, create and showcase sophisticated transformers from distribution to transmission levels to improve grid reliability while alleviating the supply chain constraints of transformers.
 

The growth in wind and solar farms, has created a need for transformers that can handle a sizeable range of energy input and can distribute power effectively. This has greatly increased the demand for both power and distribution transformers. The Solar Energy Industries Association (SEIA) projects that the U.S. will add more than 30 GW of solar capacity annually by 2029.
 

Growth of the industrial sector in the U.S. has resulted in higher consumption of electricity which in turn demands for more transformers that can carry higher load and maintain steady power supply to industrial units. The abovementioned factors and data indicates that there will be huge demand for the transformer in the U.S. in coming years.
 

U.S. Transformers Market Trends

• The rising trends in U.S. transformer industry is mainly advanced technology including AI, IoT, and blockchain. These technologies are creating major impact on the market growth remarkably. The rising preference for these technologies and growing use of AI in electrical industry, are significantly aiding the market share.
   
• The number of projects regarding the electrification of rail tracks are also increasing, which further will spur the growth of transformer industry. Schneider Electric Forecasts 50% Surge in U.S. Industry Electrification by 2030. Also, the company announced the USD 23.8 Million Investment and 280 New Jobs in South Carolina Operations Amid Electrification Trend.
   
• There are multiple industries, where the energy efficient transformer are highly essential. These requirements are fulfilled by smart transformers, which may include dry type as well as digital transformers. Nowadays, utilities are preferring to cater ecofriendly transformer to curb the pollution.
   
• The increasing number of renewable projects is reshaping the transformer industry significantly. In 2022, Amazon, with the investment of 2 Bn, will be commencing 39 utility projects. So far, it has worked on 160 winds as well as solar projects across the U.S., which also indicates the promising future for transformers market across the U.S.
   
• Reform and integration projects fuel expansion and markedly advance the U.S. transformer market. The Department of Energy in the U.S. announced funding of USD 18 million for this project to enhance grid reliability and the supply chain for transformers.
   
• Another important development is the deployment of smart transformers which aid in developing smart grids. The transformers possess sophisticated monitoring and diagnostic capabilities that augment the dependability of the power grid, allowing for the immediate examination of collected data, and improve energy management. The growth of digitalization is driving the need for manufacturers to adopt IoT-enabled systems, automated predictive maintenance solutions.
   

U.S. Transformers Market Analysis

• The U.S. transformer industry was valued at USD 10.3 billion, USD 11.2 billion and USD 12.2 billion in 2022, 2023 and 2024 respectively. The industrial sector’s expansion, coupled with urbanization and rising electricity consumption, will be fueling the market growth in coming decades.
   
• The shell core segment is anticipated to reach more than USD 9 billion by 2034 and will remarkably grow in coming years mainly due to the rising preference for renewable energy across the world. Renewable sources of energy are around 43% of total energy production in U.S. in 2022, leading the continent in energy production.
   
• The closed core segment also holds around 36.8% market share owing to the rising focus on renewable energy generation. Core’s design is closed which reduces the leakage of magnetic flux and increases the efficiency of power transmission and distribution. Additionally, the reduction of losses in the core is decisive in increasing the energy efficiency of transformers.
   
• In the same manner, the berry sector is important as it has numerous attributes in many of the final consumer industries. The increasing activities are greatly increasing the demand for transformers. The interconnections border projects are also very important in this industry. As of end of 2023, there were approximately 12,000 projects in us interconnection queues. These projects were pending for the approval of the regional grid operators for the start of their construction.
   
• The shell and closed core segments have considerable influence in the transformer market in areas of efficiency, performance, and application versatility. The performance of shell core design, which contains the windings inside the core, has higher mechanical strength and less leakage reactance. Such designs increase the short-circuit withstand capability hence are best suited for super grade transformers in industrial and utility applications.
   

Learn more about the key segments shaping this market

Download Free PDF

• In the U.S. transformer industry, the distribution transformer segment has the majority of market share of over 69% in 2024 and will be further projected to grow in the coming years. It is mainly due to the significantly rising demand for energy across the world as well as growing industrialization and urbanization, helping the transformer market grow across the U.S.
   
• One of the most significant innovations in distribution transformers involves the use of advanced core materials. Traditional transformers are being replaced due to use of silicon steel cores, result in energy losses due to hysteresis and eddy currents. NREL estimates 60–80 million distribution transformers, with between 2.5 and 3.5 TVA of capacity, and that ~55% of in-service units are more than 33 years old and approaching end of life.
   
• Owing to modernization initiatives to upgrade utilities and other inadequate infrastructure within the United States, the transformer region is continuously growing. As new construction is needed, there is a growing demand for transformers. In this regard, in October 2024, CG Power & Industrial Solutions Ltd has added a further 5000 MVA to their existing transformer power supply capabilities, increasing it from 35,000 MVA to 40,000 MVA.
   
• The instrument transformers, comprising of current and voltage transformers, are vital for better measurements, controls and protections of the boundaries of the electrical systems. It has a steady growth due to the widening scope of smart grid technologies and advanced metering infrastructures (AMI) in U.S. Therefore, this segment is extremely crucial for the growth of U.S. transformer market.
   
• Geopolitical relations in U.S. indicate that these government bodies are legislating both measures and policies referring to consumption to establish order on the electricity usage and that gives rise towards the necessity of efficient transformers. All these requirements would increase demand for the transformers within the region.
   
• Specialized firms like Siemens and Schneider Electric are brining massive innovations with advanced functionality in transformers. U.S. is stepping ahead in the technology, leading to the ongoing development in the transformer designs. The advancements in transformers will further make them more efficient and thereby increase the product demand.
   

U.S. Transformers Market Share

Top 4 companies including Schneider Electric, Eaton, Siemens, General Electric hold more than 40% market around the world. In U.S. transformer industry, Siemens and General Electric hold the major contribution on account of their large network all over the world. The leading corporations actively search for new product and service offerings which makes them key players in the industry worldwide. These companies focus more on investing heavily in R&D.
 

U.S. Transformers Market Companies

• General Electric: In 2023, GE's total revenue was USD 67.95 billion, with USD 1.90 billion going toward research and development (R&D) to create better products. In December 2023, Prolec GE was set to double its single-phase pad-mount transformer factory’s production capacity with an additional facility. Recently, Prolec GE spent more than $145 million in the United States to support its North American customer base.
   
• In 2023, Eaton announced that it will expand its capabilities and resources in U.S., with the recent announcements of two grants from the Czech Republic. The grants will fund participation in two innovative mobility projects, including assisting in the design and development of an electrified off-road truck and to develop and demonstrate a new power distribution unit (PDU) and DC/DC converter (200 kW) for hydrogen fuel cell powered trucks.
   
• Schneider Electric: In 2024, Schneider Electric has generated a net sale of USD 28.99 billion up to quarter 3. Schneider Electric, the leader in the digital transformation of energy management and automation, has announced that its EcoStruxure. Designed to help extend the life of oil transformers and meet regulatory requirements, the subscription-based service monitors the health of transformers using a combination of IoT sensors and advanced software analytics.
   

U.S. Transformers Market Companies

Major players operating in the transformer industry are:

• Celme S.r.l.
• Daelim Transformer
• Eaton Corporation
• ELSCO Transformer
• Elsewedy Electric
• ERMCO
• General Electric
• Hammond Power Solutions
• Hitachi Energy Ltd.
• HYOSUNG HEAVY INDUSTRIES
• Jordan Transformer
• Mitsubishi Electric Corporation
• ORMAZABAL
• Power Transformers, Inc.
• Siemens
• Toshiba Energy Systems & Solutions Corporation
• Virginia Transformer Corp.
• Voltamp
   

U.S. Transformers Industry News

• In April 2023, Hitachi Energy revealed investments of over USD 1.5 billion to ramp up its global transformer manufacturing capacity to keep pace with the growing demand and support the long-term plans and electrification efforts. The investments will gradually expand the company’s global transformer capacity by 2027 and are in addition to the USD 3 billion already announced to progress on the electrification of the energy system driven by the energy transition.
   
• In Nov 2024, Hitachi ABB created a new product range of transformers designed for floating offshore considerations. These offshores are climatically harsh and the structures themselves are physically demanding. With these products, wind energy will be harvested more efficiently and integrated into the global energy system, thus supporting the transition to a sustainable energy future.
   
• In December 2024,  Siemens and Tietoevry, a leading Nordic digital engineering and software company, have teamed up to accelerate the digital transformation of the power utilities sector in Northern and Central U.S. Using Siemens’ Gridscale X software platform in conjunction with their own IT services, Tietoevry will be adding new capabilities to their solutions to support grid operators in the Nordics to effectively manage their grids and address challenges related to the energy transition.
   
• In July 2024, TenneT and Siemens Energy have signed an agreement to reduce their CO2 footprint at the Siemens transformer plant in Nuremberg. A first milestone of the partnership is the production of transformers from 100% recycled copper. From now on, Siemens Energy will produce all future transformers for TenneT with copper. By 2030, TenneT expects to have around 52 transformers from Siemens Energy, each of which will install 72 tonnes of recycled copper. These transformers will help TenneT to significantly reduce CO2 emissions during grid expansion. Siemens Energy and TenneT can reduce 100 metric tonnes of CO2 emissions per transformer alone.
   
• In September 2024, US-based GE Vernova announced the expansion of its existing transformer manufacturing facilities in Stafford, UK. According to the company in a release, the expansion is aimed at supporting the fast-growing demand for HVDC transmission systems that will help power renewable energy projects throughout U.S., Asia and North America, while also supporting the UK’s energy transition. The expansion focuses on two key sites of its Electrification Systems’ Grid Solutions business in Stafford.
   

U.S. transformer market research report includes in-depth coverage of the industry with estimates & forecast in terms of “USD Million and “000 Units” from 2021 to 2034, for the following segments:

Click here to Buy Section of this Report

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 Cooling

• Dry Type
  • Self-Air
  • Air Blast 
• Oil Immersed
  • Self-Cooled
  • Water Cooled
  • Forced Oil
  • Others

Market, By Insulation

• Gas
• Oil
• Solid
• Air
• Others

Market, By Rating

• ≤ 10 MVA
• > 10 MVA to ≤ 100 MVA
• > 100 MVA to ≤ 600 MVA
• > 600 MVA

Market, By Mounting

• Pad
• Pole
• Others

Market, By Application

• Residential
• Commercial & Industrial
• Utility