US Transformer Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 3.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Transformer Market Analysis
The United States Transformer Market is expected to rise at a CAGR of more than 3% during the forecast period.
COVID-19 moderately impacted the market in 2020. Currently. The market has reached pre-pandemic levels.
- Factors such as increasing energy demands from industries and upgrading old transmission and distribution systems are likely going to drive the United States Transformer Market.
- However, delay in the implementation of some of the national-level projects is expected to restrain the United States Transformer Market.
- A smart grid is a highly efficient and economical technology that can reduce carbon emissions. Such up-gradation for now existing networks in the region can create several opportunities for the United States Transformer Market in the future.
US Transformer Market Trends
This section covers the major market trends shaping the US Transformer Market according to our research experts:
Distribution Transformer Expected to Dominate the Market
- A distribution transformer or service transformer is used to provide the final voltage transformation in the electric power distribution system. It will then step down the voltage applied in the distribution lines to the level used by various customers of the residential, commercial, and industrial sectors.
- The United States has had access to 100% electricity for several years. Still, ongoing increasing energy demand in the country, along with the upgrading of outdated transmission and distribution systems, is likely going to drive the country's transformer market.
- In 2021, the electricity generation in the United States was about 4406.4 Terawatt-Hour (TWh), which was higher than what the country produced in 2020, 4284.8 TWh. The increase in electricity generation reflects an increase in the power generation capacity, which is likely to use new distribution transformers for the transmission of electricity to consumers.
- In January 2023, Hyundai Electric America Corp. (the South Korean company's sales unit in Atlanta) signed a USD 86.3 million contract with American Electric Power (AEP) to supply 3,500 distribution transformers. AEP intends to put the devices across Texas, Ohio, and Oklahoma, where the firm provides power. Thus, such type of investment in the power transmission line is likely to create demand for transformers, which, in turn, will drive the transformer market in the forecast period.
- Hence, owing to the above points, the distribution transformer segment is likely to dominate the United States Transformer Market during the forecast period.
Increasing Renewable Energy Expected to Drive the Market
- The United States, due to the constant increase in energy demand and an increasing issue related to greenhouse gas emission, is witnessing a large installation of renewable energy, which requires a large number of power and distribution transformers to transfer electricity from the generation site to the consumers.
- In 2021, the total renewable energy production in the country was 12,326 Trillion Btu, which was more than the production of 2020, 11,683 Trillion Btu. Moreover, according to the Energy Information Administration (EIA), the country is expected to increase its renewable energy mix to 38% in 2050, thus surpassing energy from coal, nuclear, and natural gas. This is likely to drive the transformer market in the country.
- Moreover, California and Texas, have massive installations of solar in their counties; these solar farms, which are either built or proposed, are expected to connect to the state grid via transmission lines. Some of the solar farms in the states have also installed their substations, having transformers on-site to plug into the state grid directly.
- The United States has several projects of offshore wind energy that have a status of under-construction, proposed, or got clearance from the government. All these projects require transmission lines and distribution systems to transmit electricity from the offshore facility to the onshore. These offshore wind installations are likely going to install offshore substations with transformers to step-up the voltage.
- Hence, owing to the above points, increasing renewable energy is expected to drive the United States transformer market during the forecast period.
US Transformer Industry Overview
The United States Transformer Market is fragmented. Some of the key players in this market (not in a particular order) include Siemens AG, ABB Ltd., General Electric Company, Schneider Electric SE, and Emerson Electric Co.
US Transformer Market Leaders
Siemens AG
ABB Ltd.
General Electric Company
Schneider Electric SE
Emerson Electric Co.
*Disclaimer: Major Players sorted in no particular order
US Transformer Market News
- December 2022: Hitachi Energy announced plans to invest more than USD 37 million in the expansion and modernization of its power transformer manufacturing facility in South Boston, Virginia, to meet rapidly growing demand from utility customers and for applications such as renewable energy generation and data centers.
- December 2022: The United States Department of Energy (DOE) proposed new energy-efficiency criteria for three types of distribution transformers to increase the reliability of America's electrical system, lower utility costs, and considerably reduce domestic carbon dioxide (CO2) emissions. The DOE plan is a strategic step towards the diversification of transformer core technology, which will save energy and lower prices.
US Transformer Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Market Size and Demand Forecast in USD billion, till 2028
4.3 Recent Trends and Developments
4.4 Government Policies and Regulations
4.5 Market Dynamics
4.5.1 Drivers
4.5.2 Restraints
4.6 Supply Chain Analysis
4.7 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Power Rating
5.1.1 Small
5.1.2 Large
5.1.3 Medium
5.2 Cooling Type
5.2.1 Air-Cooled
5.2.2 Oil-Cooled
5.3 Transformer Type
5.3.1 Power Transformer
5.3.2 Distribution Transformer
6. COMPETITIVE LANDSCAPE
6.1 Mergers, Acquisitions, Collaboration and Joint Ventures
6.2 Strategies Adopted by Key Players
6.3 Company Profiles
6.3.1 Siemens AG
6.3.2 ABB Ltd.
6.3.3 General Electric Company
6.3.4 Mitsubishi Electric Corporation
6.3.5 Schneider Electric SE
6.3.6 Panasonic Corporation
6.3.7 Hitachi, Ltd.
6.3.8 Emerson Electric Co.
6.3.9 Eaton Corporation PLC
6.3.10 Toshiba Corp
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Transformer Industry Segmentation
A transformer is an electrical energy transfer device that either steps up or down the voltage from one alternating-current circuit to one or more other circuits.
The United States Transformer Market is segmented by power rating, cooling type, and transformer type. By power rating, the market is segmented into small, medium, and large. By cooling type, the market is segmented into air-cooled and oil-cooled. By transformer type, the market is segmented into power transformers and distribution transformers. For each segment, the market sizing and forecasts are based on the revenue (USD Billion).
| Power Rating | |
| Small | |
| Large | |
| Medium |
| Cooling Type | |
| Air-Cooled | |
| Oil-Cooled |
| Transformer Type | |
| Power Transformer | |
| Distribution Transformer |
US Transformer Market Research FAQs
What is the current United States Transformer Market size?
The United States Transformer Market is projected to register a CAGR of greater than 3% during the forecast period (2024-2029)
Who are the key players in United States Transformer Market?
Siemens AG, ABB Ltd., General Electric Company, Schneider Electric SE and Emerson Electric Co. are the major companies operating in the United States Transformer Market.
What years does this United States Transformer Market cover?
The report covers the United States Transformer Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the United States Transformer Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Transformer Industry Report
Statistics for the 2024 US Transformer market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. US Transformer analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
