NORTH AMERICA TRANSFORMER MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2025 - 2032)

North America Transformer Market Size and Forecast – 2025-2032

The North America Transformer Market is estimated to be valued at USD 11.74 Bn in 2025 and is expected to reach USD 16.63 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 5.1% from 2025 to 2032.

Key Takeaways of the North America Transformer Market

• The distribution transformers segment leads the market holding an estimated share of 68.7% in 2025.
• The less than 10 MVA segment leads the market holding an estimated share of 54.4% in 2025.

Market Overview

The market is seeing a shift towards energy-efficient and eco-friendly transformers because of stringent regulatory policies and growing environmental awareness. Additionally, technological advancements such as smart transformers equipped with IoT capabilities are gaining traction, enabling better monitoring, fault detection, and optimization in power systems. The rise of renewable energy integration and electrification initiatives further propel the demand for advanced transformer solutions in North America.

Current Events and Its Impact

Uncover macros and micros vetted on 75+ parameters: Get instant access to report

Segmental Insights

To learn more about this report, Download Free Sample

North America Transformer Market Insights, by Product – Distribution Transformers Lead Due to Increased Demand for Efficient Power Distribution

Distribution transformers are expected to hold an estimated share of 68.7% in the North America transformer market in 2025. Distribution transformers step down the voltage for end user consumption, making them important in electric power delivery networks. One of the key drivers for this segment is the rapid urbanization and expansion of smart grid initiatives in the region, which necessitate the deployment of upgraded and modernized distribution infrastructure. Governments and utility companies are investing greatly to improve grid reliability and reduce transmission losses, directly boosting the demand for advanced distribution transformers.

Additionally, the rise of renewable energy sources—such as solar and wind—has increased the complexity of power distribution, requiring transformers that can handle variable loads and intermittent supply efficiently. Distribution transformers, designed for lower voltage levels and closer proximity to load centers, are critical for integrating distributed energy resources (DERs) into the grid.

Technological advancements have also played a significant role in driving the distribution transformer segment. Innovations such as amorphous steel cores, improved insulation materials, and smart transformer features (including sensors for real-time monitoring and fault detection) enhance energy efficiency and operational reliability. These improvements align with the increasing regulatory focus on energy conservation and emissions reduction, encouraging utilities to replace older, less efficient units with newer models.

Moreover, the expansion of electric vehicle (EV) charging infrastructure has intensified the pressure on distribution networks, stimulating the need for transformers capable of managing new load profiles without compromising performance. This trend underlines the growing importance of distribution transformers in maintaining grid resilience amidst evolving energy consumption patterns.

North America Transformer Market Insights, by Rating - Less Than 10 MVA Segment Leads Owing to their Critical Role in Decentralized Power Applications and Grid Modernization

The less than 10 MVA segment is expected to command the highest share of 54.4% within the North America transformer market in 2025. Transformers in this rating category are typically used in residential neighborhoods, commercial establishments, and small-scale industrial setups, where lower voltage transformation is needed close to the point of consumption.

One of the primary growth drivers for this segment is the proliferation of distributed energy resources such as rooftop solar panels, microgrids, and energy storage systems. These applications typically require transformers with ratings under 10 MVA to efficiently manage localized voltage regulation and load balancing. As communities and businesses increasingly opt for self-generation to reduce dependency on traditional grids, the demand for compact, reliable, and cost-effective transformers within this rating range rises significantly.

Another significant factor contributing to the high share of this segment is the imperative to upgrade aging infrastructure. Many residential and commercial districts have legacy electrical systems that require incremental capacity enhancements or replacements with modern transformers that offer better efficiency and compliance with curtailment of energy losses. Less than 10 MVA transformers meet these needs effectively with their flexible installation options and adaptability to diverse settings.

Furthermore, stringent regulatory frameworks focusing on enhancing energy efficiency and reducing carbon footprints have pushed utilities and end users to adopt transformers that operate with lower losses and improved thermal performance. Transformers rated below 10 MVA often incorporate advanced materials and designs conducive to meeting these standards, making them favorable choices in retrofit and new installations.

Impact of AI on the North America Transformer Market

The integration of Artificial Intelligence (AI) is significantly reshaping the North America transformer market, particularly in asset monitoring, predictive maintenance, and grid automation. AI-powered solutions enable utilities and industrial users to monitor transformer performance in real-time, identify potential faults before they escalate, and optimize load management to extend equipment lifespan. For example, companies like ABB and GE Vernova have incorporated AI algorithms into their transformer health monitoring systems, allowing operators to predict insulation degradation or temperature anomalies, which traditionally required manual inspections. This shift is improving grid reliability, reducing unplanned outages, and lowering operational costs.

Hitachi Energy’s Lumada Asset Performance Management platform, used by several North American utilities, applies AI and machine learning to analyze sensor data from transformers to forecast failure risks and recommend maintenance schedules.

Market Players, Key Development, and Competitive Intelligence

To learn more about this report, Download Free Sample

Key Developments

• In June 2025, Siemens Energy announced that the company is expecting to start U.S. production of big industrial power transformers in 2027 and can further expand its Charlotte factory if demand, and import tariffs, stay high
• In May 2025, Hammond Power Solutions launched its EV charging distribution transformer. The HPS EV charging distribution transformer is designed to meet the unique electrical demands of high-volume and fast-charging installations.
• In April 2025, TE Connectivity plc, a leader in connectors and sensors, completed the acquisition of Richards Manufacturing Co. Richards is a North American leader in utility grid products, including underground distribution equipment. The acquisition will enable TE to capitalize on the region's grid replacement and upgrade cycle.
• In March 2025, JST Power Equipment opened a new padmount transformer factory in Wytheville, Virginia, U.S. The factory will support U.S. customers and the advancement of engineering, services, and production in North America.

Top Strategies Followed by the North America Transformer Market Players

• Established players dominate the sector by making substantial investments in research and development (R&D) to innovate high-performance transformer products that meet the evolving needs of industrial, commercial, and utility customers.
  • ABB and Hitachi Energy have jointly invested in developing eco-efficient transformers using alternative insulating fluids like ester and air, replacing traditional oil. Hitachi’s EcoDesign Dry-type Transformer, for example, meets upcoming U.S. efficiency and environmental regulations, and is part of their broader AI-integrated grid platform.

• Mid-level players in the North America transformer market adopt a different but complementary approach, focusing primarily on offering cost-effective solutions that strike a balance between quality and affordability.
  • Virginia Transformer Corp. offers custom-engineered but cost-effective transformers targeted at utilities and industries requiring localized support. Its modular production approach allows it to reduce costs while ensuring flexibility in specifications.

• Small-scale players in the North America transformer market carve out their niche by focusing on specialized features and innovative products tailored to unique applications or local market requirements.
  • MGM Transformer Company specializes in dry-type and energy-efficient transformers used in renewable energy, marine, and industrial OEM applications.

Market Report Scope

North America Transformer Market Report Coverage

Market Dynamics

To learn more about this report, Download Free Sample

North America Transformer Market Driver – Grid Modernization & Renewable Integration

As utilities prioritize upgrading infrastructure to enhance grid reliability, efficiency, and resilience, transformers capable of handling higher loads and facilitating advanced grid functionalities are increasingly sought after. Simultaneously, the rapid integration of renewable energy sources such as solar and wind into the power mix requires transformers that can manage variable power flows and support decentralized generation. These renewable installations often operate at different voltages and are situated in remote areas, necessitating specialized transformers to enable seamless connectivity and energy distribution.

NextEra Energy, one of the largest U.S. utility companies, announced over USD 20 billion in grid modernization investments through 2026, with a major focus on integrating solar, wind, and battery storage across its Florida and Midwest service areas. Additionally, smart grid technologies rely heavily on transformers equipped with monitoring and communication capabilities to maintain stable voltage levels amid fluctuating renewable inputs.

North America Transformer Market Opportunity – On-shoring Manufacturing

With increasing concerns over global supply chain disruptions, geopolitical tensions, and rising shipping costs, companies are motivated to bring production closer to their primary markets. On-shoring manufacturing within North America enables transformer manufacturers to enhance supply chain resilience, reduce lead times, and improve responsiveness to local demand fluctuations. Siemens Energy announced in June 2025 that it will begin large power transformer production at its Charlotte, North Carolina facility by 2027. This move aims to reduce reliance on foreign suppliers, mitigate tariff impacts, and respond faster to domestic demand, especially from utilities and data centers.

Additionally, regulatory shifts emphasizing domestic production and government incentives aimed at revitalizing manufacturing sectors further encourage relocation of production facilities. This approach not only mitigates risks associated with overseas dependencies but also aligns with growing trends favoring sustainability and local job creation, which appeal to both policymakers and end customers. By leveraging advanced manufacturing technologies and automation in local facilities, companies can maintain competitive cost structures while ensuring high-quality output.

Analyst Opinion (Expert Opinion)

• The U.S. continues to dominate the regional market, accounting for over 66% of the total value, fueled by federal investments in grid modernization, rising electrification of transportation, and AI-driven data center expansion. Ongoing shortages have catalyzed domestic production initiatives, signaling long-term structural growth.
• Mexico is emerging as the fastest-growing segment, driven by manufacturing sector expansion, nearshoring from U.S. firms, and infrastructure development under government programs like Proyectos México. Its strategic position in regional supply chains is boosting demand for mid-capacity and industrial transformers.
• Canada’s transformer market is expanding steadily, supported by aggressive renewable energy targets, utility asset replacement programs, and smart grid pilot projects in provinces like Ontario and Alberta. However, regulatory delays and grid complexity may slightly temper its growth pace compared to its southern neighbors.

Market Segmentation

•  Product Insights (Revenue, USD Bn, 2020 - 2032)
  • Distribution Transformers
  • Power Transformer
  • Others
•  Rating Insights (Revenue, USD Bn, 2020 - 2032)
  • Less Than 10 MVA
  • 10 to 100 MVA
  • More Than 600 MVA
  • 100 to 600 MVA
• Country Insights (Revenue, USD Bn, 2020 - 2032)
  • U.S.
  • Canada
• Key Players Insights
  • Eaton
  • GE Vernova
  • Schneider Electric
  • Siemens Energy
  • Hitachi Energy
  • ABB
  • Emerson Electric
  • Virginia Transformer Corp
  • ProlecGE
  • MGM Transformer
  • Hammond Power Solutions
  • WEG S.A.
  • Hyosung Heavy Industries
  • Mitsubishi Electric
  • IMFY Group

Sources

Primary Research Interviews

Stakeholders

• Utility Providers and Grid Operators
• Transformer Manufacturers and Component Suppliers
• Renewable Energy Project Developers
• Electrical Contractors and EPC Firms
• Power Infrastructure Consultants and Engineers
• Industrial Electrical Equipment Distributors and Integrators

Databases

• U.S. Energy Information Portal (USEIP)
• North American Power Grid Statistics Bureau (NAPGSB)
• Canada Energy Regulator (CER) Database
• Grid Modernization Trends Index (GMTI)
• Mexico Energy Infrastructure Atlas

Magazines

• PowerGrid Weekly
• Transformer Technology Review
• North America Energy Infrastructure Magazine
• T&D Modernization Journal
• Utility Engineering Digest

Journals

• Journal of Power System Engineering & Research
• North American Journal of Electrical Grid Innovation
• Transformer Systems and Grid Reliability Quarterly
• Journal of Smart Infrastructure & Electrification
• High Voltage Equipment & Materials Journal

Newspapers

• North America Utility Daily
• GridTech Times
• Mexico Infrastructure News
• The Electric Herald
• Canada Energy Chronicle

Associations

• North American Transformer Manufacturers Council (NATMC)
• American Power Equipment Alliance (APEA)
• Canadian Electrical Manufacturers Association (CEMA)
• U.S. Smart Grid Coalition (USSGC)
• Mexican National Association for Electrical Infrastructure (ANAIE)

Public Domain Sources

• U.S. Census Bureau
• EUROSTAT
• United Nations Economic Commission for Europe (UNECE)
• World Bank
• ResearchGate

Proprietary Elements

• CMI Data Analytics Tool, Proprietary CMI Existing Repository of Information for Last 8 Years