United States Transformer Market Size and Forecast 2025–2033

The United States Transformer Market is entering a transformative decade. With the country’s electricity infrastructure under unprecedented pressure—from rising demand to a rapid shift toward renewable energy—the market is projected to grow from US$ 19.95 billion in 2024 to US$ 33.25 billion by 2033, expanding at a CAGR of 5.84% during 2025–2033, according to Renub Research.

The growth isn’t merely cyclical—it reflects a fundamental overhaul of the U.S. power grid. Investments across renewable energy, electric vehicles (EVs), grid modernization, and digital utilities are accelerating the country’s reliance on transformers of all types: power, distribution, dry-type, and three-phase systems.

This article explores the major trends, challenges, regional hotspots, and key company moves shaping the United States Transformer Market over the next decade.

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United States Transformer Market Overview

A transformer is a vital electrical device that transfers energy between circuits using electromagnetic induction. By stepping voltage up or down without altering frequency, transformers ensure that electricity is transmitted efficiently and safely across vast distances—from power plants to cities, factories, and homes.

In the U.S., transformers are the backbone of the national grid. As energy demand grows and electrification spreads across sectors such as transportation and manufacturing, transformers have become more crucial than ever.

Key drivers elevating their importance include:

An aging national grid well past its intended lifespan

Rising renewable energy installations

Explosive growth in EV infrastructure

Increasing urbanization and industrialization

A shift toward smart, digital, and decentralized grids

Distribution transformers support residential and urban networks, while high-capacity power transformers enable long-distance transmission. The emergence of smart transformers—embedded with sensors, real-time monitoring, and advanced cooling techniques—is reshaping the landscape further.

Growth Drivers of the U.S. Transformer Market

1. Grid Modernization & Replacement of Aging Infrastructure

More than 70% of power transformers in the U.S. are over 25 years old, exceeding their optimal life expectancy. The American Society of Civil Engineers warns that aging grid equipment is increasingly vulnerable to failures, outages, and climate-driven disruptions.

Federal and state governments have introduced multi-billion-dollar modernization initiatives, including:

Replacing outdated transformers

Expanding transmission networks to reduce congestion

Deploying smart grid and automation technologies

Upgrading resilience against wildfires, storms, and cyber threats

The estimated cost to replace outdated transformers and grid components exceeds US$ 944 billion by 2025, putting immense pressure on utilities to transition toward more efficient and digitally controlled systems.

With utilities moving toward digital, intelligent grids, demand for advanced transformers will continue to surge.

2. Renewable Energy Integration

The U.S. renewable energy transition is rapidly accelerating. Solar, wind, and storage projects are becoming central components of state and federal energy strategies.

However, renewable sources are:

Intermittent

Decentralized

Often located far from consumption centers

This requires specialized transformers that support bidirectional power flow, voltage regulation, and connection to the main grid.

In October 2024, Lightsource BP expanded its renewable pipeline to 62 GW across 19 countries, including 28 solar projects in the U.S.—a major catalyst for transformer demand. Offshore wind, utility-scale solar, and distributed rooftop systems all require advanced grid-supporting transformers.

With U.S. carbon-neutrality goals targeting 2050, renewable integration will remain one of the strongest growth pillars.

3. Expansion of Electric Vehicle (EV) Infrastructure

Electric vehicle adoption is skyrocketing nationwide. But charging stations—especially fast chargers—place significant pressure on local distribution systems.

Transformers are essential for:

Maintaining voltage stability during peak charging

Supporting high-load DC fast-charging stations

Powering residential, commercial, transit, and fleet charging networks

While policy shifts continue—such as the February 2025 FHA suspension of new EV charging funds pending a NEVI program review—private companies and state governments are investing heavily in EV supply chains.

This will drive sustained demand for medium-voltage and high-capacity distribution transformers.

Key Challenges Facing the U.S. Transformer Market

1. Supply Chain Constraints & Material Shortages

Critical materials like:

Copper

Steel

Silicon steel

remain in short supply. These shortages have driven up production costs and extended lead times—from months to sometimes over a year. Suppliers heavily dependent on imports from Asia and Europe face added shipping and geopolitical uncertainties.

These constraints may slow grid modernization timelines and push utilities to seek domestic manufacturing alternatives.

2. Tight Environmental & Regulatory Requirements

DOE and EPA regulations require manufacturers to meet:

Higher energy-efficiency standards

Zero or low environmental leakage for cooling oils

Lower greenhouse gas emissions

Noise and safety thresholds

Dry-type and eco-friendly liquid-cooled transformers are growing in appeal, but they require higher investment and R&D efforts. Smaller manufacturers often struggle to keep pace with compliance demands, posing a barrier to market entry.

Saudi Arabia Big Indoor Circuit Breaker Market (Additional Insight)

Although outside the U.S. market scope, the Saudi Arabia Big Indoor Circuit Breaker Market is expanding rapidly due to urbanization, industrial development, and increasing electricity needs in high-density zones. With Vision 2030 pushing smart infrastructure, advanced indoor circuit breakers are becoming integral for large commercial buildings, hospitals, and industrial facilities.

This global shift toward intelligent protection systems mirrors innovation trends seen in the U.S. transformer sector.

Segment-Specific Market Insights

United States Air-Cooled Transformer Market

Dry-type (air-cooled) transformers are gaining traction due to:

Fire safety advantages

Environmentally friendly design

Low maintenance needs

Suitability for indoor installations

Hospitals, data centers, malls, and high-rise buildings increasingly prefer dry-type units, especially in cities with space constraints. As sustainable building practices strengthen, air-cooled transformer adoption will grow robustly.

United States Power Transformer Market

These high-capacity transformers are essential for long-distance transmission and high-voltage regulation. Key growth contributors include:

Renewable power integration

Transmission grid expansion

Replacement of aging bulk transformers

Digital monitoring innovations

Power transformers remain one of the fastest-growing market categories in the U.S.

United States Three-Phase Transformer Market

Three-phase units are ubiquitous in:

Manufacturing

HVAC systems

Large commercial structures

Utility substations

Data centers

With America experiencing a boom in industrial automation and hyperscale data center development, three-phase transformer demand continues to climb.

Top Regional Markets

California

A leader in clean energy policy, California is aggressively expanding its smart grid and wildfire-resilient infrastructure. The state’s dense urban centers, EV leadership, and renewable targets make it one of the strongest markets for advanced transformers.

New York

The state's CLCPA aims for a 100% zero-carbon power system by 2040. This mandates large-scale renewable deployment, building electrification, and advanced grid modernization—driving a substantial rise in transformer installations.

New Jersey

New Jersey’s offshore wind and solar expansion, suburban growth, and EV adoption contribute to strong transformer demand. Utilities are investing in digital grid upgrades, replacing legacy units with smart, high-efficiency systems.

Recent Developments in the U.S. Transformer Industry

Hitachi Energy (Dec 2022):

Invested US$ 37 million to expand transformer manufacturing in Virginia.

Hitachi Energy (Apr 2023):

Announced US$ 1.5 billion to boost global transformer production capacity by 2027.

Hitachi ABB (Nov 2024):

Launched new transformer series for floating offshore wind platforms.

Tietoevry & Siemens (Dec 2024):

Partnered to drive digital transformation of U.S. power utilities using Siemens Gridscale X.

TenneT & Siemens Energy (Jul 2024):

Began producing transformers using 100% recycled copper, targeting 52 units by 2030.

GE Vernova (Sep 2024):

Expanded its Stafford UK transformer facility to meet global HVDC demand—supporting U.S. renewable transmission needs.

Market Segmentation Overview

By Power Rating

Large

Medium

Small

By Cooling Type

Air-cooled

Oil-cooled

By Transformer Type

Power Transformer

Distribution Transformer

By Phase

Three-Phase

Single-Phase

Top 10 States

California, Texas, New York, Florida, Illinois, Pennsylvania, Ohio, Georgia, Washington, New Jersey.

Competitive Landscape

Covered with:

Overview

Key Person

Recent Developments

SWOT Analysis

Revenue Analysis

Key Players

Siemens AG

ABB Ltd

General Electric Company

CG Power & Industrial Solutions Ltd

Hyundai Electric & Energy Systems

Toshiba Corp.

Hyosung Corp.

Bharat Heavy Electricals Limited

Schneider Electric SE

Final Thoughts

The United States Transformer Market is entering a decade of historic opportunity. Driven by the urgent need to modernize aging infrastructure, meet renewable energy goals, and support explosive growth in electrification, the market is poised for sustained expansion through 2033.

If the U.S. aims to achieve a resilient, clean, and future-ready power grid, transformers—smart, efficient, and digitally integrated—will serve as the backbone of that transformation. As investments multiply across states, industries, and utilities, the transformer industry is positioned not only for growth but also for unprecedented innovation.