According to The Insight Partners' research, the North America Transformers Market was valued at US$ 15,054.7 Million in 2025 and is expected to reach US$ 29,550.9 Million by 2034, registering a CAGR of 8.0% from 2026 to 2034.
Rising electricity demand due to industrialization and advancement in material technology are among the critical factors attributed to the North America transformers market expansion.
As countries industrialize, factories, manufacturing plants, and large-scale industrial facilities require vast amounts of electrical energy for machinery, process heating, automation, and continuous operations. This surge in industrial electricity consumption compels utilities and grid operators to expand and strengthen power generation, transmission, and distribution networks.
Transformers are indispensable in distribution networks because they step voltage levels up and down efficiently to match generation points with industrial loads and local distribution systems. Without adequate transformer capacity, reliable power delivery to industrial consumers becomes difficult, leading to bottlenecks, inefficiencies, and potential outages.
In June 2025, Hitachi Energy announced investments to expand its transformer manufacturing capacity in North America, including facilities in the United States and Canada, to address growing demand from utilities, renewable energy projects, and data center developments. The expansion reflects increasing requirements for large power transformers as grid operators modernize transmission networks and connect new generation sources. In 2026, Siemens Energy announced to invest US$1 billion to expand its US manufacturing footprint. The multi-year initiative aims to meet surging power grid and gas turbine demands driven by AI, data centers, and industrial growth. This move will create over 1,500 jobs and scale up transformer and grid equipment production.
In developing economies, rapid growth in manufacturing and infrastructure has notably increased electricity demand, which in turn necessitates more transformer installations. For example, expanding industrial parks or upgrading factories means adding higher-capacity transformers at substations to handle greater loads and maintain voltage stability.
Power systems must accommodate not only increased consumption but also growth in related sectors, such as commercial and residential demand, driven by broader economic development. Concrete evidence of this trend can be seen in regional electricity usage patterns. In parts of India, industrial electricity consumption has risen markedly as production expands, underscoring how economic activity pushes up overall power demand. As grids evolve to support industrial clusters and new manufacturing facilities, the need for reliable, efficient transformers grows accordingly.
On the contrary, high upfront capital and manufacturing costs, complexities associated with the product design, and supply chain disruptions and long lead‐times hamper the growth of North America transformers market.
North America Transformers Market Segmentation Analysis:
- By Type, the North America Transformers Market is segmented into Power Transformer, Distribution Transformer, Instrument Transformer, and Others. The Distribution Transformer segment is projected to expand at a CAGR of 8.3% during 2026 - 2034.
- By Voltage Range, the North America Transformers Market is segmented into Up to 33 kV, 33 kV to 200 kV, and Above 200 kV. The 33 kV to 200 kV segment is projected to expand at a CAGR of 8.2% during 2026 - 2034.
- By Power Rating, the North America Transformers Market is segmented into Below 100 MVA, 100 to 275 MVA, 275 to 500 MVA, and Above 500 MVA. The Below 100 MVA segment is projected to expand at a CAGR of 8.0% during 2026 - 2034.
- By Application, the North America Transformers Market is segmented into Utilities, Renewable Integration, Industrial, Commercial, Infrastructure, and Others. The Utilities segment is projected to expand at a CAGR of 8.0% during 2026 - 2034.
- By Cooling Type, the North America Transformers Market is segmented into Liquid Immersed, Oil Cooled, and Dry Type. The Oil Cooled segment is projected to expand at a CAGR of 8.2% during 2026 - 2034.
- By Phase, the North America Transformers Market is segmented into Single Phase and Three Phase. The Three Phase segment is projected to expand at a CAGR of 8.2% during 2026 - 2034.
By country, the North America Transformers Market is categorized into the US, Canada and Mexico. The US is projected to expand at a CAGR of 8.3% during 2026 - 2034.
Key players operating in the Transformers Market are ABB Ltd, Eaton Corporation plc, Mitsubishi Electric Corp, Alstom SA, Toshiba International Corporation, WEG SA, Siemens Energy AG, Hitachi Energy Ltd, GE Vernova Inc., HD Hyundai Electric Co., Ltd., among others.
In March 2025, ABB announced to invest $120 million in the United States to expand the production capacity of its low-voltage electrification products. The investment will enable ABB to meet increasing demand from customers in a wide range of key growth industries, including data centers, buildings and utilities.
In September 2025, HD Hyundai Electric announced a record-breaking contract to supply 24 ultra-high voltage transformers and reactors to a major power company in Texas. The deal, valued at 277.8 billion won (approximately $199 million USD), marks the largest single order in the company's history. The order includes 765kV transformers, the highest voltage class used in the United States. These high-capacity units are essential for long-distance power transmission with reduced energy loss and infrastructure costs. They are expected to be delivered in 2029.
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