North America Transformer Services Market Analysis and Opportunities by 2028

The North America transformer services market size is expected to grow from US$ 433.9 million in 2022 to US$ 593.7 million by 2028; it is estimated to grow at a CAGR of 5.4% from 2022 to 2028.

North America transformer services market growth is primarily attributed to increasing focus on transformer maintenance and service activities, intense emphasis on routine maintenance and aging of transformers. The growth prospects in renewable energy are augmenting the need for the erection and installation of new transformers, which is propelling the market growth. As per the EIA, the US renewable generation across all sectors increased from 7% in 2021 to 10% in 2022. Thus, as per the EIA projections, coal will be the second-most prevalent electricity source in 2022. Thus, such growth prospects in the renewable industry are a crucial factor attributed to the growth of the transformer services market in North America.

The presence of a large number of transformer services providers in North America is creating potential competition in the North America transformer services market growth. GE, RESA Power LLC, Hitachi Energy Ltd, Siemens, and Vertiv Group Corp. are among the major players operating in the market. The growing initiatives from the leading players for taking strategic decisions are also contributing to the market growth. In May 2022, Northern Transformer Corporation, a leading manufacturer of power transformers for the North American utility based in Toronto, announced the acquisition of the North American brand, products, and designs of VRT Power Ltd. of Tel Aviv, Israel. Thus, the adoption of inorganic growth strategies in the market, along with the provision of add-on services for transformer services such as technical training, is driving the North America transformer services market during the projected timeframe.

Impact of COVID-19 Pandemic on North America Transformer Services Market

Due to the emergence of the COVID-19 outbreak, the energy consumption from residential consumers has increased significantly in North American countries due to an increased focus on work from home model. During office hours the load consumption in the residential sector has increased dramatically specifically from residential homes. The increased load consumption is influencing the need for transformer services on the distribution side. Due to high power consumption, the need for services has erupted significantly, which has increased the demand for transformer services.

Lucrative Regions for North America Transformer Services Market

Shift to Digitalization and Modern Approaches in Service Offerings

Developing smart transformers that can detect and resolve the problem before the breakdown is expected to be one of the prominent trends in the power industry. Digitalization increases the reliability and performance of transformers for better control of voltages in the grid. Digitalization in transformers majorly comprises an agnostic suite of sensors, data collection, analysis tools, and an alert mechanism that collects the operational parameters data and provides suitable alerts for services for individual components. Thus, a shift to digitalization accelerates transformer efficiency through increased adoption across North America. For instance, in September 2021, Hitachi ABB Power Grids developed a TXpert digitalized transformer, which is equipped with digital devices to monitor and analyze the health of the transformer, enhancing reliability and performance. Thus, such advancements in technology are catalyzing the market size which helps augment the market growth.

The key players engaged in delivering transformer services are helping identify any degradation or contamination in the transformer oil, allowing corrective action to be taken before any damage occurs. For instance, RESA Power Service offers expert oil laboratory and field services to customers across North America. Additionally, General Electric’s Field specialists undertake extensive investigation and condition assessment before repairing or modernizing aging transformers. Also, Kinectrics offers additional transformer consulting services, including factory acceptance testing (FAT), high voltage and high current lab capabilities, transformer and fleet condition assessments, geomagnetic induced current (GIC) vulnerability, and transformer monitoring systems. Thus, a shift to digitalization and modern approaches in service offerings by key market players will be a key market trend in the North America transformer services market.

Service Type Segment Insights

Based on service type, the North America transformer services market is categorized into installation & relocation, testing & monitoring, and repair & maintenance. The repair & maintenance segment led the market share of around 52% in 2021 and is expected to hold ~53% share by 2028. Installation & relocation services are one-time services used for successful transformer operations. However, the repair & maintenance activities are carried out regularly, which is augmenting the segment’s growth.

North America Transformer Services Market, by Service Type (% Share)

Application Segment Insights

Based on application, the North America transformer services market is categorized into power transformer, distribution transformer, and renewable transformer. The power transformer segment led the market with a share of around 43% in 2021 and is expected to account for over 45% of the total North America transformer services market by 2028. The power transformer oil level and oil taps need to be checked on a monthly basis, which is fueling the demand for maintenance and repair services. Thus, the increasing need for maintenance and repair activities in transformers is anticipated to drive the North America transformer services market over the forecast period.

North America Transformer Services Market Analysis -

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North America Transformer Services Market: Strategic Insights

North America Transformer Services Market

• Market Size 2022
  US$ 433.9 Million
• Market Size 2028
  US$ 593.7 Million

Market Dynamics

GROWTH DRIVERS

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FUTURE TRENDS

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OPPORTUNITIES

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Regional Overview

• North America

Market Segmentation

Service Type

• Installation & Relocation
• Testing & Monitoring
• Repair & Maintenance

Application

• Power Transformer
• Distribution Transformer
• Renewable Transformer

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North America Transformer Services MarketReport Scope

North America Transformer Services Market Report Scope