North America Power Transformer Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2024-2032

North America Power Transformer Market, valued at USD 3.7 billion in 2023, is projected to expand at a CAGR of 4.8% through 2032. Key drivers include increased investments in power grid infrastructure, renewable energy integration and rising demand for energy efficiency. For example, the U.S. Department of Energy announced a USD 65 billion investment in grid modernization in 2022. The need to replace aging transformers and advancements in design also fuel growth. The adoption of smart grid technologies, urbanization, industrialization, and supportive government policies further contribute to market expansion. A focus on sustainability and reducing carbon emissions boosts demand for advanced transformers. The market is experiencing significant growth due to investments in renewable energy projects and grid modernization.

The overall North America power transformer industry is classified based on the core, winding, cooling, insulation, rating, mounting, application, and country.

The shell core power transformer market in North America is projected to surpass USD 2 billion by 2032. Growth is driven by the demand for efficient and reliable power transmission solutions and efforts to modernize the aging electrical grid. Shell core transformers offer better performance under high-load conditions, superior short-circuit strength and enhanced reliability, making them ideal for smart grid systems. Increased need for transformers that handle variable power loads efficiently and investment in renewable energy projects drive demand for advanced shell core transformers.

The transformer market is segmented into two winding transformers and auto transformers, with two winding transformers holding a substantial market share. This segment is projected to grow at a CAGR of over 4% by 2032. Two winding transformers are essential for stepping up and down voltage levels in power distribution and transmission networks. Their advantages include enhanced voltage regulation, better isolation between primary and secondary windings and reduced losses, making them reliable for industrial, commercial, and residential applications. Infrastructure development, urbanization, and renewable energy expansion further increase demand for two winding transformers.

The U.S. power transformer market is expected to exceed USD 4 billion by 2032. Growth is driven by investments in upgrading and expanding power grid infrastructure. Rising electricity demand from urbanization and industrialization, along with renewable energy integration, fuels the market. Advancements in transformer technologies, the need for efficient power distribution systems, and strict government regulations to reduce carbon emissions push the market forward. The adoption of smart grid technology and efforts to enhance grid reliability and resilience also contribute to market expansion. The Federal Energy Regulatory Commission reported a 5% increase in smart grid deployments last year, boosting power transformer deployment nationwide.