US Transformers Market Size to Touch USD 21.17 Billion by 2034

The US transformers market size was estimated at USD 10.5 billion in 2024 and is projected to be worth around USD 21.17 billion by 2034, growing at a CAGR of 7.26% from 2025 to 2034.

Highlights of the U.S. Transformers Market

• By cooling type, the air-cooled segment dominated the U.S. transformers market in 2024.
• By type, the power transformers segment dominated the U.S. transformers market in 2024.
• By phase, the three-phase segment dominated the U.S. transformers market in 2024.
• By application, the industrial segment dominated the U.S. transformers market in 2024.

Industry Valuation and Growth Rate Projection

A transformer is an apparatus that is utilized to convert electrical energy from one alternating current to another circuit by utilizing the principle of electromagnetic induction. Transformers are voltage control apparatus that are utilized in the transmission and distribution of alternating current electricity. The increase in need for smart transformers utilized in smart grids, the increase in investment for large-scale renewable power plants projects, along with an increase in the requirement for electricity generated by renewable energy sources, have boosted the development and are anticipated to be the key factors that drive the expansion of the market.

What Are the Trends in the U.S. Transformers Market?

• Key trends in the U.S. transformers industry include rising energy demand, increased adoption of smart grid technologies, and supportive federal and state initiatives aimed at modernizing infrastructure and integrating renewable energy sources.
• Increased energy consumption over industries and residential areas, and the demand for grid modernization are major contributors to transformer market expansion.
• The acceptance of smart grid technologies is increasing the need for transformers that can manage two-way power flow and offer more efficient energy management.
• Federal and state initiatives targeted at enhancing energy infrastructure and encouraging renewable energy sources are thus supporting the expansion of the transformer market.

What Are the Restraints in the U.S. Transformers Market?

• High initial investment costs, supply chain disruptions, and challenges in upgrading aging infrastructure act as key restraints in the U.S. transformers market despite strong demand drivers.
• The upfront expense of new transformers, mainly those with improved features, can be substantial, potentially delaying replacements or upgrades, mainly in regions with budget limitations.
• The rising reliance on interconnected grid systems creates transformers vulnerable to information leaks and potential cyberattacks, which could disturb the grid and necessitate costly security measures.

What Is the Opportunity in the U.S. Transformers Market?

• Growing integration of renewable energy, aging transformer infrastructure, and rising electricity demand present strong opportunities for modern, efficient transformer solutions and large-scale grid upgrades across the U.S.
• The increasing acceptance of renewable energy sources such as solar and wind power needs robust grid infrastructure, making a strong requirement for transformers capable of handling changing power inputs and integrating with existing grids.
• A remarkable portion of the existing transformer fleet in the US is nearing the end of its operational life, making up a large market for replacements and upgrades.
• Rising populations and expanding industrial fields are boosting electricity needs, requiring upgrades and growth in transmission and distribution networks, thus increasing the demand for transformers.

Recent Developments in the U.S. Transformers Market

• In April 2025, Hitachi Energy inflated its U.S. footprint with a $22.5 million investment to raise transformer manufacturing in Virginia.
• In February 2025, Senators have launched bipartisan legislation to try to drive production of distribution transformers by offering a 10% tax credit to U.S. producers of the crucial equipment.