The North America medium voltage transformer industry size reached USD 2,185.5 million in 2024. Over the forecast period, medium voltage transformer demand in the region is anticipated to rise at 4.4% CAGR, with revenue totaling USD 3,373.6 million by 2034.
Medium voltage transformers are witnessing significant demand across North American nations. This is because they play an important role in electricity distribution systems, serving as a key link between high-voltage transmission systems and low-voltage distribution.
One of the key drivers for sales growth is the expansion of power systems. Rapid urbanization, industrialization, and electricity consumption in emerging countries are increasing the demand for reliable and efficient electricity distribution systems, including medium-voltage transformers.
Technological advances are also shaping the industry scenario. Manufacturers are increasingly integrating intelligent monitoring and diagnostic capabilities into transformer design to enable predictive maintenance and increase efficiency.
New environment stringent regulations and sustainability initiatives are being introduced in North American nations. This is prompting key players to develop environmentally friendly and energy-efficient technologies, including dry-type transformers.
Renewable energy integration is another key factor boosting sales growth. The integration of wind and solar energy into the grid requires high-efficiency central transmissions to facilitate the interconnection and distribution of electricity generated from these sources. For this purpose, MV transformers are being employed.
The growing demand for electricity in various sectors, such as industrial, commercial, and residential, is acting as a catalyst triggering growth. Manufacturers are developing transformers that are more efficient, reduce environmental impact, and can manage and maintain resources.
The adoption of digitization and smart grid technologies is having an impact on the design and efficiency of transformers. The novel technologies enable remote monitoring, predictive maintenance, and optimized operation.
Oil-immersed transformers dominate the sector with a volume share of about 84.6% in 2024. Oil-injected transformers have a proven track record of reliability and durability. Using high-quality protective oil helps prevent heat degradation during operation, ensures efficiency, and extends transformer life.
Oil-insulated transformers can handle significant overloads, providing flexibility and adaptability to demanding operating conditions. This capability makes them suitable for applications with fluctuating loads or transient increases in power demand, such as peak hours or industrial conditions with production cycle changes.
| Attributes | Description |
|---|---|
| Estimated North America Medium Voltage Transformer Industry Size (2024E) | USD 2,185.5 million |
| Projected North America Medium Voltage Transformer Industry Value (2034F) | USD 3,373.6 million |
| Value-based CAGR (2024 to 2034) | 4.4% |
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Renewable Energy Integration to Boost Growth
In response to the increasing urgency to address climate change, countries are significantly amplifying their investments in renewable projects, such as solar and wind farms. These endeavors require medium voltage transformers to facilitate the efficient and reliable transmission of electricity generated from dispersed and often remote renewable sources.
North America’s push for the annual deployment of around 1,000 GW of renewable power, as emphasized by IRENA, necessitates a significant scale-up in renewable energy infrastructure. This, in turn, will consequently uplift medium-voltage transformer demand.
Modernization of Power Grids and Infrastructure Fueling Demand
Nations like the United States are striving to modernize the power grid infrastructure to meet electricity demand. This is anticipated to create opportunities for leading medium-voltage transformer companies.
Utilities are upgrading substations and distribution networks with advanced MV transformers equipped with smart monitoring and control capabilities to improve grid reliability and efficiency. This will play a key role in boosting sales growth.
Growing Focus on Energy Efficiency and Sustainability
Focusing on energy efficiency and sustainability is another factor boosting growth of the medium voltage transformer industry in North America.
Governments, utilities, and industries are implementing energy efficiency measures and adopting sustainable practices to reduce carbon emissions and mitigate climate change. As a result, the demand for efficient MV transformers is increasing, reducing power losses and environmental impact.
Regulations and standards mandating increased energy efficiency for transformers are driving the adoption of energy-efficient MV transformers in North America. Industrial and commercial buildings invest in sustainable infrastructure, including energy-efficient transformers, to reduce operating costs and meet corporate sustainability goals of eternal existence.
Challenges of Economic Uncertainty and Financing
Economic uncertainty and challenges have severely restrained growth. Economic conditions affect the energy sector significantly, and changes in economic indicators can affect investment decisions.
According to the International Energy Agency (IEA), the economic downturn in North America has led to a decline in energy input in recent years, affecting the electricity sector. This, in turn, is negatively impacting the industry.
Sales of medium voltage transformers in North America recorded a CAGR of 2% between 2019 and 2023. Total revenue reached about USD 2,185.5 million in 2023. In the forecast period, the target industry is set to progress at a CAGR of 4.4%.
The North America medium-voltage transformer industry witnessed slow growth between 2019 and 2023. This was due to many factors, such as economic uncertainty and fluctuating demand in key industries, such as power utilities, refining and petrochemicals, and oil and gas.
The COVID-19 pandemic has impacted the target sector’s dynamics, such as changes in consumer behavior along with disruptions in supply chains. These combined elements contributed to the slow growth during that period.
Looking forward, the medium voltage transformer industry outlook in North America seems promising, driven by several key factors. Continued urbanization and technological progress will likely increase the need for reliable power distribution systems, including MV transformers.
Increasing demand for electricity and growing popularity of electric vehicles are key growth drivers for medium voltage transformer sector. Similarly, increasing interest in renewable energy resources, such as wind and solar power, will likely boost sales growth through 2034.
Technological advances, including development of smart transformers and eco-friendly designs, are set to further boost. Similarly, investments in grid modernization and electrification projects will likely benefit the industry.
Principal Consultant
The table below shows the estimated growth rates of the two leading countries. Mexico and Canada are set to record CAGRs of 5.4% and 4.8%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| Mexico | 5.4% |
| Canada | 4.8% |
| United States | 4.1% |
The United States medium voltage transformer industry is projected to total USD 2,213 million by 2034. Over the assessment period, demand for medium voltage transformers in the United States will likely rise at 4.1% CAGR, owing to wider usage in a variety of industries.
Medium voltage transformers play an important role in power transmission and distribution. With the growth of renewable energy sources such as wind and solar power, the need for efficient transmission of this energy over long distances is increasing.
Medium voltage transformers facilitate efficient transmission by increasing voltage for long-distance transmission and reducing it for distribution to customers. Thus, they contribute to greater robustness and efficient grid design.
The expansion of electric vehicle (EV) infrastructure is another growth-shaping factor. Increasing adoption of EVs has increased the demand for charging points across the nation. Medium voltage transformers are an integral part of the charging stations, allowing them to convert grid electricity into enough energy for EV battery charging.
The growing data center sector relies heavily on medium-voltage transformers to ensure reliable power supply for its operations. As data usage continues to rise, driven by trends such as cloud computing and IoT devices, the demand for data centers and associated infrastructure will increase, creating growth prospects for companies.
Mexico is witnessing significant growth in infrastructure, including energy transmission, transportation, and expanded industrial infrastructure. This is expected to play a key role in fueling sales of medium-voltage transformers.
Medium-voltage transformers play an important role in the power, transportation, and industrial sectors. They enable the transmission and distribution of electricity to homes, businesses, and offices.
Continued government investment in infrastructure development, especially in power sector, is set to boost sales growth in Mexico. A CAGR of 5.4% has been assigned for Mexico, with total value reaching USD 730.3 million by 2034.
Medium voltage transformers are essential components of grid infrastructure, enabling long-distance power transmission and reducing distribution voltage to homes and businesses. As utilities upgrade and expand their grid networks, importance of medium voltage transformers will increase.
Canadian industries and commercial sectors, including mining, construction, and manufacturing, rely heavily on electricity for their operations. Medium voltage transformers are an integral part of these industries, supporting equipment, tools, and supplies.
As manufacturing industries mature and modernize in Canada, demand for solutions like medium-voltage transformers will likely witness an upward trend. Canada is poised to register a CAGR of 4.8% during the forecast period, with sales totaling USD 430.2 million by 2034.
The section provides a medium voltage transformer industry forecast based on segments. Based on product type, the oil-immersed segment is forecast to advance at 4.6% CAGR through 2034. By end-use, the power utility segment is set to exhibit a CAGR of 4.5% from 2024 to 2034.
| Segment | Oil Immersed (Product Type) |
|---|---|
| Value CAGR (2024 to 2034) | 4.6% |
Currently, oil-immersed transformers remain hot-selling products across North America owing to advantages like cost-effectiveness and effective heat dissipation. The target segment is set to account for a revenue share of 84.6% in 2024 and further experience a CAGR of 4.6% through 2034.
Oil-immersed transformers are increasingly used in a wide range of applications. This is due to the reliability, efficiency, and other advantages of oil-immersed transformers.
Oil-immersed transformers provide good insulation properties, making them safe in various environments, including industrial, commercial, and residential. The long service life and minimal maintenance requirements also make oil-immersed ones a cost-effective solution for power distribution and transmission.
As industries expand, infrastructure matures, and power infrastructure develops, demand for mid-range transformers, especially in the oil-saturated segment, is expected to move high. This trend is driven by the need for reliable electricity supply, efforts to modernize the electricity grid, and the integration of renewable energy sources.
| Segment | Power Utilities (End-use) |
|---|---|
| Value CAGR (2024 to 2034) | 4.5% |
Consumption of medium-voltage transformers remains high in power utilities, giving them the title of being leading end users. The target segment is projected to progress at 4.5% CAGR during the forecast period, totaling USD 988.9 million by 2034.
Several factors contribute to the target segment’s growth. First, the need for grid modernization and expansion is driving demand. As utilities modernize aging infrastructure and adapt to renewable energy integration, medium voltage transformers play an important role in efficiently transmitting electricity over long distances and reducing power distribution.
Growing demand for electricity driven by increasing population and technological advancement requires the use of new transformers to meet the increasing consumption. Similarly, emphasis on efficiency and reliability encourages utilities to invest in advanced transformer technology that improves transmission efficiency and reduces losses.
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The North America medium voltage transformer sector is highly competitive, with leading players accounting for about 30% to 35% share. ABB, Siemens AG, Fuji Electric Co., Ltd., Schneider Electric, CG Power & Industrial Solutions Ltd., Emerson Electric Co., Mitsubishi Electric Corporation, and Hitachi, Ltd. are a few leading medium voltage transformer players listed in the report.
Key companies are constantly upgrading their portfolios through new product launches. Similarly, growing interest in eco-friendly solutions is prompting companies to strengthen their dry-type transformers portfolio as they are leak-proof and environmentally friendly.
New materials and technologies are being incorporated into transformers to cater to different customer needs and preferences. Players are also offering customized products with advanced monitoring systems. Similarly, mergers, facility expansions, partnerships, agreements, and acquisitions are becoming popular among companies.
Industry Updates
As per the product type, the report is segmented into dry and oil-immersed.
Medium-voltage transformers come in different ratings, including 1,200 kVA, 1,500 kVA, 2,000 kVA, and 2,500 kVA.
Based on supply phase, the report is divided into single phase and three phase.
In terms of mounting type, the report is categorized into pad-mounted and pole-mounted.
Key end-use sub-segments include residential, commercial, power utilities, refining and petrochemical, oil and gas, pharmaceutical, defense, metals and mining, and others.
Analysis has been carried out in key countries of North America, including the United States, Canada, and Mexico.
North America is set to reach USD 2,185.5 million in 2024.
Demand in North America is anticipated to rise at 4.4% CAGR.
The target industry is set to total USD 3,373.6 million by 2034.
Power utilities.
Virginia Transformer.
Over 50 million distribution transformers.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Industry Definition 3. Trends and Success Factors, including Macro-economic Factors, Industry Dynamics, and Recent Industry Developments 4. Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Rating 6.2. Product Type 6.3. Supply Phase 6.4. Mounting Type 6.5. End Use 7. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Rating 7.1. 1,200 kVA 7.2. 1,500 kVA 7.3. 2,000 kVA 7.4. 2,500 kVA 8. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 8.1. Dry 8.2. Oil Immersed 9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Supply Phase 9.1. Single Phase 9.2. Three Phase 10. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Mounting Type 10.1. Pad Mounted 10.2. Pole Mounted 11. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 11.1. Residential 11.2. Commercial 11.3. Power Utilities 11.4. Refining & Petrochemical 11.5. Oil & Gas 11.6. Pharmaceutical 11.7. Defense 11.8. Metals & Mining 11.9. Others 12. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 12.1. North America 12.2. Latin America 12.3. Western Europe 12.4. South Asia 12.5. East Asia 12.6. Eastern Europe 12.7. Middle East & Africa 13. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Sales Forecast 2024 to 2034 by Rating, Product Type, Supply Phase, Mounting Type, and End Use for 30 Countries 15. Competition Outlook, including Industry Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 16. Company Profile 16.1. ABB Group 16.2. Schaffner Holding AG 16.3. Siemens AG 16.4. Hammond Power Solutions Inc. 16.5. Hitachi, Ltd. 16.6. Kirloskar Electric Company 16.7. Fuji Electric Co., Ltd. 16.8. MGM Transformer Company Co. 16.9. Schneider Electric SE 16.10. Amran Inc. 16.11. Eaton Corporation PLC 16.12. Tianan Electric Group Co., Ltd. 16.13. Mitsubishi Electric Corporation
Industrial Automation
April 2023
REP-GB-17099
250 pages
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Medium Voltage Transformer Industry Analysis in North America
