A recently published market report released by Research and Markets forecasts strong growth for the U.S. transformer industry, with the market expected to expand from $715 million in 2024 to $1.49 billion by 2030, at a compound annual growth rate (CAGR) of 13.0%. The report, released in July 2025, attributes the growth to accelerating grid modernization, the electrification of transport, and surging demand from sectors like data centers, renewables, and semiconductors.

The U.S. market remains moderately consolidated, led by major players including GE Vernova, Eaton, and Siemens Energy, while domestic manufacturers struggle to meet demand due to supply chain constraints and raw material tariffs, resulting in lead times of up to four years.

The Western U.S., particularly California, is identified as the fastest-growing region, driven by state-level clean energy mandates and major infrastructure upgrades. The distribution transformer segment dominates overall market share, with liquid-immersed and three-phase units leading due to their reliability in large-scale applications.

Significant investments are already underway. In 2025, Prolec GE began constructing a $140 million facility in North Carolina, and Eaton announced a third U.S. plant in South Carolina to address persistent transformer shortages.

The report highlights mounting pressure on the aging U.S. grid and the urgency to replace transformers, many over 30 years old, as the country adapts to the demands of AI, EV charging networks, and distributed energy systems.