North America Oil FIlled Transformer Market, Opportunity, Growth Drivers, Industry Trend Analysis and Forecast, 2025-2034

North America Oil Filled Transformer Market was valued at USD 11 billion in 2024 and is estimated to grow at a CAGR of 7.3% to reach USD 22.5 billion by 2034. The market is witnessing robust growth, propelled by increasing investments in utility infrastructure, grid modernization projects, and the integration of renewable energy across the region. Oil filled transformers are pivotal in regulating voltage and ensuring reliable electricity transmission across vast utility grids. These transformers are extensively used in power distribution and generation networks due to their superior efficiency, thermal performance, and overload capacity. As energy demand continues to rise, particularly from industrial and commercial sectors, utility companies are investing in the replacement and refurbishment of aging transformers to enhance grid resilience and efficiency.

Governments across the U.S. and Canada are implementing ambitious energy transition goals, including decarbonization, grid digitization, and climate resilience. Programs such as the U.S. Infrastructure Investment and Jobs Act (IIJA) are fueling the deployment of smart grid components, including high-efficiency oil filled transformers, particularly in rural and underserved areas. Moreover, utilities are shifting toward transformers with higher insulation grades and biodegradable oils to meet stricter environmental and fire safety regulations.

By core type, the Berry segment dominated the North America oil filled transformer market in 2024, contributing USD 3.9 billion to overall revenue. Berry core transformers are widely preferred due to their minimal core loss, compact design, and cost-efficiency. Their ability to optimize energy efficiency while maintaining high load capacity makes them ideal for large-scale transmission networks and heavy industrial applications. Manufacturers are increasingly adopting advanced core materials and automated manufacturing processes to enhance the performance and durability of these transformers.

Among products, distribution transformers held the largest market share in 2024, garnering USD 7.6 billion in revenue. These units play a critical role in stepping down high-voltage electricity for residential and commercial end users. As urbanization and suburban expansion continue across North America, particularly in the U.S., the demand for distribution transformers is surging. Utility companies are deploying these transformers in new housing developments, smart cities, and commercial complexes to support the reliable delivery of electricity. In addition, distribution transformers with smart monitoring features are gaining traction, enabling real-time diagnostics and reduced downtime.

By application, the utility sector dominated the North America oil filled transformer market with a valuation of USD 6.1 billion in 2024. Utilities are under growing pressure to meet energy demand while achieving sustainability targets. To this end, they are investing in robust transformer systems capable of handling higher grid loads, integrating intermittent renewables like wind and solar, and minimizing technical losses. The integration of digital technologies such as IoT-based sensors and SCADA systems into utility transformer networks is expected to further enhance system reliability and asset management capabilities.

The United States led the North America oil filled transformer market in 2024, generating USD 7.5 billion in revenue. This leadership is attributed to extensive grid infrastructure development, large-scale renewable energy projects, and increased federal and state-level funding for electric transmission upgrades. Major transmission operators and investor-owned utilities in the U.S. are replacing outdated equipment and adopting environmentally-friendly transformer fluids to comply with EPA standards. The presence of leading transformer manufacturers and a well-established utility landscape further solidify the country’s dominant position in the region.

Prominent companies in the North America Oil Filled Transformer Market include ABB Ltd., Siemens Energy, General Electric, Eaton Corporation, and Schneider Electric. These market leaders are investing in R&D to develop compact, high-efficiency transformers with enhanced cooling systems and environmentally safe insulating oils. Strategic initiatives such as long-term utility contracts, M&A activities, and factory expansions across the U.S. and Canada are further supporting their market growth. These players are also focusing on hybrid transformer systems that integrate digital monitoring and sustainable materials to align with modern grid requirements.