The North America Oil Immersed Power Transformer Market was valued at USD 3,850 Million in 2025 and is projected to reach USD 6,250 Million by 2035, expanding at a CAGR of 4.5% from 2024 to 2035. The market is benefiting from rapid grid modernization, decarbonization initiatives, and increasing electricity demand across the region.
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North America Oil Immersed Power Transformer Market Growth Drivers
Investment in Grid Modernization: As part of infrastructure improvement initiatives, both the U.S. and Canada are investing extensively in grid modernization. For example, Siemens Energy has partnered with utilities to upgrade aging infrastructure, replacing obsolete transformers with highly efficient oil immersed models to enhance grid reliability, support renewable integration and prevent blackouts. This drive is further supported by government funding and private sector involvement.
Increasing Adoption of Renewable Energy: With North America accelerating its energy transition, the integration of wind, solar, and other renewable sources is increasing the demand for robust transmission networks. ABB Ltd. is supporting this shift by delivering oil immersed power transformers tailored for renewable project substations, facilitating higher voltage control and ensuring security of supply amidst variable renewable inputs.
North America Oil Immersed Power Transformer Market Trends
Digitalization and Smart Monitoring Solutions: Leading industry players such as General Electric (GE) are embedding digital sensors and monitoring solutions in oil immersed transformers. These innovations allow real-time performance analytics, predictive maintenance, and remote monitoring, reducing operational costs and minimizing downtime.
Focus on Sustainable and Eco-Friendly Oils: Companies are moving towards vegetable-based and bio-degradable insulating oils in their oil immersed transformer products. For example, Hitachi Energy has launched transformers using biodegradable oil alternatives, thereby aligning their products with ESG goals and regulatory requirements as utility customers prioritize sustainability.
North America Oil Immersed Power Transformer Market Opportunities
Expansion of Electric Vehicle (EV) Infrastructure: With the rise in EV adoption, the need for robust charging infrastructure is creating new market opportunities for oil immersed power transformers, as seen with Eaton Corporation partnering with utilities for EV corridor rollouts.
Grid Resilience and Disaster Recovery: The increasing frequency of extreme weather events in North America is driving utilities to invest in resilient infrastructure, presenting opportunities for transformer replacement and upgrades, like Siemens’s recent delivery of storm-hardened transformers for coastal utilities.
North America Oil Immersed Power Transformer Market Revenue (USD Million), 2020-2035
The market revenue chart illustrates consistent growth over the forecast period, with revenues climbing from USD 2,900 Million in 2020 to USD 6,250 Million by 2035. The sharpest uptick is observed between 2025 and 2030, attributed to accelerated grid investments and renewable integration initiatives. After 2030, growth remains stable as grid stabilization projects and technology retrofits continue across the region. This trajectory indicates sustained demand for oil immersed power transformers in response to energy transition and grid modernization priorities.
North America Oil Immersed Power Transformer Market Share by Region (%) - 2025
In 2025, the United States dominates the North America market, holding a substantial 68% share. Canada follows with 18%, supported by ongoing infrastructure improvements and renewables integration. Mexico accounts for 9% as investments in power reliability increase. Central America and the Caribbean contribute the remaining 5%, reflecting gradual electrification and import of transformers for grid expansion. This distribution emphasizes the region’s uneven but growing adoption of advanced power transformer technologies.
Recent Developments in North America Oil Immersed Power Transformer Market
In February 2024, Siemens Energy announced the completion of a $100 million transformer plant upgrade in Texas to scale up production of high-capacity oil immersed power transformers. The facility focuses on transformers tailor-made for renewable energy projects, including wind farms and large solar power plants, aligning with the region’s decarbonization targets.
In March 2024, ABB Ltd. secured a contract with Hydro-Québec (Canada) to deliver advanced oil immersed power transformers for a grid enhancement project in Quebec. These transformers feature advanced monitoring, aiming to integrate distributed energy resources (DER) while increasing grid resilience to weather events.
In April 2024, Hitachi Energy entered into a partnership with a leading U.S. utility to supply environmentally friendly oil immersed transformers utilizing biodegradable oil. The project targets urban substations in New York and Los Angeles, supporting the push for eco-friendly solutions in densely populated areas while adhering to strict regulatory and environmental guidelines.
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