US Green Power Transformer Market 2025 – 2034

Reports Description

The US Green Power Transformer Market is forecast to grow at a CAGR of 7.78% from 2025 to 2034. The market is expected to reach USD 448.8 Million by 2034, up from USD 224.9 Million in 2025.

Overview

The growth of the market is driven by rising renewable energy integration and technological advancements in the green power transformer market.

Key Trends & Drivers

The US Green Power Transformer Market Trends have massive potential for growth for the following reasons:

• Rising Renewable Energy Integration across the U.S.: The increasing installation of renewable energy sources coupled with supportive policies for renewable energy generation is expected to drive the demand for the green power transformer market. The installation of renewable energy sources such as solar, wind, hydropower, and thermal is increasing. For instance, the U.S. government has implemented supportive programs like 48C ITC to support investment in the manufacturing of solar modules, inverters, batteries, etc. with tax credits for qualifying facilities. Furthermore, the U.S. government has implemented the Inflation reduction act, through this act, an expanded and extended Investment Tax Credit (ITC) for solar photovoltaic (PV) systems is provided, the solar systems, which are installed between 2022-2032 are eligible for a 30% tax credit. Thus, such supportive policies and increasing installation of renewable energy sources are expected to drive the demand for green transformers because they are better suited for these because they often have lower losses, better efficiency, and can use eco-friendlier insulating fluids. The regulatory and policy pressure from the Federal government is also boosting the installation and integration of renewable energy sources. For instance, emissions regulations and environmental conservation rules, which limit the use of polluting insulating media (like SF₆) or inefficient designs, are expected to drive the market growth. Efficiency standards (no-load losses, core losses) are tightening. Incentives, subsidies, and tax breaks, these make the economics more favourable. Thus, such factors are expected to drive the overall market growth during the forecast period.

Key Threats

The US Green Power Transformer Market has a number of primary threats that will influence its profitability and future development. Some of the threats are:

• High Cost of the Green Power Transformer: The green transformer is made up of various equipment, raw materials, machinery, and technologies. The cost of these materials and equipment, such as amorphous core, ester fluids, and digital monitoring, is increasing by 15%–25% annually as compared to conventional transformer materials. Production of amorphous cores is complex, and it requires specialized manufacturing processes and skilled labour with higher raw material and manufacturing costs. Many utilities and industries prioritize the lowest upfront CAPEX over lifecycle savings, which makes green transformer adoption slower. The high operation and maintenance cost of the green transformer further reduces its adoption in many verticals and small-scale businesses. Ester fluids and smart/digital monitoring systems require new maintenance practices. Dearth of trained personnel in many regions slows implementation. Many green transformers come with IoT sensors, monitoring devices, and predictive maintenance systems. These add extra electronics and integration costs compared to conventional dumb transformers. Thus, the high cost of the green transformer is expected to restrain the overall market growth.

• Less Acceptance and Lack of Universal Regulations: The less acceptance of the green transformer in the many remote and rural areas due to lack of awareness and affordability issues is expected to restrain the market growth. The resistance for adoption of green transformers is due to the availability of the traditional transformer solutions and heavy competition from these companies. The many end-use industries and stakeholders are unfamiliar with green transformers’ long-term benefits, such as lower losses, fire safety, and environmental compliance. The traditional and risk-averse buyers often stick with traditional mineral-oil transformers due to their proven reliability history. Furthermore, every state in the U.S. has its own set of rules and regulations pertaining to the usage and production of green transformers. The stakeholders operating in the market are finding it very difficult to comply with such statewide rules and regulations, thereby increasing compliance cost and time. Thus, such lack of uniformity in the regulatory landscape is discouraging the new investment in the market, thereby restraining the market growth.

Opportunities

• Environmental Awareness & Corporate Sustainability Goal: The increasing awareness about the environmental benefits of green power transformers, coupled with growing stringent regulations pertaining to climate change, is expected to create lucrative opportunities for market growth during the forecast period. The stakeholders operating in the market ecosystem, such as companies, utilities, and governments, are increasingly committed to reducing carbon footprint; green transformers contribute by lowering energy losses, using biodegradable or less harmful insulating fluids, using more recyclable materials, etc. In the U.S. more than 60% of the large-scale companies have the target of net-zero or greenhouse gas reduction. These companies are increasingly focusing on cutting emissions. Green transformers use biodegradable ester oils, amorphous metal cores, and lower energy losses and fit perfectly into their ESG reporting by lowering lifecycle emissions. Thus, green transformer manufacturers, which certify products as low-carbon or sustainable, can market directly to corporate buyers and utilities under ESG procurement programs. Thus, such factors are expected to create lucrative opportunities for market growth during the forecast period.

• Technological Advancements in the Green Transformer: The growing technological advancements in the green transformers and integration of various next-generation technologies are expected to create opportunities for stakeholders. Innovations in green transformer material, such as amorphous metals, high‐performance steels that reduce core losses, and better insulating fluids such as natural ester‐based or biodegradable ones, are boosting the productivity and efficiency of the green transformer. The key players are integrating IoT‐enabled monitoring & predictive maintenance, smart grid enablement, etc., to make green transformers more efficient, safer, and more competitive over lifecycle costs. Furthermore, with the integration of advanced and predictive analytics, the stakeholders can access real-time monitoring of temperature, moisture, and dissolved gas analysis (DGA). Predictive maintenance reduces unplanned outages. The growing integration of Smart Grid technologies such as remote diagnostics, load forecasting, and automatic fault detection is expected to create lucrative opportunities during the forecast period. Additionally, the U.S. government is providing the support for such advanced technologies. For instance, through its Advanced Manufacturing Investment Credit (section 48D) from the CHIPS & Science Act, it gives a 25% credit for qualified investments in advanced manufacturing facilities, including solar wafer production/equipment.

Category Wise Insights

By Voltage

• ‌Low Voltage: The low voltage segment is expected to hold significant market share during the forecast period owing to growing adoption in the residential and commercial applications. They find major applications in energy-efficient systems, HVAC applications, and EV charging stations. Various factors such as increasing demand for sustainable energy solutions, urban electrification, and growing implementation of urban eco-friendly building code standards are mainly driving the market growth of this segment. Furthermore, its increasing adoption in the EV and commercial applications is expected to create significant market opportunities during the forecast period.

• ‌Medium Voltage: The medium Voltage segment is expected to hold the largest market share during the forecast period owing to its growing adoption across diverse business applications such as commercial and industrial plants, wind projects, rural electrification, and grid modernization programs. The rapidly expanding solar and wind energy projects in the U.S. are expected to create lucrative opportunities for the market during the forecast period. End-use industries mainly prefer the medium-voltage transformers because of their affordability, low maintenance, eco-safety features, etc. Furthermore, the growing emphasis by the U.S. government on the installation of renewable energy generation projects is expected to boost the demand for medium-voltage green power transformers.

• High Voltage: The High-voltage green transformer segment is expected to hold the second largest market share during the forecast period. This type of transformer is specialized for long-distance transmission, interconnection of renewable energy, and HVDC projects. They are emerging as the fastest-growing segment due to large-scale offshore wind, solar mega-projects, and cross-border transmission lines. Their high efficiency reduces transmission losses, while biodegradable fluids and sealed designs minimize environmental risk in sensitive areas. In the U.S., federal funding for grid resilience and transmission expansion is driving rapid adoption. As decarbonisation accelerates, the high-voltage green transformer segment is expected to record the highest CAGR in the coming decade

By Phase:

• ‌Single-Phase Transformer: The single-phase green power transformer segment is expected to grow at the fastest CAGR during the forecast period. The single-phase green transformer finds applications in residential, small-scale commercial, and rural electrification applications. The single-phase transformers are compact, low cost, small in size, and easy to install, which in turn makes them ideal for off-grid projects such as solar farms, wind farms, etc.

• Three Phase: The three-phase green power transformer segment is expected to hold the highest market share during the forecast period owing to its increasing adoption in the multiple end-use industries. The three phase green power transformers are mainly used in high-energy-intensive applications such as industrial facilities, large-scale wind and solar projects, etc. because they handle high energy loads very efficiently. Conducive factors such as supportive grid stabilization & modernization programs, supportive corporate sustainability goals, and growing renewable energy integration are mainly driving the market growth of this segment during the forecast period.

Impact of Recent Tariff Policies

The Trump-led U.S. government has imposed tariffs on much grid stability and transformer-related equipment, machinery, and raw materials. Transformers are manufactured by using steel (especially grain-oriented electrical steel, GOES) and aluminium (windings, etc.). An increased tariff on imports of steel and aluminium under Section 232 increases costs for manufacturers who use those materials.

Some of these tariffs impose high rates up to ~50% for components/products using non-U.S. steel or aluminium. Thus, increased tariffs are increasing the overall production cost of the green power transformer. Tariff policy analysis shows that tariffs are making key electricity system components, such as transformers and inverters, more expensive and harder to obtain. This tends to delay grid upgrades, renewable energy deployment, etc. 

The major key players, such as Siemens Energy, ABB, GE impacted by tariff policies and are adopting the resilient supply chain strategies by adjusting pricing, sourcing, and localization strategies. These solutions have raised delivered prices and lead times for green transformers. The tariff risks are slowing the deployment rates and increasing project costs for grid modernization and renewable projects.

Report Scope

Key Developments

• Siemens Energy plans to begin producing large power transformers (LPTs) in the U.S. by early 2027, addressing the heavy reliance on imports.

• ‌In Jan 2025, GE Vernova, the energy spinoff from General Electric Co., announced a USD 96 million expansion at its research center in Niskayuna. The project is expected to create more than 100 high-end jobs, and New York has agreed to give the company USD 9.63 million in state tax credits to support the effort, which will help develop new technologies to reduce carbon emissions and make the electrical grid more efficient.

• In June 2024, GE Vernova, the energy spinoff from General Electric, was awarded a contract by National Grid’s upstate New York business to supply and construct two separate 115 kV synchronous condenser sites at the company’s Coffeen and Taylorville substations.

The US Green Power Transformer Market is highly competitive, with a large number of product providers in the US. Some of the key players in the market include:

• Larsen Toubro
• ‌Mitsubishi Electric
• ‌Crompton Greaves
• ‌Bharat Heavy Electricals Limited
• ‌CG Power and Industrial Solutions
• ‌Hyundai Heavy Industries
• ‌ABB
• ‌Schneider Electric
• ‌Havells
• ‌Toshiba
• ‌Power Grid Corporation of India Limited
• ‌Siemens
• ‌Hitachi
• ‌GE
• ‌Doosan Heavy Industries Construction
• Others

These firms apply a sequence of strategies to enter the market, including innovations, mergers, and acquisitions, as well as collaboration.

The US Green Power Transformer Market is segmented as follows:

By Voltage

• ‌Low Voltage
• ‌Medium Voltage
• ‌High Voltage

By Application

• ‌Renewable Energy Integration
• ‌Energy Transmission & Distribution
• ‌Industrial & Commercial Use
• ‌Residential

By Phase

• ‌Three Phase
• ‌Single Phase