North America Transformer Services Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Service Type and Application

The North America transformer services market is expected to grow from US$ 433.9 million in 2022 to US$ 593.7 million by 2028; it is estimated to grow at a CAGR of 5.4% from 2022 to 2028.

The increasing demand for power supply, growing focus on renewable energy sources, aged transformer components, and supportive government regulations are the key factors influencing the demand for transformer services. The countries in North America are expected to drive the market growth owing to rise in maintenance activities and increasing ages of transformers. The U.S. is one of the major markets in the North American region as the country is investing in the upgradation and maintenance activities of its present transformer networks. Factors such as the steady demand for repair and installation of power, distributor, and renewable transformers are projected to provide ongoing growth opportunities during the coming years which helps drive the North America transformer services market growth.

The rise in initiatives for strengthening the existing transmission and distribution infrastructure is accelerating the need for transformer services, which holds potential market growth opportunities. For instance, in January 2022, the Department of Energy unveiled its “Building a Better Grid” initiative focused on increasing the nationwide development of new and upgraded high-capacity transmission lines. This initiative would increase the transmission capacity by installing new transformers and servicing existing transformers. Growing initiatives for generating renewable power, supportive government policies for meeting zero-emission and increasing investment in transmission and distribution networks are the prominent factors fueling the need for transformer services. The growing developments in transformer technology in the power industry is negatively influencing the transformer services market player’s businesses in North America. the development of dry type transformer is using natural air as cooling medium which is a perfectly suitable for mitigating the transformer temperature, overcoming the environmental hazards, and emerges as a reliable and sustainable alternative to oil-filled transformers. Thus, such featured transformer requires less maintenance in terms of routine maintenance and scheduled maintenance which is restraining the North America transformer services market growth.

In June 2021, the Government of Canada announced that it was investing in renewable energy and upgrading the electricity grid to make clean, affordable electricity options more accessible in communities across Canada. The Government of Canada had invested US$ 960 million in grid modernization and renewable energy projects. Also, in August 2021, Mexico’s Ministry of Energy published the Programa de Desarrollo del Sistema Eléctrico Nacional (PRODESEN) 2021-2035 or the National Electric System Development Plan 2021-2035 for the expansion of the power generation, transmission, and distribution networks. In Mexico, there were plans to add 1,072 circuit km of line length and 2,875 MVA capacity under 19 expansion projects and 14 modernization projects to strengthen the country’s Red Nacional de Transmission (RNT) or National Transmission Network. In addition, there are plans to add 83 circuit km of distribution lines and 863 MVA of capacity during the 2021-2035 period for RNT. Thus, such upcoming investment prospects in transmission and distribution systems are anticipated to drive the demand for North America transformer services market.

The major stakeholders in the North America transformer services market ecosystem includes raw material suppliers/ component suppliers, transformer manufacturer, transformer service providers, and end user. The countries in North America are contributing at large scale for the market growth. Mexico was the world’s top exporter of electric transformers with a power range of 16 to 500 KVA in 2020, shipping US$ 276 million worth overseas. In addition, market players are focusing on developments and new expansion strategies which are fostering the industry’s expansion. For instance, in October 2021, MGM announced the expansion of its low voltage distribution transformer factory in Tijuana, Mexico. With such development, the company will be able to increase the capacity of the transformers flowing out of the factory over the next 12 to 24 months. Furthermore, electrical equipment manufacturer WEG has also made significant investments in its Mexican transformer operations. The company announced its contract in 2020 to supply 241 transformers to a new airport in Mexico. This increase in transformer manufacturing installations further drives the demand for transformer services which helps drive the North America transformer services market outlook.

General Electric; Transformer Services, Inc.; Stark International Inc.; ABB; Schneider Electric; VCM Solutions; RESA Power, LLC.; North American Substation Services; Northern Transformer; and Delta Star Inc. are the key companies operating in the North America transformer services market. The report comprises secondary research on other companies holding a significant North America transformer services market share. In addition, several other prominent North America transformer services market players were studied and analyzed to get a holistic view of the market and its ecosystem. The North America transformer services market report provides detailed market insights which helps the key players to strategize the growth in coming years.

The overall North America transformer services market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the North America transformer services market. The process also serves the purpose of obtaining an overview and forecast for the North America transformer services market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the North America transformer services market. The North America transformer services market analysis helps to understand the upcoming trends, new technologies, and macro and micro factors that influences the market growth in coming years.