Transformer Manufacturing Industry Profile

Companies in this industry manufacture power, distribution, and specialty transformers. Major companies include ABB (Switzerland), General Electric (US), Mitsubishi Electric (Japan), Schneider Electric (France), Siemens (Germany), and TBEA (China).

The global transformer market is expected to experience compound annual growth of 6% from 2024 to 2028, according to Technavio. Leading countries for transformer manufacturing include China, India, Japan, the US, and Germany.

The US transformer manufacturing industry includes about 250 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $5 billion.

COMPETITIVE LANDSCAPE

Demand is driven by construction spending and industrial production. The profitability of individual companies depends on efficient manufacturing and economies of scale in purchasing. Large companies compete by offering a variety of transformer products to utilities and industrial customers. Small companies can compete by offering innovative, niche products to industrial and consumer product customers. The US industry is highly concentrated: the 50 largest companies account for nearly 90% of industry revenue.

Imports, primarily from Mexico, Canada, South Korea, and China, account for about 35% of the US market. About 10% of US production is exported, chiefly to Canada and Mexico.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products include power and distribution transformers, accounting for about 80% of the industry revenue. Other products include specialty transformers (about 10%), Indoor and outdoor instrument transformers (less than 5%), commercial, industrial, and industrial transformers (less than 5%), and electricity generation, control, and storage equipment (less than ...