USA: The US transformer market is facing growing supply constraints as long lead times and rising prices continue to affect grid expansion and energy projects across the country.
According to industry sources cited by Reuters Events, delivery times for large power transformers can now reach up to four years. Developers, utilities and data centre operators are increasingly competing for limited manufacturing capacity as electricity demand continues to rise.
Analysts from PwC noted that shortages of raw materials, particularly grain-oriented electrical steel and copper, are contributing to the supply pressure. Demand growth linked to AI-driven data centres, electrified transport and industrial expansion is further increasing strain on the market.
Data from Wood Mackenzie shows that demand for generator step-up transformers increased by 274 % between 2019 and 2025, while demand for substation transformers rose by 116 % during the same period.
Industry participants also report that transformer prices have increased by around 80 % over the last five years. Some developers are now securing factory production slots before finalising project locations, while others are refurbishing existing equipment to reduce delays.
Manufacturers are responding with new investments in US production capacity. Hitachi Energy recently announced more than $1 B in investments, including a new transformer factory in South Boston planned for 2028. Siemens is also expanding transformer manufacturing in North Carolina.
The latest developments further reinforce broader concerns about transformers becoming a strategic bottleneck for grid expansion and reliability in the United States. Related analysis is available here: Transformer shortage strains US grid
Source: PV Magazine
