Texas Transformer Market size was valued at 1093.97 USD Million in 2024 and is projected to reach 2109.13 USD Million by 2035, growing at a CAGR of 6.2 % from 2025 to 2035

Market Research Future (MRFR) has published a comprehensive research report on the “Texas Transformer Market”, covering trends from 2019 to 2035.

The market is projected to grow at a CAGR of 6.2 % during the forecast period (2025–2035), reaching a valuation of 2109.13 USD Million by 2035.

As per Market Research Future (MRFR) analysis the following companies as the key players in the Texas Transformer Market, Forgent Power Solutions, Inc, Xenerpower, Wr Transformers, Houston Transformer Company, Ltd, Basler Electric, Electromagnetic Industries, Elsco Transformers, General Transformer Corporation, Texas Transformers And Equipment Inc, Daelim Transformer, Trutech Products, Maddox Industrial Transformer, Llc.

Texas Transformer Market Highlights

Texas Transformer Market is projected to grow at a CAGR of 6.2 % in the forecast period, and the market is expected to reach 2109.13 USD Million by 2035.

Texas Transformer Market was valued at 1093.97 USD Million in 2024. The Texas Transformer Market is projected to grow 2109.13 USD Million by 2035, exhibiting a compound annual growth rate (CAGR) of 6.2 % during the forecast period (2025-2035).

The rapid growth in electricity demand in Texas is emerging as one of the most critical forces driving the state’s transformer market. Texas stands out as a unique state in the US due to its independently managed power grid under the Electric Reliability Council of Texas (ERCOT), which covers significant portion of the state’s electricity load. Unlike other regional grids that can import or export large volumes of power to balance demand, ERCOT operates largely as an islanded system, making in-state transformer capacity essential for every new load addition, generation source, or transmission expansion. The state’s accelerating economic growth, industrial diversification, and population boom are putting unprecedented strain on the electrical infrastructure, prompting massive investments in both transmission and distribution transformers to handle rising power loads, ensure reliability, and facilitate grid modernization.

Over the past few years, Texas has experienced a dramatic and sustained rise in electricity demand. According to ERCOT’s 2024 Long-Term System Assessment, the state’s peak power demand is projected to nearly double, from around 85 gigawatts in 2024 to over 150 gigawatts by 2030. This growth trajectory is largely driven by the rapid expansion of energy-intensive industries, particularly data centers, semiconductor fabrication plants, and electrified oil and gas operations, coupled with steady residential and commercial growth. Each of these sectors requires a corresponding expansion in electrical infrastructure, with transformers playing a central role in voltage regulation, transmission, and distribution. Power transformers are essential for stepping up voltage at generation plants and renewable farms, transmission transformers facilitate long-distance power transfer across the state’s vast geography, and distribution transformers convert high-voltage electricity to usable levels for homes, commercial buildings, and smaller industries. As demand for electricity rises, every level of this transformer network must be scaled up to accommodate higher power flows and ensure system reliability.

One of the most prominent drivers of transformer demand in Texas is the significant growth of data centers and technology infrastructure. Various tech giants are investing in hyperscale data center campuses, each requiring dedicated substations, often housing multiple high-capacity power transformers. These facilities demand uninterrupted power and have little tolerance for voltage fluctuations or outages. The magnitude of power consumption from these projects necessitates specialized transformers designed for continuous load, high efficiency, and advanced cooling.

Further, industrial electrification and oilfield modernization in West Texas are generating strong demand for transformers suited to rugged operating conditions. Oil producers are shifting from diesel-powered generators to electric-drive systems for drilling, pumping, and compression activities to reduce emissions, cut costs, and enhance operational efficiency. These electrified operations require step-down transformers to connect to the grid and convert transmission-level voltages into suitable levels for industrial equipment. Beyond the industrial sector, urbanization and residential expansion are another key contributor to transformer demand. Texas continues to be the fastest-growing state in the nation, adding more than 400,000 new residents annually. Further various regions are witnessing the construction of thousands of new housing units, retail centers, and mixed-use developments, each requiring new distribution transformers. Various local utilities have reported transformer shortages due to surging subdivision developments and long lead times in procurement. These shortages have, in several instances, delayed electrification projects, prompting utilities to seek long-term contracts with manufacturers and even consider stockpiling critical transformer units. The result is a sustained rise in demand for pole-mounted and pad-mounted distribution transformers that convert primary distribution voltage into service voltage for end users. The combination of population growth, housing construction, and urban sprawl ensures that demand for transformers will remain elevated across Texas for the foreseeable future.

Segment Analysis

Based on Transformer Type,

Based on Transformer Type the Texas Transformer Market is segmented into:

• Power Transformer


• Distribution Transformer


• Instrument Transformer


• Current Transformer


• Voltage Transformer


• Isolation Transformer

Power Transformers

In Texas, power transformers play a crucial role in high-voltage transmission and distribution systems, serving as the backbone of the state’s extensive energy infrastructure. The rapid growth of industrialization, population expansion, and renewable energy integration has significantly increased the demand for power transformers. These large-scale transformers are essential for stepping up voltages for long-distance transmission and stepping them down at substations to ensure efficient power delivery across vast regions. Texas’s deregulated electricity market and its status as the significant power producer in the US have encouraged substantial investments in grid modernization and expansion.

Distribution Transformer

Distribution transformers in Texas are witnessing surging demand due to rapid urbanization, residential expansion, and the growth of commercial and industrial infrastructure. As Texas continues to experience one of the fastest population growth rates in the US, the need for reliable electricity distribution at the local level has become a top priority. Utilities and municipalities are increasingly deploying single-phase and three-phase distribution transformers to support expanding residential neighborhoods, retail centers, data centers, and light industrial facilities. The electrification of transportation infrastructure, including the development of electric vehicle (EV) charging networks, further boosts demand for distribution transformers capable of handling variable loads.

Instrument Transformers

Instrument transformers are gaining prominence in Texas due to the growing complexity of the power network and the increasing need for accurate monitoring, measurement, and protection in transmission and distribution systems. These transformers are widely deployed across substations, power plants, and industrial facilities to ensure precise voltage and current readings for metering and protection systems. With the rapid digitalization of the Texas grid and the integration of renewable power generation, utilities require high-performance instrument transformers for enhanced grid visibility and control.

Current Transformer

In Texas, current transformers (CTs) are increasingly vital to ensuring accurate current measurement and protection in power generation, transmission, and industrial systems. The state’s expanding electricity infrastructure, driven by both fossil fuel and renewable sources requires precise current monitoring to maintain grid stability and prevent overload conditions. Utilities use CTs in substations and power plants to detect abnormal currents, isolate faults, and facilitate accurate metering. The rise of renewable integration, especially solar and wind installations, has accelerated demand for CTs capable of functioning under fluctuating load conditions.

Voltage Transformer

The demand for voltage transformers in Texas is being propelled by the state’s continuous grid expansion, renewable integration, and industrial growth. Voltage transformers, which step down high voltages to measurable levels for metering and protection purposes, are essential in substations, generation plants, and industrial facilities. Texas’s extensive transmission infrastructure, managed primarily by ERCOT, relies on these transformers to ensure accurate voltage measurement across multiple grid nodes. The rapid adoption of renewable energy sources has amplified the need for voltage transformers that can maintain stable voltage levels despite fluctuating inputs.

Isolation Transformer

In Texas, isolation transformers are increasingly in demand across industrial, commercial, and healthcare applications due to their ability to protect sensitive equipment from voltage spikes, harmonics, and electrical noise. The state’s growing number of manufacturing plants, data centers, and medical facilities has intensified the need for reliable power conditioning solutions that ensure equipment safety and operational stability. Isolation transformers play a key role in these sectors by providing galvanic isolation between primary and secondary circuits, thereby preventing ground loops and ensuring uninterrupted operations.

Based on Insulation,

Based on Insulation the Texas Transformer Market is segmented into:

• Dry Type


• Mineral Oil-immersed Transformer


• Silicone Oil-immersed Transformer


• Others

Dry Type Transformers

Dry-type transformers are gaining strong traction in Texas due to their enhanced safety, low maintenance requirements, and suitability for urban, commercial, and indoor applications. Unlike oil-filled transformers, dry-type units use air or solid insulation such as epoxy resin, which eliminates the risk of fire or environmental contamination. This feature makes them ideal for use in high-density urban developments, hospitals, schools, and high-rise buildings. Moreover, Texas’s expanding commercial and industrial infrastructure, especially data centers, manufacturing plants, and oil & gas facilities, is increasingly adopting dry-type transformers for localized power distribution, given their compact size and reduced installation footprint.

Mineral Oil-Immersed Transformers

Mineral oil-immersed transformers are one of the most widely used types of transformers in transmission and distribution networks due to their excellent electrical insulation, cooling properties, and cost-effectiveness. In these transformers, the windings and core are immersed in mineral oil, which acts both as an insulating medium and a coolant, effectively dissipating heat generated during operation. Mineral oil has a high dielectric strength, allowing transformers to operate safely under high voltage and heavy load conditions. It also improves the longevity of the transformer by reducing thermal stress on windings and insulating materials. These transformers are suitable for outdoor, substation, and industrial applications, offering high reliability, robust performance, and relatively low maintenance costs. One challenge of mineral oil is its flammability and potential environmental impact in case of leaks or spills, which necessitates strict safety protocols, fire barriers, and containment measures.

Silicone Oil-Immersed Transformers

Silicone oil-immersed transformers are emerging as a preferred choice in Texas where safety, thermal stability, and environmental performance are critical. Silicone oil’s high flash point, low volatility, and excellent dielectric strength make it particularly suitable for indoor, urban, and environmentally sensitive applications. In Texas, industries such as petrochemicals, power utilities, and healthcare facilities are increasingly adopting silicone oil-immersed transformers to minimize fire hazards and enhance operational reliability. The state’s data center boom has accelerated demand for silicone oil-insulated units that ensure uninterrupted power under varying thermal loads.

Others

The other type of insulation includes natural esters, synthetic esters, and gas-insulated systems, which are gaining attention due to their superior environmental and safety characteristics. Natural ester fluids, derived from biodegradable vegetable oils, are increasingly being adopted by Texas utilities aiming to reduce environmental impact and enhance fire safety in urban and renewable installations. Their high flash point and moisture tolerance make them well-suited for Texas’s hot and humid climate. Synthetic esters, known for their extended thermal stability and oxidation resistance, are also being deployed in critical industrial applications where long service life and minimal maintenance are essential. Additionally, gas-insulated transformers are being introduced in compact urban substations and offshore facilities where space and environmental constraints are significant.

Based on Phase,

Based on Phase the Texas Transformer Market is segmented into:

• Single


• Three

Single

Single-phase transformers hold a crucial role in Texas’s power distribution landscape, particularly in rural, residential, and small commercial applications. These transformers are commonly used to step down high transmission voltages to usable levels for homes, farms, and small businesses spread across Texas’s vast geographic expanse. The ongoing expansion of suburban housing around metropolitan areas has further increased the demand for pole-mounted and pad-mounted single-phase transformers. Additionally, the state’s aggressive renewable energy growth relies heavily on compact, single-phase transformers for localized grid interconnection and voltage control.

Three

Three-phase transformers dominate the Texas power and industrial landscape due to their ability to efficiently handle large-scale power transmission and heavy electrical loads. These transformers are fundamental to the state’s extensive industrial base, including petrochemicals, manufacturing, steel, and data centers. The ongoing growth in Texas’s renewable energy sector relies heavily on three-phase transformers for voltage step-up at generation points and step-down at substations for distribution. Utility providers employ three-phase transformers in high-capacity transmission networks to ensure grid stability, reduce losses, and accommodate variable renewable inputs.

Based on Power Rating,

Based on Power Rating the Texas Transformer Market is segmented into:

• Below 500 kVA


• 500-2500 kVA


• 2500 kVA-10,000 kVA


• Above 10,000 kVA

Below 500 kVA

Transformers rated below 500 kVA play an essential role in Texas’s residential, commercial, and light industrial sectors, where they support localized power distribution. These low-capacity transformers are widely used in suburban and rural electrical systems to step down voltage for residential applications, small businesses, schools, and local government facilities. With Texas experiencing rapid population growth and urban sprawl, the demand for compact, efficient distribution transformers in this range has significantly increased. Moreover, the rise of decentralized renewable systems, including rooftop solar installations and small wind setups, has further boosted demand for low-capacity units to manage distributed generation loads.

500-2500 kVA

Transformers within the 500–2500 kVA range form the backbone of commercial, institutional, and medium-scale industrial applications across Texas. These medium-capacity transformers are deployed in office complexes, hospitals, shopping centers, data centers, and manufacturing facilities where moderate-to-high power is required for operations. Texas’s rapidly expanding industrial parks and logistics hubs are driving consistent demand for transformers in this range. They are also essential in renewable energy interconnection at the distribution level, serving as step-up or step-down units in solar farms and battery storage facilities.

2500 kVA-10,000 kVA

Transformers rated between 2500 kVA and 10000 kVA are integral to large industrial plants, data centers, and utility substations in Texas. This segment supports heavy-duty applications in oil refineries, petrochemical complexes, steel mills, and large-scale renewable projects. Texas’s industrial base depends heavily on medium-to-high capacity transformers for continuous operations under high load conditions. These transformers are also used extensively in wind and solar farms, where they facilitate grid integration by stepping up generation voltage to transmission levels. Additionally, the booming data center sector has increased demand for robust and redundant power systems that rely on multi-MVA transformers to maintain uptime.

Above 10,000 kVA

Transformers rated above 10000 kVA are primarily used in utility transmission networks, large-scale industrial operations, and renewable power generation plants across Texas. These high-capacity transformers are critical for managing long-distance power transmission from generation sites to high-demand urban centers. Utilities deploy these transformers in high-voltage substations to ensure grid reliability, stability, and energy efficiency under peak loads. In addition, the state’s expanding LNG terminals, oil refineries, and heavy manufacturing facilities depend on these large transformers to maintain consistent high-voltage operations.

Based on End Use,

Based on End Use the Texas Transformer Market is segmented into:

• Industrial


• Residential


• Commercial


• Utility

Industrial

The industrial sector represents one of the significant end users of transformers in Texas, driven by the state’s vast manufacturing, oil and gas, petrochemical, and mining industries. Industrial transformers are vital for powering heavy machinery, motor systems, and process automation in refineries, steel plants, chemical complexes, and large-scale factories. The rapid growth of data centers and semiconductor fabrication facilities is further accelerating transformer demand within this segment. These facilities require highly reliable and efficient transformers for backup systems, voltage stability, and uninterrupted power. The expansion of renewable energy projects also supports industrial applications where transformers are used to connect renewable sources to local industrial grids.

Residential

The residential sector in Texas forms a significant part of the transformer market, primarily fueled by population growth, urban expansion, and housing development. With Texas cities experiencing rapid suburbanization, demand for distribution and pole-mounted transformers has grown substantially. These transformers are critical for stepping down voltage to safe levels for residential power consumption, ensuring reliable electricity supply for homes, apartments, and community infrastructures. The rise of smart home technologies and electric vehicle (EV) adoption is increasing the need for advanced transformers capable of handling dynamic load fluctuations.

Commercial

The commercial sector in Texas, including retail centers, educational institutions, hospitals, office buildings, and data centers, presents a rapidly expanding market for transformers. As cities continue to develop into major commercial and technological hubs, medium-capacity distribution transformers are in high demand to support reliable electricity for building operations, HVAC systems, and backup power infrastructure. The ongoing expansion of hospitality, education, and healthcare infrastructure across Texas also contributes significantly to commercial transformer demand. Moreover, as commercial buildings adopt energy-efficient systems, EV charging stations, and solar rooftop installations, transformers are being upgraded to manage increased and variable loads effectively.

Utility

The utility segment is the backbone of Texas’s transformer market, underpinning the state’s massive power generation, transmission, and distribution infrastructure. Texas operates the ERCOT (Electric Reliability Council of Texas) grid, one of the largest independent power systems in the world. Utility transformers, including high-voltage power and distribution types, are critical for maintaining grid stability, load management, and long-distance transmission efficiency. With Texas leading the US in wind energy capacity and rapidly expanding solar generation, utilities are investing heavily in step-up and step-down transformers to facilitate renewable grid integration. Companies are upgrading their substation infrastructure with smart, oil-immersed, and digital transformers to enhance reliability and enable real-time grid monitoring. The state’s grid modernization efforts have intensified the replacement of aging transformers with energy-efficient, weather-resistant models capable of handling fluctuating renewable inputs.

Key Findings of the Study

• The Texas Transformer Market.is expected to reach 2109.13 USD Million by 2035, growing at a CAGR of 6.2 % during the forecast period.


• Power Transformer accounted for the largest revenue share, holding about 46.03 % in 2024 in Transformer Type Segment.


• Mineral Oil-immersed Transformer accounted for the largest revenue share, holding about 83.57 % in 2024 in Insulation Segment.


• Three accounted for the largest revenue share, holding about 72.31 % in 2024 in Phase Segment.


• 2500 kVA-10000 kVA accounted for the largest revenue share, holding about 35.30% in 2024 in Power Rating Segment.


• Utility accounted for the largest revenue share, holding about 35.95 % in 2024 in End Use Segment.


• The Texas Transformer Market, key players Forgent Power Solutions, Inc, Xenerpower, Wr Transformers, Houston Transformer Company, Ltd, Basler Electric, Electromagnetic Industries, Elsco Transformers, General Transformer Corporation, Texas Transformers And Equipment Inc, Daelim Transformer, Trutech Products, Maddox Industrial Transformer, Llc.