PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803232
PUBLISHER: Prescient & Strategic Intelligence | PRODUCT CODE: 1803232
U.S. Power Conversion Equipment Market Size & Opportunities Analysis - Growth Strategies, Competitiveness, and Forecasts (2025 - 2032)
The U.S. power conversion equipment market is on a robust growth trajectory, with its size projected to surge from USD 24.2 billion in 2024 to USD 36.7 billion by 2032, at a steady CAGR of 5.5% during the forecast period. This growth is fueled by the rising need for reliable and efficient power supply solutions across industries, commercial establishments, and households. High-efficiency converters, inverters, rectifiers, and transformers are increasingly in demand, particularly amid the accelerating adoption of renewable energy, electrification of transport, and nationwide push for energy efficiency.
Government initiatives are playing a pivotal role in propelling the market forward. The U.S. Department of Energy's USD 10.5-billion Grid Resilience and Innovation Partnership (GRIP) Program and the USD 3.46 billion allocation for grid modernization in 2023 exemplify the commitment to updating the power infrastructure. As electricity demand is expected to soar-especially with the expansion of electric vehicles (EVs) and data centers-the need for robust power conversion systems becomes even more critical to sustaining national energy reliability and innovation.
Key Insights
The U.S. market is segmented by product type, with uninterruptible power supplies (UPS) dominating the AC-DC converter segment with a 60% share. Their relevance is growing due to frequent power outages and the need for dependable backup power, especially in residential and telecom infrastructure.
Among inverter types, microinverters are witnessing the fastest growth, driven by their role in enhancing renewable energy integration and distributed power systems.
By power rating, the medium segment (1 kW-100 kW) leads with a 65% share, primarily due to widespread application across healthcare, telecom, and manufacturing, where uninterrupted and clean power is critical.
The industrial sector holds the largest end-use share at 70%, fueled by increased automation, advanced machinery integration, and higher electricity demands in manufacturing environments.
Data centers and IT infrastructure represent the fastest-growing end-use sector. With over 5,400 data centers nationwide and the exponential rise in AI and digital workloads, efficient and scalable power conversion equipment is indispensable.
Application-wise, power backup and UPS systems dominate with a 75% share, attributed to over 210 major grid disturbances recorded in 2023 alone, as per the U.S. Energy Information Administration.
Renewable energy integration stands out as the fastest-growing application area, supported by tax credits under the Inflation Reduction Act and state-level renewable mandates across 37 states.
Technologically, silicon-based power conversion systems lead with an 80% share due to their affordability and reliability across industrial and consumer applications. However, Gallium Nitride (GaN) is the fastest-growing technology, offering high efficiency for compact and high-performance systems.
Regionally, the West holds a commanding 40% market share, with states like California, Arizona, and Nevada leading energy infrastructure investments and clean grid initiatives. The South is emerging as the fastest-growing region with significant upgrades to its electric grid and energy systems.
The competitive landscape is fragmented, with major players like ABB, Schneider Electric, Siemens, General Electric, and Eaton at the forefront. These firms leverage expansive R&D, global reach, and strong product portfolios. Meanwhile, niche players continue to innovate in renewable, EV, and automation-focused segments.
Notable industry developments include Amazon Web Services' 2025 strategic agreement with GE Vernova to support its data center electrification and the recent corporate restructuring of GE, which saw GE Vernova emerge as an independent energy-focused powerhouse, leading to a 125% surge in its stock.
Table of Contents
Chapter 1. Research Scope
- 1.1. Research Objectives
- 1.2. Market Definition
- 1.3. Analysis Period
- 1.4. Market Size Breakdown by Segments
- 1.4.1. Market Size Breakdown, by Product Type
- 1.4.2. Market Size Breakdown, by Power Rating
- 1.4.3. Market Size Breakdown, by End-Use Industry
- 1.4.4. Market Size Breakdown, by Application
- 1.4.5. Market Size Breakdown, by Technology
- 1.5. Market Data Reporting Unit
- 1.5.1. Revenue
- 1.6. Key Stakeholders
Chapter 2. Research Methodology
- 2.1. Secondary Research
- 2.1.1. Paid
- 2.1.2. Unpaid
- 2.1.3. P&S Intelligence Database
- 2.2. Primary Research
- 2.3. Market Size Estimation
- 2.4. Data Triangulation
- 2.5. Currency Conversion Rates
- 2.6. Assumptions for the Study
- 2.7. Notes and Caveats
Chapter 3. Executive Summary
Chapter 4. Market Indicators
Chapter 5. Industry Outlook
- 5.1. Industry Background
- 5.2. Market Dynamics
- 5.2.1. Trends
- 5.2.2. Drivers
- 5.2.3. Restraints/Challenges
- 5.2.4. Emerging Economies and Key Opportunities
- 5.2.5. Impact Analysis of Drivers/Restraints
- 5.3. Impact of COVID-19
- 5.4. Sociopolitical Impact
- 5.5. Porter's Five Forces Analysis
- 5.5.1. Bargaining Power of Buyers
- 5.5.2. Bargaining Power of Suppliers
- 5.5.3. Threat of New Entrants
- 5.5.4. Intensity of Rivalry
- 5.5.5. Threat of Substitutes
- 5.6. Innovation and Technology Trends
- 5.7. Supply Chain and Value Chain Insights
- 5.8. Economic and Regulatory Impact
- 5.9. Market Entry Strategies
Chapter 6. Competitive Landscape
- 6.1. List of Market Players and their Offerings
- 6.2. Market Share of Key Players (2024)
- 6.3. Competitive Benchmarking of Key Players
- 6.4. Product Benchmarking of Key Players
- 6.5. Recent Strategic Developments by Key Players
- 6.6. Company Leadership Matrix
Chapter 7. U.S. Market
- 7.1. Overview
- 7.2. Market Revenue, by Product Type (2019-2032)
- 7.3. Market Revenue, by Power Rating (2019-2032)
- 7.4. Market Revenue, by End-Use Industry (2019-2032)
- 7.5. Market Revenue, by Application (2019-2032)
- 7.6. Market Revenue, by Technology (2019-2032)
- 7.7. Market Revenue, by Country (2019-2032)
Chapter 8. Northeast Market
- 8.1. Overview
- 8.2. Economic Indicators
- 8.3. Demographics and Population Insights
- 8.4. Regional Hotspots
- 8.5. Growth Drivers
- 8.6. Challenges and Barriers
- 8.7. Competitive Strategies
- 8.8. Emerging Players
- 8.9. Import/Export Policies
- 8.10. Compliance Requirements
- 8.11. Emerging Investment Areas
- 8.12. Major Ongoing Projects
- 8.13. Market Size and Forecast
- 8.13.1. Market Revenue, by Product Type (2019-2032)
- 8.13.2. Market Revenue, by Power Rating (2019-2032)
- 8.13.3. Market Revenue, by End-Use Industry (2019-2032)
- 8.13.4. Market Revenue, by Application (2019-2032)
- 8.13.5. Market Revenue, by Technology (2019-2032)
Chapter 9. Midwest Market
- 9.1. Overview
- 9.2. Economic Indicators
- 9.3. Demographics and Population Insights
- 9.4. Regional Hotspots
- 9.5. Growth Drivers
- 9.6. Challenges and Barriers
- 9.7. Competitive Strategies
- 9.8. Emerging Players
- 9.9. Import/Export Policies
- 9.10. Compliance Requirements
- 9.11. Emerging Investment Areas
- 9.12. Major Ongoing Projects
- 9.13. Market Size and Forecast
- 9.13.1. Market Revenue, by Product Type (2019-2032)
- 9.13.2. Market Revenue, by Power Rating (2019-2032)
- 9.13.3. Market Revenue, by End-Use Industry (2019-2032)
- 9.13.4. Market Revenue, by Application (2019-2032)
- 9.13.5. Market Revenue, by Technology (2019-2032)
Chapter 10. West Market
- 10.1. Overview
- 10.2. Economic Indicators
- 10.3. Demographics and Population Insights
- 10.4. Regional Hotspots
- 10.5. Growth Drivers
- 10.6. Challenges and Barriers
- 10.7. Competitive Strategies
- 10.8. Emerging Players
- 10.9. Import/Export Policies
- 10.10. Compliance Requirements
- 10.11. Emerging Investment Areas
- 10.12. Major Ongoing Projects
- 10.13. Market Size and Forecast
- 10.13.1. Market Revenue, by Product Type (2019-2032)
- 10.13.2. Market Revenue, by Power Rating (2019-2032)
- 10.13.3. Market Revenue, by End-Use Industry (2019-2032)
- 10.13.4. Market Revenue, by Application (2019-2032)
- 10.13.5. Market Revenue, by Technology (2019-2032)
Chapter 11. South Market
- 11.1. Overview
- 11.2. Economic Indicators
- 11.3. Demographics and Population Insights
- 11.4. Regional Hotspots
- 11.5. Growth Drivers
- 11.6. Challenges and Barriers
- 11.7. Competitive Strategies
- 11.8. Emerging Players
- 11.9. Import/Export Policies
- 11.10. Compliance Requirements
- 11.11. Emerging Investment Areas
- 11.12. Major Ongoing Projects
- 11.13. Market Size and Forecast
- 11.13.1. Market Revenue, by Product Type (2019-2032)
- 11.13.2. Market Revenue, by Power Rating (2019-2032)
- 11.13.3. Market Revenue, by End-Use Industry (2019-2032)
- 11.13.4. Market Revenue, by Application (2019-2032)
- 11.13.5. Market Revenue, by Technology (2019-2032)
Chapter 12. Company Profiles
Chapter 13. Appendix
- 13.1. Sources and References
- 13.2. Related Reports
