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The General Electric Company said yesterday that it would stop building large transformers - the huge machines that regulate voltage for electricity generating stations -in the United States. It also said it would combine its transformer operations in Canada with those of Westinghouse.

G.E. gave no financial details about either the closing of its United States large-transformer division in Pittsfield, Mass., or the proposed venture of its Canadian subsidiary, Canadian General Electric, with Westinghouse Canada Inc.

However, analysts said that General Electric's decision came as no surprise. They pointed to the shrinking market for the huge machines, which have helped to build and illuminate the industrial sector. 'Not Enough Business'

'The market for large transformers has been dead, really,' said David F. Bartlett of Ladenburg, Thalmann Inc. 'There's just not enough business for all the players.'

Eugene J. Kovarik, head of General Electric's large-transformer division, said the company would now concentrate on the service end of this sector in Pittsfield, as well as other forms of power delivery systems.

G.E. officials said that the shutdown of large-transformer production, which is to be phased out by the end of next year, would probably halve the 2,000-member work force in its large-transformer division.

However, they said that the company would continue to make small and medium-sized transformers at other plants, and that its weapons, plastics and technology operations in Pittsfield would be unaffected.

G.E.'s large transformers are 30 feet long, 15 feet high and 15 feet wide, according to R. Bruce Farren, a company spokesman. Their capacity can range from 40 to about 400 megavolt-amperes. By comparison, distribution transformers, used largely to regulate voltage flowing to residential neighborhoods, are small enough and light enough to be attached to utility poles.

Mr. Farren said that General Electric would continue to make medium transformers, which are used for smaller utility power plants, at the company's plant in Rome, Ga. These transformers have a capacity of 5 to 40 megavoltvolt-amperes. Oil Price Rise a Factor

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G.E. officials said the market for large transformers declined drastically during the 1970's in the wake of the Arab embargo as rising oil prices increased the cost of generating electricity and spurred the widespread adoption of energy conservation.

In addition, Mr. Farren said, the industry never recovered from the economic slumps suffered during the decade by the automobile and steel industries, which are major users of electricity.

According to Mr. Kovarik, these factors caused the total market for large transformers to shrink to just a quarter of what it was in 1973.

G.E.'s competition in the United States for large transformers is Westinghouse; McGraw-Edison Power Systems, a division of Cooper Industries, and Federal Pacific, a subsidiary of Reliance Electric and part of Exxon.

Officials at General Electric declined to discuss the volume of business or the market share of the company's large-transformer division, and would not say whether it operated at a profit or loss.

Mr. Bartlett, the Ladenburg, Thalmann analyst, characterized the business as 'a very modest part of General Electric's overall earnings.' Rescue Efforts Citedf

Nonetheless, G.E. had sought for years to save the Pittsfield operation, Mr. Farren said, by trying to increase productivity and by paring the work force through attrition and some layoffs.

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'We kept readying ourselves for the industry to rebound,' he said, 'but it never did. Now, we don't think there's any realistic hope for major growth.'

General Electric has manufactured transformers in Pittsfield, a small industrial city in western Massachusetts, since 1902.