Dry Type Transformers Market

Dry Type Transformers Market Size

Dry Type Transformers Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 6.7% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 6.3 billion and is projected to reach USD 12.9 billion by the completion of 2034.

Dry type transformers are electrical devices that operate without the use of liquid or oil for cooling, which differentiates them from oil-filled transformers. They employ air or gas to dissipate heat that is generated during operation, which makes them suitable for environments where flammability or leakage risks are major issues. Dry type transformers are insulated with materials such as epoxy or cast resin and provide electrical insulation, along with protection against environmental factors like moisture and dust. These transformers are found in indoor settings such as commercial buildings, hospitals, and industrial facilities, offering safety and environmental friendliness. Furthermore, they are available in various sizes and configurations to meet different voltage levels and power demands, which ensures dependable and efficient electrical distribution while minimizing the risk of environmental contamination or fire hazards linked with oil-filled transformers.

Market Highlights

Dry Type Transformers Market is expected to grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2034

Dry type transformers market is projected to reach USD 12.9 billion over the forecast period, due to the rising energy demand, environmental policies, and a greater emphasis on sustainability. Increasing consciousness for environment and a shift toward greener energy options are expected to sustain the development of dry type transformer market. Improvements in insulation materials and manufacturing methods are additionally helping to improve the efficiency and reliability of dry type transformers, which is increasing their use across multiple industries. Moreover, industries such as manufacturing, construction, and utilities are pushing the adoption of dry type transformers across the world. Emerging economies are becoming major markets for dry type transformers due to industrialization and urban development. Therefore, these factors collectively indicate a promising future for the global dry type transformer market, with continued innovation and expansion anticipated in the coming years.

Source: Fatpos Global

Dry Type Transformers Market Segmentation

Cast Resin segment will dominate owing to its high utilization across various industries

By Technology, the Dry Type Transformers Market is divided into Cast Resin and Vacuum Pressure Impregnated. The cast resin technology is expected to maintain its dominance in the dry type transformer market due to its extensive utilization in diverse sectors such as public buildings, industrial plants, and renewable energy installations like wind and solar farms. Cast resin transformers provide excellent insulation and defense against external factors like moisture and dust by protecting the core and windings internally in a fluid resin during the manufacturing process. Conversely, while vacuum pressure impregnated technology is predicted to increase significantly due to its safety features and mechanical strength, cast resin technology remains popular for its proven durability and applicability for various applications. Their widespread adoption highlights their efficiency in meeting the evolving demands of modern electrical infrastructure.

Three-phase segment will lead the market due to vast usage of three-phase transformers in suburban areas

Based on Phase, the Dry Type Transformers Market is segmented into Single and Three. The three-phase segment is anticipated to lead the transformer market due to the vast migration to suburban areas, where three-phase transformers are used for efficient power distribution. Additionally, favorable government regulations regarding the expansion of long-distance and medium-range transmission networks is responsible to drive the demand for three-phase transformers. The continuous increase in electricity demand and the efforts of energy suppliers to expand infrastructure across emerging markets, are contributing to the high acceptance of dry type transformers. On the contrary, the single-phase segment is expected to display substantial growth owing to its high usage in low voltage distribution applications. These transformers use single-phase alternating current, which makes them suitable for light commercial and residential settings where localized power distribution is required.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Growing Demand for Renewable Energy will Create Growth Opportunities

Global transition towards renewable energy sources, which is motivated by environmental concerns and governmental incentives, is responsible for boosting the adoption of dry type transformers. These transformers are essential components in renewable energy setups like solar and wind farms, which facilitate the efficient transmission of electricity from these sources to the grid. Transformers that are dependable and efficient are becoming increasingly necessary as solar and wind power become widely used. Furthermore, dry type transformers, which have increased safety features, a lower environmental impact, and reduced maintenance requirements, are ideal for renewable energy applications. Therefore, the need for dry type transformers in the renewable energy sector is expected to grow continuously as countries and industry focus on clean energy solutions to address climate change.

Urbanization and Construction of Infrastructure will Propel Market Expansion

Urbanization and infrastructure expansion in emerging nations are important growth drivers for the dry type transformer market. As cities and populations grow, so does the need for electricity, which necessitate the installation of new transformers in power distribution networks. Dry type transformers have become popular in metropolitan areas due to their safety features and interior adaptability. Furthermore, dry type transformers have compact design which makes them excellent for installation in highly populated locations where space is limited. Consequently, as governments engage in expanding electrical infrastructure to meet urban growth, the demand for dry type transformers is expected to increase. This trend creates attractive prospects for manufacturers and suppliers in the dry transformer market.

Restraints

Significant Initial Costs of Procurement and Integration may Limit the Industry's Growth

Higher initial cost as compared to oil-filled transformers is a notable limitation of the dry type transformer market. Dry type transformers provide long-term benefits such as low maintenance expenses, along with minimized environmental hazards and better safety, due to which the upfront investment required for procurement and installation can be challenging for some consumers. This limitation is particularly noticeable in cost-conscious markets or regions with limited financial resources for infrastructure development. Moreover, despite the potential for cost savings and environmental advantages, the high initial cost of dry type transformers can dissuade certain buyers from opting for them over affordable alternatives like oil-filled transformers. Therefore, manufacturers and suppliers in the dry type transformer market must address this limitation through pricing strategies and educational initiatives to highlight the long-term value of dry type transformers and reduce these challenges to adoption.

Recent Developments

• In January 2024, ABB Ltd. launched the latest generation of dry-type transformers, the ABB Ability™ TXpert Dry, featuring improved fire resistance, reduced losses, and extended lifespan.
• In December 2023, Schneider Electric SE acquired the American Power Conversion (APC) business from Emerson Electric for $1.6 billion, expanding its portfolio of low-voltage dry-type transformers. The company also introduced the new PrismaSeT dry-type transformer series, designed for data centers and critical applications with its modular and compact design.
• In November 2023, Siemens AG unveiled the SENTRON PAC dry-type transformer series, offering a wider range of power ratings and improved efficiency for industrial applications.

• In February 2024, Eaton Corporation plc launched the IntelliRupter SCADA-ready dry-type transformer, featuring integrated monitoring and communication capabilities for remote asset management.

• In January 2024 General Electric Company showcased its latest dry-type transformer innovations at the Middle East Electricity exhibition, highlighting advancements in fire-resistant materials and digital monitoring solutions.

Dry Type Transformers Market

Key Players:

• ABB Ltd.
• Schneider Electric SE
• Siemens AG
• Eaton Corporation plc
• General Electric Company
• Toshiba Corporation
• Hitachi, Ltd.
• Mitsubishi Electric Corporation
• Crompton Greaves Ltd.
• Fuji Electric Co., Ltd.
• TBEA Co., Ltd.
• Wilson Transformer Company
• Voltamp Transformers Limited
• Hammond Power Solutions Inc.
• Jinpan International Limited
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Dry Type Transformers Market is segmented based on regional analysis into five key regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. The Asia Pacific region will likely lead the global dry type transformer market due to urbanization and infrastructural development across the region which has boosted the growth significantly. The increasing energy demand due to growing population and expanding economies, results in high adoption rates of dry type transformers. Furthermore, technological improvements and government initiatives which are aimed at modernizing electrical infrastructure have contributed to the high adoption of dry type transformers across the Asia-Pacific region.

Simultaneously, North America is expected to showcase the highest growth rate in the dry type transformer market during the forecast period. This growth is driven by the rise in electricity demand due to expanding industries and an increasing focus on sustainable energy solutions. Moreover, the commitment of the region to grid modernization and the integration of renewable energy sources further promotes the adoption of dry type transformers across the North America region.

Source: Fatpos Global

Impact of Covid-19 on Dry Type Transformers Market

COVID-19 pandemic significantly impacted the dry type transformer market, by disrupting supply chains and changing the dynamics of demand. Lockdowns and trade restrictions interrupted supply chains, which caused delays in raw material delivery and manufacture. Therefore, several construction projects that needed dry type transformers were postponed due to labor shortages and financial uncertainty. Additionally, low economic activities also affected the demand in commercial real estate and hospitality sector. However, the pandemic accelerated the adoption of digital technologies, that increased the demand for smart dry type transformers with remote monitoring capabilities. Furthermore, as restrictions eased and economic activities gradually resumed again, the market saw a partial recovery. Therefore, the pandemic highlighted the importance of resilience and adaptability in the dry type transformer market during unprecedented challenges.

Dry Type Transformers Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

Dry Type Transformers Market Scope and Segments:

Frequently Asked Questions (FAQ):