Dry Type Transformer Market – By Voltage,By Insulation Type, By Use Case, By End Use Industry, By Geography - Opportunity Analysis & Industry Forecast, 2024-2030

Dry Type Transformer Market Overview:

The Dry Type Transformer Market size is estimated to reach $10202.7 Million by 2030, growing at a CAGR of 6.3% during the forecast period 2024-2030. The dry type transformer market is witnessing robust growth due to increased adoption in renewable energy projects. These transformers are essential in connecting wind and solar farms to the grid, offering safety and reliability in harsh environments. As global emphasis on clean energy intensifies, the demand for dry type transformers is expected to accelerate, driven by their superior environmental performance and lower maintenance needs.

Rapid urbanization and electrification initiatives across emerging economies are boosting the need for dry type transformers. Their compact size, fire safety features, and eco-friendly characteristics make them ideal for urban infrastructure projects, including residential complexes, commercial buildings, and public transportation systems. As cities expand and modernize, the deployment of dry type transformers is expected to grow significantly, driven by the demand for reliable and sustainable power distribution solutions. These factors positively influence the Dry Type Transformer industry outlook during the forecast period.

Dry Type Transformer Market - Report Coverage:

The “Dry Type Transformer Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Dry Type Transformer Market.

COVID-19 / Ukraine Crisis - Impact Analysis:  

• The COVID-19 pandemic disrupted global supply chains, leading to delays in manufacturing and delivery of dry-type transformers. Many infrastructure projects were postponed, impacting demand. However, the accelerated shift towards digitalization and automation during the pandemic has renewed investments in resilient power infrastructure, increasing the need for dry-type transformers in critical sectors such as healthcare and data centers, contributing to the market's recovery.
• The Ukraine crisis has exacerbated global energy insecurity, compelling many countries to reassess their energy strategies and infrastructure. This has driven increased investments in local power generation and distribution, particularly in regions seeking energy independence. As a result, the demand for dry-type transformers, which are crucial for modern power grids, has seen renewed interest, especially in Europe, where energy diversification is now a strategic priority.

Key Takeaways:

Asia-Pacific Region is Projected as Fastest Growing Region

Asia-Pacific is projected as the fastest growing region in Dry Type Transformer Market with CAGR of 6.6% during the forecast period 2024-2030. China's dry type transformer market is expanding rapidly, driven by significant growth in solar energy installations. According to the National Energy Administration (NEA), China aims to connect nearly 108 GW of new solar capacity to the grid by 2022, almost double the previous year's additions. The country installed 52.6 GW of solar capacity in the first nine months of 2022, marking a 106% increase compared to the same period in 2021.The global energy demand and regulatory reforms are driving the adoption of technology in distribution and transmission networks. The Asia-Pacific region is experiencing the highest growth in distribution transformer production due to large-scale manufacturing in China and Japan, as well as investments in renewable energy. The growing demand for electricity in emerging countries and the shift of manufacturing locations in these regions are driving the market growth.

Medium Voltage (1 kV to 69 kV) Segment to Register the Fastest Growth

Medium Voltage (1 kV to 69 kV) segment is projected as the fastest growing segment in Dry Type Transformer Market with CAGR of 6.6% during the forecast period 2024-2030. The manufacturing and process industries require reliable power supply. Medium voltage dry-type transformers offer enhanced safety, reduced maintenance, and improved performance in harsh environments, driving their adoption in industrial applications and facility upgrades. The U.S. Department of Energy’s in 2023, proposed energy-efficiency standards aim to enhance low and medium-voltage dry-type distribution transformers' performance, increasing energy savings and reducing carbon emissions. The Dry Type Transformer Market is expected to grow significantly due to these new regulations and the emphasis on energy-efficient technologies.

Distribution Transformers are Leading the Market 

Distribution Transformers held the largest market valuation of $4328.9 million in 2023. The demand for distribution transformers is growing globally, according to Azhar Fayyaz, Analyst II at PTR Inc.’s of Americas Distribution Transformer Market report. Globally, nations are building their electrical infrastructure, which in turn increases demand for distribution transformers. The Americas account for about 28% of the worldwide distribution transformer market by revenue. Almost 25-30% of distribution transformers in the US are imported mainly from Mexico, Canada, and Taiwan. As a result of the increasing demand for transformers, OEMs are already working at full capacity. This has resulted in increasing lead times for transformers, including power, distribution, and dry-type transformers.

Integration of Renewable Energy Sources

The global push for renewable energy is resulting in a significant increase in the number of renewable energy installations, including wind farms, solar power plants, and hydroelectric facilities. Dry-type transformers are integral components in these installations, helping to efficiently convert and distribute the generated power. In April 2022, Hitachi Energy in China developed and supplied a first-of-its-kind vacuum-cast-coil (VCC) dry-type transformer designed specifically for floating, offshore wind turbines. This innovative transformer is part of their newly announced portfolio for floating applications, aimed at unlocking the vast potential of offshore, floating wind-power generation, and facilitating the transition to a sustainable energy future.

High Initial Costs

The manufacturing process for dry-type transformers involves advanced materials and technologies, such as epoxy resin insulation and vacuum pressure impregnation, which increase production costs. This results in a higher initial purchase price compared to traditional oil-filled transformers, making them less attractive for cost-sensitive projects. Budget constraints in emerging markets can be a significant barrier to the adoption of dry-type transformers. Many developing regions prioritize immediate cost savings over long-term benefits, opting for cheaper oil-filled transformers despite the higher maintenance and environmental costs associated with them. According to blog by Chint Global, Oil-filled transformers are less expensive because they use conventional energy efficiency, making them dependable and long-lasting. Dry-type transformers, on the other hand, use more energy and entail higher operational costs, as highlighted in a. This cost disparity makes oil-filled transformers a more attractive option for many buyers.

For more details on this report - Request for Sample

Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships, and collaborations are key strategies adopted by players in the Dry Type Transformer Market. The top 10 companies in this industry are listed below:

1. ABB
2. Schneider Electric
3. Siemens
4.  G.E Vernova
5. TBEA
6. Mitsubishi Electric
7.  Hitachi Energy
8. Eaton
9. Toshiba
10. Hyundai Electric & Energy Systems

Scope of the Report: 

For more Energy and Power related reports, please click here