Dry Type Transformer Market

In 2022, the global market for dry type transformers was valued at $5.4 billion, and it is anticipated to reach $7.3 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.1% from 2023 to 2030. Dry type transformers are a modern type of magnetic core transformers that utilize natural or forced air cooling instead of oil. Unlike liquid-filled transformers, which require oil for cooling, dry type transformers employ high-temperature insulation systems that are environmentally safe. They have no moving parts, resulting in minimal maintenance requirements while ensuring reliability and a long operational lifespan. These transformers are considered hazard-free, making them suitable for installation in environments where fire safety is of utmost concern, such as hospitals, schools, factories, chemical plants, and buildings.

The global market is primarily driven by the wide-ranging applications of dry type transformers in electricity distribution. The expansion of electricity distribution networks worldwide, coupled with rapid industrialization in developing countries, fuels the growth of the dry type transformer market. Industries of various scales, from heavy to small, rely on machinery with specific voltage requirements. Sectors like oil & gas, mining, and marine have specialized voltage needs due to the importance of fire safety in these industries. Additionally, to reduce reliance on coal-based electricity generation, countries have committed to increasing the adoption of renewable energy sources in their overall electricity production. Dry type transformers are being increasingly preferred over liquid-filled transformers in the renewable energy sector due to their safety features and design aspects. Safety considerations hold significant importance in the energy sector, making dry type transformers the preferred choice in the cleaner energy segment, providing enhanced protection. This factor serves as a major driving force for the global market.

However, dry type transformers have certain disadvantages compared to liquid-filled transformers, which restricts their market growth. For instance, dry type transformers, such as cast resin transformers, exhibit relatively poorer heat dissipation performance compared to oil-immersed transformers, where the heat dissipation performance of oil radiators is better. The complex construction of dry type transformers also makes them more expensive than oil-immersed transformers. These factors are expected to impede the adoption of dry type transformers and hamper market growth. Furthermore, the development of solid-state transformers as alternatives to conventional transformers is likely to limit market growth during the forecast period. Nevertheless, the expansion and replacement of power grids with smart grids will drive the demand for digital dry type transformers in the coming years. Digital dry type transformers can provide users with performance information, enabling data analysis and facilitating maintenance scheduling and retirement planning for the transformer. Informed decisions based on this data will help prevent or minimize downtime, ultimately enhancing productivity and profitability. Additionally, the development of 3D core VPI transformers for electric vehicle charging stations presents new opportunities for the dry type transformer market.

The global dry type transformer market is categorized based on type, technology, phase, voltage, end use, and region. In terms of type, the market is divided into two segments: dry type converter transformers and dry type rectifier transformers. The technology segment consists of cast resin and vacuum pressure impregnated dry type transformers. The market is further studied based on the phase, including single-phase and three-phase dry type transformers. The voltage segment comprises low voltage and medium voltage dry type transformers. The end uses of dry type transformers encompass industrial, commercial, and other applications. Geographically, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA regions.

The global pandemic and the resulting complete or partial lockdowns have disrupted the supply chain, causing delays in project construction and directly impacting the commissioning of renewable electricity projects, biofuel facilities, and renewable heat investments. The global solar industry, for instance, heavily relies on supplies from China and other Southeast Asian countries, which have been significantly affected by COVID-19 in terms of material supply and transportation. This situation has had a substantial impact on the dry type transformer market.

Key players operating in the dry type transformer industry include Bharat Heavy Electricals Ltd., Eaton Corporation Plc, Fuji Electric Co. Ltd., General Electric Company, Hammond Power Solutions Inc., Henley Energy GCC, Hitachi Ltd., Hyosung Heavy Industries, Kirloskar Electric Co. Ltd., Power Sp. z o.o., Schneider Electric SE, Siemens AG, TBEA Co. Ltd., Voltamp Transformers Ltd., and WEG Group.

In terms of region, Asia-Pacific held the largest market share of $2.2 billion in 2019 and is projected to reach $2.9 billion by 2030, growing at a CAGR of 5.7%. The dominance of the Asia-Pacific region can be attributed to factors such as the presence of densely populated countries like India and China, as well as ongoing electrification projects in industrial, commercial, and infrastructure sectors. North America is anticipated to experience the highest growth rate of 6.6% during the forecast period due to increased electricity demand, particularly in the United States. Furthermore, the growth potential for renewable energy sources in the United States is significant.

In terms of type, the Dry Type Converter Transformers segment accounted for the largest revenue share of $3.3 billion in 2019, driven by its extensive use in industrial, commercial, and other end-use applications.

Among different technologies, the Cast Resin Dry Type Transformer segment generated the largest revenue of $3.7 billion in 2019, primarily due to its wide adoption in various areas such as general and public buildings, industrial plants, wind turbine plants, solar farms, LNG vessels, airports, railways, furnace transformers, electric welding equipment, and UPS systems.

However, the Single-Phase Dry Type Transformer accounted for $4.8 billion in 2019, mainly due to its widespread usage in low voltage distribution applications.

The Low Voltage segment is expected to be the fastest-growing segment. In terms of voltage, the Low-Voltage Dry Type Transformer accounted for $3.9 billion in 2019, driven by its application in low-voltage industrial applications, commercial buildings, and public infrastructure.

In 2022, the Industrial end-use segment accounted for the largest share, driven by the extensive adoption of dry type transformers in industries such as marine, chemical, oil & gas, renewable energy generation, and railways. Key manufacturers in the dry type transformer market focus on providing specialized transformers tailored to each application.

Key Benefits for Stakeholders

• The report provides in-depth analysis and market estimations for different segments from 2023 to 2030.
• Porter's Five Forces model is utilized to illustrate the bargaining power of buyers and suppliers, assisting market players in developing effective strategies.
• Key market players are profiled to understand their strategies.
• This report offers a detailed analysis of current market trends and future estimations (2023-2030) in the dry type transformer market, helping identify prevailing market opportunities.

Key market segments

Type

• Dry Type Converter Transformer
• Dry Type Converter Rectifier Transformer

Technology

• Cast Resin
• Vacuum Pressure Impregnated

Phase

• Single-phase
• Three-phase

Voltage

• Low
• Medium

End Use

• Industrial
• Commercial
• Others

By Region

• North America
• Europe
• Asia-Pacific
• LAMEA

Key Players in the global dry type transformer market:

• Bharat Heavy Electricals Ltd.
• Eaton Corporation Plc
• Fuji Electric Co. Ltd.
• General Electric Company
• Hammond Power Solutions Inc.
• Henley Energy GCC
• Hitachi Ltd.
• Hyosung Heavy Industries
• Kirloskar Electric Co. Ltd.
• Power Sp. z o.o.
• Schneider Electric SE
• Siemens AG
• TBEA Co. Ltd.
• Voltamp Transformers Ltd.
• WEG Group