Dry Type Transformer Market

[192 Pages Report] The global dry type transformer market in terms of revenue was estimated to be worth $6.6 billion in 2023 and is poised to reach $9.2 billion by 2028, growing at a CAGR of 6.8% from 2023 to 2028. The estimated average way of the market is expected to be 6.8%. One of the other reasons that reported the growth of the dry-type transformer business in the region were the modernization of the old power infrastructure, the improvement of the transmission and distribution network (T&D) through increased investments, the implementation of strict government mandates to reduce carbon footprints, as well as the ever-growing power demand in these countries. Such state of affairs has been confirmed and is currently being accepted throughout the globe. The market for dry type transformer is projected to benefit greatly from the rising expansion of smart electricity grids and networks.

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Dry Type Transformer Market Dynamics

Driver: Increasing demand for energy efficiency

Energy efficiency is the growing demand that has become the basic driving factor in the fast development of the dry type transformers market. To begin with, the majority of the world's nations are faced with the adverse effects of climate change and carbon dioxide emissions. Therefore, there are significant changes in the pattern of consumption of energy towards a more sustainable model. Energy-efficient applications contribute to the very high level of adoption of dry-type transformers. According to IEA (International Energy Agency), the global energy demand is expected to grow by 1.8% annually between 2021 and 2030. The investment in energy efficiency reached USD 560 billion in 2022, up by 16% in 2021 and is still expected to increase over the next few years. Different countries have implemented several strategies to raise energy efficiency. Tax credits for middle-class households are one of the measures taken by the U.S. administration, which pays for 10% of the expenses that result from installing energy- efficient devices. The European Commission, in 2021, updated its eco-design and energy labeling regulations to include new requirements for various products again. Dry-type transformers are a better option in terms of environmental protection because they are cooler than those using oil and do not emit air pollutants to the environment.

Restraint: Higher cost of dry type transformers as compared to oil-filled transformers

The increase in the dry transformer market is caused by several factors, and one significant challenge it faces is the comparatively higher cost of dry type transformers in comparison to their oil-filled counterparts. This expense discrepancy has balked the conventional use of dry type transformers in numerous fields and applications. This money initially invested for the dry type transformers may be considerably higher because of the specialized materials, advanced insulation and manufacturing processes that are involved in their production. Dry type transformers, besides, require materials that are good heat conductors and have the ability to dissipated the heat. Aluminum or copper conductors with special coatings or designs for heat transfer from the winding are essential. According to the data from CNBC, the cost of copper will continue to be high because of the increasing demand and a reduced supply of it. There was a year-on-year loss of 7% in November 2022 in Chile, the leading world's copper producer. Such problems with the raw materials could act as a brake to the dry type transformer market's growth.

Opportunities: Expansion of global power grid infrastructure

The growing adoption of clean energy and the attraction of off-grid power generation to decentralized power, have definitely led to a great demand for transformers to cope with the power fluctuations and variety loads. Dry-type transformer, which is the sufficiency in terms of flexibilities and the strength required for diverse energy in modern grid, is the one that leads in this field. When the utilization of smart grid technologies and regulatory measures for grid modernizing are in great move, the demand for adaptable and high-performance transformers will grow too, providing a great opportunity for the companies which are specialized in dry-type transformers. The companies as well as the dry-type transformers market with which they are related, experience significant gains as a result of global distribution of new electrical infrastructure. The use of energy as well as the rate of its production from renewable resources and the trend are closely linked to the growth of technology. The claim by the WorldBank in its report that around 56% of the global population reside in urban areas and by 2050 the rate will have more than doubled. Urbanization leads to the growth of infrastructure. The demand for safe and reliable electrical solutions increases with the growing construction of high-rise buildings and commercial complexes. Dry-type transformers are a safe and efficient way to distribute power in urban areas, as they do not use oil and are, therefore, less likely to catch fire or pollute the environment.

Challenges: Limitations in power ratings and preference of oil-filled transformers

Compared to oil-filled transformers, dry-type transformers have increased abilities, such as fire safety and environmental friendliness, but, because dry-type transformers do not use oil for heat dissipation, this type of transformers usually can only handle low power loads. It is possible that dry-type transformers could have a larger loss at the higher power than oil-filled transformers. In addition, the low power ratings of dry-type transformers can be difficult in the instances where huge power is required by the customers, such as in power generation plants and substations. Dry-type transformers are under a lot of pressure from oil-filled transformers. However, as the environmental focus is increasing and the regulatory boundaries are getting more complicated, the demand for dry-type transformers will be on the rise in the next few years.

Dry type transformer Market Ecosystem

The dry type transformer companies who lead this industry are well-established and show a secure financial situation. Key members in the industry have the most extensive product range with various technology features and the most powerful presence in the global market. The strong proof of their reliability and honesty is reflected in their involvement in the industry. If looking for a dry type transformer solution, the customers will always Roam to the places that these companies will be. The companies have shown great level of skills to show resilience patch of market dynamics and present high value products and services they thereby prove to be the leaders in the need of the oil and gas sector. Some of the famous companies in the market are Schneider Electric (France), Siemens Energy (Germany), Hitachi, Ltd. (Japan), Eaton (Ireland), TOSHIBA CORPORATION (Japan).

The medium voltage segment, by voltage, is expected to be the largest market during the forecast period.

The voltage segment has been categorized into three major types, which are: low voltage, medium voltage, and high voltage. They forecast medium voltage as the largest segment during the forecast period. This is due to the fact that medium voltage transformers are quite efficient and reliable in the supply of power to different industries. They come in wide industrial usage, starting from manufacturing plants to factories and processing facilities, which are extremely critical in respect of their smooth operations and productivity for uniform and uninterrupted power supply. They have made them a very crucial part of the overall growth of the dry-type transformer market in the industry by working with other industrial infrastructure.

By phase, single phase is expected to be the fastest growing during the forecast period.

Based on phase, the dry type transformers market is segregated into two categories: single phase and three phase. The single-phase segment is expected to be the fastest-growing during the forecast period. It finds its growth owing to the extreme usage of dry type transformers in low voltage distribution applications. Single-phase power is generally utilized in residential and commercial areas with minor power demand. Yet another great benefit is the compact and self-contained design that can be installed indoors without special ventilation systems. Smaller loads may have a single-phase system in order to be more economic on account of lower equipment cost and easier installation.

“Asia Pacific: The largest region in the dry type transformer market.”

During the forecast period of 2023-2028, among the regions, Asia Pacific is likely to be the largest region in the dry type distribution transformer market, followed by Europe and North America. On account of the vast area, rich infrastructure development, and developing economies within the region, Asia Pacific has always dominated the dry type transformer market. Urbanization and population increase have resulted in the emergence of a need for huge infrastructure developments that have driven the energy demand across the region. This has further resulted in an energy demand-supply gap, thereby resulting in a power supply shortage. The shortage of electricity is expected to support the growth of the market as it can be attributed to an increase in demand for power leading to the installation of new substations and increasing the demand for dry type transformers. The regional dry type transformer market is growing with the presence of leading solution providers such as Kirloskar Electric Company (India), Voltamp (India), and CG Power & Industrial Solutions Ltd. (India) contribute to the development of the market by creating avenues for dry type transformer projects.

Key Market Players

The global dry type transformer market is dominated by a few major players with wide regional presence. Major players operating in the dry type transformer market include Schneider Electric, Siemens Energy, Hitachi, Ltd., Eaton, and TOSHIBA CORPORATION. Strategic developments such as new product launches, contracts, agreements, acquisitions, and expansions were adopted by these companies from 2018 to 2023, which would help them capture a larger share in the dry type transformer market.

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Scope of the Report

This research report categorizes the market based on technology, voltage, phase, and application, and region.

On the basis of technology, the dry type transformer market has been segmented as follows:

• Cast Resin
• Vaccum Pressure Impregnated

On the basis of voltage, the market has been segmented as follows:

• Low Voltage
• Medium Voltage
• High Voltage

On the basis of application, the market has been segmented as follows:

• Industrial
• Commercial
• Utilities
• Others

On the basis of phase, the market has been segmented as follows:

• Single Phase
• Three Phase

On the basis of region, the market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• South America
• Middle East & Africa

Recent Developments

• In April 2023, Eaton acquired 49 % of stake in Jiangsu Ryan Electrical Co. Ltd. , a manufacturer of power distributrion transformers and dry type transformers. This acquisition will help the company to better serve the customers globally.
• In September 2022, Hitachi, Ltd. introduced RESIBLOC, a rail dry-type traction transformer with voltage upto 25 kV. This is applied to drive the brakes, signalling system and communication equipment of the train.
• In April 2022, Seimens introduced CAREPOLE, an innovative dry-type single-phase transformer for pole applications. This will be a cast-resin distribution transformer to be installed in the distribution grid. The product was launched for American Market.
• In October 2021, Hitachi, Ltd. completed the expansion of its Bland, Virginia manufacturing facility, the leading producer of dry-type transformers in North America. This expansion provides the additional production capacity to support new manufacturing capabilities

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