Dry Type Transformer Market Size & Share

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Dry Type Transformer Market size is poised to cross USD 16 Billion by the end of 2035, witnessing around 9% CAGR during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of dry type transformer was USD 6 Billion. Stricter safety and environmental regulations around the world are encouraging the adoption of dry-type transformers. The absence of flammable insulating oil in dry-type transformers reduces the risk of fires and environmental contamination, making them a preferred choice in areas where safety and compliance are paramount.

As sustainability becomes a central focus for many industries, including construction and infrastructure, dry-type transformers align with green building initiatives due to their lower environmental impact and energy efficiency. These transformers use air instead of oil as a cooling and insulating medium, which eliminates the possibility of oil leaking into the environment.

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Dry Type Transformer Market: Key Insights

Base Year	2022
Forecast Year	2023-2035
CAGR	~9%
Base Year Market Size (2022)	~ USD 6 Billion
Forecast Year Market Size (2035)	~ USD 16 Billion
Regional Scope	North America (U.S., and Canada) Latin America (Mexico, Argentina, Rest of Latin America) Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific) Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe) Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)

Dry Type Transformer Market: Growth Drivers and Challenges

Growth Drivers

Growing demand for energy-efficient transformers- The growing demand for energy-efficient transformers is a key driver of the increasing popularity of dry type transformers. As the world becomes more focused on reducing its carbon footprint, industries are looking for ways to improve their energy efficiency, and dry type transformers are an excellent solution. The United Nations has stated that there is a need to decrease carbon dioxide emissions by 45 percent by 2030 compared to levels observed in 2010. Additionally, they have set the goal of achieving zero emissions by the year 2050.
Increasing focus on renewable energy- The increasing focus on renewable energy sources, such as wind and solar power, has been a major driver of the demand for dry type transformers. These transformers are crucial in facilitating the transmission and distribution of power generated from renewable sources, which tend to be located in remote areas where traditional oil-filled transformers may not be suitable. For instance, wind turbines generate power at high voltages that need to be stepped down before they can be distributed to homes and businesses.
Dry type transformers are ideal for this purpose as they are able to handle high voltage levels and are more resistant to environmental factors such as moisture and dust.
Increased industrialization and urbanization- The rapid pace of industrialization and urbanization in developing countries has led to a surge in demand for electricity. This demand has been met by the installation of new power generation technologies plants, transmission lines, and distribution networks, which require high-quality transformers to ensure efficient energy transfer. Dry type transformers have emerged as a popular choice in these regions due to their durability, low maintenance costs, and high efficiency. Moreover, they are better suited to handle the harsh environmental conditions prevalent in many developing countries, making them a reliable choice for industrial and urban applications.

Challenges

Transformer Temperature Dissipation - Dry-type transformers operate at higher temperatures compared to oil-filled transformers. Proper heat dissipation is crucial to prevent overheating and maintain transformer efficiency. Adequate ventilation and cooling systems are necessary, which can add complexity and cost to installations.
Dry-type transformers are often designed for specific applications, which can lead to customization challenges
Complexity of Maintenance and Repair

Dry Type Transformer Segmentation

Type (Dry Type Converter Transformer, Dry Type Rectifier Transformer)

The dry type converter transformer segment is estimated to hold 59% share of the global dry type transformer market in the year 2035. The segment growth can be attributed to the increasing demand for dry type converters from end-use industries such as oil & gas, utilities, and renewables as they are more efficient than other types of converters.

Moreover, dry type converters are less prone to fire hazards due to their non-flammable insulation, which makes them ideal for harsh and hazardous environments. They also offer significantly higher short circuit strength as compared to other types of converters, thus making them a preferred choice in many industries.

Technology (Cast Resin, Vacuum Pressure Impregnation)

Dry type transformer market from the cast resin technology segment is estimated to gain a significant share of about ~60% in the year 2035. The growth of this segment can be attributed to the fact that this technology offers many advantages compared to traditional oil-immersed transformers, such as greater fire safety, increased durability, and improved environmental friendliness. Aside from the low noise levels, reduced weight, and compact design, its fire-resistant materials make it an ideal choice for a wide range of applications.

Our in-depth analysis of the global market includes the following segments:

Type	Dry Type Converter Transformer Dry Type Rectifier Transformer
Technology	Cast Resin Vacuum Pressure Impregnation
Rating	Less than 5 MVA 5 MVA to 30 MVA More than 30 MVA
End Use	Industries Inner-City Substations Underground Substations Renewable Generation

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Dry Type Transformer Industry Regional Synopsis

APAC Market Forecast

Dry type transformer market in Asia Pacific is anticipated to hold the largest with a share of about ~31% by the end of 2035 on account of the growing need for reliable and cost-efficient electrical power transmission and distribution coupled with the increasing demand for electrical and electronic products in the region.

Furthermore, the market growth in the region will be enhanced by the rise in investments, particularly in the development of advanced and modern residential sectors. A notable example is Aflac's accomplishment in December 2020 where they made sustainable investments totaling over USD 1.7 billion. These investments primarily focused on supporting education, affordable housing, public transit, and hospitals both, in Japan and the United States.

North American Market Statistics

The North America dry type transformer market is estimated to be the second largest, registering a share of about ~26% by the end of 2035. The market’s expansion can be attributed majorly to the rise in demand for dry type transformer from various sectors such as IT/telecommunication, data centers, and industrial, due to their low maintenance cost and high efficiency in comparison to other transformers.

Additionally, the increasing focus on the development of smart cities and the rising trend of industrial automation is expected to fuel the demand for dry type transformers in the coming years. Smart cities require reliable and robust power systems, and dry type transformers are more efficient and less prone to breakdowns in comparison to their liquid-filled counterparts. Similarly, industrial automation requires a secure and reliable power supply which dry type transformers can provide.

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Companies Dominating the Dry Type Transformer Landscape

Siemens AG
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis

WEG Industries
Eaton Corporation
Schneider Electric SE
Bharat Heavy Electricals Limited
Virginia Transformer Corp
General Electric Company
Hyosung Heavy Industries
Hammond Power Solutions Inc.
ABB Ltd.
Hyundai Electric & Energy Systems Co., Ltd.

In The News

In an effort to advance energy transition based on renewable sources Siemens AG and the International Renewable Energy Agency (IRENA) have signed a partnership agreement. This collaboration aims to support development goals and climate action initiatives.
WEG Industries recently announced that they have supplied their encapsulated dry type transformer, which has a capacity of 2.5 MVA to data center facilities located in Chile. This transformer is equipped with a protection enclosure box that operates at a voltage class of 24/1.1kV allowing WEG Industries to expand its presence in the industry.

Key Questions Answered in the Report

1) What are the major factors driving the growth of the dry type transformer market?

Ans: The major factors driving the growth of the dry type transformer market are increased demand for reliable and efficient power supply, rising investments in the electricity transmission and distribution sector, and technological advancements in dry type transformer manufacturing.

2) What would be the CAGR of the dry type transformer market over the forecast period?

Ans: The market size of dry type transformer is anticipated to attain a CAGR of 9% over the forecast period, i.e., 2023 â€“ 2035.

3) Who are the major players dominating the dry type transformer market?

Ans: The major players in the market are Siemens AG, WEG Industries, Eaton Corporation, Schneider Electric SE, Bharat Heavy Electricals Limited, Virginia Transformer Corp, General Electric Company, and others.

4) Which segment captures the largest market size in the technology segment in the dry type transformer market?

Ans: The cast resin segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

5) Which region will provide more business opportunities for the growth of the dry type transformer market in the future?

Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.