Dry Type Transformer Market Outlook - 2027
The global dry type transformer market size was valued at $5.4 billion in 2019, and is projected to reach $7.3 billion by 2027, growing at a CAGR of 6.1% from 2020 to 2027.Dry type transformer is a type of magnetic core transformer designed on a comparatively modern technology that uses natural or forced air cooling instead of oil. Unlike liquid fill transformers that require oil or liquid to cool, dry type transformers use only high temperature insulation systems that are environmentally safe. It consists of no moving parts; therefore, it requires minimum maintenance, while offering reliability and long-run cycle. As these transformers are completely hazard-free, they can be easily installed in hospitals, schools, factories, chemical plants, and buildings where fire safety is a great concern.
The global market is driven by its wide applicability in the distribution of electricity. The expansion of electricity distribution network across the globe and rapid industrialization in developing countries drive the dry type transformer market growth. Heavy to small scale industries employ machineries that have specific voltage requirement. Some industries, such as oil & gas, mining, and marine have specialized voltage requirements, as fire safety is important in these sectors. In an effort to reduce the dependence of coal-based electricity generation, countries have agreed to increase the adoption of renewable energy generation in the total electricity produced. Dry type transformers are replacing wet transformers in the renewable energy sector due to their safety and design aspects. Safety accounts for greater significance in energy sector meaning that dry type transformer is becoming a transformer of choice in cleaner energy segment that offer extended protection. This is a major driving force for the global market.
Dry type transformers have some disadvantages over liquid-filled transformers, which limits the growth of the dry type transformer market. Compared with liquid transformers such as oil-immersed transformer, dry type transformer such as cast resin transformer has relatively poor heat dissipation performance, while the heat dissipation performance of the oil radiator is better. The complex construction of dry type transformer makes it costlier than oil-immersed transformer. These factors are expected to restrain the adoption of dry type transformers; thereby, hampering the market growth. Furthermore, development of solid-state transformers as a replacement for conventional transformers is also likely to limit the market growth during the forecast period. However, expansion and replacement of power grids with smart grids will increase the demand for digital dry type transformers during the forecast period. Digital dry type transformers can supply the user with information on its performance. This will enable the user to analyze the data and schedule the maintenance and retirement schedule of the transformer. Informed decisions will prevent or at least reduce the downtime of the transformer; thereby, increasing productivity and profitability. In addition, the development of 3D core VPI transformer for the electric vehicle charging stations has the potential to offer fresh opportunities for the dry type transformer market.
The global dry type transformer market is segmented on the basis of type, technology, phase, voltage, end use, and region. Based on type, the market is divided into dry type converter dry type transformer and dry type rectifier dry type transformer. By technology, the market is divided into cast resin and vacuum pressure impregnated dry type transformer. On the basis of phase, the market is studied across single-phase and three-phase dry type transformer. Based on the voltage, the market is segmented into low voltage and medium voltage dry type transformer. The end uses of dry type transformer include industrial, commercial, and others. Based on geography, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Complete or partial lockdown situation globally due to COVID-19 has led to supply chain disruption, leading to delays in project construction, having a direct impact on the commissioning of renewable electricity projects, biofuel facilities, and renewable heat investments. In the global solar industry, more than 40% of the supply chain is reliant on supply from China and other Southeast Asian countries. As China is the known source of this pandemic and the country is the most affected one in terms of material supply and material transport due to COVID-19. This factor has a huge impact on the dry type transformer market
Major 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.
By Region
North America would exhibit a CAGR of 6.6% during 2020-2027.
Dry type transformer market, by region
Asia-Pacific accounted for the largest share of $2.2 billion in 2019, and is projected to be $2.9 billion by 2027, growing at a CAGR of 5.7%. The largest share is attributed to factors such as the presence of highly populated countries such as India and China, new electrification projects in industrial, commercial, and infrastructure sectors. North America is expected to growth at the highest rate of 6.6% during the dry type transformer market forecast period, owing to growth in electricity demand in countries such as the U.S. Further, the growth potential of renewable energy sources in the U.S. is high
By Type
Dry Type Rectifier Transformer segment is projected as the fastest growing segment.
Dry type transformer market, by type
The dry type converter transformers segment accounted for the largest revenue share of $3.3 billion in 2019, owing to its extensive use in industrial, commercial, and other end uses.
By Technology
Vacuum Pressure Impregnated segment is projected as the fastest growing segment.
Dry type transformer market, by technology
The cast resin dry type transformer segment accounted for the largest revenue of $3.7 billion in 2019, owing to its widespread adoption in areas such as general & public buildings, industrial plants, wind turbine plants, solar farms, LNG vessels; commercial spaces such as airports & railway and special transformer applications such as furnace transformer, electric welding equipment, and UPS systems
By Phase
Three-phase segment is projected as the fastest growing segment.
Dry type transformer market, by phase
Single-phase dry type transformer accounted for $4.8 billion in 2019, owing to its large-scale adoption in low voltage distribution applications
By Voltage
Low Voltage segment is projected as the fastest growing segment.
Dry type transformer market, by voltage
Low-voltage dry type transformer accounted for $3.9 billion in 2019 due to its use in low-voltage industrial applications, commercial, and public buildings.
By End Use
Commercial segment is projected as the fastest growing segment.
Dry type transformer market, by end use
Industrial end use segment accounted for the largest share in 2019, owing to its large-scale adoption in marine, chemical, oil & gas, renewable energy generation, railway and others. Key manufacturers of dry type transformers focus on providing specialized transformers suited for each application.
Key Benefits For Stakeholders
- The report includes in-depth analysis of different segments and provides market estimations between 2019 and 2027.
- Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
- The key market players are profiled to gain an understanding of the strategies adopted by them.
- This report provides a detailed analysis of the current dry type transformer market trends and future estimations from 2020 to 2027, which helps identify the 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
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- Italy
- Spain
- UK
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of 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
Dry Type Transformer Market Report Highlights
| Aspects | Details |
 By TYPE |
|
 By TECHNOLOGY |
|
 By PHASE |
|
 By VOLTAGE |
|
 By END USE |
|
 By Region |
|
 Key Market Players | FUJI ELECTRIC CO. LTD., GENERAL ELECTRIC COMPANY, SCHNEIDER ELECTRIC SE, POWER SP. Z O.O., VOLTAMP TRANSFORMERS LTD., SIEMENS AG, WEG GROUP, BHARAT HEAVY ELECTRICALS LTD., HAMMOND POWER SOLUTIONS INC., KIRLOSKAR ELECTRIC CO. LTD., HITACHI LTD., EATON CORPORATION PLC, HYOSUNG HEAVY INDUSTRIES, TBEA CO. LTD., HANLEY ENERGY GCC |
Analyst Review
The dry type transformer market provides a substantial scope for growth. Increase in demand for electricity fueled by increased construction activities, increase in cross-country power transmission and distribution networks, replacement of old units, and mainstream adoption of renewable energy generation provide growth opportunities for the market expansion.
The limitations of dry type transformer over liquid-filled transformer is a major limiting factor in the adoption of dry type transformers. For the power and voltage rating, dry type transformer is costlier than oil cooled transformer. In addition, the development of solid-state transformers is likely to hamper the market growth. However, dry type transformers offer enhanced fire-retardant characteristics that makes it ideal for installations in fire prone areas. Only dry transformers can be used in areas such as multi-storey or high-rise buildings due to safety concerns.
The global dry type transformer market is segmented on the basis of type, technology, phase, voltage, and end use. The industrial sector is the main user of dry type transformers. Its applications include marine, chemical & petrochemical industries, manufacturing plants, smelting units, railways, and mining industries.
The global dry type transformer market is expected to reach $7.3 billion by 2027
Cast Resin dry type transformer holds the largest market share in 2019
To get latest version of dry type transformer market report can be obtained on demand from the website.
Adoption of dry type transformer in the renewable energy generation and industrial installations is a key trend favouring the growth of the dry type transformer market
The global dry type transformer market was $5.4 billion in 2019
The top ten market players are selected based on two key attributes - competitive strength and market positioning
Company profile has been done on the basis of each company's product differerentiation and its market presence globally.
Developments in the liquid-filled transformers tailored for individual applications, and development of solid-state transformers are likley to hamper the market growth
Acquisition and product launches are key growth strategies adopted by the players profiled in the report
Dry type transformers are distributor transformers suitable for use in fire-prone areas such as industrial and commercial setups as well as indoor residential applications where safety is a priority. Dry type transformers are designed to withstand harsh and corrosive environments
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