Dry Type Transformer Market Size, Share & Trends Analysis Report By Voltage (Low, Medium, High), By End Use (Industrial, Commercial, Utilities), By Region, And Segment Forecasts, 2024 - 2030

Dry Type Transformer Market Size & Trends

The global dry type transformer market was estimated at USD 6.85 billion in 2023 and is forecasted to grow at a CAGR of 6.2% over the forecast period. This growth is attributed to the increasing urbanization and industrialization across the globe which is driving the need for reliable electricity distribution systems, boosting the demand for transformers, including dry type transformers. Furthermore, stringent energy efficiency regulations and standards imposed by governments and environmental agencies encourage the adoption of energy-efficient dry type transformers over oil-filled transformers. Thereby boosting market growth.

Dry type transformers are preferred due to their reduced fire risk and environmental friendliness compared to oil-filled transformers, driving adoption in sensitive environments such as hospitals, schools, and residential buildings. In addition, increasing deployment of renewable energy sources such as wind and solar power necessitates efficient transformers like dry type transformers to facilitate grid integration and manage variable power output.

This product is considered to be more expensive than oil-filled transformers. Furthermore, dry type transformers typically have lower power density than oil-filled transformers, which may limit their application in certain high-power industrial settings where space constraints are critical. In addition, this product may face performance challenges in extremely harsh environmental conditions or high-humidity areas, impacting its reliability and lifespan. Such factors may negatively affect product growth.

Emerging economies are witnessing rapid industrial growth, requiring infrastructure development and reliable power distribution networks, which propel the demand for this product. Innovations in transformer design, such as improved cooling systems and materials, enhance the efficiency and reliability of dry type transformers, making them more attractive to end users. Furthermore, continuous research and development activities aimed at improving the efficiency, reliability, and performance of this product are expected to find opportunities in new applications and market segments.

Voltage Insights

Based on voltage, the market is segmented into low voltage, medium voltage, and high voltage. Medium voltage accounted for the largest revenue share of the market at 48.60% in 2023. They are crucial for stepping down voltage from the utility grid to levels suitable for distribution within industrial and commercial facilities. Furthermore, they are extensively used in industries such as mining, manufacturing, and oil & gas for powering heavy machinery, motors, and other high-power equipment. In addition to this, medium voltage products offer environmental benefits such as reduced risk of oil spills and leaks, making them suitable for sensitive areas and indoor installations.

Low voltage dry type transformer is expected to grow at the fastest rate of 6.5% over the forecast period. Low voltage product operates with voltages up to 1,000 volts (1 kV) and is commonly used in applications where voltage levels are lower and power demands are moderate. They are used in various industrial, commercial, and residential applications to offer reliable and safe electrical distribution. Furthermore, low voltage transformers are preferred in indoor environments on account of their reduced fire risk and environmental safety compared to oil-filled transformers.

End Use Insights

Based on end use, the market is segmented into industrial, commercial, utilities, and others. Utilities applications accounted for the largest revenue share of 41.35% in 2023. The product offers enhanced safety and environmental benefits compared to traditional oil-filled transformers. Dry type transformers are highly used in urban substations and other places where space and environmental concerns are paramount. Their non-flammable construction reduces fire risk and simplifies compliance with stringent safety regulations. In addition, with the ongoing focus on improving and expanding power distribution networks to enhance grid reliability and integrate renewable energy sources, dry type transformers are becoming an ideal choice for modern utility infrastructures owing to their durability and reduced maintenance requirements.

Industrial application is anticipated to grow at a significant rate over the forecast period. The demand is driven by the dry type transformer’s reliability, safety, and maintenance advantages. Industrial environments frequently require transformers which can resist harsh conditions and provide stable, uninterrupted power for heavy machinery and equipment. Dry type transformers, which use air for cooling rather than oil, are more suitable for such environments as they eliminate the risk of fire hazards associated with oil-filled units.

Regional Insights

The dry type transformer market in Asia Pacific accounted for the largest revenue share of 37.81% in 2023. The demand is driven by rapid industrialization, urbanization, and infrastructure development. Developing countries like China, India, and Japan are increasingly expanding their industrial and urban infrastructure, which is likely to increase the need for reliable, safe, and efficient power distribution solutions. Dry type transformers are used for their ability to handle the demands of growing cities and industrial areas while offering enhanced safety and lower maintenance needs.

North America Dry Type Transformer Market Trends

The dry type transformer market in North America accounted for a revenue share of 23.44% in 2023. The demand is driven by due to environmental considerations, stringent safety regulations, and infrastructure modernization efforts. The region's focus on lowering fire hazards and enhancing safety in densely populated urban areas makes dry type transformers, with their non-flammable and low-maintenance characteristics, particularly attractive. Moreover, the ongoing upgrades to aging power infrastructure and the push towards integrating renewable energy sources are expected to drive the requirement for reliable and efficient transformers that can meet modern performance and safety standards.

U.S. Dry Type Transformer Market Trends

The dry type transformers market in the U.S. is growing at a CAGR of 6.4% over the forecast period. The rising focus on improving grid reliability, reducing fire risks, and meeting environmental regulations is boosting the demand for dry type transformers in the country. The rising investments in infrastructure projects, including the modernization of power distribution systems, support renewable energy integration and enhance resilience. Dry type transformers operate safely in enclosed spaces, and their lower maintenance requirements are well associated with these objectives, making them an ideal choice for new installations and upgrades in both urban and industrial settings.

Europe Dry Type Transformer Market Trends

The dry type transformers market in Europe is growing at a CAGR of 5.8% from 2024 to 2030. The market growth is attributed to stringent environmental regulations by the government and the push towards sustainability. European countries are concentrating on reducing greenhouse gas emissions and improving energy efficiency, which is associated with the benefits offered by products, such as lower environmental impact and enhanced safety. The ongoing renovation of aging infrastructure and the expansion of smart grid technologies are also likely to contribute to the augmented adoption of dry type transformers, as they are well-suited for urban and industrial applications that require high reliability and minimal maintenance.

Key Dry Type Transformer Company Insights

Some of the key players operating in the market are ABB and Siemens Energy:

• ABB Ltd. is a Switzerland-based leader in automation and electrification technology. The company provides a wide range of products under metallurgy products, electric drivetrains, motors & generators, industrial software, robotics, PLC automation, power converters and inverters, drives, control tool solutions, and low voltage products & systems. It offers these products for numerous industries, including oil & gas, automotive, cement, chemicals, mining, power generation, and pulp & paper products.

• Siemens Energy is a leading energy technology provider for a wide range of industries, including oil & gas, power & heat generation, power transmission, marine, data centers, pulp & paper. Its product portfolio includes hybrid power plants operated with hydrogen, conventional and renewable energy technology, such as gas and steam turbines, and power generators and transformers. The company has approximately 99,000 employees who are working in more than 90 countries across the world.

IDEAL ELECTRIC POWER CO. and Ansaldo Energia S.p.A. are some of the emerging participants in the market. 

• Hammond Power Solutions Inc. is a North American manufacturer of custom and standard transformers for various industries including renewable energy, drive & automation, energy distribution, infrastructure, irrigation, and industrial. Its product portfolio includes a converter, distribution, furnace, multi-pulse, power, regulating, pad-mounted, and specialty transformers. Furthermore, this company operates around 9 warehouses across the U.S. and Canada.

• Gujarat Transformers Private Limited manufactures various types of transformers, including distribution, power, earthing, high frequency, variable frequency drive, converter duty, and air-cooled. Its product portfolio includes distribution, power, furnace, solar inverter duty, dry type resin dipped, cast resin dry type, and dry type with on-load tap charger transformers.

Recent Developments

• In April 2023, Eaton, an intelligence power management company, announced the acquisition of a 49% stake in Jiangsu Ryan Electrical Co. Ltd. (Ryan), a China-based manufacturer of power distribution and sub-transmission transformers, including dry type transformers. With this acquisition, Ryan and Eaton will be able to offer Ryan's high-quality products, and Eaton's global distribution will allow Eaton to better serve customers in Asia and around the world.

Dry Type Transformer Market Report Scope

Global Dry Type Transformer Market Report Segmentation

This report forecasts revenue growth at regional & country levels and provides an analysis of the industry trends in each of the segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global dry type transformer market on the basis of voltage, end use, and region:

• Voltage Outlook (Revenue, USD Million, 2018 - 2030­)

  • Low Voltage

  • Medium Voltage

  • High Voltage

• End Use Outlook (Revenue, USD Million, 2018 - 2030)

  • Industrial

  • Commercial

  • Utilities

  • Other End Use

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa