Dry Transformer Market

• Rising expansions of electricity networks the market growth

The rising expansions of electricity networks drive market CAGR for Dry Transformer supplements. Its wide applicability in electricity distribution drove the market growth. Large to small-scale industries employ machinery that has specific voltage requirements. Some industries, such as mining, oil & gas, and marine, have specialized voltage requirements, as fire safety is important in these sectors.

Additionally, to reduce the dependence on coal-based electricity generation, countries have agreed to raise the adoption of renewable energy generation in the total electricity produced. Dry-type transformers replace wet transformers in the renewable energy sector because of their safety and design aspects. Safety accounts for greater significance in the energy sector, meaning that dry-type transformer is becoming a transformer of choice in the cleaner energy segment that offer extended protection. This is a major driving force for the market.

Further, usage of environmental products is surging, resulting in the development of technologies that can help in achieving environmental targets. The liquid-fill transformers are subject to security and safety-related issues due to the low cooling rates, thus leading to leakages by overheating. The dry-type terminates spills and leaks and is a convenient option to replace liquid-fill transformers. Also, the liquid-fill transformers have a huge risk of catching fire; thus, further conventions are required to manage environmental and fire risks.

Hence, the use of eco-friendly products in the development and improvement of power infrastructure is considered, creating new opportunities for dry-type transformers worldwide. The progress of aging power distribution and transmission systems is expected to drive the growth of the market. The rising trend, due to rising domestic power demand and rapid industrialization, resulted in the enlargement of transmission networks and distribution. The growing demand for modernized and intelligent power distribution infrastructure is likely to create plenty of opportunities for the market. Thus, driving the Dry Transformer market revenue.

The Global Dry Transformer Market Industry is projected to experience substantial growth over the next decade. With a market value anticipated to reach 12.7 USD Billion by 2035, the industry is on a trajectory of significant expansion. The compound annual growth rate of 6.51% from 2025 to 2035 indicates a robust demand for dry transformers, driven by various factors including urbanization, energy efficiency initiatives, and technological advancements. This growth reflects the increasing reliance on reliable and efficient power distribution systems across diverse sectors, positioning dry transformers as a key player in the global energy landscape.

Regulatory support and incentives are instrumental in propelling the Global Dry Transformer Market Industry. Governments worldwide are implementing policies that encourage the adoption of energy-efficient technologies, including dry transformers. These regulations often come with financial incentives, making it more attractive for businesses to invest in modern transformer solutions. As a result, the market is poised for growth, with an expected increase in value to 6.34 USD Billion by 2024. This supportive regulatory environment not only fosters innovation but also enhances the overall competitiveness of dry transformers in the energy sector.

The Global Dry Transformer Market Industry is witnessing a notable increase in demand for energy-efficient solutions. As industries and utilities strive to reduce operational costs and carbon footprints, dry transformers, known for their lower losses and higher efficiency, are becoming increasingly popular. This shift is driven by regulatory frameworks promoting energy efficiency across various sectors. For instance, the global market is projected to reach 6.34 USD Billion in 2024, reflecting a growing preference for sustainable technologies. The emphasis on energy conservation is likely to propel the adoption of dry transformers, aligning with global sustainability goals.

Rapid urbanization and infrastructure development are pivotal drivers of the Global Dry Transformer Market Industry. As cities expand and new infrastructure projects emerge, the demand for reliable power distribution systems intensifies. Dry transformers, with their compact design and suitability for urban environments, are increasingly favored for new installations. Governments worldwide are investing heavily in infrastructure, which is expected to boost the market significantly. By 2035, the market is anticipated to grow to 12.7 USD Billion, indicating a robust correlation between urban growth and the adoption of dry transformer technology.

The integration of renewable energy sources into the power grid is a significant driver for the Global Dry Transformer Market Industry. As countries transition towards cleaner energy solutions, the need for efficient power distribution systems becomes paramount. Dry transformers are particularly suited for renewable energy applications due to their ability to handle variable loads and maintain stability. This trend is expected to accelerate market growth, with projections indicating a compound annual growth rate of 6.51% from 2025 to 2035. The alignment of dry transformers with renewable energy initiatives positions them as a vital component in the evolving energy landscape.

Technological advancements play a crucial role in shaping the Global Dry Transformer Market Industry. Innovations in materials and design have led to the development of more efficient and durable dry transformers. Enhanced insulation materials and cooling technologies contribute to improved performance and reliability. These advancements not only reduce maintenance costs but also extend the lifespan of transformers, making them more appealing to end-users. As the industry continues to evolve, the integration of smart technologies into dry transformers is likely to further enhance their appeal, driving market growth in the coming years.

By Region, the study states market insights into North America, Europe, Asia-Pacific, and Rest of the World. The Asia-Pacific Dry Transformer market area will dominate this market, owing to the upgradation of the existing distribution network and to serve the increasing demand for electricity and more population leading to the increased consumption of energy.

Further, the main countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Dry Transformer Market Share By Region 2022 (%)

Source: Market Research Future Database, Secondary Research, Primary Research, and Analyst Review

Europe's Dry Transformer market accounts for the second-largest market share due to the increasing process of commissioning large projects in the transmission and generation sectors. Further, the German Dry Transformer market held the largest market share, and the UK Dry Transformer market was the fastest-growing market in the European Region.

The North American, Dry Transformer Market, is expected to grow at the fastest CAGR from 2023 to 2032. This is due to high investment in transmission & distribution networks creating a wide scope for the electrical components in this Region. Moreover, the US Dry Transformer market held the largest market share, and the Canadian Dry Transformer market was the fastest-growing market in the North American Region.

Leading market players are making huge investments in research and development in order to expand their product lines, which will help the Dry Transformer market rise even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launching, contract-based agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Dry Transformer industry must offer cost-effective items.

Manufacturing narrowly to minimize operational costs is one of the key business tactics manufacturers use in the Dry Transformer industry to benefit clients and increase the market sector. In recent years, the Dry Transformer industry has offered some of the most significant medical advantages. Major players in the Dry Transformer market, including Hammond Power Solution Inc. (Canada), ABB Ltd. (Switzerland), Siemens AG (Germany), General Electric (U.S.), Jinpan International Ltd. (China), Schneider Electric (France), and others, are attempting to increase market demand by investing in research and development operations.

Hammond Power Solutions Pvt. Ltd. (Asia) is an ISO 9001:2015, EMS 14001:2015, and OHSAS 18001:2007 certified company with more than three decades of experience. It produces oil-filled transformers up to 50 MVA, 132 kV Class, dry-type transformers up to 5 MVA, 33 kV Class, and Furnace/Arc Furnace transformers up to 30 MVA. They are one of the largest producers of dry-type transformers. They produce a variety of standard and custom transformers that are exported globally in electrical equipment and systems. They support solid industries such as solar, oil and gas, mining, steel, waste, and water treatment.

The company leads the industry in these markets through its breadth of products, technical design strength, and manufacturing capabilities. By acquiring Pan-Electro Technic Enterprises Private Ltd, Hammond expanded its Asian presence and widened their product range and manufacturing capabilities in oil-filled and dry-type technology.

General Electric Company (GE) is a high-tech industrial company. It runs through three segments: Renewable Energy, Aerospace, and Power. Under Renewable Energy, its portfolio of business units includes onshore and offshore wind, blade manufacturing, hydro, grid solutions, storage, hybrid renewables, and digital services offerings. Its Aerospace designs and manufactures commercial and military aircraft engines, electric power, integrated engine components, and mechanical aircraft systems and also provides aftermarket services.

Under the Power segment, the products and technologies harness resources, such as oil, gas, fossil, diesel, and nuclear, to produce electric power and include gas and steam turbines, full balance of plant, upgrade and service solutions, and data-leveraging software. The Power segment is organized into gas power, steam power, power conversion, nuclear and other.