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Vacuum Pressure Impregnated (VPI) Transformer Market - By Winding (Two Winding, Auto Transformer), By Rating (≤ 5 MVA, > 5 MVA to ≤ 30 MVA, > 30 MVA), By Application (Industries, Inner-City Substations, Indoor/Underground Substations, Renewable Generation) & Forecast, 2023 – 2032

  • Report ID: GMI7329
  • Published Date: Nov 2023
  • Report Format: PDF

Vacuum Pressure Impregnated Transformer Market Size

Vacuum Pressure Impregnated Transformer Market was valued at USD 4.9 billion in 2022 and is projected to grow at a CAGR of 9.4% by 2032. The electricity industry presents a multitude of opportunities on a global scale, each influenced by factors such as the size of operations, network characteristics, customer demographics, and ownership models.

Vacuum Pressure Impregnated Transformer Market

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Various models are used to evaluate tariffs and revenue streams, considering this diversity and enabling meaningful comparisons. However, despite these distinctions, both Distribution System Operators (DSOs) and Transmission System Operators (TSOs) share a common commitment to ensuring the delivery of high-quality and dependable electrical power to their customers.

A Vacuum Pressure Impregnated (VPI) transformer, also referred to as a dry-type transformer, is a specific type of electrical transformer designed for use in indoor electrical distribution systems. Unlike conventional oil-filled transformers, VPI transformers employ epoxy resin for insulation and protection, making them well-suited for environments where safety, cleanliness, and fire resistance are paramount. Throughout the evolution of power transmission networks, they have played a critical role in delivering electricity across regions.

Over the years, traditional technologies in this field have undergone significant advancements in response to the increasing demand for electricity and the expansion of the grid. These stationary devices effectively mitigate mechanical losses but are susceptible to electrical losses. These losses associated with transmission components can result in grid instability and reduced efficiency. As a result, major market players have strategically focused on maintaining energy efficiency by minimizing product losses and ensuring operational flexibility.

The industry could encounter challenges stemming from the significant upfront expenses and the escalating costs associated with replacing dry-type transformers. The advancement of technology, driven by strict regulations and labeling standards, has led to higher pricing for top-tier products. Transformers hold a crucial role in maintaining voltage regulation and current-carrying capacity within the transmission and distribution network. Given their essential function in electrical applications and the need for precise operation, substantial investments are made in quality assurance and the automated production of product components. The integration of advanced electrical components and the growing demand for enhanced energy efficiency are additional factors contributing to the rising costs of transformers.

COVID-19 Impact

Throughout the COVID-19 pandemic, the development, construction, and maintenance of power infrastructure continued without being significantly hindered by government-imposed restrictions on new energy projects. However, as governments began implementing measures to revitalize operations in major industries, manufacturing facilities, and infrastructure projects, this is anticipated to foster business progress.


Vacuum Pressure Impregnated Transformer Market Trends

The aging electric infrastructure is facing increasing pressure to enhance its operations beyond its original design capacity. The modernization of grid networks to make them "smarter" and more resilient through the incorporation of innovative equipment, technologies, and controls will have a positive impact on the business outlook. These units work in tandem and communicate to provide electricity more efficiently, significantly reducing the duration and frequency of power outages, expediting service restoration, and mitigating the impact of storms during outages.

Consumers can gain better control over their energy consumption and costs through improved access to data. Furthermore, utilities can reap various benefits from a modernized grid, including decreased peak loads, enhanced security, reduced operational expenses, and increased integration of renewable energy sources.

Vacuum Pressure Impregnated Transformer Market Analysis

 VPI Transformer Market Size, By Winding, 2021 - 2032 (USD Million)

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Based on winding, the market is segmented as two winding and auto transformer. The auto transformer segment held a market value of more than USD 1.5 billion in 2022. The market for auto transformers is well-positioned to gain a larger share of the market due to their efficient transformation capabilities and operational versatility, which set them apart from their competitors. Key factors driving the adoption of these transformers include their compact unit design, cost-effectiveness, and higher efficiency. Furthermore, the integration of intelligent monitoring technologies has not only enhanced the reliability of the products but has also made them more cost-effective, thereby further fuelling business landscape.


Based on rating, the VIP transformer market is segmented as ≤ 5 MVA, > 5 MVA to ≤ 30 MVA, and > 30 MVA. The market for transformers with a capacity of 5 MVA or less is poised for substantial growth due to their extensive utility in various applications, spanning from process industries to power and infrastructure sectors. This growth is further propelled by the rapid adoption of renewable energy sources in residential settings and the swift expansion of micro-grid networks. The industry is witnessing an increasing demand for compact indoor transformers, which aligns with the cost-conscious preferences of consumers. Manufacturers are actively responding to this demand by integrating sustainable production methods.

VPI Transformer Market Revenue Share, By Application, 2022

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Based on application, the vacuum pressure impregnated transformer market is segmented as industries, inner-city substations, indoor/underground substations, renewable generation, and others. The industries application is set to grow at a CAGR of over 8.2% by 2032. The demand for Vacuum Pressure Impregnated (VPI) transformers in industrial applications is projected to increase due to a growing emphasis on integrating comprehensive frequency distribution networks and mounting concerns about energy efficiency. Moreover, the demand for dry-type transformers is anticipated to receive a substantial boost from the escalating requirement for ultra-high voltage networks. The surge in investments from both private and government organizations in electrification programs in developing nations is poised to further bolster the industry's growth prospects.

North America VPI Transformer Market Size, 2021 - 2032 (USD Million)

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The Vacuum Pressure Impregnated transformer market across the North America held a market share of over 19.4% in 2022. Countries across North America, including the United States, Canada, and Mexico, have witnessed a significant uptick in the demand for electrical products. This rise can be attributed to increased investments in the expansion of long-distance electricity grids. According to the Energy Information Administration (EIA), the share of power generation from renewable sources is forecasted to increase from 18% of total electricity generation to 38% by 2050. Furthermore, the growing focus on replacing outdated electrical equipment with advanced, high-quality systems is expected to further drive the demand for these products across the region.

Vacuum Pressure Impregnated Transformer Market Share

ABB holds a significant presence in the VPI transformer industry, known for its extensive expertise in the design and manufacture of various transformer technologies, including open-wound, Vacuum Pressure Impregnated (VPI), Vacuum Pressure Encapsulated (VPE), and oil-immersed transformers, among others. The company boasts a long and storied history deeply embedded in the transmission and distribution sector. Over the years, ABB has provided transformer solutions across a wide range of applications, spanning various industries, inner-city substations, and underground substations.

Some of the key market players operating across the vacuum pressure impregnated transformer industry are:

  • ABB
  • GE
  • Eaton
  • Schneider Electric
  • Siemens Energy
  • Hitachi Energy Ltd.
  • CG Power & Industrial Solutions Ltd.
  • Toshiba Energy Systems & Solutions Corporation
  • Bharat Heavy Electricals Limited (BHEL)
  • Raychem RPG Private Limited
  • Fuji Electric Co., Ltd.
  • WEG
  • URJA Techniques
  • TMC Transformers S.P.A.

Vacuum Pressure Impregnated Transformer Industry News:

  • In April 2022, Siemens Energy has introduced its newest offering, the CAREPOLE, a Vacuum Pressure Impregnated (VPI) pole-mounted transformer, into the American grid market. Specifically designed for pole applications, this transformer is available in single-phase configurations with power ratings ranging from 10 kVA to 100 kVA and voltage levels up to 36 kV. The CAREPOLE is characterized by its extended operational lifespan, improved environmental sustainability, and reduced outage occurrences, positioning it as a distinct and eco-friendly alternative to traditional oil-filled transformers.

Vacuum Pressure Impregnated Transformer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in ‘000 Units & USD Million from 2019 to 2032, for the following segments:

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By Winding, 2019 - 2032 (‘000 Units & USD Million)

  • Two Winding
  • Auto Transformer

By Rating, 2019 - 2032 (‘000 Units & USD Million)

  • ≤ 5 MVA
  • > 5 MVA to ≤ 30 MVA
  • > 30 MVA

By Application, 2019 - 2032 (‘000 Units & USD Million)

  • Industries
  • Inner-City Substations
  • Indoor/Underground Substations
  • Renewable Generation
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • Russia
    • UK
    • Italy
    • Spain
    • Netherlands
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • Australia 
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Qatar
    • Egypt
    • South Africa
    • Nigeria
  • Latin America
    • Brazil
    • Peru
    • Argentina


Authors: Ankit Gupta, Vinayak Shukla

Frequently Asked Questions (FAQ) :

Vacuum pressure impregnated (VPI) transformer industry size reached USD 4.9 billion in 2022 and is projected to witness 9.4% CAGR from 2023-2032 influenced by factors, such as the size of operations, network characteristics, customer demographics, and ownership models

Vacuum pressure impregnated transformer industry size from auto transformers exceeded USD 1.5 billion in 2022 owing to higher integration of intelligent monitoring technologies for enhancing the reliability and cost-effectiveness

How is the demand for vacuum pressure impregnated transformers driven across industries?

North America held over 19.4% of the vacuum pressure impregnated transformer industry share in 2022 driven by the surging demand for electrical products in the United States, Canada, and Mexico

Vacuum Pressure Impregnated (VPI) Transformer Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 14
  • Tables & Figures: 678
  • Countries covered: 22
  • Pages: 250
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