Dry Type Transformer Market size is set to surpass USD 33 billion by 2032, according to a new research report by Global Market Insights Inc.
The report indicates that the expansion of renewable energy networks to improve grid access will proliferate dry type transformer construction. Several financial institutions such as the Asian Development Bank have made significant investments in utility-scale clean energy projects. Despite rising material and equipment costs, the price of newly commissioned solar PV, offshore, and onshore wind power projects also declined in recent years. These factors, alongside rapid urbanization and the subsequent rise in electricity demand, will hasten the development of dry type transformer components.
Ease of installation & coast-effectiveness to fuel adoption of self-air dry-type transformers
The self-air technology segment is slated to depict over 9% CAGR through 2032, on account of the low price, easy installation, and small capacity, among other product benefits. The core and windings of air-fired dry type transformers are also protected from mechanical damage through a metal enclosure. This air-fired method, suitable for transformers of up to 1.5MVA, is adopted in environments prone to fire outbreaks. The report says that the emphasis on limiting hazards to power transmission and distribution lines will boost product installation to meet voltage needs.
Daily peak electricity consumption to stimulate usage of class R dry type transformers
Based on insulation, the dry type transformer industry value from class R segment is anticipated to reach nearly USD 15 billion by 2032, as a result of the product’s applicability across higher temperature gradients. The gradual recovery in economic and industrial activities has led to robust electricity demand, especially in developing nations. For example, in April 2022, the Power Ministry of India revealed that the maximum power demand met during the day reached 201.06 GW. This rise in peak load demand is likely to assert a positive influence on class R dry type transformer development over the forecast period.
Economic revival & high reliance on electricity spur < 5 MVA dry type transformer installation
In terms of rating, the < 5 MVA segment accounted for over 50% share of the dry type transformer market in 2022, considering the extensive product usage in process, power, and infrastructure sectors. With the skyrocketing power demand, investments in the power sector value chain are set to rise, especially in emerging economies. Despite a slump in electricity consumption amid the initial months of the COVID-19 pandemic, the steady economic revival will contribute to the consumption of < 5 MVA dry type transformers.
Industrial sector recovery hastens industry development
The industries application segment crossed USD 5.5 billion in 2022, due to the high emphasis on the integration of a range of frequency power distribution links. In recent years, both thermal and renewable power generation witnessed an upsurge, mainly owing to the gradual recovery in industrial operations from the COVID-19 pandemic. The report claims that the growing concern about energy efficiency across industry verticals will augment the sales of dry type transformers for clean energy generation applications.
Browse key industry insights spread across 800 pages with 1780 market data tables & 25 figures & charts from the report, “Dry Type Transformer Market- By Core (Closed, Shell, Berry), By Winding (Two Winding, Auto Transformer), By Technology (Self Air, Air Blast), By Insulation, By MVA Rating (≤ 5, > 5 ≤ 30, > 30), By Mounting, By Application (Industries, Inner-City Substation, Indoor/Underground Substation, Renewable Generation), 2023 - 2032”, in detail along with the table of contents:
High spending on infrastructure projects to stimulate dry type transformer production in APAC
Asia Pacific dry type transformer industry revenue is expected to register USD 12 billion by 2032. This growth is attributed to the mounting electricity consumption and spending on infrastructure expansion projects. For example, in July 2022, China announced plans to set up a USD 74.69 billion state infrastructure investment fund to revive the flagging economy. The report says that these initiatives will escalate the need for electricity and in turn, drive dry type transformer use across the region.
Merger & acquisition strategies to influence the industry landscape
The strategic landscape of the dry type transformer market is inclusive of TMC Transformers S.P.A., URJA Techniques, Raychem RPG Private Limited, Bharat Heavy Electricals Limited (BHEL), Toshiba Energy Systems & Solutions Corporation, CG Power & Industrial Solutions Ltd., Hitachi Energy Ltd., Siemens Energy, Schneider Electric, Eaton, GE, and ABB, among other companies. Strategic mergers and acquisitions are some of the key initiatives being undertaken by these firms to reinforce their footprint in the market.
For instance, in February 2022, TMC Transformers took over Intermagnetics srl, a low-voltage transformer manufacturer, from Hitachi Energy Italy. This acquisition enabled the company to strengthen its special transformer portfolio and expand the Intermagnetics product range, and in turn establish a strong presence in the dry-type transformer industry.