U.S. Dry Type Transformer Market Size, Share & COVID-19 Impact Analysis, By Technology (Cast Resin and Vacuum Pressure Impregnated), By Phase (Single-Phase and Three-Phase), By Rating (Less than 5 MVA, 5 MVA to 30 MVA, and More than 30 MVA), By Installation (Outdoor and Indoor), By Application (Industries, Inner-City Substations, Indoor and Underground Substations, Renewable Generation, and Others) and Country Forecast, 2023-2030

The U.S. dry type transformer market size was worth USD 1.37 billion in 2022 and is projected to grow at a CAGR of 6.58% during the forecast period. 

Dry type transformers are electrical transformers that rely on air or solid insulation to dissipate heat generated during the transformer's operation in place of using liquid as a coolant or insulating medium. These transformers are commonly used in various applications across the U.S. and around the world due to their safety, environmental friendliness, and efficiency. The increasing adoption of renewable energy sources, such as wind and solar power, has been driving the demand for dry type transformers. These transformers are often used to connect renewable energy installations to the grid.

Energy efficiency and environmental considerations have been prominent drivers in the U.S. dry type transformer market. Dry-type transformers are favored for their eco-friendliness and energy-efficient operations, making them suitable for green building projects and applications requiring high efficiency. As the U.S. electrical grid continues to age, there has been a need to replace older transformers, including oil-filled transformers, with more modern and environmentally friendly dry-type transformers.

The impact of COVID-19 on the U.S. dry type transformer market was negative due to various factors such as disruptions in the supply chain, changes in demand for electricity, and overall economic conditions. During the initial phases of the pandemic, manufacturing and supply chain activities faced challenges due to lockdowns and restrictions, which affected the production and distribution of transformers.

U.S. Dry Type Transformer Market Trends

Increasing Adoption of Renewable Energy Sources is Propelling Market Growth

The increasing adoption of renewable energy sources, such as wind and solar power, is indeed a significant driver propelling the U.S. dry type transformer market growth. Renewable energy sources are often located in remote areas or offshore, requiring transformers to step up the medium voltage for efficient transmission and distribution. Dry-type transformers are preferred for their safety and reliability in these installations. Renewable energy projects, such as wind farms and solar arrays, need to be seamlessly integrated into the existing electrical grid. These transformers play a crucial role in connecting these intermittent energy sources to the grid, ensuring a stable power supply.

For instance, in September 2023, Vestas published that it will begin delivering the V163-4.5MW turbines for the wind farm in the second quarter of 2024.

U.S. Dry Type Transformer Market Growth Factors

Integration of Digital Technologies and Smart Grid Solutions Has Led to Market Development

Smart transformers are a key component of grid modernization efforts. They enable utilities and grid operators to monitor, control, and optimize power distribution more efficiently. As grids become smarter and more adaptable, there is a growing need for transformers that can support these advanced functionalities. Smart transformers are equipped with sensors and communication capabilities that allow real-time monitoring of various parameters, including temperature, voltage, and load conditions. This data provides valuable insights into transformer health and performance, enabling proactive maintenance and reducing downtime.

For instance, in September 2019, Siemens announced the joint activation of a newly installed connected power transformer, Siemens Sensformer, at TRANSCO’s Al Foah 220/33-kilovolt substation.

The ability to remotely control smart transformers allows for load management and voltage regulation, optimizing power distribution. This is especially important in renewable energy integration and areas with varying energy demands. The demand for smart transformers within the dry-type transformers market is expected to continue to increase. Their ability to enhance grid performance, reduce energy consumption, improve reliability, and support the integration of renewable energy sources makes them a vital component of modern electrical distribution systems.

RESTRAINING FACTORS

High Initial Cost of Dry Type Transformer May Hinder Market Growth

Dry type transformers are known for their higher upfront purchase price compared to traditional oil field transformers. These transformers are designed to operate without the need for oil cooling or insulation. This requires the use of specialized materials such as epoxy resin or cast coil technology, which are more expensive than mineral oil-filled transformers.

The manufacturing process for dry type transformers can be more complex and labor-intensive due to the precision required in winding coils and encapsulating in epoxy resin or other insulating materials. This complexity can drive up production costs and restrain the industry of dry-type transformers. Dry type transformers are often customized to meet specific voltage and load requirements, which can result in higher manufacturing costs compared to mass-produced oil-filled transformers. They are considered safer due to the absence of flammable oil. They often incorporate additional safety features such as fire-resistant materials and protective enclosures, adding to the overall cost.

U.S. Dry Type Transformer Market Segmentation Analysis

By Rating Analysis

Based on rating, the market is segmented into less than 5 MVA, 5 MVA to 30 MVA, and more than 30 MVA.

The prominence of the 5MVA to 30 MVA segment in the U.S. dry type transformer market holds a strong demand for transformers within this power capacity range. This could be attributed to various factors, such as the prevalent power requirements in specific industries, grid infrastructure upgrades, or the adoption of sustainable energy sources that necessitate efficient power distribution. As industries evolve and energy demands increase, the demand for transformers within this segment is likely to play a pivotal role in shaping the overall landscape of the dry type transformer market.

The 5MVA to 30 MVA segment holds a significant share in the dry type transformer market due to its suitability for diverse applications. This range is crucial for industries requiring moderate to high power, such as manufacturing and petrochemicals, as well as for large commercial complexes.

By Installation Analysis

Based on installation, the market is segmented into outdoor and indoor.

The indoor segment's dominance in the market can be attributed to specific advantages associated with indoor installations. Indoor transformers are often preferred in situations where space is constrained or where environmental factors, such as weather conditions, need to be controlled for optimal performance.

On the other hand, outdoor dry type transformers are designed for installations in open-air environments where they are exposed to weather conditions, such as rain, snow, and sunlight.

By Phase Analysis

Based on phase, the market is segmented into single-phase and three-phase.

The dominance of the three-phase segment in the market by phase can be attributed to its compatibility with widely adopted three-phase power distribution systems. These transformers efficiently transfer power, providing balance and reliability essential for industrial, commercial, and utility applications.

A single-phase dry type transformer has two primary and two secondary windings, allowing it to handle a single Alternating Current (AC) waveform. Single-phase transformers are commonly used in residential and light commercial settings for applications such as lighting, appliances, and small machinery.

By Technology Analysis

Based on technology, the market is segmented into cast resin and vacuum pressure impregnated.

The dominance of the cast resin segment can be attributed to its multifaceted advantages. Cast resin transformers have gained prominence for their environmental friendliness, as they eliminate the need for oil in their insulation system, aligning well with the global push toward sustainable technologies. Safety is a key driver, given their inherent fire resistance, making them ideal for applications where stringent safety standards are paramount, such as in urban areas or enclosed spaces.

The significant share of Vacuum Pressure Impregnated (VPI) transformers in the market underscores their popularity and advantages. VPI technology involves the impregnation of transformer windings with a varnish under vacuum conditions, ensuring optimal insulation and reliability.

By Application Analysis

Based on application, the market is divided into industries, verticals, intra-city substations, indoor and underground substations, renewable generation, and others.

The industries segment is expected to account for a significant U.S. dry type transformer market share due to its widespread use in oil and gas, chemical, shipping, railway, renewable energy generation, and other fields. In addition, major manufacturers in this industry focus on supplying specialized transformers suitable for various applications.

The indoor and underground substations segment is expected to grow due to the advantages of these transformers, such as low fire hazard, reliability, environmental friendliness, low noise level, compact design, low maintenance, and moisture resistance. As a result, growing security concerns due to strict government norms are further driving the growth of the segment.

The renewable generation segment is expected to grow significantly due to the increasing adoption of clean energy systems coupled with growing electrification programs.

List of Key U.S. Dry Type Transformer Market Companies

In terms of the competitive landscape, the market depicts the presence of established and emerging dry-type transformer producers in the U.S. GE dominated the U.S. dry type transformer market in 2023. Some of the other companies with a considerable presence in the U.S. market are ABB, TMC transformers, ELSCO Transformers, Hammond Power Solutions, Hitachi Energy, Southland Electrical Supply Company Inc., Eaton, Siemens, and Schneider Electric.

LIST OF KEY COMPANIES PROFILED:

• GE (U.S.)


• ABB (U.S.)


• TMC transformers (U.S.)


• ELSCO Transformers (U.S.)


• Hammond Power Solutions (U.S.)


• Hitachi Energy (U.S.)


• Southland Electrical Supply Company Inc. (U.S.)


• Eaton (U.S.)


• Siemens (U.S.)


• Schneider Electric (U.S.)

KEY INDUSTRY DEVELOPMENTS: 

• June 2023: Hitachi Energy recently delivered a groundbreaking solution with the launch of the latest innovations in transformer insulation and components. The company presents its largest innovation in transformer insulation and a few components.


• March 2021: Heavy duty machine and service company Barloworld Equipment Mining expanded its mining solution offerings with the introduction of the Caterpillar MD6200 rotary blast hole drill. The MD6200 drill has been created with the consumer in mind and was constructed with caterpillar standards utilizing existing legacy caterpillar foundations.               


• June 2020: A leader in power management and solution provider, Eaton Corporation, declared the accomplishment of its acquisition of Cobham Mission Systems, which is one of the leading producers of environmental systems, air-to-air refueling systems, and actuation, primarily for the defense sector.

REPORT COVERAGE

The market research report provides a detailed analysis of the market. It focuses on key aspects, such as an overview of technological advancements, information about new product launches, and key industry developments, such as mergers, partnerships, and acquisitions. Besides this, the report also offers insights into the market trends and highlights key industry dynamics. In addition to the aforementioned factors, it encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation