Clean, Safe & Smart: Dry Type Transformer Market Powers Ahead with 6.1% CAGR to 2027

Dry Type Transformer Market to Extend $7.3 Billion by 2027, Driven by Smart Grid & Green Energy Surge

WILMINGTON, DE, UNITED STATES, July 7, 2025 /EINPresswire.com/ --

🔌 Overview: Dry Type Transformer Industry Outlook

According to a recent report by Allied Market Research, the dry type transformer market size was valued at $5.4 billion in 2019 and is projected to reach $7.3 billion by 2027, expanding at a CAGR of 6.1% from 2020 to 2027.

This growth reflects the global push toward renewable energy, urban electrification, and fire-resistant indoor power systems. Dry type transformers, cooled by air rather than oil, are becoming a key component of modern power grids and smart cities due to their low maintenance, eco-friendliness, and superior safety features.

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🌐 What Are Dry Type Transformers?

Dry type transformers are magnetic core transformers that use air as a cooling medium instead of flammable liquids. Unlike oil-filled counterparts, they pose no risk of leaks or fires, making them ideal for indoor installations, urban infrastructure, commercial buildings, and renewable energy plants.

These systems are available in single-phase and three-phase configurations, typically operating in low to medium voltage ranges, supporting loads in industrial machinery, residential power distribution, and even electric vehicle infrastructure.

🔍 Key Market Drivers

⚡ 1. Growth in Electrification & Infrastructure

The rising demand for electricity across developing and developed nations has triggered significant investments in power distribution infrastructure, where dry type transformers are increasingly preferred due to their durability and compact footprint.

🌞 2. Integration with Renewable Energy

With global renewable energy installations booming—particularly solar and wind power—the need for safe, grid-friendly transformers is rising. Dry type transformers are ideal for these clean energy applications, especially in remote and decentralized installations.

🔥 3. Fire & Environmental Safety

Dry type transformers do not contain hydrocarbons or flammable liquids, making them environmentally safe and non-toxic. Their high thermal resistance and fireproof epoxy resin encapsulation make them a top choice for urban substations, schools, hospitals, and high-rise buildings.

🏙️ 4. Smart Grids and EV Charging

The rollout of smart grid technologies and electric vehicle (EV) charging infrastructure is further fueling the dry type transformer market. These transformers provide stable and adaptable voltage levels required for EV stations and digitally managed power systems.

🧪 Technology Breakdown

🧱 Cast Resin Technology

Cast resin dry type transformers encapsulate windings in epoxy resin, creating a moisture-proof and fire-retardant unit. These are commonly installed in underground substations and urban buildings requiring high safety standards.

🌀 Vacuum Pressure Impregnation (VPI)

VPI transformers use vacuum and pressure cycles to infuse insulation into windings, offering mechanical strength, reliable performance, and versatile load handling—ideal for industrial and high-load environments.

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🌎 Regional Insights

🇦🇸 Asia-Pacific: Market Leader

Asia-Pacific accounted for over 41.2% of the dry type transformer market in 2019. Countries like China, India, and Japan are rapidly expanding their smart grid infrastructure, urban developments, and renewable energy capacities.

🇺🇸 North America: Fastest Growing

Expected to grow at a CAGR of 6.6% through 2027, North America is seeing strong demand due to:

Aging power infrastructure replacements

High renewable adoption in the U.S.

Growing use of dry type transformers in data centers and urban commercial buildings

🏭 Key Applications by Sector

Residential & Commercial: Safe, compact, and reliable transformers for homes, offices, hospitals, and schools

Industrial: Machinery voltage control, overload resilience, and fire safety in factories

Renewable Power Plants: Integration of solar and wind farms with distribution networks

Automotive (EVs): Power delivery for EV charging and battery storage facilities

💼 Leading Players in the Market

Prominent companies contributing to dry type transformer innovation and deployment include:

Eaton Corporation Plc

General Electric Company

Hitachi Ltd.

Bharat Heavy Electricals Ltd.

Hyosung Heavy Industries

Hammond Power Solutions Inc.

Kirloskar Electric Co. Ltd.

Power Sp. z o.o.

Fuji Electric Co. Ltd.

Henley Energy GCC

These companies are investing in R&D, product expansions, and strategic partnerships to strengthen their market presence and cater to increasing demand in renewable energy, construction, and industrial electrification.

🦠 COVID-19 Impact: Supply Chain & Project Delays

The COVID-19 pandemic disrupted the solar and wind power industries, especially in countries reliant on Chinese components. Over 40% of the global solar supply chain was affected, leading to delays in project completion and transformer deployments.

However, the post-pandemic recovery has reignited investment in sustainable infrastructure, electrification initiatives, and smart cities, giving fresh momentum to the dry type transformer market.

📊 Segment Highlights

Technology: Cast resin transformers dominate due to superior fire safety

Installation: Indoor segment leads, thanks to high-rise and commercial demand

Phase: Three-phase systems widely adopted in industrial & utility sectors

End Use: Power distribution, renewable energy, and commercial buildings drive demand

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🧭 Future Outlook

With increasing pressure to decarbonize the energy sector and modernize aging grids, dry type transformers are set to become a cornerstone technology for the future of power transmission and distribution.

Backed by smart grid expansion, EV infrastructure development, and green building codes, the dry type transformer market is heating up—efficiently and safely.

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About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.

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Allied Market Research
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