Dry type transformer is a type of power and magnetic core transformer that is designed on a relatively modern technology which uses forced or natural air cooling instead of oil. Dry type transformer uses environmentally safe high temperature insulation systems to cool. As this transformer consists of no moving parts, it requires least maintenance, while offering long-run cycle and reliability. Dry type transformers are completely hazard-free, and thus can be easily installed in schools, hospitals, factories, buildings, and chemical plants where fire safety is a major concern.
COVID-19 Impact on the Global Industry
The global dry type transformer market is anticipated to witness a decline in the growth rate in the COVID-19 pandemic. This is mainly due to the lockdown enforced across the globe, which has led to delay in projects & construction, disruption of supply chain, adverse impact on biofuel investments, lack of commission of renewable electricity projects, and other renewable heat projects. According to International Renewable Energy Agency (IRENA), China is the largest renewable energy producer across the globe with 40% of the global solar industry dependent on the country. These factors have adversely affected the growth of the global dry transformer market during the pandemic crisis.
However, many countries and industry players are taking strategic steps to sustain in the COVID-19 pandemic. For instance, in March 2020, Hammond Power Solutions (HPS) announced to continue supply their products online and that all the facilities will remain open even during the lockdown period. Furthermore, in September 2020, Germany announced to boost the production of transformers of all sizes & voltages by about 4.5%. These factors are generating investment opportunities for the global dry type transformer industry.
Key Developments in the Global Market
The key industry players are taking initiatives and adopting various business tactics & growth strategies such as mergers & acquisitions, partnerships, and product launches to maintain a strong position in the overall market, which is subsequently helping the dry type transformer market to grow exponentially.
In November 2018, ABB introduced the world’s first oil free dry-type digital transformer, ‘ABB Ability TXpert Dry’ and another transformer ‘TXpand’ at an event in in Xiamen, China. The aim of the company behind this new range product launches is to facilitate digitalization of grids and offer enhanced reliability, safety, and efficacy.
In January 2019, a leading manufacturer of dry type transformers & magnetics, Hammond Power Solutions launched an improved & upgraded line of three-phase encapsulated transformers for harsh and industrial environments. The HPS Titan N transformer is fully encapsulated in silica and epoxy, prevents the ingress of moisture, and provides protection from airborne contaminants.
Forecast Analysis of Dry Type Transformer Market
Global dry type transformer market is anticipated to witness a noteworthy growth over the forecast period due to the growing focus on replacing the existing electric equipment with advanced and high-quality systems. In addition, technological advancements in dry type transformers is expected to create massive opportunities for the global market growth by 2027. Conversely, higher costs associated with dry type transformers is likely to hamper the market growth in the near future.
The growing industrialization and the expansion in electricity distribution across the globe are the major factors estimated to boost the growth of the global dry type transformer market in the forecast period. Research Dive in its latest published report anticipates that the dry type transformer market will grow at a CAGR of 6.1% from 2020 to 2027. The Asia Pacific region is anticipated to witness a considerable growth throughout the forecast, owing to rising demand for electricity distribution in developing countries. The key players functioning in the global industry include General Electric, ABB Limited, Eaton Corporation, Siemens AG, Schneider Electric, CG Power and Industrial Solutions Ltd, Bharat Heavy Electricals Limited, Toshiba Corporation, and Raychem RPG.