Global Dry Type Transformer Market Expected to Reach $6,556.7 Million by 2027, at a Growing CAGR of 6.1% - Research DiveDownload Sample Reports Overview
The global dry type transformer market is valued at $6,556.7 million by 2027, surging from $4,822.4 million in 2019 at a noteworthy CAGR of 6.1%.
Impact Analysis of COVID-19 on the Dry Type Transformer Market
The production in the global market for dry type transformer is projected to slow down in the midst of the COVID-19 health emergency, due to complete shutdown of certain ventures and disruption of supply chains, resulting in revenue losses. Therefore, the significant companies involved in dry type transformer businesses, like ABB, have expanded their production capacity of digital dry type transformers with increased capital expenditure despite the pandemic. It is expected that the demand for digital dry transformers will grow after the crisis and reach its peak in the upcoming years.
On the other hand, some of the notable dry type transformer service providers like Schneider Electric have expirenced growth in their businesses, as they started their services online during covid-19 and experienced stronger growth compared to that in 2019. Therefore, such companies have seen an upsurge in growth, throughout the pandemic period. These elements may lead to creating lucrative opportunities for investors, in the forecast period.
Dry Type Transformer Market Analysis:
The enormous growth of the global dry transformer market is mainly attributed to its wide applications in electricity distribution. The extension of electricity distribution networks all over the globe and industrialization in developing countries drive the market growth. Furthermore, the notable dry type transformer service providers are offering services according to the need of a client with enhanced integrated safety features at a less expensive rate. In addition, these players are following business expansion, strategic collaborations, and technological innovations to acquire the largest share in the global industry. For instance, ABB innovated “HiDry72”, a dry-type transformer, with voltage capacity of 72.5 kV for megacities, as they require more power to deliever to downtown areas. These key factors may lead to a surge in the demand for dry type transformer services in the global market.
Fluctuations in prices may create a negative impact on global dry type transformer market, throughout the analysis timeframe. Furthermore, cast resin dry transformer has low heat control performance compared to oil based transformer. These type of factors may hamper the market of dry type transformers.
The global dry type transformer industry is growing extensively particularly in China, India, Brazil and North America regions. This factor will increase the demand for dry type transformers in the forecast years. Furthermore, significant dry type transformer industries are offering digital technologies for more effective and enhanced customer experiences. Also, these players are adopting digital dry transformers, featured with power grids that can monitored and it can reduce the repetitive task of monitoring the transformer. These factors may provide lucrative opportunities for the global dry type transformer market, in the coming years.
The rectifier transformer sub segment of the dry type transformer market will have the fastest growth and it is projected to surpass $2,557.7 million by 2027, with an increase from $1,851.7 million in 2019. Rectifier transformer offers voltage regulations as they are using diodes or thyristors in the tank and they are recognized as the best option for industrial processes, as they require direct current supply. Contrary to this, converter transformer will have a significant market share and is projected to grow at a CAGR of 5.9% by registering a revenue of $3,999.0 million by 2027. Extensively growing concern about the environmental pollution along with supportive government policies is anticipated to create demand for dry type transformer which will ultimately surge the growth of the segment, during the projected period.
Cast resin sub-segment for the dry type transformer market shall have rapid growth and it is anticipated to generate a revenue of $4,438.2 million by 2027, during the forecast period. Cast resin dry type transformers are coated by epoxy resin which prevents moisture into the windings and protects the transformer against adverse humid conditions. Due to these factors, the adoption of cast-resin dry-type transformers will extensively increase in the power sector, which may offer lucrative opportunities for the segment, during the forecast timeframe. However, vacuum pressure impregnated (VPI) sub segment for the global market shall have the fastest growth and is projected to reach up to $2,118.5 million by 2027, at a 6.5% CAGR. The VPI technology in dry type transformer offers varnish coating of polyester which helps transformers to be operational during higher pressure activities. Moreover, the rapid shift towards the ‘asset-light lifestyle’ of the working professionals is one of the key factors for the growing demand for the segment which will eventually drive the market, during the forecast period. Furthermore, minimization in administration cost, instant support, and superior servicing & maintenance offered by the dry type transformer industry may create massive opportunities for the segment, over the forecast timeframe.
The three-phase sub segment of dry type transformer market will be the fastest-growing and it is expected to register a revenue of$ 643.2 million by 2027, throughout the analysis timeframe. In addition, key players operating in this market are developing digital technologies in dry type transformer to serve the customers. For instance, HITACHI-ABB offers TXpert technology for digital dry type transformer; it is designed with smart hardware and software components which offers tracibility and monitoring of the performance of dry type transformer. It is the world’s first digital dry transformer. Such technological advancements are projected to upsurge the growth of the segment, during the projected timeframe.
The low voltage range sub-segment shall have rapid growth and is anticipated to generate a revenue of $4,665.2 million by 2027, during the forecast period; this is mainly because of increasing adoption of transformers that are not harmful for environment.
The industrial sub-segment may experience significant growth during the forecast period with a revenue of $3,590.1 million with CAGR of 5.9% due to higher applications in different industries such as oil, gas, automobile, steel manufactures, electrochemical industry and many more applications. However, the commercial sub-segment of dry type transformers will have the fastest growth and it is projected to surpass $2,181.2 million by 2027, with an increase from $1,563.3 million in 2019.
The dry type transformer market for the North American region will be a rapidly-growing market. This market has generated revenue of $1,210.4 million in 2019 and is further projected to reach up to $1,708.0 million by 2027. The demand for dry type transformer is surging in the North America region, specifically because of rapid enhancement in technology by industry proclivity towards the transformer technologies. For instance, Hitachi ABB Power Grids on 2 Oct 2020, has announced that they are planning to invest $6.2 million to modify equipment and increase manufacturing capacity at its of transformer plant in Virginia, USA. All these type of factors across the North America will amplify the dry type transformer market.
The Asia Pacific dry type transformer market shall have a dominating market share and is anticipated to reach up to $2,622.7 million by the end of 2027; due to technological advancements in electrical industries, renewable power consumption and increasing initiatives by governments towards energy-efficient solutions in developing countries such as India, China, and South Korea. Furthermore, the market players involved in the power sector are following several strategies like business expansion, strategic collaborations, and releasing of value-added services to stronghold position in the global industry. For instance, China on 25 Aug 2020 announced that they will increase their export service of dry type transformers and their equipment by 55% across the world. These initiatives may create a positive impact on the Asia-pacific dry type transformer market, during the forecast period.
Top Leading Players in Dry Type Transformer Market include –
- ABB Limited
- General Electric
- Eaton Corporation
- Schneider Electric
- Siemens AG
- CG Power and Industrial Solutions Ltd
- Toshiba Corporation
- Bharat Heavy Electricals Limited
- Raychem RPG
Porter’s Five Forces Analysis for Dry Type Transformer Market:
- Bargaining Power of Suppliers: The companies involved in the dry type transformer business are extensive in number. Thus, the negotiation power of dry transformer service provider decreases. So, there will be a lower threat from the supplier side. Thus, the bargaining power of the supplier is HIGH
- Bargaining Power of Buyer: Buyers have high bargaining power, primarily because of the huge number of dry type transformer providers. Therefore, the buyer can choose the service that best fits its preferences. The bargaining power of the buyer is HIGH
- Threat of New Entrants: The startups entering this market are providing advanced services to the customers. Moreover, the switching cost of buyers is not prohibitively high. Thus, the bargaining power of the new entrants is Moderate
- Threat of Substitutes: There are many options available when it comes to the dry transformer . However, not all the transformer can offer the service and features that dry transformer is offering. Therefore, the threat of substitutes is Low.
- Competitive Rivalry in the Market: The players operating in the global dry type transformer services are opting for various businesses development strategies to stronghold position in the market. Therefore, competitive rivalry in the market is High