The Global Vacuum Pressure Impregnated (VPI) Transformer Market Anticipated to Generate a Revenue of $2,472.0 Million, Growing at a CAGR of 6.2% from 2021 to 2030Download Sample Reports Overview
The global vacuum pressure impregnated (VPI) transformer market is expected to be valued at $2,472.0 million by 2030, surging from $1,360.1 million in 2020, at a noteworthy CAGR of 6.2%.
Impact Analysis of Covid-19 on the Vacuum Pressure Impregnated (VPI) Transformer Market
The production in the global market for vacuum pressure impregnated 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 vacuum pressure impregnated transformer businesses, like ABB, have expanded their production capacity of digital vacuum pressure impregnated 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.
Moreover, some of the notable vacuum pressure impregnated transformer service providers like Schneider Electric have experienced growth in their businesses, as they started their services online during covid-19 and experienced stronger growth compared to that in 2020. 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.
Vacuum Pressure Impregnated (VPI) 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 vacuum pressure impregnated 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 deliver to downtown areas. These key factors may lead to a surge in the demand for vacuum pressure impregnated transformer services in the global market.
Fluctuations in prices may create a negative impact on global Vacuum Pressure Impregnated (VPI) Transformer Market, throughout the analysis timeframe. Furthermore, cast resin dry transformer has low heat control performance compared to oil-based transformer. These types of factors may hamper the market of vacuum pressure impregnated transformers.
The global vacuum pressure impregnated transformer industry is growing extensively particularly in China, India, Brazil, and North America regions. This factor will increase the demand for vacuum pressure impregnated transformers in the forecast years. Furthermore, significant vacuum pressure impregnated 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 monitor and it can reduce the repetitive task of monitoring the transformer. These factors may provide lucrative opportunities for the global Vacuum Pressure Impregnated (VPI) Transformer Market, in the coming years.
Vacuum Pressure Impregnated (VPI) Transformer Market, Segmentation
The global vacuum pressure impregnated (VPI) transformer market has been categorized into phase, voltage range, end-use and region.
The phase segment is further categorized into single phase and three phase. The three-phase sub-segment of Vacuum Pressure Impregnated (VPI) Transformer Market will be the fastest-growing and it is expected to register a revenue of $292.9 million by 2030, throughout the analysis timeframe. In addition, key players operating in this market are developing digital technologies in vacuum pressure impregnated transformer to serve the customers. For instance, HITACHI-ABB offers TXpert technology for digital vacuum pressure impregnated transformer; it is designed with smart hardware and software components which offer traceability and monitoring of the performance of vacuum pressure impregnated transformer. It is the world’s first digital dry transformer. Such technological advancements are projected to upsurge the growth of the sub-segment, during the projected timeframe.
The low voltage range sub-segment shall have rapid growth and is anticipated to generate a revenue of $1,772.3 million by 2030, during the forecast period; this is mainly because of increasing adoption of transformers that are not harmful for environment.
The industrial sub-segment accounted for the highest market share in 2020 and generated $1,318.6 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.
The Vacuum Pressure Impregnated (VPI) Transformer Market for the North America region will be a rapidly growing market. This market generated a revenue of $346.4 million in 2020 and is further projected to reach up to $654.3 million by 2030. The demand for vacuum pressure impregnated transformer is surging in the North America region, specifically because of rapid enhancement in technology by industry proclivity towards the transformer technologies.
Key Players in the Global Vacuum Pressure Impregnated (VPI) Transformer Market
Some of the leading vacuum pressure impregnated (VPI) transformer market
- ABB Limited
- General Electric
- Eaton Corporation
- Schneider Electric
- Siemens AG
- CG Power and Industrial Solutions Ltd
- Toshiba Corporation
- Bharat Heavy Electricals Limited
- Raychem RPG
- Instrument Transformer Equipment Corporation
Porter’s Five Forces Analysis for Vacuum Pressure Impregnated (VPI) Transformer Market:
- Bargaining Power of Suppliers: The companies involved in the vacuum pressure impregnated 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 low.
- Bargaining Power of Buyer: Buyers have high bargaining power, primarily because of the large number of vacuum pressure impregnated transformer providers. Therefore, the buyer can choose the service that best fits its preferences.
The bargaining power of the buyers 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 transformers 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 vacuum pressure impregnated transformer services are opting for various businesses development strategies to stronghold position in the market.
Therefore, competitive rivalry in the market is high.