Dry type transformer market has gained an appreciable traction over the recent years, primarily on account of the growing trend of replacing conventional insulation techniques in sync with the sustainability trends and the ongoing technological advancements. The environmental viability of dry type transformer technology has perhaps enabled it to score a competitive advantage over liquid or oil filled transformers. Say for instance, unlike liquid filled transformers that are insulated by fire-resistant liquid dielectric material, dry type units only utilize UL, and CSA approved ecologically safe high temperature insulation systems. In fact, in support to the sustainability march, various government entities across major economies are taking vigorous efforts to promote advanced ecofriendly transformer units, which in turn, is undoubtedly setting the stage lucrative for dry type transformer market, in terms of revenue streams and profitability.
Europe Dry Type Transformer Market Size, By Insulation, 2016 & 2024 (USD Million)
A vital precedent testifying the authenticity of the referred declaration is the United States Department of Energy’s revised efficiency standardization for low voltage dry type transformers, which reportedly came into effect early in 2016. According to some of the trusted sources, in a bid to meet these revised efficiency standards, manufacturers across the globe are leaving no stone unturned to implement various design strategies including the likes of deploying high-grade steel, different core constructions, and even lowering the induction level of the core material. However, in this regard, it is prudent to mention that amidst these design changes, the inbuilt characteristics of the transformer such as cost, size, and most importantly inrush current value stood out as significant considerations for the dry type transformer market giants. As per experts, this new efficiency standards have indeed brought a renewed dimension to dry type transformer industry, which is quite evident from its valuation of USD 4 billion in 2016.
As the requirement of ecofriendly highly efficient transformers is on rise, renowned companies partaking in dry type transformer industry are vying up with one another to unlock the maximum potential of the technology in as many applications as possible. In fact, the competitive spectrum of dry type transformer market has been lately witnessing a wave of corporate partnerships and joint venture activities which would enable both the enterprises to work on the manufacturing of these type of transformers. For instance, ABB recently made it to the headlines with its announcement of procuring General Electric’s global electrification solutions business, GE Industrial Solutions in a deal of USD 2.6 billion. Reportedly, the acquired electrification business would provide engineered solutions for dry-type transformers. For the record, through the deal, ABB is apparently planning to extend its customer access in the North America dry type transformer industry.
Speaking of North America, U.S. has emerged as one of the most proactive regions in the regional dry type transformer market. With the extensive development in grid infrastructure in tandem with a strong pipeline of refurbishment projects pertaining to the existing networks, U.S. market has garnered a sizable revenue of USD 500 million in 2016. The contribution of the regional government in terms of regulatory reforms with regards to grid sustainability is driving the profitability scale of U.S. dry type transformer market. As these energy efficiency reforms have led to an increasing adoption of smart monitoring and control unit systems, the demand for dry type transformers has also upscaled. Other than U.S, Africa is also claimed to be another lucrative growth ground for dry type transformer industry, with a revenue record of USD 200 million in 2016.
Extensive upgradation and renovation of grid network across the globe can be majorly credited for the expansion of dry type transformer industry, given the fact that transformers are profoundly the most important vertical of electric network. Add to it, modern manufacturing efficiencies have narrowed the price gap between oil type and dry type transformers, providing consumers spanning across major economies an opportunity to benefit from the plethora of advantages that dry type transformer market offers. Elimination of spills and leakage along with its credibility to offer exceptional performance even in extreme climatic conditions stand to be the fundamental determinants that as per experts’ opinion should top the driving factor list. All in all, amidst the backdrop where the entire world is thriving on the cusp of sustainability, it is undeniable that dry type transformer market demand would shoot up in the years ahead, with a projected valuation of USD 9 billion by 2024.