PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1954727
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1954727
The global vacuum pressure impregnated (VPI) transformer market was valued at USD 2.01 billion in 2025. The market is projected to reach USD 2.12 billion in 2026 and further expand to USD 3.49 billion by 2034, registering a CAGR of 6.49% during the forecast period. VPI transformers, a type of dry-type transformer, are assembled using a specialized vacuum and pressure resin infusion process, which enhances their mechanical strength, thermal stability, and resistance to moisture and dust. These transformers are increasingly preferred for applications in industrial, utility, and renewable energy sectors due to their fire safety, oil-free design, and low maintenance requirements, making them ideal for urban areas, hospitals, airports, and critical infrastructure.
Market Dynamics
Drivers:
The expansion and modernization of power grids globally are significant drivers of the VPI transformer market. Many grid assets, particularly in North America, Europe, and Asia Pacific, are decades old and require upgrades to improve efficiency, safety, and reliability. VPI transformers, with their durable insulation and long service life, are ideal for smart grid applications that require low-loss, digitally monitored, and low-maintenance equipment. For example, in November 2023, Hitachi Energy introduced transformers with Transient Voltage Protection (TVP) Technology and inaugurated a new transformer factory in Bac Ninh, Vietnam, highlighting technological advancement in this segment.
Restraints:
The high manufacturing and installation costs of VPI transformers restrict their adoption, especially in cost-sensitive regions. Specialized equipment such as vacuum chambers, resin infusion systems, and controlled curing facilities increases production complexity. Additionally, the heavier and larger designs make handling, transportation, and installation more expensive than conventional dry-type or oil-immersed transformers.
Opportunities:
The growing demand for safe, energy-efficient, and eco-friendly transformer solutions offers substantial opportunities. VPI transformers are non-combustible, environmentally safe, and low-maintenance, making them suitable for dense urban areas and indoor facilities. Increasing renewable energy projects, urban infrastructure expansion, and decarbonization initiatives are further boosting demand. For instance, in August 2025, Eaton completed its acquisition of Resilient Power Systems, strengthening its position in advanced transformer technologies.
Trends:
The adoption of VPI transformers in renewable energy projects is rising. Their oil-free and fire-safe design makes them ideal for solar farms, wind projects, and other sensitive environmental locations. In February 2023, Hitachi Energy launched the TXpert Hub, a digital ecosystem for transformers that enables advanced monitoring, performance optimization, and predictive maintenance, reflecting the digitalization trend in the sector.
By Phase:
By Installation:
By Rating:
By Application:
Asia Pacific: Leading the market with USD 0.65 billion in 2025 and USD 0.69 billion in 2026, driven by rapid urbanization, industrialization, renewable energy growth, and government initiatives.
North America: Growth supported by grid modernization, renewable energy adoption, and demand for eco-friendly, fire-safe transformers.
Europe: Driven by renewable energy adoption, stricter environmental and fire safety regulations, and demand for low-maintenance, reliable transformers.
Latin America & MEA: Increasing investments in power infrastructure and renewable energy projects are driving steady growth.
Key Industry Players and Developments
Major players include ABB (Switzerland), Bharat Heavy Electricals (India), CG Power (India), Eaton (Ireland), Fuji Electric (Japan), General Electric (U.S.), Hitachi Energy (Switzerland), Raychem RPG (India), Schneider Electric (France), Siemens Energy (Germany), TMC Transformers (Italy), Toshiba Energy (Japan), WEG (Brazil), URJA Techniques (India), and Magneto Electric (Canada).
Notable Developments:
Conclusion
The VPI transformer market is poised to grow from USD 2.01 billion in 2025 to USD 3.49 billion by 2034, driven by grid modernization, renewable energy expansion, urbanization, and demand for safe, eco-friendly power distribution solutions. Asia Pacific, North America, and Europe will remain key regions, supported by technological innovation, safety regulations, and sustainability initiatives. Despite high initial costs, VPI transformers are increasingly preferred for industrial, urban, and renewable energy applications, making them a cornerstone of modern, reliable, and environmentally responsible power distribution systems.
Segmentation By Phase
By Installation
By Rating
By Application
By Geography