United States Dry Type Transformer Market - Forecasts from 2022 to 2027

The United States dry type transformer market is projected to witness a compound annual growth rate of 3.67% to grow to US$1360.064 million by 2027, from US$1056.679 million in 2020. A dry-type transformer is a transformer type in which no insulating liquid is used, and its windings and core are kept inside a sealed tank with pressurized air. The market is projected to show healthy growth during the course of the next five years on account of a growing focus on clean energy - particularly wind and solar energy, which is expected to positively impact the demand for these transformers in the coming years. There are wide applications of dry-type transformers across industries such as chemicals, oil and gas, cement, and marine, among others.

By type, the United States dry transformer market is segmented as cast resin, and vacuum pressure impregnated. The cast resin segment is expected to hold a significant share in the market and is further expected to maintain its share over the forecast period on account of the modernization of existing power grids coupled with the growing demand for clean energy solutions in the country. Simultaneously, due to growing initiatives and investment in smart grid development in the country the market for vacuum pressure-impregnated types of dry transformer market is expected to grow at a substantial rate during the forecast period. The cast resin type of dry transformers is widely used specifically in the high moisture-prone areas in the country as it offers particularly substantial protection against adverse ambient conditions. Cast resin transformers only require air to cool, eliminating the need for additional costs such as oil testing and recycling. Also, due to its non-inflammable winding insulation and non-hygroscopic characteristics, it is widely adopted across different industry verticals. The expanding energy and power industry coupled with increasing investment is considered one of the prime drivers for the growth of the market during the forecast period. For instance, according to the United States Government, international investors announced an estimated $22.1 billion in U.S. renewable energy projects in 2020 and 2021, compared to $327.9 million in coal, oil, and gas projects.

The dry transformer market in the United States is divided into two voltage categories: low and medium. High voltage has a significant market share and is expected to grow at a significant rate over the forecast period. The expanding energy and power industry, combined with a favourable government initiative to boost domestic manufacturing, is expected to drive the segment's growth in the coming years. Furthermore, the low voltage segment is expected to grow significantly during the forecast period due to increased residential projects and construction activities in the country. A high-voltage dry transformer, also known as a potential transformer, is a type of transformer that is used to reduce high voltage values to lower, safer values and to isolate equipment from a high-power circuit. High-voltage dry transformers are used in the oil and gas industry, energy and power, mining, cement, and other heavy manufacturing industries. High-voltage dry transformers are also gaining popularity among customers in the country in order to reduce environmental contamination and fire hazards. Growing investment in infrastructure is expected to attract investment in manufacturing and other industries that are further expected to widen the growth opportunities for dry transfer vendors and manufacturers. For example, the United States Transportation Secretary recently announced the availability of US$900 million in infrastructure grants to improve the connectivity of rural and urban communities, facilitating the development of roads, rails, bridges, and transit, among other things (Source: U.S. Department of Transportation). However, the COVID-19 pandemic has negatively impacted the industry on account of restrictions in trade and strict lockdown measures due to which the supply of raw materials and equipment in the domestic market has been halted, resulting in a gloomy growth rate in the short run.

By the end-user industry, the United States dry-type transformer market is segmented into metallurgical mining, pulp and paper, petrochemical, energy and power, cement, marine, and others. Energy and power, and metallurgical mining are estimated to cumulatively hold XX% share in 2020, with the former anticipated to show high growth potential on account of a rising focus on renewable energy. Concurrently, rising investment in petrochemical and non-residential infrastructure is expected to provide good growth opportunities over the forecast period.

Besides, under single-phase, power is supplied through one conductor and is used to supply power mostly for residential and small businesses as the appliances here require a small amount of power. However, heavy loads, such as industrial motors and other heavy equipment, cannot run on a single-phase supply, limiting its application. The recent reduction in the borrowing costs on housing loans is expected to push the construction of new housing units in the country, such investment and expansion are anticipated to drive the demand for single-phase dry transformers in the country.

Recent Developments

• Siemens Energy launched an innovative dry-type single-phase transformer for pole applications, CAREPOLETM, in April 2022. The new cast-resin distribution transformer, designed for the technological requirements of the American grid, offers a reliable and sustainable alternative to oil-filled transformers.
• Hitachi Energy, the leading producer of dry-type transformers in North America, completed an expansion of $6.2 million of its Bland, Virginia manufacturing facility in October 2021. The expansion, which was carried out in collaboration with the Commonwealth of Virginia, provided additional production capacity, included the installation of cutting-edge technology to support new manufacturing capabilities, and resulted in the creation of 40 new jobs at this location.

COVID-19 impact on United States Dry Type Transformer Market

During the COVID-19 health emergency, the global market for dry-type transformers in the United States has slowed due to the complete shutdown of certain ventures and disruption of supply chains, resulting in revenue losses. However, demand for dry-type transformers is expected to rise following the crisis and peak in the coming years.

Segmentation

• By Type

Cast Resin

Vacuum Pressure Impregnated

• By Voltage

Low

High

• By Phase

Single Phase

Three Phase

• By End-User Industry

Energy and Power

Cement

Metallurgical Mining

Pulp and Paper

Petrochemical

Marine

Others