Global dry type transformers market is projected to witness a CAGR of 5.91% during the forecast period 2025-2032, growing from USD 6.81 billion in 2024 to USD 10.78 billion in 2032. The dry type transformer market has experienced significant growth in recent years due to the evolving energy mix landscape and rising the need for reliable power supply devices in the industrial sector. Rapid urbanization and industrialization growth lead to a higher demand for electricity and lead to power infrastructure growth which drives the demand for dry type transformers for power supply in the market. Dry type transformers are becoming ideal for different sectors due to their compact design. The dry type is used in the underground substations as transformers to minimize energy losses and the rise of fire accidents which drive its demand in the market. Furthermore, the push towards industrialization and smart city development further fuels the demand for dry type transformers in the market.

For instance, in March 2025, as per American Clean Power Association, the United States predicts a surge in the demand for electricity by 35-50% between 2024 and 2040. The primary reason behind the rise in electricity demand is due to rising AI data centers and new manufacturing facilities. This development highlights the rising electricity demand, which will drive the demand for stable power supply solutions, thereby driving the demand for dry type transformers.

Dry type transformers are able to integrate renewable energy sources and withstand in harsh conditions thereby driving its demand in the market. Moreover, the power infrastructure required efficient transformers to manage variable power outputs and integrate seamlessly into power grids thus driving its demand in the market. Additionally, rising stringent energy efficiency regulations imposed by governments have further accelerated the adoption of dry type transformers. The regulations mandate the use of non-flammable transformers in the risk operations which creates a market opportunity for global dry type transformers in the market.

Click – https://www.marketsandata.com/industry-reports/dry-type-transformers-market

Rapid Urbanization and Industrialization Augmenting the Market Growth

The growing trend toward urbanization drives the demand for dry type transformers in different sectors. Dry type transformers are small in size, fire-resistant, and eco-friendly which makes dry type transformers ideal for commercial and industrial applications. Urbanization is mostly accompanied by high investments in the development of infrastructure that encompasses the construction of residential apartments, commercial complexes, and industrial units which results in the growth of efficient power supply systems, thereby boosting the demand for dry type transformers in the market.

For instance, the United States commercial sector recovered from pandemic levels, with annual United States sales of electricity to commercial customers in 2023 totaling 14 billion kilowatthours (BkWh). This development showcases the rise in the demand for electricity in the commercial sector which will drive the demand for dry type transformers in the coming years.

Dry type transformers are effective solutions for a stable supply of electricity from the power grids to various end-users. Additionally, policymakers and urban planners are more favorable toward the development of efficient power infrastructure with the integration of renewable energy to fulfill the rising demand for electricity in different sectors. Furthermore, the adoption of smart grid technologies in the industrial sectors further fuels the demand for dry type transformers in the market.

Industrialization boosts the need for dry type transformers as factories and manufacturing plants need secure power supplies to run heavy equipment and machines. Dry type transformers are ideal in industrial conditions as transformers are robust enough to bear tough environments, withstand moisture, and deliver a stable power supply for usage. Additionally, dry type transformers could counteract the hazards caused by oil-filled transformers which lead to its growth in industrial purposes. The dry type transformers have minimal maintenance requirements and the ability to manage high loads efficiently which makes transformers a cost-effective solution for modern industries. Several industries are collaborating with transformer manufacturers to supply efficient power supply solutions.

Rising Stringent Safety and Fire Regulations Creating Market Opportunity

Rising stringent safety and fire regulations across industrial and utility sectors creates market opportunities for the dry type transformers in the market. The sectors are looking for safer alternative transformers to traditional oil-filled transformers. Dry type transformers are equipped with air or resin insulation instead of combustible oil and have a non-flammable design which drives its demand in the market. Moreover, fire safety codes like NFPA 70 (NEC) and IEC standards now mandate stricter requirements for electrical equipment in commercial, utility, and residential buildings. The dry type transformers comply with the implemented regulations that create the market opportunity for dry type transformers in the market. The dry type transformers are becoming the preferred choice for installations in commercial facilities such as hospitals, schools, shopping malls, and high-rise buildings.

Furthermore, safety and fire regulations are increasing in the utility sector to lower the risk of accidents during power distribution. Regulatory bodies mandate the use of safer alternative equipment such as dry type transformers for urban substations, renewable energy plants, and indoor installations which could help to prevent fire hazards. Utilities are able to gain the benefit from reduced fire risks, operational costs, and downtime which drive the demand for dry type transformers in the market. Furthermore, transformer companies are launching the products as per the new regulations of safety to increase the revenue in the coming years.

For instance, the dry type transformers are typically rated in Class F1 for fire protection standards, which state that products are designed to withstand short-circuit conditions without igniting fires. The dry type transformers could be safely installed in indoors applications which drives its demand in the market.

Cast Coil Resin Transformers to Dominate the Market Share

The demand for cast coil resin transformers is increasing in the market due to their superior performance, reliability, and adaptability across diverse applications. Cast coil resin transformers are further fitted with epoxy resin insulation that is highly resistant to moisture, dust, and other environmental contaminants. Demand for cast coil resin transformers is growing in renewable energy plants, industrial installations, and urban infrastructure projects thereby giving a boost to its market share during the forecast period.

Cast coil resin transformers are dependable in managing heavy loads of electricity while maintaining safety and environmental regulation. Moreover, cast coil resin transformers do away with the possibility of oil spills and fire risks which are in accordance with strict environmental regulations and energy efficiency requirements which propel its demand in the market.

Asia-Pacific Region Leads the Dry Type Transformers Market

The Asia-Pacific region dominates the dry type transformers market with the highest market share. Asia-Pacific is a developing region, and most of the countries are heavily investing in power generation and distribution industry that fuels demand for dry type transformers market across the region. China and India are among largest consumers of energy that making the Asia-Pacific region to significantly contribute to the level of global consumption. Countries are investing in the adoption of modernizing power grids to enhance energy efficiency and minimize transmission loss which fuels the demand for dry type transformers in the market.

Developing countries are highly focused on the manufacturing sector and electrification of rural areas which fosters the demand for dry type transformers in the region. Additionally, the rising investment in the industrial sector is expected to be a major factor in the dry type transformer market growth during the forecast period. Large financial organizations are providing funding for the improvement of the power infrastructure in developing countries which drives the demand for the dry type transformer in the market.

For instance, in January 2024, The Asian Infrastructure Investment Bank (AIIB) invested around USD 58.4 million equivalent to India’s largest renewable energy Infrastructure Investment Trust (InvIT). AIIB aims to support the development of InvITs as an infrastructure asset class in India. The capital undertakes an ambitious growth plan to develop new renewable energy assets in the country which will drive the demand for dry type transformers in the market.

Download Free Sample Report

Future Market Scenario (2025 – 2032F)

• Massive investments in infrastructure projects across the region are driving the demand for dry type transformers in coming years.
• Governments are focusing on modernizing existing facilities and constructing new ones, including power plants, and commercial buildings fostering the demand for dry type transformers in the forecast period. 
• The industrial sector heavily investing in automation which drives the demand for dry type transformers in the market.

Report Scope

“Global Dry Type Transformers Market Assessment, Opportunities and Forecast, 2018-2032F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of the global dry type transformers market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecasts between 2025 and 2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.

Contact

Mr. Vivek Gupta
5741 Cleveland street,
Suite 120, VA beach, VA, USA 23462
Tel: +1 (757) 343–3258
Email: info@marketsandata.com
Website: https://www.marketsandata.com