Closed Core Distribution Transformer Market Analysis

Closed Core Distribution Transformer Market Analysis

To get key market trends

  Download Free Sample

Based on installation, the outdoor installed distribution transformers segment held a major market share of over 60% in 2023. The increasing demand for electricity infrastructure in expanding urban areas and remote locations drives the need for outdoor-installed closed-core distribution transformers. However, outdoor installations offer advantages such as accessibility, reduced space constraints, and easier maintenance. The rise of renewable energy projects, particularly in rural settings, further fuels the demand for outdoor transformers to support grid expansion and connectivity. 
 

The oil immersed closed core distribution transformer market is anticipated to grow at over 6.5% CAGR through 2032. Oil-immersed transformers offer efficient cooling properties, enabling reliable operation in various environments. The robust design and insulation properties of oil enhance transformer longevity and performance. The oil-immersed transformers are preferred for outdoor installations due to their ability to withstand harsh weather conditions. The increasing demand for electricity, coupled with infrastructure development projects globally, drives the market growth for oil-immersed cooling solutions. Additionally, the expansion of renewable energy projects further stimulates demand for oil-immersed transformers to support grid integration and stability.
 

North America Closed Core distribution transformer market is projected to surpass USD 7.5 billion by 2032 on account of infrastructure modernization initiatives, increasing investments in renewable energy projects, and the replacement of aging transformer infrastructure. In addition, stringent energy efficiency regulations and the adoption of smart grid technologies are driving market expansion. As per IEA, Canada, through its Smart Grid Program, is allocating USD 100 million to bolster the deployment of smart grid technologies and integrated systems, which in turn will complement the distribution transformer industry growth. Moreover, the rise in industrial activities and urbanization contributes to increased electricity consumption, necessitating the deployment of efficient and reliable closed-core distribution transformers across the region.