Vacuum Pressure Encapsulated (VPE) Transformer Market Size - By Winding (Two Winding, Auto Transformer), By Application (Industries, Inner-City Substations, Indoor/Underground Substations, Renewable Generation), Rating & Forecast, 2023 – 2032

Vacuum Pressure Encapsulated Transformer Market Size

Vacuum Pressure Encapsulated Transformer Market was valued at USD 5.1 billion in 2022 and is estimated to attain about 7.3% CAGR from 2023 to 2032. Over the past decade, there has been a significant surge in electricity consumption in the GCC (Gulf Cooperation Council) and African economies. Driven by the growing energy demand, particularly from residential and commercial users. While the global average hovers around 25%, nearly 47% of the region's energy consumption has been channeled into suburban areas. Additionally, the reconstruction of the electric grid infrastructure in war-affected GCC nations to support economic growth is expected to boost the demand for electrical products.

 

A vacuum pressure encapsulated (VPE) transformer is a type of electrical transformer designed for various applications, including power distribution and voltage conversion. It is constructed using advanced insulation and encapsulation techniques to protect the transformer's components and ensure its safe and reliable operation. In Europe, substantial investments from financial institutions such as the World Bank and Asian Development Bank (ADB) have had a positive impact on the global dry-type transformer market revenue share.
 

The industry may face challenges due to the substantial initial costs and the increasing expenses associated with the replacement of dry-type transformers. Technological advancements, driven by stringent regulations and labeling standards, have resulted in higher prices for premium products. Transformers play a pivotal role in maintaining voltage regulation and current-carrying capacity in the transmission and distribution network. Given their critical function in electrical applications and the requirement for precise operation, significant investments are allocated to quality assurance and the automated manufacturing of product components. The integration of advanced electrical components and the growing emphasis on improved energy efficiency are additional factors that contribute to the rising costs of transformers.
 

COVID-19 Impact

During the COVID-19 pandemic, the development, construction, and maintenance of power infrastructure continued without significant disruption despite government-imposed restrictions on new energy projects. However, as governments started implementing measures to rejuvenate operations in major industries, manufacturing facilities, and infrastructure projects, this is expected to stimulate business growth.
 

Vacuum Pressure Encapsulated Transformer Market Trends

The aging electrical infrastructure is under growing pressure to enhance its capabilities beyond its original design limits. The modernization of grid networks to make them more intelligent and resilient through the integration of advanced equipment, technologies, and controls will have a positive impact on the business outlook. These interconnected units collaborate and communicate to deliver electricity more efficiently, significantly reducing the frequency and duration of power outages, expediting service restoration, and mitigating the impact of storms during outages. Furthermore, utilities can enjoy several advantages from a modernized grid, including decreased peak loads, improved security, reduced operational expenses, and enhanced integration of renewable energy sources.
 

Vacuum Pressure Encapsulated Transformer Market Analysis

Based on winding, the two winding segment was worth USD 3.3 billion in 2022. Two-winding transformer units have achieved substantial penetration within conventional distribution networks. The introduction of advanced transformer technologies has presented a significant challenge to the adoption of these units. Furthermore, ongoing technological advancements and rapid functional improvements may potentially affect the demand for these products. Nonetheless, these units still maintain a notable presence in the market nationwide and are expected to retain their market position.
 

Based on rating, the market for transformers with ratings greater than 5 MVA and up to 30 MVA has experienced a significant resurgence due to the thriving commercial sector in the region in recent years. The increasing demand for manufactured goods, along with the adaptable operation of these products across both primary and secondary distribution networks, will enhance the industry's growth. Compliance with operational safety and energy efficiency standards is expected to have a substantial impact on the business landscape in the years to come. Ongoing research aimed at developing sustainable transformer units, coupled with stringent manufacturing regulations, will further contribute to the demand for these products.
 

Based on application, the renewable generation application is set to grow at a CAGR of over 7.4% through 2032. Industrial and renewable-based products have achieved a notable market presence, while inner-city substations and indoor/underground substations collectively maintain a substantial market share. The ongoing large-scale migration to urban areas, combined with rapid commercial expansion, will continue to positively influence the industry's prospects. Additionally, the limitations of available space and the need for safe operational performance within confined areas will further promote the deployment of these products.
 

The Asia Pacific Vacuum Pressure Encapsulated transformer market held 38.9% of the revenue share in 2022, due to the increasing electricity demand in developing nations. Emerging economies like China and India are particularly promising markets as they consistently expand their existing power capacities and infrastructure to meet the growing demand for electricity. Changes in power consumption patterns in both households and corporations will contribute to the industry's growth. Additionally, growing concerns regarding grid safety and reliability have significantly driven up the demand for these products.
 

Vacuum Pressure Encapsulated Transformer Market Share

ABB commands a substantial position in the Vacuum Pressure Encapsulated  transformer market, distinguished for its extensive knowledge in designing and manufacturing a wide range of transformer technologies. This expertise includes open-wound, Vacuum Pressure Encapsulated, Vacuum Pressure Impregnated (VPI), and oil-immersed transformers, among others. The company has a rich and longstanding history deeply rooted in the transmission and distribution sector. Over the years, ABB has delivered transformer solutions for a diverse range of applications, spanning various industries, inner-city substations, and underground substations.
 

Some of the major key players operating across the Vacuum Pressure Encapsulated transformer industry are:

• ABB
• GE
• Eaton
• Schneider Electric
• Siemens Energy
• Hitachi Energy Ltd.
• CG Power & Industrial Solutions Ltd.
• Toshiba Energy Systems & Solutions Corporation
• Bharat Heavy Electricals Limited (BHEL)
• Raychem RPG Private Limited
• Fuji Electric Co., Ltd.
• WEG
• URJA Techniques
• TMC Transformers S.P.A.
• SGB SMIT

Vacuum Pressure Encapsulated Transformer Market News

• In April 2022, Siemens Energy has unveiled its latest product, the CAREPOLE, a Vacuum Pressure Encapsulated (VPE) pole-mounted transformer, in the American grid market. Tailored for pole-based applications, this transformer is offered in single-phase configurations with power ratings spanning from 10 kVA to 100 kVA and voltage capacities of up to 36 kV. The CAREPOLE stands out for its extended operational lifespan, enhanced environmental sustainability, and reduced instances of outages, establishing it as a unique and environmentally friendly substitute for conventional oil-filled transformers.
   

This vacuum pressure encapsulated transformer market research report includes an in-depth coverage of the industry with estimates & forecast in terms of volume & revenue in ‘000 Units & USD Million from 2019 to 2032, for the following segments:

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Market, By Winding

• Two Winding
• Auto Transformer

Market, By Rating

• ≤ 5 MVA
• > 5 MVA to ≤ 30 MVA
• > 30 MVA

Market, By Application

• Industries
• Inner-City Substations
• Indoor/Underground Substations
• Renewable Generation
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • Russia
  • UK
  • Italy
  • Spain
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia 
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • Egypt
  • South Africa
  • Nigeria
• Latin America
  • Brazil
  • Peru
  • Argentina