Vacuum Pressure Impregnated (VPI) Transformer Market Analysis

Vacuum Pressure Impregnated Transformer Market Analysis

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Based on winding, the market is segmented as two winding and auto transformer. The auto transformer segment held a market value of more than USD 1.5 billion in 2022. The market for auto transformers is well-positioned to gain a larger share of the market due to their efficient transformation capabilities and operational versatility, which set them apart from their competitors. Key factors driving the adoption of these transformers include their compact unit design, cost-effectiveness, and higher efficiency. Furthermore, the integration of intelligent monitoring technologies has not only enhanced the reliability of the products but has also made them more cost-effective, thereby further fuelling business landscape.

Based on rating, the VIP transformer market is segmented as ≤ 5 MVA, > 5 MVA to ≤ 30 MVA, and > 30 MVA. The market for transformers with a capacity of 5 MVA or less is poised for substantial growth due to their extensive utility in various applications, spanning from process industries to power and infrastructure sectors. This growth is further propelled by the rapid adoption of renewable energy sources in residential settings and the swift expansion of micro-grid networks. The industry is witnessing an increasing demand for compact indoor transformers, which aligns with the cost-conscious preferences of consumers. Manufacturers are actively responding to this demand by integrating sustainable production methods.
 

Based on application, the vacuum pressure impregnated transformer market is segmented as industries, inner-city substations, indoor/underground substations, renewable generation, and others. The industries application is set to grow at a CAGR of over 8.2% by 2032. The demand for Vacuum Pressure Impregnated (VPI) transformers in industrial applications is projected to increase due to a growing emphasis on integrating comprehensive frequency distribution networks and mounting concerns about energy efficiency. Moreover, the demand for dry-type transformers is anticipated to receive a substantial boost from the escalating requirement for ultra-high voltage networks. The surge in investments from both private and government organizations in electrification programs in developing nations is poised to further bolster the industry's growth prospects.
 

The Vacuum Pressure Impregnated transformer market across the North America held a market share of over 19.4% in 2022. Countries across North America, including the United States, Canada, and Mexico, have witnessed a significant uptick in the demand for electrical products. This rise can be attributed to increased investments in the expansion of long-distance electricity grids. According to the Energy Information Administration (EIA), the share of power generation from renewable sources is forecasted to increase from 18% of total electricity generation to 38% by 2050. Furthermore, the growing focus on replacing outdated electrical equipment with advanced, high-quality systems is expected to further drive the demand for these products across the region.