Dry-type transformers are gaining popularity over liquid-­type transformers due to their lower cost, higher efficiency and improved safety. They have no rotating parts and use an eco-friendly temperature insulation system. They are not required to be housed inside catch basins or fire-­resistant vaults, and they do not release toxic gases. Given their safety, they can be installed indoors and outdoors.

The global dry-type transformer market is expected to grow to $7.531 billion in 2026, up from $5.79 billion in 2019, according to a June 2021 report from Research and Markets, Dublin. That is a compound annual growth rate of 3.83%. 

The report noted that “growth in indoor installation of transformers is a big boost for dry-type transformers.”

Dry-type transformers are increasingly replacing wet-type transformers in renewable-energy applications due to their safety and design aspects. This has become a significant driver for growth in the global market.

Another reason for the market’s anticipated growth is that the oil and gas, mining and marine industries have specialized voltage requirements, and fire safety is particularly important in these sectors.

Additionally, the report noted, there has been a surge in the development of technologies that further environmental goals. While wet-type transformers have a lower cooling rate, making them prone to leakages from overheating, the use of dry-type transformers eliminates leaks and spills, making them the more environmentally friendly option.