Vacuum Pressure Impregnated (VPI) Transformer Market Research, 2030
The global vacuum pressure impregnated (VPI) transformer market size was valued at $1.44 billion in 2021, and is projected to reach $2.47 billion by 2030, growing at a CAGR of 6.2% from 2022 to 2030. Vacuum pressure impregnated transformer is a modern insulated motor coil that can operate efficiently at high temperatures to reduce heat degeneration. This technology was developed to withstand moderate to severe environmental conditions due to its unique features such as leak-proof, high-pressure resistance, and corrosion resistance. Therefore, VPI transformers can be used in offshore applications where the conditions at sea are harsh as over-life in salty and humid environments can lead to corrosion of motor components. The Vacuum Pressure Impregnation (VPI) transformer market is expected to witness record growth in the power distribution sector. Such applications are acting as a major driving factor behind increasing revenue growth of the market.
VPI is the most commonly used transformer to meet demand for power distribution, and rising demand for electricity distribution from various industries are factors projected to boost the market growth in the future. This heavy-duty transformer is environmentally safe and temperature reliable as it is suitable for as low as -25°C ambient temperature as well and it also requires minimal maintenance. Additionally, to reduce carbon emission and dependency on fossil resources, various countries are adopting renewable energy sources which can act as a promoter to increase the demand of voltage transformers for transmission and distribution.
Technological advancements of the vacuum pressure impregnated (VPI) transformer has increased the cost of transformers due to their complex structure. VPI transformer cost is high as compared to wet type or oil-bound transformers. High voltage is required by some medical instruments, but VPI transformer is not suitable for high voltage applications and this is further expected to hamper the vacuum pressure impregnated (VPI) transformer market growth.
The expansion of electricity distribution grids in various developing countries is driving demand for vacuum pressure impregnated transformer. VPI transformer are the most developed transformers in the market, providing several benefits over the traditional wet type or oil immersed transformers.
The cutting-edge triangle wound technology has been made available in the market, thanks to advancements in manufacturing techniques and need for higher performance. This symmetrical structure in VPI is capable of making significant savings and benefits in areas such as footprint, weight, improved efficiency levels, and life expectancy extension. Thus, these factors are expected to fuel the vacuum pressure impregnated (VPI) transformer market share in near future.
The major key players in the VPI transformer market include ABB, General Electric, Eaton, Schneider Electric, Siemens, CG Power and Industrial Solutions Ltd., TOSHIBA CORPORATION, Bharat Heavy Electricals Limited, Raychem RPG Private Limited, and Instrument Transformer Equipment Corporation.
The global Vacuum Pressure Impregnated (VPI) transformer market is segmented on basis of phase, voltage range, end-use, and region. By phase, the market is sub-segmented into single phase and three phase. By voltage range, the market is sub-segmented into low voltage and medium voltage. By end-use, the market is sub-segmented into industrial, commercial, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The vacuum pressure impregnated (vpi) transformer market is segmented into Phase, Voltage Range and End-use.
By phase, three phase sub-segment is expected to be the fastest growing sub-segment as it has many advantages over single phase such as high conductance efficiency, less copper consumption, low risk of operations, and ability to handle wide range of power loads. Three phase transformers are more economical for supplying large loads and large power distribution and have huge applications in almost all fields of electrical power system such as power generation, transmission and distribution sectors and all industrial sectors. In addition to these they are smaller and lighter to construct for the same power handling capacity with better operating characteristics.
By voltage range, the market has been segmented into low and medium voltage ranges and low voltage sub-segment is dominant in the market and also is projected to have significant growth in the projected years. Low voltage transformers are the best option due to heat inductivity, efficiency in electricity conductivity, and environmentally friendly dry transformer. They have various applications in institutional industry, commercial industry, and residential structure industry. Landscape lighting that runs on 12–24 volts can use a low-power transformer as a low voltage lighting transformer. The outdoor lighting transformer reduces the 110 volt or 230-volt line voltage to a low value that can be used to power lights. These important aspects may contribute to the expansion of the sub-segment.
By end-use, the industrial sub-segment is the dominant and is expected to have the largest market share in the forecasted period. This is due to high demand of VPI transformers from various industries such as electro chemical, oil, automobile, and gas. VPI transformers are also used in the refineries & oil industry to produce or deliver high currents over a wide voltage range. Advancements of technology such as development of smart transformers used to charge electric devices is also a factor expected to drive revenue growth of the sub-segment. Furthermore, Permali Wallace Pvt. Ltd., leading component producer of railway transformer, uses permawood in railway transformers with a 400kv capability. These are composite materials made of partially impregnated wood veneer and synthetic resin. They consist of coil support platforms, coil clamping rings, and more. Such innovations have resulted in the development of smart transformers that can deliver power to various electric devices. VPI transformers are also used in the refineries & oil industry to produce or deliver high currents over a wide voltage range.
By region, the North America market is expected to experience the fastest growth during the forecast period. North America’s vacuum pressure impregnated (VPI) transformer market is largely driven by key factors such as considerable expenditures by market participants and the adoption of modern systems such as revolutionary technologies in vacuum pressure impregnated (VPI) transformers. The key factors expected to drive revenue growth of the market in this region include investments by key players in the industry and adoption of technological advancements in VPI, which are anticipated to boost demand for VPI services in the forecasted years.. Furthermore, advancements in technologies of industries demand vacuum pressure impregnated (VPI) transformer, which is expected to enhance demand for vacuum pressure impregnated (VPI) transformer services.
Impact of COVID-19 on the Global Vacuum Pressure Impregnated (VPI) Transformer Industry
- The Vacuum Pressure Impregnated (VPI) transformer market was negatively impacted by the COVID-19 pandemic, as several countries imposed lockdowns. The lockdown affected supply chain affecting import, export, and delays in production of transformers across the globe.
- Lower airplane activity, lower economic activity, and industry shutdowns posed a threat to the energy and power sector as they are the biggest consumers of vacuum pressure impregnated transformer market
- Oil industry is the largest consumer of VPI transformer in the industrial sub-segment. According to the Asian Institute of Technology, world's premier higher education organization, a reduction of 30% in oil use and 40% reduction in demand for coal was observed due to less air traffic and worldwide isolation of people due to the pandemic.
- There was a decrease in demand for electricity in India and European countries during the initial phases of pandemic. However a quick recovery was seen by the end of 2020. Ease of restrictions were accompanied with strong growth of the market driven by high demand for electricity and oil from industrial and commercial sectors.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the vacuum pressure impregnated (vpi) transformer market analysis from 2021 to 2030 to identify the prevailing vacuum pressure impregnated (vpi) transformer market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the vacuum pressure impregnated (vpi) transformer market forecast assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global vacuum pressure impregnated (vpi) transformer market trends, key players, market segments, application areas, and market growth strategies.
Vacuum Pressure Impregnated (VPI) Transformer Market Report Highlights
| Aspects | Details |
 By Phase |
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 By Voltage Range |
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 By End-use |
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 By Region |
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 Key Market Players | General Electric, Schneider Electric, Siemens AG, Instrument Transformer Equipment Corporation, CG Power and Industrial Solutions Ltd, Eaton Corporation, bharat heavy electricals limited, toshiba corporation, ABB Limited, raychem rpg - energy products divison |
Analyst Review
Rapid growth of various sectors in developing economies along with rising demand for electricity are factors projected to drive revenue growth of the Vacuum Pressure Impregnated (VPI) transformer market. In addition to this, government policies to increase renewable sources of energy are expected to augment the market revenue growth. However, higher costs of production and limitation to perform under 2000 KVA is expected to hinder revenue growth of the market. On the contrary, increase in the global population has raised demand for electric energy, which is likely to be a major contributor to the VPI market revenue growth. In addition, governments of various countries intend to increase their power producing plants, resulting in a significant need for transformers for energy distribution. Furthermore, technical improvements such as enclosure mounted High Voltage (HV) & Low Voltage (LV) cable boxes, a 40% increase in forced air cooling, and others are factors boosting demand for vacuum pressure impregnated transformers. The 3D core VPI transformer, which was created for electric car charging stations, provides new potential for the VPI transformer market.
Among the analyzed regions, North America is expected to register the fastest growth rate and revenue in the market by the end of 2031. The North American VPI transformer market is largely driven by key factors such as considerable expenditures by market participants and adoption of modern and revolutionary technologies in vacuum pressure impregnated transformer.
Rising demand for electricity along with rapid growth of various sectors in countries across the globe, with rising population and their increasing demand are factors projected to drive growth of the VPI transformer market.
Various countries shifting to renewable source of energy along with developing sectors in emerging economies are anticipated to boost the Vacuum Pressure Impregnated (VPI) transformer market in the upcoming years.
Industrial sub-segment acquired the maximum share of the global Vacuum Pressure Impregnated (VPI) transformer market in 2021.
North America will provide more business opportunities for the global Vacuum Pressure Impregnated (VPI) transformer market in future.
ABB, General Electric, Eaton, Schneider Electric, Siemens, CG Power and Industrial Solutions Ltd., TOSHIBA CORPORATION, Bharat Heavy Electricals Limited, Raychem RPG Private Limited, and Instrument Transformer Equipment Corporation are some of the leading players in the VPI transformer market.
The major growth strategies adopted by VPI transformer market players include merger & acquisitions and partnerships & collaborations.
Variety of industries including chemicals, pharmaceuticals, engineering, refineries, hydropower projects, wind mill farms, construction, renewable energy, and automobiles are the major customers in the Vacuum Pressure Impregnated (VPI) transformer market.
The report provides an extensive qualitative and quantitative analysis of the current trends and future estimations of the global Vacuum Pressure Impregnated (VPI) transformer market from 2022 to 2030 to determine the prevailing opportunities.
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