The U.S. oil filled distribution transformer market is expected to witness substantial growth by 2027 due to increasing investment in R&D activities and surging integration of industrial automation across the sector. Moreover, benefits of oil-filled transformers, such as higher standard efficiency, longer lifespan, and low operating sound level, are also anticipated to support market expansion through the forecast period.
An oil filled transformer refers to a voltage transformation device that leverages oil cooling technique to lower the transformer temperature. Unlike dry type transformers, the body of an oil filled transformer is installed in a welded steel oil tank containing insulation oil.
Oil filled transformers utilize dielectric oil for insulation and cooling of the transformer’s windings. Dielectric oil can cool the transformer winding, which allows manufacturers to use relatively low-temperature insulation materials in equipment designs. Recently, industry players have been exploring the use of bio-based oils in distribution transformers as they are more eco-friendly, thus bolstering market outlook.
Oil filled distribution transformers are typically pole-mounted or pad-mounted. Pad-mounted have gained traction in recent years as they are more useful in suburban areas where distribution lines are commonly buried underground. In such areas, these transformers are mounted on concrete pads for commercial, residential, or light industrial applications.
In order to ensure that the transformer is functioning properly, regular inspection is necessary. Conventionally, inspection is a tedious as well as cost-intensive process and poses certain risks for both personnel and equipment. Inspection risks to transformers pertain to the introduction of foreign objects, moisture ingress, and potential damage to the device due to manual error.
Therefore, automated systems that can inspect these transformers faster, cost-efficiently, and without needing human intervention have garnered popularity across the sector. As a result, growing awareness of innovative and efficient methods for transformer maintenance has been favorable for the U.S. oil filled distribution transformer market dynamics.
The U.S. oil filled distribution transformer market has been segmented on the basis of core, winding, phase, rating, mounting, and application. In terms of core, the market has been bifurcated into closed, shell, and berry.
The shell sub-segment holds a sizable share in the U.S. oil filled distribution transformer market revenue and is anticipated to grow at a significant pace through the forecast period. Development of HVDC networks to meet the constantly increasing electricity demand is speculated to drive shell oil filled distribution transformer industry growth through 2027.
Based on winding, the market has been categorized into two winding and auto transformer. In 2020, the two winding sub-segment accounted for considerable share in the overall market revenue and is estimated to rise at a notable pace over 2021-2027. Rising need for an efficient transmission system to ensure reliable power supply is projected to fuel industry outlook through the assessment timeframe.
From the perspective of application, the market has been segregated into residential & commercial, industrial, and utility. The U.S. oil filled distribution transformer market from the utility sub-segment is expected to observe profitable growth over the estimated timeline. Increasing R&D expenditure towards the refurbishment of grid infrastructure, along with mounting focus on expansion of grid networks, is anticipated to boost market expansion over the analysis period.