Vacuum Pressure Impregnated (VPI) Transformer Market - By Winding (Two Winding, Auto Transformer), By Rating (≤ 5 MVA, > 5 MVA to ≤ 30 MVA, > 30 MVA), By Application (Industries, Inner-City Substations, Indoor/Underground Substations, Renewabl

Vacuum Pressure Impregnated (VPI) Transformer Market - By Winding (Two Winding, Auto Transformer), By Rating (≤ 5 MVA, > 5 MVA to ≤ 30 MVA, > 30 MVA), By Application (Industries, Inner-City Substations, Indoor/Underground Substations, Renewable Generation) & Forecast, 2023 - 2032

Vacuum pressure impregnated (VPI) transformer market size is projected to expand at 9.4% CAGR from 2023 to 2032, driven by the increasing demand for reliable and efficient power distribution systems coupled with the growing emphasis on energy efficiency.

VPI transformers offer enhanced insulation properties, improved dielectric strength, and reduced maintenance requirements for meeting the evolving needs of the power transmission and distribution infrastructure. For instance, in December 2023, Hitachi Energy launched the Transient Voltage Protection (TVP®), an innovative solution for safeguarding distribution transformers against transient voltage. The rising technological advancements in transformer designs and manufacturing is further driving the rising investments in grid modernization. Additionally, the growing adoption of renewable energy sources and the surging need to upgrade aging power infrastructure will contribute to the market growth.

The VPI transformer market is segregated into winding, rating, application, and region.

In terms of winding, the market value from the two winding segment is estimated to rise at substantial CAGR from 2023 to 2032, owing to widespread application in power distribution networks. The two-winding design enhances the voltage regulation and reliability for addressing the diverse needs of electrical systems. Moreover, the increasing emphasis on grid reliability and the higher expansion of power infrastructure will fuel the product adoption.

Vacuum pressure impregnated transformer industry share from the inner-city substations application segment is estimated to witness substantial CAGR through 2032. This is owing to the compact design and efficient performance of the transformers. The strong ability to meet the space constraints of inner-city substations coupled with enhanced reliability and insulation properties will contribute to the increasing product adoption for urban power distribution.

Regionally, the Asia Pacific VPI transformer industry is projected to expand at rapid pace between 2023 and 2032. The growth can be ascribed to the high urbanization, increasing energy demands, and the robust infrastructure development initiatives. Furthermore, the growing need for reliable and efficient power distribution coupled with rising advancements in transformer technologies will drive the regional market growth.