Vacuum Pressure Encapsulated (VPE) Transformer Market Report 2026

The vacuum pressure encapsulated (vpe) transformer market size has grown strongly in recent years. It will grow from $6.07 billion in 2025 to $6.48 billion in 2026 at a compound annual growth rate (CAGR) of 6.7%. The growth in the historic period can be attributed to rising focus on improving transformer insulation performance, early adoption of vacuum pressure encapsulation technology, increasing need for durable transformers in harsh environments, expansion of industrial and utility power infrastructure, advancements in resin based insulation materials.

The vacuum pressure encapsulated (vpe) transformer market size is expected to see strong growth in the next few years. It will grow to $8.42 billion in 2030 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to growing investment in renewable generation projects, rising installation of indoor and underground substations, increasing demand for grid modernization solutions, expansion of electric mobility charging networks, advancements in high efficiency transformer designs. Major trends in the forecast period include growing shift toward eco friendly and low loss transformer insulation, increasing adoption of smart monitoring in vpe transformer systems, advancements in automated manufacturing for high reliability transformers, rising demand for vpe transformers in electric mobility infrastructure, expansion of digitally connected grid ready transformer solutions.

Rising electricity demand is expected to drive growth in the vacuum-pressure encapsulated (VPE) transformer market. Electricity demand reflects the amount of power consumed at any given time, measured in kilowatts (kW), indicating the rate of electricity usage. VPE transformers offer high mechanical and short-circuit strength, reducing fire or explosion risks and efficiently managing electricity by providing effective electrical isolation. For instance, in October 2024, the International Energy Agency (IEA), a France-based intergovernmental organization, reported that electricity production reached 996.1 TWh in July 2024, marking a 2.6% increase year-over-year, fueled by a 7.8% rise in renewable energy. Solar energy grew by 20.6%, and hydropower increased by 8.1%, with renewables comprising 32.9% of the electricity mix. As a result, the rising electricity demand is propelling the VPE transformer market forward.

The growing deployment of renewable energy is expected to drive the expansion of the vacuum-pressure encapsulated (VPE) transformer market in the coming years. Renewable energy refers to power generated from naturally replenished resources, such as sunlight, wind, water, and biomass. This increased deployment is fueled by the global effort to reduce carbon emissions, achieve climate targets, and transition away from fossil fuels, motivating governments, industries, and households to adopt solar, wind, and other clean energy solutions. Vacuum-pressure encapsulated (VPE) transformers facilitate the adoption of renewable energy by delivering highly reliable, maintenance-free power distribution for solar, wind, and other renewable installations, ensuring stable voltage, extending system lifespan, and enabling efficient integration of clean energy into the grid. For instance, in October 2024, the International Energy Agency (IEA), a France-based autonomous intergovernmental organization, reported that renewable electricity generation is projected to grow nearly 90% by 2030, reaching 46% of global supply, driven primarily by solar PV and wind. Thus, the rising deployment of renewable energy is propelling the growth of the vacuum-pressure encapsulated (VPE) transformer market.

In April 2023, Eaton Corporation, a US-based power management company, acquired a 49% stake in Jiangsu Ryan Electrical Co. Ltd., a China-based power manufacturer of VFE dry-type transformers. This strategic acquisition positions Eaton to capitalize on global growth trends in electrification and digitalization, contributing to the transition to renewable energy and addressing critical power management challenges worldwide.

Major companies operating in the vacuum pressure encapsulated (vpe) transformer market are Hitachi Ltd, General Electric Company, Mitsubishi Electric Corporation, Schneider Electric SE, Siemens Energy AG, ABB Group, Toshiba Corporation, Eaton Corporation, TBEA Co Ltd, Fuji Electric Co Ltd, WEG SA, Bharat Heavy Electricals Limited (BHEL), HyundAI Electric & Energy Systems Co Ltd, Crompton Greaves Limited, CG Power and Industrial Solutions Limited, Hammond Power Solutions Inc, Virginia Transformer Corp, Voltamp Transformers Limited, Kirloskar Electric Company Limited, Matelec Group.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs on electrical steel, copper windings, insulation materials and transformer components have increased production costs for VPE transformers, particularly affecting manufacturers reliant on imported raw materials from Asia and Europe. Utilities, renewable energy developers and industrial substations in North America and regions with high import dependence experience the greatest price pressures and project delays. However, tariffs are encouraging regional material sourcing, domestic transformer assembly and innovation in alternative insulation technologies, supporting long term supply chain resilience and competitive local manufacturing.

The vacuum pressure encapsulated (VPE) transformer market research report is one of a series of new reports that provides vacuum pressure encapsulated (VPE) transformer market statistics, including vacuum pressure encapsulated (VPE) transformer industry global market size, regional shares, competitors with vacuum pressure encapsulated (VPE) transformer market share, detailed vacuum pressure encapsulated (VPE) transformer market segments, market trends, and opportunities, and any further data you may need to thrive in the vacuum pressure encapsulated (VPE) transformer industry. This vacuum pressure encapsulated (VPE) transformer market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

A Vacuum-Pressure Encapsulated (VPE) transformer is a specific type of electrical transformer designed with a vacuum-sealed enclosure for enhanced insulation and reduced environmental impact, contributing to efficient and reliable power distribution. This transformer utilizes vacuum technology to eliminate air and moisture from its interior, minimizing the risk of insulation breakdown and thereby extending the lifespan of the transformer. The vacuum-pressure encapsulated design helps create a controlled environment within the transformer, improving its insulation properties and overall performance in power distribution applications.

Vacuum-pressure-encapsulated (VPE) transformers come in two main winding configurations, two-winding and auto-transformers. A two-winding transformer features distinct primary and secondary windings, optimizing energy transfer and voltage transformation through electromagnetic induction. These transformers are classified based on ratings such as ≤5 MVA, >5 MVA to ≤ 30 MVA, and > 30 MVA. They find application in various sectors, including industrial settings, inner-city substations, indoor or underground substations, and renewable energy generation.Asia Pacificwas the largest region in the vacuum pressure encapsulated (VPE) transformer market in 2025. The regions covered in the vacuum pressure encapsulated (vpe) transformer market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vacuum pressure encapsulated (vpe) transformer market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vacuum-pressure-encapsulated (VPE) transformer market consists of sales of cast coil VPE transformers, tape wound VPE transformers, and amorphous core VPE transformers. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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