When should oil-filled vs dry-type transformers be used?

Oil-filled transformers should be used in applications requiring high power capacity and efficiency, particularly in outdoor settings where cooling is essential. They offer better thermal performance and are suitable for high-voltage applications. Conversely, dry-type transformers are ideal for indoor use, especially in environments sensitive to fire hazards or where maintenance access is limited. They are also preferred in urban areas due to their lower environmental impact and reduced risk of oil leaks.