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Transformer Oil Market - Global Outlook & Forecast 2022-2027

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  • 249 Pages
  • October 2022
  • Region: Global
  • Arizton
  • ID: 5671328
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The global transformer oil market is expected to grow at a CAGR of 6.36% during 2022-2027.


  • Due to the booming construction and infrastructure industry, the electricity demand has increased with the increasing demand for residential housing and the commercial sector over the past few years. Such factors are majorly contributing to the growth of the global transformer oil market.
  • The global transformer oil market volume is expected to reach 2,584.99 kilotons by 2027. Transformers oil or insulating oil, or dielectric fluid, is an oil that is stable at high temperatures with the best electrical insulating properties. This type of oil is used in wet transformers or oil-filled transformers, some high-voltage switches, circuit breakers, and high-voltage capacitors. The primary purpose of transformer oils is to insulate and maintain the temperature. Therefore, transformer oil must have the properties such as dielectric strength, chemical stability, thermal conductivity, and the ability to hold these properties for a longer duration.
  • The electricity distributors and industrial manufacturers regularly perform maintenance activities to avoid any transformers malfunctioning or interrupting electricity distribution. In addition, the increasing global population and use of various appliances have increased the per capita demand for electricity. Therefore, the global transformer oil market is expected to increase significantly due to the abovementioned factors. Further, transformer oil market manufacturers have invested much capital in R&D to develop improved products to offer prolonged service life, oil purification, and low environmental impact.


  • Expansion in Cross-Border Electricity Trade
The cross-border electricity trade is increasing in Asia as the countries such as India, Bhutan, Nepal, Bangladesh, Shri Lanka, Thailand, Malaysia, and Singapore have established an electrical grid that helps in electricity trade. This trade can be bilateral unidirectional and bilateral bidirectional. The evolving electricity industry in India is expected to improve the demand for cross-border electricity trade in South Asia. Similarly, the various countries in this region have laid down some net zero emission policies projected to boost the demand for renewable power generation. This increase in renewable power generation is expected to increase the cross-border electricity trade. The existing cross-border electricity trade in south Asian countries such as India, Bhutan, Bangladesh, and Nepal has established a foundation that will build a good relationship that could result in easy electricity trade on a regional level.
  • Expansion of Electric Grid in Emerging Economies
Industrialization drives economic growth in emerging economies. Emerging economies contribute almost 60% to the annual global growth as industrial development in China and India is high. In 2021, around 37 emerging countries accounted for 80% of the global population and approximately 70% of the world’s gross domestic product (GDP) growth generated through emerging economies, according to the International Monetary Fund (IMF). Emerging economies, especially India, China, and Brazil, represent profitable opportunities for the electricity industry due to their large populations. Oil & gas, agriculture, automotive, and pharmaceutical industries are major demand generators in emerging economies. Therefore, the electrical grid is expanding in emerging economies to cater to the increasing electricity demand due to industrial development. This expansion in the electrical grid is projected to increase the use of various types of transformers for the transmission & distribution of electricity. Hence the demand for the transformer oil market is expected to grow significantly.


  • Increasing Demand for Dry-Type Transformers
Dry-type transformer is a stationary solid-state device that requires minimal maintenance to function properly. There are no moving components in this transformer. Unlike liquid fill transformers, this transformer uses only high-temperature insulating technologies, which are extremely ecologically friendly. These transformers provide a safe and steady power supply that does not require fire-resistant vaults, poisonous gas emissions, or catch basins. These safety features will enable these transformers to be used in various applications where fire safety is necessary, such as schools, buildings, hospitals, factories, and chemical plants. This transformer does not employ a liquid-like silicone or oil to cool the core and coils. Therefore, the demand for dry transformers is expected to grow significantly due to the low cost of production and maintenance. Therefore, the need for oiled transformers is expected to decrease, likely negatively impacting the transformer oil market.



Based on end users, the global transformer oil market is segmented into transmission & distribution, power generation, railways & metros, and others. Amond the end-user segment, the transmission & distribution is expected to be the largest segment in the industry with a market value of USD 1.10 billion in 2021. As a result, transformer oils are essential for keeping these transformers in good operating order. Transmission & distribution is one of the most critical industries for transformer oil, as numerous types of transformers are utilized in the transmission & distribution of power.

Segmentation by End User

  • Transmission & Distribution
  • Power Generation
  • Railways & Metros
  • Others


Mineral oil is the largest segment amongst others in the transformer oil market. Mineral oil dominates the global industry as the ability to mix with a large number of additives. But in the future, the dominance of mineral oil in the transformer oil market is expected to decline due to the introduction of silicone-based and bio-based transformer oil. Also, developed countries such as the U.S., Germany, and Japan are concerned about the environmental impact of mineral oils; therefore, the respective government has laid down stringent regulations for transformer oils.

Segmentation by Oil Type

  • Mineral Oil
  • Silicone Oil
  • Bio-based Oil


APAC is the largest global transformer oil market and is estimated to cross USD 1.4 billion by 2027. Asia Pacific region is the leading market because of its rapidly developing infrastructure, readily increasing population, and demand for various industries such as food & beverage, aerospace, automotive, power generation, and manufacturing. Furthermore, demand for power generation is expected to grow significantly as the APAC region population has grown tremendously in recent years.

South Asian countries are also engaging in cross-border electricity trade, which has boosted the transformer oil market demand. Even though APAC is a dominant industry in the world, many other countries with a high scope of development in transformer oil will challenge APAC's dominance. Regions such as North America and Europe have the most developed countries comprising various well-established industries requiring significant electricity.

North America is the 3rd largest market for transformer oil, and it is expected to grow at a considerable rate of 5.70% during the forecasted period. The oil & gas industry is a significant contributor to economic development in North America as North America is the largest crude oil manufacturer in the world. In addition, North America is one of the major hubs for the manufacturing sector that contributes significantly to various industries such as automotive, oil & gas, chemicals, and others. The North American region is home to many industrial lubrication manufacturers due to the high production and processing of oil & gas. Companies such as ExxonMobil, Valvoline, and Petro Canada have headquarters in the North American region. The U.S. and Canada are contributing to North America's high demand for transformer oil.

Segmentation by Geography

  • APAC
  • China
  • India
  • Japan
  • Indonesia
  • South Korea
  • Rest of APAC
  • North America
  • U.S.
  • Canada
  • Europe
  • Germany
  • Russia
  • Italy
  • UK
  • France
  • Spain
  • Rest of Europe
  • Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
  • Middle East & Africa
  • Iran
  • Saudi Arabia
  • South Africa
  • Rest of MEA


The key companies in the global transformer oil market have formed strategic partnerships with transmission and distribution service providers and the various industries that use oil transformers. This gives companies a competitive advantage that boosts their industry share. The key companies have undertaken different strategies to grow in the transformer oil market. Companies in the transformer oil industry compete strategically. The growth in sustainable processes and initiatives has challenged all companies globally. Investments in R&D, technological advancement, and environmental and economic challenges drive the demand for innovative and sustainable transformer oil products.

Some major players in the global transformer oil market include Chevron Corporation (U.S.), Shell (U.K.), Cargill (U.S.), DOW (U.S.), and Total Energies (France). These players have adopted strategies such as expansion, acquisitions, new product development, joint ventures, and others to increase their revenues in the transformer oil market. Furthermore, other prominent companies such as HPCL(India), BPCL(India), Phillips 66(US), APAR(India), Nyas AB(Sweden), Petro China (China), and others have invested significant capital in R&D to develop transformer oil products that will appeal to the customers. Therefore, these other prominent companies give tough competition to major companies in the industry.

Key Vendors

  • Chevron Corporation
  • Dow
  • ExxonMobil
  • Shell PLC
  • TotalEnergies

Other Prominent Vendors

  • APAR Industries
  • Bharat Petroleum Corporation Limited
  • Calumet Specialty Products Partners, L.P.
  • Cargill Incorporated
  • Castrol Limited
  • Engen Petroleum Limited
  • Ergon Inc.
  • Gandhar Oil
  • Gulf Oil India Lubricants Limited
  • Hydrodec Group PLC
  • Indian Oil Corporation Limited
  • Nynas AB
  • Petro Canada Lubricants
  • PetroChina
  • Philips 66
  • Repsol
  • Sinopec
  • Valvoline Inc.


1. What is the revenue from the global transformer oil market?
2. What is the projected market size of the global transformer oil market by 2027?
3. What is the growth rate of the transformer oil market?
4. Which region dominates the global transformer oil market?
5. What are the key driving factors in the transformer oil market?
6. Who are the key players in the global transformer oil market?

Table of Contents

1 Research Methodology2 Research Objectives3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.1.2 Exclusions
4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope of the Study
4.3.1 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Premium Insights
6.1 Market Synopsis
6.1.1 Growth Enabler
6.1.2 Opportunities
6.1.3 Restraint
6.2 Segment Review
6.2.1 End-Use
6.2.2 Oil Type
6.2.3 Geography
6.3 Companies and Strategies
7 Market at a Glance
8 Introduction
8.1 Overview
9 Market Opportunities & Trends
9.1 Expansions of the Electric Grid in Emerging Economies
9.2 Increasing Electrification of Railways
10 Market Growth Enablers
10.1 Growing Demand for Bio-Based Transformer Oil
10.2 Growing Cross-Border Electricity Trade
11 Market Restraints
11.1 Increasing Demand for Dry-Type Transformers
11.2 Fluctuations in Crude Oil Prices
12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.3 Macroeconomic Factors
12.3.1 Infrastructure Industry
12.3.2 Power Generation
12.4 Five Forces Analysis
12.4.1 Threat of New Entrants
12.4.2 Bargaining Power of Suppliers
12.4.3 Bargaining Power of Buyers
12.4.4 Threat of Substitutes
12.4.5 Competitive Rivalry
13 End-Use
13.1 Market Snapshot & Growth Engine (Value)
13.2 Market Snapshot & Growth Engine (Volume)
13.3 Market Overview
13.4 Transmission & Distribution
13.4.1 Market Overview
13.4.2 Market Size & Forecast (Value & Volume)
13.4.3 Market by Geography
13.5 Power Generation
13.5.1 Market Overview
13.5.2 Market Size & Forecast (Value & Volume)
13.5.3 Market by Geography
13.6 Railways & Metros
13.6.1 Market Overview
13.6.2 Market Size & Forecast (Value & Volume)
13.6.3 Market by Geography
13.7 Others
13.7.1 Market Overview
13.7.2 Market Size & Forecast (Value & Volume)
13.7.3 Market by Geography
14 Oil Type
14.1 Market Snapshot & Growth Engine (Value)
14.2 Market Snapshot & Growth Engine (Volume)
14.3 Market Overview
14.4 Mineral Oil
14.4.1 Market Overview
14.4.2 Market Size & Forecast (Value & Volume)
14.4.3 Market by Geography
14.5 Bio-Based Oil
14.5.1 Market Overview
14.5.2 Market Size & Forecast (Value & Volume)
14.5.3 Market by Geography
14.6 Silicone Oil
14.6.1 Market Overview
14.6.2 Market Size & Forecast (Value & Volume)
14.6.3 Market by Geography
15 Geography
15.1 Market Snapshot & Growth Engine (Value)
15.2 Market Snapshot & Growth Engine (Volume)
15.3 Geographic Overview
16 Apac
16.1 Market Overview
16.2 Market Size & Forecast
16.2.1 by Value
16.2.2 by Volume
16.3 End-Use
16.3.1 Market Size & Forecast
16.4 by Oil Type
16.4.1 Market Size & Forecast
16.5 Key Countries
16.6 China
16.6.1 Market Size & Forecast
16.7 India
16.7.1 Market Size & Forecast
16.9 Japan
16.9.1 Market Size & Forecast
16.10 South Korea
16.10.1 Market Size & Forecast
16.11 Indonesia
16.11.1 Market Size & Forecast
16.12 Rest of Apac
16.12.1 Market Size & Forecast
17 North America
17.1 Market Overview
17.2 Market Size & Forecast
17.2.1 by Value
17.2.2 by Volume
17.3 End-Use
17.3.1 Market Size & Forecast
17.4 Oil Type
17.4.1 Market Size & Forecast
17.5 Key Countries
17.6 US
17.6.1 Market Size & Forecast
17.7 Canada
17.7.1 Market Size & Forecast
18 Europe
18.1 Market Overview
18.2 Market Size & Forecast
18.2.1 by Value
18.2.2 by Volume
18.3 End-Use
18.3.1 Market Size & Forecast
18.4 Oil Type
18.4.1 Market Size & Forecast
18.5 Key Countries
18.6 Russia
18.6.1 Market Size & Forecast
18.7 Germany
18.7.1 Market Size & Forecast
18.8 France
18.8.1 Market Size & Forecast
18.9 UK
18.9.1 Market Size & Forecast
18.10 Italy
18.10.1 Market Size & Forecast
18.11 Spain
18.11.1 Market Size & Forecast
18.13 Rest of Europe
18.13.1 Market Size & Forecast
19 Latin America
19.1 Market Overview
19.2 Market Size & Forecast
19.2.1 by Value
19.2.2 by Volume
19.3 End-Use
19.3.1 Market Size & Forecast
19.4 Oil Type
19.4.1 Market Size & Forecast
19.5 Key Countries
19.6 Brazil
19.6.1 Market Size & Forecast
19.7 Mexico
19.7.1 Market Size & Forecast
19.8 Argentina
19.8.1 Market Size & Forecast
19.9 Rest of Latin America
19.9.1 Market Size & Forecast
20 Middle East & Africa
20.1 Market Overview
20.2 Market Size & Forecast
20.2.1 by Value
20.2.2 by Volume
20.3 End-Use
20.3.1 Market Size & Forecast
20.4 Oil Type
20.4.1 Market Size & Forecast
20.5 Key Countries
20.6 Saudi Arabia
20.6.1 Market Size & Forecast
20.7 Iran
20.7.1 Market Size & Forecast
20.8 South Africa
20.8.1 Market Size & Forecast
20.9 Rest of Mea
20.9.1 Market Size & Forecast
21 Competitive Landscape
21.1 Competition Overview
22 Key Company Profiles
22.1 Chevron Corporation
22.1.1 Financial Overview
22.1.2 Product Offerings
22.1.3 Key Strategies
22.1.4 Key Strengths
22.1.5 Key Opportunities
22.2 Dow
22.2.1 Business Overview
22.2.2 Financial Overview
22.2.3 Product Offerings
22.2.4 Key Strategies
22.2.5 Key Strengths
22.2.6 Key Opportunities
22.3 Exxonmobil Corporation
22.3.1 Business Overview
22.3.2 Financial Overview
22.3.3 Product Offerings
22.3.4 Key Strategies
22.3.5 Key Strengths
22.3.6 Key Opportunities
22.4 Shell
22.4.1 Business Overview
22.4.2 Financial Overview
22.4.3 Product Offerings
22.4.4 Key Strategies
22.4.5 Key Strengths
22.4.6 Key Opportunities
22.5 Totalenergies
22.5.1 Business Overview
22.5.2 Financial Overview
22.5.3 Product Offerings
22.5.4 Key Strategies
22.5.5 Key Strengths
22.5.6 Key Opportunities
23 Other Prominent Vendors
23.1 Apar Industries
23.1.1 Company Overview
23.1.2 Business Overview
23.1.3 Product Offerings
23.2 Bharat Petroleum Corporation Limited
23.2.1 Company Overview
23.2.2 Business Overview
23.2.3 Product Offerings
23.3 Calumet Specialty Products Partners, L.P.
23.3.1 Company Overview
23.3.2 Business Overview
23.3.3 Product Offerings
23.4 Cargill
23.4.1 Company Overview
23.4.2 Business Overview
23.4.3 Product Offerings
23.5 Castrol Limited
23.5.1 Company Overview
23.5.2 Business Overview
23.5.3 Product Offerings
23.6 Engen Petroleum Limited
23.6.1 Company Overview
23.6.2 Business Overview
23.6.3 Product Offerings
23.7 Ergon Inc.
23.7.1 Company Overview
23.7.2 Product Offerings
23.8 Gandhar Oil
23.8.1 Company Overview
23.8.2 Product Offerings
23.9 Gulf Oil India Lubricants Limited
23.9.1 Company Overview
23.9.2 Business Overview
23.9.3 Product Offerings
23.10 Hydrodec Group
23.10.1 Company Overview
23.10.2 Product Offerings
23.11 Indian Oil Corporation Limited
23.11.1 Company Overview
23.11.2 Business Overview
23.11.3 Product Offerings
23.12 Nynas
23.12.1 Company Overview
23.12.2 Business Overview
23.12.3 Product Offerings
23.13 Petro-Canada Lubricants
23.13.1 Company Overview
23.13.2 Product Offerings
23.14 Petrochina
23.14.1 Company Overview
23.14.2 Product Offerings
23.15 Phillips 66
23.15.1 Company Overview
23.15.2 Business Overview
23.15.3 Product Offerings
23.16 Repsol
23.16.1 Company Overview
23.16.2 Business Overview
23.16.3 Product Offerings
23.17 Sinopec
23.17.1 Company Overview
23.17.2 Product Offerings
23.18 Valvoline
23.18.1 Business Overview
23.18.2 Product Offerings
24 Report Summary
24.1 Key Takeaways
24.2 Strategic Recommendations
25 Quantitative Summary
25.1 Market by End-Use
25.1.1 Transmission & Distribution (Value & Volume)
25.1.2 Power Generation (Value & Volume)
25.1.3 Railways & Metros (Value & Volume)
25.1.4 Others (Value & Volume)
25.2 Market by Oil Type
25.2.1 Mineral Oil (Value & Volume)
25.2.2 Bio-Based Oil (Value & Volume)
25.2.3 Silicone Oil (Value & Volume)
25.3 Geography
25.4 Apac
25.4.1 End-Use (Value & Volume)
25.4.2 Oil Type (Value & Volume)
25.5 Europe
25.5.1 End-Use (Value & Volume)
25.5.2 Oil Type (Value & Volume)
25.6 North America
25.6.1 End-Use (Value & Volume)
25.6.2 Oil Type (Value & Volume)
25.7 Latin America
25.7.1 End-Use (Value & Volume)
25.7.2 Oil Type (Value & Volume)
25.8 Middle East & Africa
25.8.1 End-Use (Value & Volume)
25.8.2 Oil Type (Value & Volume)
26 Appendix
26.1 Abbreviations

Companies Mentioned

  • Chevron Corporation
  • Dow
  • ExxonMobil
  • Shell PLC
  • TotalEnergies
  • APAR Industries
  • Bharat Petroleum Corporation Limited
  • Calumet Specialty Products Partners, L.P.
  • Cargill Incorporated
  • Castrol Limited
  • Engen Petroleum Limited
  • Ergon Inc.
  • Gandhar Oil
  • Gulf Oil India Lubricants Limited
  • Hydrodec Group PLC
  • Indian Oil Corporation Limited
  • Nynas AB
  • Petro Canada Lubricants
  • PetroChina
  • Philips 66
  • Repsol
  • Sinopec
  • Valvoline Inc.


Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.

Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.