The Global Transformer Oil Market is estimated to be USD 1.17 Bn in 2023 and is expected to reach USD 1.66 Bn by 2028 growing at a CAGR of 7.21%.The State Grid Corp of China announced plans to invest USD 79 billion in domestic grid construction in 2022, an increase of 9 % year on year compared to 2021
Transformer oil, also known as insulating oil, is a specialized type of oil that is used in electrical transformers and other electrical equipment to provide insulation and cooling. It is often an oil with a mineral base that is obtained from crude oil and has undergone refinement and processing to improve its performance properties. It is a clear, colorless liquid with outstanding electrical insulating qualities that assist avoid electrical arcing and corona discharge. It is also highly stable. In a transformer, it performs two crucial tasks, namely the control of arcing and the dissipation of heat produced in transformers. It is additionally utilized as insulation and for chemical stabilization. It avoids oxidation and demonstrates improved electrical insulation and high-temperature stability.
One of the main factors driving the market for transformer oil is the increased demand for electricity networks in emerging economies. Power transformers, which are used to transmit electricity from power plants to buildings, businesses, and industries, must have transformer oil as an essential component. Power transformers and transformer oil are in higher demand because of the rising demand for electricity in emerging economies. In addition, the market for transformer oil is expanding because of rising investments in the power industry, particularly in nations like Brazil, China, and India.
Environmental issues related to the use of transformer oil with a mineral base, however, are a commercial restraint. The most popular oil has historically been naphthenic mineral oil due to its effectiveness, ease of accessibility, and advantageous chemical characteristics like a good pour point at low temperatures and outstanding thermal cooling capacity. Typically, it is made up of hydrocarbons generated from petroleum, which are known to include harmful substances like polychlorinated biphenyls (PCBs) and heavy metals. When these compounds are spilled or leaked into the environment, they can endanger both human health and the ecosystem. Transformer oil made from minerals is produced using a lot of energy and emits greenhouse gases, which contributes to climate change.
However, the market has an opportunity due to the increasing adoption of bio-based transformer oil. Bio-based products offer dependable and cleaner goods because they are completely non-toxic and devoid of PCBs, which makes disposal easier. As transformer installations increase globally, it is also projected that there will be a rise in the need for bio-based products. The performance and safety of both new and old transformers are being upgraded by the power utilities, which is anticipated to increase demand for bio-based goods internationally.
- Stringent regulation imposed by government bodies concerning energy wastage is expected to be the major challenge for product demand. For instance, to reduce electricity waste, the United States Environmental Protection Agency has implemented certain tight limitations on oil demand. Also, both established and developing countries are moving towards environmentally friendly and green technologies, which is predicted to impede the development of mineral-based products.
Market Segmentations
- The Global Transformer Oil Market is segmented based on Oil Type, Function, Application, End-User, and Geography.
- By Oil Type, the market is classified into Mineral-Based Oils, Silicone-Based Oils, and Bio-Based Oils.
- The Mineral Based Oil segment held the largest market share. Due to an increase in demand for transformer oil from electric utilities such as transmission networks, power plants, and other industrial applications, it is subdivided into naphthenic oil and paraffinic oil. In the upcoming years, it is projected that benefits related to mineral oil, such as high thermal conductivity, oxidation resistance, cost-effectiveness, and ease of availability, would further propel the expansion of the worldwide transformer oil market.
- By Function, the market is classified into Insulators, Cooling agents, lubricants, and Chemical Stabilizer.
- The Insulator segment dominated the global market. Due to the rising need for transformer oil to insulate high-voltage electrical facilities such transformers, capacitors, switches, and circuit breakers applications in electric utilities. Because of its strong dielectric strength, sufficient viscosity, temperature adaptability, and other benefits, it is mostly employed as insulation between transformer windings and other parts.
- By Application, the market is classified into Transformer, Switchgear, Circuit breaker, Capacitor, and Other Applications.
- The Transformer segment holds the largest share of the market during the forecast period. To transport and distribute electricity from the point of generation to the end user, transformers are utilized in a variety of industries, power utilities, and power generation and distribution facilities. Thus, it is anticipated that the market for this sector will be driven by the increase in electricity demand.
- By End-User, the market is classified into Residential, Commercial, and Industrial.
- The Industrial segment exhibited the highest market share. This is attributed to the rise in the installation of standalone power generation systems in industrial applications, owing to varying loads and power demand in industrial applications. In addition, the rapid growth of industries such as building & construction, chemicals, oil & gas, and railways resulted in the rise in demand for transformers, which, in turn, is expected to drive the growth of the market during the forecast period.
- By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
- Asia-Pacific garnered the highest share of the transformer oil market, in terms of revenue, and is anticipated to maintain its dominance throughout the forecast period. Due to the fluctuating loads and increasing power demands in industrial applications, there has been an increase in the installation of standalone power production systems. The rapid expansion of industries including building and construction, chemicals, oil and gas, and railways have also increased demand for transformers, which is anticipated to fuel market expansion throughout the course of the forecast year.
Recent Development
- Cargill opened its first FR3 natural ester manufacturing facility in Guangdong province. The FR3 fluid is derived from 100% natural vegetable oil with performance-enhancing additives and has been proven to be readily biodegradable. - December 2021
- Nynas announced that the company's NYTRO BIO 300X transformer oil product has received the United States Department of Agriculture’s (USDA) Certified Biobased Product label. - June 2021
- Calumet Specialty Products and Aeviatas, Inc. are partnership to provide premier transformer oil products to the Canadian market. - May 2021
Company Profiles
The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are Ergon International, PetroChina Lubricant, Calumet Specialty Products, Apar Industries, Engen Petroleum, Hydrodec Group, etc.Countries Studied
- America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
- Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxembourg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
- Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
- Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
- The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.
Ansoff Analysis
- The report presents a detailed Ansoff matrix analysis for the Global Transformer Oil Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
- The publisher analyses the Global Transformer Oil Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
- Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.
Why buy this report?
- The report offers a comprehensive evaluation of the Global Transformer Oil Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
- The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
- Excel data sheet for the market size will also be provided with the report.
- The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
- The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
- The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
- The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
- The report offers customized research - tailored uniquely to our customers with a quick turnaround time. We offer a 15% customization option at no extra charge to all our clients for any of our syndicated reports.
Report Highlights:
- A complete analysis of the market, including the parent industry
- Important market dynamics and trends
- Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
- Market segmentation
- Competitive Analysis: Comparative analysis of competitor
- Historical, current, and projected size of the market based on value and volume
- Market size of the US states
- Market shares and strategies of key players
- Recommendations to companies for strengthening their foothold in the market
Table of Contents
1 Report Description
2 Research Methodology
3 Executive Summary
4 Market Dynamics
5 Market Analysis
6 Global Transformer Oil Market, By Oil Type
7 Global Transformer Oil Market, By Function
8 Global Transformer Oil Market, By Application
9 Global Transformer Oil Market, By End-User
10 Americas' Transformer Oil Market
11 Europe's Transformer Oil Market
12 Middle East and Africa's Transformer Oil Market
13 APAC's Transformer Oil Market
14 Competitive Landscape
15 Company Profiles
16 Appendix
Companies Mentioned
- Apar Industries Ltd.
- Calumet Specialty Products Partners, L.P.
- Cargill, Inc.
- Eden Oil
- Emirates Lube Oil Co.
- Engen Petroleum Ltd.
- Ergon International, Inc.
- Exxon Mobil Corp.
- Royal Dutch Shell
- Gulf Oil International Ltd.
- M&I Materials Ltd.
- Dow Chemical Co.
- Repsol SA
- Chevron Corp.
- Hilubo Oil Co. Ltd.
- Hydrodec Group PLC
- Nynas AB
- PetroChina Lubricant Co.
- San Jaouin Refining Co. Ltd.
- Shell PLC
- Sinopec Lubricant Co.
- Valvoline Cummins
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 141 |
| Published | February 2024 |
| Forecast Period | 2023 - 2028 |
| Estimated Market Value ( USD | $ 1.17 Billion |
| Forecasted Market Value ( USD | $ 1.66 Billion |
| Compound Annual Growth Rate | 7.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 22 |
