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Transformer Oil Market

Market Insights on Transformer Oil covering sales outlook, demand forecast & up-to-date key trends

Transformer Oil Market by Oil Type (Mineral (Naphthenic, Paraffinic), Silicone, Bio-based), Application (Transformer, Switchgear, Reactor), End User (Transmission & Distribution, Power Generation, Railways & Metros) & Region - Forecast 2022-2032

Transformer Oil Market Overview

Global Transformer Oil Market demand is anticipated to be valued at US$ 2.02 Billion in 2022, forecast to grow at a CAGR of 7% to be valued at US$ 4 Billion from 2022 to 2032. The growth of the Transformer Oil Market is attributed to its global utilization across the energy and power industry.

Report Attribute

Details

Estimated Base Year Value (2021)

US$ 1.9 Billion

Expected Market Value (2022)

US$ 2.02 Billion

Anticipated Forecast Value (2032)

US$ 4 Billion

Projected Growth Rate (2022-2032)

7% CAGR

Transformer oil or insulating oil is an oil that is stable at high temperatures and has excellent electrical insulating properties. It is used in oil-filled transformers, some types of high-voltage capacitors, fluorescent lamp ballasts, and some types of high-voltage switches and circuit breakers. Its functions are to insulate, suppress corona discharge and arcing, and to serve as a coolant. Transformer oil is most often based on mineral oil, but alternative formulations with different engineering or environmental properties are growing in popularity.

Asia Pacific is considered to be a dominant region for Transformer Oil Market, driven primarily increasing focus on rural and urban development in infrastructure. The demand for transformer oil in Asia Pacific is growing for emerging markets of India and China.

The major factor that is expected to propel the growth of the Transformer Oil Market during the forecast period include the expanding energy demand and growing installation of power grids in urban scenario.

Simultaneously, the transition towards renewable sources of energy, strict environmental laws and shift towards organic oils are the factors expected to hinder the growth of the Transformer Oil market during the forecast period.

Which are Some Prominent Drivers Spearheading Transformer Oil Market Growth?

The major factors driving the growth for global transformer oil during the forecast period include the expansion of electric grids in developing countries along with the modernization of electric grids in the developed economies, due to growing industrialization and urbanization.

The investments in the expansion of T&D system and grid network by developing economies is anticipated to accelerate the potential increase in power demand due to the rapid industrialization and urbanization in the region. The expansion of the grid network and T&D system will result in the installation of new transformer and switchgears, thereby driving the demand for transformer oil during the forecast period.

Moreover, rising power demands is one of the major factors that will increase the installation of transformers, which in turn is expected to increase the demand for Transformer oil globally. In addition, technological advancements and increasing R&D initiatives by prominent industry players have also contributed to market expansion in recent years, which in turn is expected to propel the growth of the Transformer Oil market during the forecast period.

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What are the Challenges Faced by the Transformer Oil Industry?

Naphthenic mineral oil has long been the most preferred transformer oil because of its high efficiency, easy availability, and its useful chemical properties such as good pour point at low temperature and exceptional thermal cooling capacity. Adoption of paraffinic mineral oil had gained traction over the years, owing to its excellent oxidation stability.

However, both paraffinic and naphthenic variants of the mineral oil are products of highly refined, purified, and processed petroleum, thus being highly non-biodegradable. The mineral oil is characterized by biodegradability ranging from 0–40% and is sourced from a non-renewable resource. The global economies, both the developed and the developing, are transitioning towards adopting green and environmentally friendly technologies. This transition might hinder the adoption of mineral-based transformer oils in the near future, and become a restraint to the mineral oil market over the long run.

Simultaneously, the transition towards renewable sources of energy, strict environmental laws and shift towards organic oils are the factors expected to hinder the growth of the Transformer Oil market during the forecast period.

How is Asia Pacific emerging as an Opportunistic Transformer Oil Market?

Asia Pacific is the largest market for Transformer Oil and the trend is expected to continue into the forecast period attributed to the increasing focus on rural as well as urban development in infrastructure.

The countries in Asia Pacific including India and China are aiming to provide electricity distribution infrastructure & networks to undeveloped rural areas in order to bolster economic progress in the region.

Nikhil Kaitwade
Principal Consultant
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How is Latin America Contributing to Growth of the Transformer Oil Market?

According to Future Market Insights, Latin America is expected to provide immense growth opportunities for Transformer Oil, with Brazil expected to steer the bulk of all regional growth. Brazil is expected to dominate the Transformer Oil market, owing to the government initiative for the electricity accessibility to the country’s population.

South America Transformer Oil Market is expected to witness tremendous growth during the forecast period, owing to the increasing demand for mineral based oil, which is anticipated to stabilize due to shift towards green (bio-based) alternatives.

Market Competition

Some of the key participants present in the global Transformer Oil market include Royal Dutch Shell, Exxon Mobil Corporation, Repsol, Ergon, Inc., Nynas AB, Sinopec Lubricant Company, APAR Industries, PetroChina Company Limited, Savita Oil Technologies Limited, Chevron Corporation, M&I Materials Limited, Petro-Canada, Gandhar Oil, Lubrita, and Phillips 66 Company, among others.

Attributed to the presence of such high number of participants, the market is highly competitive. While global players such as Royal Dutch Shell, and Exxon Mobil Corporation account for a considerable market size, several regional level players are also operating across key growth regions, particularly in the Asia Pacific.

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Scope Of Report

Report Attribute

Details

Growth Rate

CAGR of 7% from 2022 to 2032

Base Year for Estimation

2021

Historical Data

2015-2020

Forecast Period

2022-2032

Quantitative Units

Revenue in USD Billion, Volume in Kilotons and CAGR from 2022-2032

Report Coverage

Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends and Pricing Analysis

Segments Covered

  • Oil Type
  • Application
  • End Use Industry
  • Region

Regions Covered

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • Middle East and Africa

Key Countries Profiled

  • U.S
  • Canada
  • Brazil
  • Argentina
  • Germany
  • U.K
  • France
  • Spain
  • Italy
  • Nordics
  • BENELUX
  • Australia & New Zealand
  • China
  • India
  • ASEAN
  • GCC
  • South Africa

Key Companies Profiled

  • Royal Dutch Shell
  • Exxon Mobil Corporation
  • Repsol, Ergon, Inc.
  • Nynas AB, Sinopec Lubricant Company
  • APAR Industries
  • PetroChina Company Limited
  • Savita Oil Technologies Limited
  • Chevron Corporation
  • M&I Materials Limited
  • Petro-Canada
  • Gandhar Oil
  • Lubrita
  • Phillips 66 Company

Customization

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Key Segments Profiled in the Transformer Oil Industry Survey

Oil Type:

  • Mineral Transformer Oil (Naphthenic, Paraffinic)
  • Silicone Transformer Oil
  • Bio-based Transformer Oil

Application:

  • Transformer Oil for Transformer
  • Transformer Oil for Switchgear
  • Transformer Oil for Reactor

End Use Industry:

  • Transformer Oil for Transmission & Distribution
  • Transformer Oil for Power Generation
  • Transformer Oil for Railways & Metros

Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • Middle East & Africa

Frequently Asked Questions

FMI projects the global Transformer Oil Market to expand at a 7% value CAGR by 2032

Asia Pacific is expected to be the most opportunistic transformer oil market

Royal Dutch Shell, Exxon Mobil Corporation, Repsol, Ergon, Inc., Nynas AB, Sinopec Lubricant Company, APAR Industries, and PetroChina Company Limited, among others are some prominent Transformer Oil Market players

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Nikhil Kaitwade
Principal Consultant
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Transformer Oil Market