Middle East and Africa Transformer Oil Market Report and Forecast 2024-2032

Middle East and Africa Transformer Oil Market Outlook

The Middle East and Africa transformer oil market size was valued at USD 216.42 million in 2023. The market is further projected to grow at a CAGR of 6.6% between 2024 and 2032, reaching a value of USD 387.18 million by 2032.

Key Takeaways

• Advancements in power electronics and solid-state technology are enhancing the effectiveness, efficiency, and reliability of energy systems, driving the adoption of solid-state transformers in the region.

• As per industry reports, bio-based oils are gaining popularity due to increasing environmental concerns and regulatory mandates to reduce the use of mineral oils.

• Major players in the market include Shell International B.V., Chevron Corporation, Abu Dhabi National Oil Company, Kuwait Petroleum Corporation (KPC), and Castrol Limited.

There is a notable trend in the market towards environmentally friendly insulating oils for transformers, such as bio-based oil, which are derived from vegetables. They are biodegradable, non-toxic, and have superior insulating properties, making them an attractive choice for transformers and electrical equipment. For example, Nynas, a leading transformer oil supplier, has developed a range of bio-based transformer oils called NYTRO BIO 300X, which are made from renewable raw materials.

There is an increasing demand for high-performance transformer oils that offer enhanced thermal and oxidation stability, longer service life, and improved operational efficiency. For instance, Apar Industries, an Indian transformer oil manufacturer, has developed a range of high-performance transformer oils called APIS HIPO, which offer improved oxidation stability and better performance in high-temperature applications.

The expansion of renewable energy projects, particularly in solar and wind power generation, is fuelling the Middle East and Africa transformer oil market growth. For instance, the Noor Abu Dhabi solar power plant in the United Arab Emirates, one of the world's largest solar projects, requires transformers to support efficient energy transmission and distribution, driving the demand for transformer oils.

Mineral oil has the largest Middle East and Africa transformer oil market share as it is the most used type of transformer oil, primarily due to its low cost, wide availability, and excellent insulating properties. Mineral oil-based transformer oils exhibit high resistivity, di-electricity, chemical stability, minimum power loss, and thermal conductivity, making them an ideal choice for transformers and electrical equipment.

Silicone-based transformer oils are known for their superior performance and durability. They offer excellent resistance to high temperatures, electrical stress, and oxidation. Silicone-based oils are typically more expensive than mineral oils but provide better overall performance, especially in high-temperature applications.

Market Segmentation

Middle East and Africa Transformer Oil Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Mineral Oil
  • Paraffinic
  • Naphthenic

• Silicone-Based Oil

• Bio-Based Oil

Market Breakup by Application

• Transformer

• Switchgear

• Circuit Breaker

• Others

Market Breakup by End Use

• Power Generation

• Transmission

• Railways and Metros

• Others

Market Breakup by Country

• Saudi Arabia

• United Arab Emirates

• Nigeria

• South Africa

• Others

Competitive Landscape

Market players are focusing on developing eco-friendly and biodegradable transformer oils to align with environmental regulations and sustainability goalsMarket players are focused on providing premium quality of silica sand across industries to stay ahead in the competition.

• Shell International B.V.

• Chevron Corporation

• Abu Dhabi National Oil Company

• Kuwait Petroleum Corporation (KPC)

• Castrol Limited

• Fuchs SE

• Gulf Chemical & industral Oils

• Gulf Oil International Group

• National Oil and Chemical Company (CHEMAOIL)

• Ergon International, Inc.

• NYNAS AB

• Others

Key Highlights of the Report