Global Transformer Oil Market Report and Forecast 2024-2032

Global Transformer Oil Market Outlook

The global transformer oil market reached a value of almost USD 3.44 billion in 2023. The market is further expected to grow at a CAGR of 8.5% between 2024 and 2032.

Expansion of Power Infrastructure Driving the Market Growth of Transformer Oil

The Asia Pacific is one of the leading transformer oil markets, followed by North America and Europe. The demand for the product in the Asia Pacific region witnessed an increase of almost 7 to 9% between 2016 and 2017. Asia Pacific is also expected to dominate the market in the forecast period. China and India are the major markets in the region, accounting for almost half of the total demand for transformer oil in the Asia Pacific. The market in China and India is being driven by the rising government initiatives within the countries focused on expanding the power infrastructure to meet the rising energy demand by the population. South Korea and Japan are also significantly contributing to the rising demand for transformer oil within the region.

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The Asia Pacific, Africa, and the Middle East are among the mature regional transformer oil markets. The growth of transformer oil is estimated to become higher in the maturing markets due to the rising demand for new transformers. Developing countries such as Brazil, India, and China have an increasing population and are focusing on building better infrastructure, which is bolstering the market growth of transformer oil. The market is being driven by the increase in the global energy industry, which in turn has increased the investments in the transformer industry. The governments are encouraging the replacement of old transformers with technologically advanced new power transformers to improve energy efficiency and reduce losses. This is leading to the modernisation of the power grids in countries such as India, China, Germany, and the United Kingdom.

Growing Focus to Enhance the Reliance of Transformers Aiding the Market for Transformer Oil

The transformer oil market is being supported by the rising focus on boosting the reliance of transformers in power systems and energy grids for uninterrupted electricity supply for residential, commercial, and industrial activities. As transformer oil are extensively used in high-voltage applications, their demand in circuit breakers, high voltage switches, and capacitors, among others, is significantly rising. The growing demand for transformer oil that offer corrosion resistance, enhanced efficiency, and increased durability is also propelling the market growth.

Various leading companies are increasingly developing uninhibited transformer oil that contain no additive and are ideal for protecting electrical components of power and distribution transformers. With the rising concerns regarding transformer failure due to corrosive sulphur deposits on copper winding insulation, the demand for transformer oil that do not cause copper sulphide formation is surging. The increasing research and development (R&D) activities to explore the potential of sulphur-free mineral-based transformer oil with excellent compositional consistency are anticipated to provide lucrative growth opportunities to the market in the coming years.

Market Segmentation

Transformer oil, also known as insulating oil, is an oil that remains stable at high temperatures and has superior electrical insulation properties. It is used in fluorescent lamp ballasts, oil-filled transformers, and in some types of high-voltage capacitors, high-voltage switches, and circuit breakers. It is available in the following types:

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• Mineral Based Oil
• Silicone Based Oil
• Bio Based Oil

Transformer oil finds its application in:

• Power Transformers
• Distribution Transformers
• Utilities
• Others

The market is segmented on the basis of end-use into:

• OEM
• Electrical Utility Companies
• Others

The report also covers the regional markets of the product like North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

Robust Growth of the Power Industry Bolstering the Market for Transformer Oil

The increase in the growth of the power industry and the rising demand from its Transmission and Demand (T&D) sector is driving the market growth of transformer oil. The increase in the demand for Transmission and Demand (T&D) infrastructure due to the incorporation of the plants generating renewable energy in the developed countries is aiding the market growth. The increasing demand for oil-filled transformers due to increasing electrification, increasing energy demand, and increased industrial usage in developing economies are expected to contribute significantly towards the growth of the transformer oil market. The Asia Pacific region is estimated to become the leading global transformer oil market in the upcoming decade as a consequence of the growing need for the advancement of the rural and urban infrastructure.

The demand for transformer oil is expected to increase due to the robust transformer demand from both developed and developing nations. The market is being driven by the increasing demand for electricity, along with the rising infrastructure investment for energy access. The increase in the development of alternative types of transformer oil, that is, bio-based and silicone-based, due to the increasing consciousness of environmental issues, is providing further impetus for the growth of the transformer oil market.

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Key Players in the Global Market for Transformer Oil

The report gives a detailed analysis of the following key players in the global transformer oil market, covering their competitive landscape, capacity, and latest developments like mergers, acquisitions, and investments, expansions of capacity, and plant turnarounds:

• Ergon, Inc.
• APAR Industries Limited
• Calumet Specialty Products Partners, L.P.
• Sinopec Corp
• San Joaquin Refining Co. Inc.
• Cargill, Incorporated
• Petro-Canada Lubricants Inc.
• Nynas AB
• Hydrodec Group plc
• Others

The comprehensive EMR report provides an in-depth assessment of the market based on Porter's five forces model, along with giving a SWOT analysis.

Key Highlights of the Report