The global transformer oil market size was estimated at USD 2.73 billion in 2023 and is anticipated to expand at a compound annual growth rate (CAGR) of 12.3% from 2024 to 2030. This is attributed to the steadily growing power sector globally, along with advancements in electric grids in emerging economies. Every power and distribution transformer contains dielectric insulating fluid with strong electricity resistance and the ability to keep a transformer cool. Bio-based products are more fire resistant than others, thus expected to witness the highest growth till 2030. Since bio-based oils are fully non-toxic, which further facilitates disposal, they provide reliable and cleaner products. The demand for bio-based products is also anticipated to grow as a result of an increase in the installation of transformers occurring globally. Power utilities are also focusing on upgrading the safety and performance of both new and existing transformers, which is predicted to boost demand for bio-based products globally.

 

Stringent regulation imposed by government bodies concerning energy wastage is expected to be the major challenge for product demand. For instance, the U.S. Environmental Protection Agency (EPA) has set up strict regulations on oil demand to control electricity wastage. Additionally, developed and developing economies are opting for green and environmental-friendly technologies, which are expected to restrain the growth of mineral-based products.

 

Gather more insights about the market drivers, restrains and growth of the Transformer Oil Market

 

Detailed Segmentation:

 

Product Insights

 

Mineral-based oils dominated with a revenue share of over 75.6% in 2023. This is attributed to high compatibility and a wide range of applications of mineral-based oils in capacitors & circuit breakers. Mineral-based products are utilized in conditioning and shielding transformers, switchgear, and boilers. Additionally, it can be used for thermal transfer and to safeguard the interior field winding of transformers. Such wide usage of mineral-based oils is expected to drive growth from 2024 to 2030.

 

Rating Insights

 

The 100 MVA to 500 MVA segment dominated with a revenue share of over 53.8% in 2023. Application of such transformers in large-scale industrial settings, including refineries, power plants, and manufacturing facilities is expected to propel this growth. These transformers have been designed to handle large amounts of electrical power and have become vital components in the generation, transmission, and distribution of electrical power. Moreover, they can adequately distribute power in highly populated areas due to their capacity to handle high voltages, making them ideal for transferring power from source to desired destination.

 

End-use Insights

 

The industrial segment dominated with a revenue share of over 48.8% in 2023. This is attributed to growing industrialization across the globe leading to an increased number of transformers. Industrial end-use includes transformers used in chemicals, food processing, steel, and automotive industries. Industrial processes require different types of electrical machinery that operate at discrete voltage levels. Power generation facilities typically generate electricity at high voltages, requiring the use of three-phase distribution transformers.

 

Regional Insights

 

Asia Pacific dominated the transformer oil market with a revenue share of over 55.2% in 2023. This is attributed to a rise in demand for electricity in Australia and developing countries such as China, India, and Japan. Additionally, the growth of the commercial and industrial sectors is anticipated to increase the number of substations, which, in turn, will fuel transformers’ demand.

 

Browse through Grand View Research's Petrochemicals Industry Research Reports.

 

  • The global aerospace lubricants market sizewas valued at USD 2.13 billion in 2023 and is projected to grow at a CAGR of 5.0% from 2024 to 2030.

 

  • The global polymer modified bitumen market size was valued at USD 12.86 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2030.

 

Key Transformer Oil Companies:

 

  • China Petroleum & Chemical Corporation
  • Cargill Inc.
  • Shell Plc.
  • Nynas AB
  • Ergon, Inc.
  • Engen Petroleum Ltd.

 

 

Transformer Oil Market Segmentation

 

Grand View Research has segmented the global transformer oil market  based on product, rating, end-use, and region:

 

Transformer Oil Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

 

  • Mineral-based Oils
    • Naphthenic Base Oils
    • Paraffinic Base Oils
  • Silicone-based Oils
  • Bio-based Oils

 

Transformer Oil Rating Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

 

  • <100 MVA
  • 100 MVA to 500 MVA
  • 501 MVA to 800 MVA
  • >800 MVA

 

Transformer Oil End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

 

  • Utilities
  • Industrial
  • Residential
  • Commercial

 

Transformer Oil Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

 

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Indonesia
  • Central & America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Turkey

 

 

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