Global Transformer Oil Market, By Type (Mineral Oil, Silicone, Bio-based), Application (Transformer, Switchgear, Reactor), End User (Transmission and Distribution, Power Generation, Railways and Metros, Others) – Industry Trends and Forecast to 2029
Transformer Oil Market Analysis and Size
Transformers are almost everywhere, and every power and distribution transformer is filled with the dielectric insulating fluid, which consists high resistance to electricity and cools the transformer. The “bio based oil” is the highest growing type segment because it has better resistance to fire as compared to other oil over the forecast period. Furthermore, the growth of electric grids in developing economies and the upgradation of electric grids in the developed countries due to growing urbanization and industrialization are the major factors expected to drive the growth of the transformer oil market. Moreover, the increasing demand for electricity globally has enforced the installation of new transformers, which will increase the market growth rate.
Data Bridge Market Research analyses that the transformer oil market is expected to undergo a CAGR of 7.55% during the forecast period. This indicates that the market value, which was USD 1.90 billion in 2021, would rocket up to USD 3.40 billion by 2029. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.
Transformer Oil Market Scope and Segmentation
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Report Metric
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Details
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Forecast Period
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2022 to 2029
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Base Year
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2021
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Historic Years
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2020 (Customizable to 2014 - 2019)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Type (Mineral Oil, Silicone, Bio-based), Application (Transformer, Switchgear, Reactor), End User (Transmission and Distribution, Power Generation, Railways and Metros, Others)
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Market Players Covered
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Shell (U.K.), Exxon Mobil Corporation (U.S.), Repsol (Spain), Ergon, Inc. (U.S.), Nynas AB (Sweden), Sinopec Lubricant Company (China), APAR (India), PetroChina Company Limited (China), Savita Oil Technologies Limited (India), Chevron Corporation (U.S.), M&I Materials Limited (U.K.), Gandhar Oil Refinery (India) Limited (India), Lubrita Check Oil Level (Netherlands), Phillips 66 Company (U.S.), Gulf Oil International Ltd (U.K.), Dow (U.S.), Hydrodec Group plc (U.K.), Calumet Specialty Products Partners, L.P. (U.S.), Sasol (South Africa), San Joaquin Refining Co, Inc, (U.S.), Valvoline Cummins (U.S.), ENGEN PETROLEUM LTD (South Africa)
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Market Opportunities
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Market Definition
Transformer oil is an insulating oil which is stable at high temperatures and has superior electrical insulating properties. It is widely used in oil-filled transformers, high-voltage capacitors, fluorescent lamp ballasts, high-voltage switches and circuit breakers. There functions are to suppress corona discharge, insulate and arcing, and to serve as a coolant.
Transformer oil Market Dynamics
Drivers
- Rising demand of mineral oil
Mineral oil is anticipated to witness the largest share of the overall market during the forecast period. Mineral oil is used for shielding and conditioning transformers, boilers, and switchgear. It can also be used to safeguard the transformer's interior field winding as well as for thermal transfer. Also, mineral oil is used as dielectric fluid in most existing and new transformers due to its low-cost indices and availability to other heat transfer fluids. The rising consumption of mineral oil is expected to drive the growth rate of the transformer oil market during the forecast period.
- High usage of transformer oil in power generation sector
High growth in the power generation sector to meet the growing requirements of electricity has driven the growth of the transformer oil market. The rising demand for power generation is one of the major factors that increase the installation of transformers, which is anticipated to upsurge the demand for transformer oil globally and propel the transformer Oil market growth rate during the forecast period.
Furthermore, due to rapid industrialization and urbanization, increasing investments in grid networks by developing economies will accommodate the potential increase in power demand. The growth of the grid network will result in the installation of switchgears and new transformer, thereby driving the demand for the transformer oil in the market.
Opportunities
- Growing demand for bio based transformer oil
Bio based transformer oil is eco-friendly and also performs better than other products. Bio-based transformer oil is a comparatively new product in the transformer oil market. Bio based transformer oil is prepared from vegetable oil feedstock. This oil does not contain petroleum hydrocarbons, silicone and halogens. The bio based transformer oil quickly degrades in case of spill or leakage and also non-toxic in nature. The rising demand of bio based transformer oil will create immense opportunities for the growth of the bio based transformer oil market in forthcoming period.
Furthermore, nowadays manufacturers of transformer oil are focussing on research & development activities to produce the most effective transformer oil. Researchers and Scientists are investigating nanofluids for use in the transformers and this would be used as additives to improve the electrical properties and thermal stability of the oil.
Restraints/Challenges
- Stringent rules associated with energy wastage
Stringent regulations regarding energy wastage, in the developing countries as well as developed countries such as the U.S. Environmental Protection Agency, regarding the demand of oil to curb electricity wastage and emissions can restrain the market growth rate.
Furthermore, the global economies, both the developed and the developing, are moving towards adopting environmentally friendly and green technologies. This transition might hamper the adoption of mineral-based transformer oils in upcoming period, and become a major restraint to the transformer oil market over the long run.
This transformer oil market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the transformer oil market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.
Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
COVID-19 Impact on Transformer Oil Market
The outbreak of COVID-19 pandemic has mixed impact on the specialty chemical manufacturers. The decrease in the cost of crude oil has affected a majority of transformer oil manufacturers to achieve the reduced raw material costs. However, the manufacturers are facing problem related to logistics and procurement due to the breakdown of supply chain. Additional, the decrease in the demand for transformer oils has increased the production cost of transformer oil which will have a dropping effect on the selling price of the transformer oil. Thus, covid-19 has major impact on the growth of the global transformer oil market.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Recent Development
- In May 2021, Cargill, Incorporated. Has partnered up with Delta Star, Inc. to offer retro-filling services of its Envirotemp range of dielectric fluids to its consumers in the Western United States. This contract designates Delta Star, Inc. as a service center of Cargill, Incorporated in the Western United States market.
- In May 2021, The company partnered with Aevitas, Inc. to improve the access of transformer oil products to the Canadian market. According to this partnership, the company’s new arctic grade transformer oil will be distributed completely by Aevitas, Inc. overall Canada. The new Caltran line of arctic-grade transformer oil delivers high oxidation stability and exceptional low-temperature performance, making it perfectl for use in cold weather regions such as Canada.
Global Transformer Oil Market Scope
The transformer oil market is segmented on the basis of type, application and end user. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Type
- Mineral Oil
- Silicone
- Bio-based
Application
- Transformer
- Switchgear
- Reactor
End User
- Transmission and Distribution
- Power Generation
- Railways and Metros
- Others
Transformer Oil Market Regional Analysis/Insights
The transformer oil market is analysed and market size insights and trends are provided by country, type, application and end user as referenced above.
The countries covered in the transformer oil market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
Asia-Pacific dominates the transformer oil market due to the rising demand for power in developing economies such as India and China and established economies, such as China and Japan. Rising power requirements are anticipated to result in an upsurge in the number of substations in this region.
North America will continue to project the highest compound annual growth rate during the forecast period of 2022-2029 due to rise in technical upgrade, increasing modernization, and improvement of the already present transformers in this region.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Transformer Oil Market Share Analysis
The transformer oil market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to transformer oil market.
Some of the major players operating in the transformer oil market are:
- Shell (U.K.)
- Exxon Mobil Corporation (U.S.)
- Repsol (Spain), Ergon, Inc. (U.S.)
- Nynas AB (Sweden)
- Sinopec Lubricant Company (China)
- APAR (India)
- PetroChina Company Limited (China)
- Savita Oil Technologies Limited (India)
- Chevron Corporation (U.S.)
- M&I Materials Limited (U.K.)
- Gandhar Oil Refinery (India) Limited (India)
- Lubrita Check Oil Level (Netherlands)
- Phillips 66 Company (U.S.)
- Gulf Oil International Ltd (U.K.)
- Dow (U.S.)
- Hydrodec Group plc (U.K.)
- Calumet Specialty Products Partners, L.P. (U.S.)
- Sasol (South Africa)
- San Joaquin Refining Co, Inc, (U.S.)
- Valvoline Cummins (U.S.)
- ENGEN PETROLEUM LTD (South Africa)
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