Global Transformer Oil Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

Global Transformer Oil Market Report - Market Analysis, Size, Share, Growth, Outlook - Industry Trends and Forecast to 2028

Updated on 26th May 2023 | Market Research Reports | Q2 2023 | Report ID: BR01847

About the Report

The growth of the transformer oil market is the rising transmission and distribution of electricity across the globe. Due to rapid urbanization and industrialization, a rise in electricity consumption is being witnessed, particularly in emerging markets with a high population density, such as India and China. In line with this, governments in these countries are undertaking initiatives to provide an uninterrupted power supply and expand the existing grid infrastructure, which in turn is influencing market growth. 

 

The rising demand for energy grids in the emerging economies of the Asia-Pacific regions, shift towards renewable and biodegradable sources of energy, modernization, technical upgrade, and improvement of the already present transformers, and manufacturing of new transformers per consumer's demand.

 

Resistance to oxidation is also one of the factors behind the growth of the transformer oil market size. Other essential factors stimulating transformer oil market share include electrification of rural areas, expanding power grids, and increasing investment in the power sector. 

 

Transformer oil is used in electrical power transformers to serve as a coolant and suppress corona discharge. Also known as insulating oil, it is a specialty product that remains stable at high temperatures and offers excellent electrical insulation. As a result, it is also used in high-voltage capacitors, fluorescent lamp ballasts, and high-voltage switches, as well as circuit breakers. It acts as a barrier between oxygen and cellulose to avoid direct contact with different components of transformers and prevent oxidation.

 

Insulation within transformers is essential to avoid harmful accidents. Thus, insulating oil or transformer oil is used as a coolant in the components of the electrical transformers. By fractional distillation, transformer oil is extracted from the crude oil. The chemical properties of transformer oil which make them highly useable include high resistivity, excellent di-electricity, thermal conductivity, chemical stability, minimal power loss, and other benefits.

 

During voltage fluctuation, the temperature of the transformer's windings gradually increases. The transformer oil acts as a cooling agent to reduce the rising temperature by increasing the resistance between the windings and keeping away the short circuit by acting as an insulator. It minimizes the humming noise, which causes less vibration in the transformer. On the whole, transformer oil acts as a medium for transferring the heat in an electric transformer. 

 

Transformers are filled with dielectric insulating fluid, which has high resistance to electricity and heat. There are different types of transformer oils: bio-based transformer oil, silicone-based transformer oil, and mineral-based transformer oil.

 

Bio-based transformer oil is relatively new to the market. It is produced from vegetable oil feedstock. Bio-based transformer oil is an ideal replacement for mineral-oil-based products, as it is eco-friendly and offers superior performance.

 

Industries operating with transformers always want energy loss to be as minimal as possible. There is a demand for new optimized resources, which makes a transformer's operation cost-effective and minimizes energy loss. Researchers have introduced Renewable Transformer Oil, which will reduce the energy loss in the transformer to a great extent due to its low viscosity and thinner physical properties. Many major players have invested in the research and development of this renewable transformer oil since it is estimated that there will be a huge demand for this oil due to its energy reduction property, which will save the operation cost for the manufacturers.

 

Transformer Oil Market Restraints: 

  • Environmental concerns associated with the usage of mineral-based transformer oil.
  • Stringent regulations regarding energy wastage in the developed as well as developing countries.
  • Increasing demand for dry-type transformers

 

Transformer Oil Market Opportunities: 

  • Expansion in cross-border electricity trade.
  • Increasing consumption of electricity and the development of new power plants are expected to provide stellar growth for the transformer oil market.

 

Transformer Oil Market Challenges: 

  • Fluctuations in crude oil prices
  • Increasing local manufacturing of transformer oil.

 

 

 

Some Of the Key Developments:

  • In February 2020, Nynas AB extended its product reach of NYTRO BIO 300X transformer oil in the Middle East, which is the world’s first high-performance bio-based transformer hydrocarbon fluid made from renewable sources. NYTRO BIO 300X is a solution to the challenge of keeping transformers cool in the hot climate of the Middle East.
  • In January 2020, Ergon International expanded its naphthenic refinery in Vicksburg, Mississippi, which will help the company position itself, ensuring its longevity of systems and operations while performing the activity.

 

The market has been segmented into mineral oil, silicone, and bio-based. The mineral oil segment is expected to have the largest market share and is projected to grow at the highest rate during the forecast period. Mineral oil is mainly used for cooling and insulation in transformers, reactors, and switchgear. It is also used for heat dispersion to protect the transformer's internal windings. Mineral oil is further segmented into naphthenic and paraffinic oil, and a majority of the existing and new transformers manufactured use mineral oil as the insulation fluid.

 

Mineral oil is further segmented into naphthenic and paraffinic oil, and a majority of the existing and new transformers manufactured use mineral oil as the insulation fluid. The demand for mineral oil is expected to grow during the forecast period because of its low cost index and easy availability compared to other transformer oils.

 

The transformer segment accounted for the largest share of the entire transformer oil market and it is likely to retain its dominance during the forecast period. Rising electricity requirements due to the exponential increase in the global population have resulted in investments for the expansion of the existing power grids, as well as strengthening of the power infrastructure, in both developed and developing countries. Upgrade and expansion of electric grids due to rising power demands will increase the installation of transformers, which is expected to eventually propel the growth of the transformer segment.

 

APAC was the largest market, for transformer oil market, driven mainly by activities in China, India, Japan, South Korea and Australia. The rapid increase in the demand for electricity and an increase in the power generation capacity in developing countries such as India and China, along with the growth in industrial and commercial sectors, will lead to an increase in the number of substations. Growth in the number of substations will propel the demand for transformers, which will enhance the demand for transformer oil in APAC.

 

The study presents a detailed analysis of various factors that affect Global Transformer Oil Market revenue. The study also comprehensively analyses the distribution transformer market by segmenting it based on geography (Asia Pacific, North America, South America, Europe, Middle East, ROW), based on Oil type (Bio-Based Transformer Oil, Silicon-Based Transformer Oil, Mineral-Based Transformer Oil).

 

Blackridge Research's Global Transformer Oil Market report provides insights into the current global and regional market demand scenario and its outlook.

 

The report also addresses present and future market opportunities, trends, developments in the Global Transformer Oil Market Size, critical commercial developments, regions, and segments poised for the fastest-growing, competitive landscape.

  Table of Contents

1. Executive Summary

2. Research Scope and Methodology

3. Market Analysis

  • 3.1 Introduction
  • 3.2 Market Dynamics
    • 3.2.1. Drivers
    • 3.2.2 Restraints
  • 3.3 Market Trends & Developments
  • 3.4 Market Opportunities
  • 3.5 Market Size and Forecast

4. Industry Analysis

  • 4.1 Supply Chain Analysis
  • 4.2 Porter’s Five Forces Analysis

5. Market Segmentation & Forecast

  • 5.1 By Oil Type
    • 5.1.1 Mineral Based Transformer Oil
    • 5.1.2 Bio Based Transformer Oil
    • 5.1.3 Silicon Based Transformer Oil

6. Regional Market Analysis

  • 6.1 Asia Pacific
  • 6.2 North America
  • 6.3 Europe
  • 6.4 Rest of the World

7. Key Company Profiles

  • 7.1 Nynas AB
  • 7.2 Ergon Inc.
  • 7.3 Calumet Specialty Products
  • 7.4 APAR Industries Limited
  • 7.5 Sinopec Lubricant
  • 7.6 Cargill
  • 7.7 M&I Materials Ltd
  • 7.8 Shell
  • 7.9 Sinopec Lubricant
  • ul>

8. Competitive Landscape

  • 8.1 List of Notable Players in the Market
  • 8.2 M&A, JV, and Agreements
  • 8.3 Market Share Analysis
  • 8.4 Strategies of Key Players

9. Conclusions and Recommendations

List of Tables & Figures

Abbreviations

Additional Notes

Disclaimer

  This report helps to:-

  • Equip yourself with rigorous analysis and forward-looking insight into the transformer oil market across various regions
  • Gain an understanding of uncertainty and discover how the most influential growth drivers and restraints in the regions will impact market development
  • Assess market data and forecasts to understand how the demand for different segments evolve over the next five years
  • Gain a comprehensive view of the emerging market trends and developments to assess market opportunities
  • Be better informed of your competition by gaining access to detailed information and analysis of key industry players.
  • Keep on top of M&A developments, JV’s and other agreements to assess the evolving competitive landscape and enhance your competitive position.

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Report - Global Transformer Oil Market Outlook to 2028.pdf
Market Data Sheet - Global Transformer Oil Market Outlook to 2028.xls

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  • Gain an understanding of uncertainty and discover how the most influential growth drivers and restraints in the regions will impact market development.
  • Assess market size data and forecasts to understand how the demand across various segments evolves over the next few years.
  • Gain a comprehensive view of the emerging market trends and developments to assess market opportunities.
  • Be better informed of your competition by gaining access to detailed information and analysis of key industry players.
  • Keep on top of M&A developments, JVs, and other agreements to assess the evolving competitive landscape and enhance your competitive position

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