Transformer Oil Market Size, Analysis, Share & Forecast 2030
Transformer Oil Market Size, Analysis, Share & Forecast 2030
Segments - Transformer Oil Market by Oil Type (Bio-based, Silicone, and Mineral Oil [Paraffinic and Naphthenic]), Application (Switchgear, Reactor, and Transformer [Power Transformer and Distribution Transformer]), End-user (Power generation, Railways & Metros, Transmission and Distribution, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2022 – 2030
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| Report ID :EP-4753
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Report Description
The transformer oil market size was around USD 2 billion in 2021 and is projected to reach USD 4 billion by 2030, expanding at a CAGR of 6.6% during the forecast period, 2022 – 2030. The growth of the market is attributed to the modernization of electric grids in developed economies as a result of increasing industrialization and urbanization.
Transformer oil is a unique kind of oil with exceptional electrical insulating qualities and high-temperature stability. To insulate, prevent arcing and corona discharge, and dissipate the heat generated by the transformer, oil-filled electrical power transformers employ transformer oils. Since the transformer's core and windings are completely submerged in the oil, transformer oil is also used to preserve them. The ability of the insulating oil to stop oxidation of the cellulose-made paper insulation is one of the key benefits of transformer oil. The transformer oil operates as a barrier to prevent direct contact between the oxygen in the air and the cellulose, thus reducing oxidation. Typically, a MOG (Magnetic Oil level Guage) is used to gauge the level of transformer oil. There is increasing power demand from various sectors, which is propelling the transformer installations.
It is crucial for fulfilling energy demands for industrial, commercial, and residential as well as for ensuring the uninterrupted power supply to transformers. Transformers release heat when they are operating, which if not managed, can harm the system. As a result, oil is used to maintain the transformer's smooth performance by reducing heat damage. Additionally, high-voltage circuit switches and breakers use transformer oil. Rising investment in the power sector and growth of grid infrastructure are estimated to fuel the market growth. Several key players in the transformer oil industry are planning to manufacture environment-friendly products, thus global transformer oil demand is increasing.
COVID-19 Impact
Covid-19 pandemic had a negative impact on the transformer oil market. A decline in the rates of crude oil has allowed several manufacturers to attain low raw material costs. However, the supply chain disruption is causing firms to experience problems with logistics and procurement. Additionally, transformer oil manufacturers now have a high need for storage space due to the drop in consumer demand. This increases manufacturing costs, which eventually affects the selling price of transformer oil. The manufacturers of transformer oil have adopted a number of tactics to adjust to these changing market conditions, including product range expansion through the introduction of new products, growth of storage facilities and refineries, and increasing production effectiveness.
Market Dynamics
The market research report on the global transformer oil market provides a detailed analysis by focusing on revenue growth, facts, figures, and historical data to determine major drivers, existing restraints, key opportunities, and competitive analysis. The report includes recent developments that can shape the overall performance of the market during the assessment period, 2022 to 2030.
Drivers:
Rising demand for electric grid from Asia Pacific is projected to drive the market
Asia Pacific dominated the T&D investment sector by accounting for around 44% of the global investment in 2020. This investment relates to grid expansion, grid reinforcement, and the replacement of outdated T&D infrastructure. Developing nations in the APAC are investing in the development of the grid network and T&D system to address the possibility of an increase in power consumption driven by the region's rapid industrialization and urbanization. The installation of new transformers and switchgear owing to the development of the grid network and T&D system is projected to increase the demand for transformer oil.
Restraints:
Environmental issues related to the use of mineral-based transformer oil to hinder the market
Naphthenic mineral oil is the preferred transformer oil due to its easy availability, high efficiency, and helpful chemical characteristics, such as high thermal cooling capability and good pour point at low temperatures. Paraffinic mineral oil has become popular over time due to its outstanding oxidation stability. However, naphthenic and paraffinic mineral oils are made from processed, purified, and highly refined petroleum, they are both non-biodegradables. The mineral oil is made from a non-renewable resource and has a biodegradability range of 0 to 40%. The developed and developing economies globally are shifting toward implementing green and ecologically friendly technologies. This shift is projected to act as a major factor restraining the market growth.
Opportunities:
Increasing international trade in electricity
Cross-border power trading has gained momentum, and the number of economies taking part in it has grown significantly recently. For instance, the European Union (EU) is preparing to fortify national power systems and create a pan-European grid. These developments are projected to result in the setting up of new transmission lines and expansion of the grid network, thus increasing the demand for switchgear and transformers which in turn is projected to create immense growth opportunities during the forecast period.
Scope of the Report
The report on the global transformer oil market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
|
Attributes |
Details |
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Report Title |
Transformer Oil Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
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Base Year |
2021 |
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Historic Data |
2019–2020 |
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Forecast Period |
2022 – 2030 |
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Segmentation |
Oil Type (Bio-based, Silicone, and Mineral Oil [Paraffinic and Naphthenic]), Application (Switchgear, Reactor, and Transformer [Power Transformer and Distribution Transformer]), End-user (Power generation, Railways & Metros, Transmission and Distribution, and Others) |
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Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
|
Key Players Covered in the Report |
APAR Industries; Calumet Specialty Products; Chevron Corporation; Eden Oil; Engen Petroleum Ltd.; Ergon, Inc.; Exxon Mobil Corporation; Gandhar Oil; Hydrodec Group Plc; Hyrax Oil Sdn Bhd; Lubrita; M&I Materials Limited; Nynas AB; Petro-Canada; PetroChina Company Limited; Phillips 66 Company; Repsol; Royal Dutch Shell; Savita Oil Technologies Limited; Sinopec Lubricant Company; and Valvoline. |
Market Segment Insights
The mineral oil segment is estimated to hold a key market share during the forecast period
Based on oil types, the market is segregated into bio-based, silicone, and mineral oil. The mineral oil segment is further segregated into paraffinic and naphthenic. The mineral oil segment is estimated to hold a key market share during the forecast period. Growth of the segment is attributed to the low price of mineral oil, easy availability, and increasing investments in power grids. Mineral oil is primarily used in reactors, transformers, and switchgear for insulating and cooling purposes.
The bio-based oil segment is anticipated to grow at a rapid pace during the projected period. Growth of the segment is attributed to strict environment regulations regarding energy emissions and consumption along with increasing investment in renewable energy sector. Bio-based transformer oil is eco-friendly and also performs better than other products.
The silicone segment is expected to expand at a high CAGR during the forecast period. Silicones have high heat stability than mineral oils. However, its application has been hampered on a larger scale due to its expensive cost and limited availability. The product is gradually taking place of conventional mineral oils due to its improved qualities and equipment compatibility.
The transformer segment is projected to expand at a high CAGR during the forecast period
On the basis of application, the market is fragmented into switchgear, reactor, and transformer. The transformer segment is sub-fragmented into power transformer and distribution transformer. The transformer segment is projected to expand at a high CAGR during the forecast period. Transformers are utilized in a variety of industries, including railroads, power generation, and power utilities to transmit and distribute electricity from the site of generation to the end consumer. Thus, increasing demand for electricity is estimated to drive the segment.
The transmission & distribution segment is estimated to account for a major market share in the coming years
In terms of end-user, the global market is divided into power generation, railways & metros, transmission & distribution, and others. The transmission & distribution segment is estimated to account for a major market share in the coming years. Growth of the segment is attributed to increasing population, coupled with growth in urbanization and industrialization. Transformer oil demand is anticipated to increase as a result of the T&D lines increasing demand for electrical equipment.
Asia Pacific to dominate the market during the projected period
Based on regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific held a key market share in 2021 and is projected to continue its dominance during the forecast period. Rising energy demand and repair of deteriorating infrastructure across developing countries is expected to boost the market in the region. Expanding industrial and commercial sectors in Asia Pacific is anticipated to create lucrative growth opportunities. Additionally, factors such as rising urbanization and population expansion are expected to fuel the transformer oil market.
China is anticipated to continue to be a major transformer customer owing to the expanding use of transformers in numerous industries, including power generation. Growth of the market is attributed to rising investments in product development, availability of abundant resources, and the presence of key players in the region. Furthermore, the nation consumes the most electricity, accounting for 30% of global consumption.
Segments
The global transformer oil market has been segmented on the basis of
Oil Type
- Bio-based
- Silicone
- Mineral Oil
- Paraffinic
- Naphthenic
Application
- Switchgear
- Reactor
- Transformer
- Power Transformer Distribution Transformer
End-user
- Power generation
- Railways & Metros
- Transmission & Distribution
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- APAR Industries
- Calumet Specialty Products
- Chevron Corporation
- Eden Oil
- Engen Petroleum Ltd.
- Ergon, Inc.
- Exxon Mobil Corporation
- Gandhar Oil
- Hydrodec Group Plc
- Hyrax Oil Sdn Bhd
- Lubrita
- M&I Materials Limited
- Nynas AB
- Petro-Canada
- PetroChina Company Limited
- Phillips 66 Company
- Repsol
- Royal Dutch Shell
- Savita Oil Technologies Limited
- Sinopec Lubricant Company
- Valvoline
Competitive Landscape
Key players competing in the transformer oil market include APAR Industries; Calumet Specialty Products; Chevron Corporation; Eden Oil; Engen Petroleum Ltd.; Ergon, Inc.; Exxon Mobil Corporation; Gandhar Oil; Hydrodec Group Plc; Hyrax Oil Sdn Bhd; Lubrita; M&I Materials Limited; Nynas AB; Petro-Canada; PetroChina Company Limited; Phillips 66 Company; Repsol; Royal Dutch Shell; Savita Oil Technologies Limited; Sinopec Lubricant Company; and Valvoline. Some of these players are using several market strategies such as acquisitions, mergers, collaborations, partnerships, capacity expansion, and product launches to enhance their market shares, generate revenue, and raise their production line of business in the coming years. For instance,
- In May 2022, A Memorandum of Understanding (MOU) was signed by APAR Industries Limited and Saudi Aramco Base Oil Company - Luberef to construct a Transformer Oil/White Oil refinery.
- In May 2021, Cargill, Inc. collaborated with Delta Star, Inc. in order to offer its customers in the Western United States retro-filling services for its Envirotemp line of dielectric fluids. According to the contract, Cargill, Incorporated's service center for the Western United States is Delta Star, Inc.
- In December 2020, an agreement has been signed between Chevron Lubricants and Petrol Ofisi, the lubricant distributor in Turkey. According to this agreement, Petrol Ofisi is expected to produce and market Chevron Lubricants products in Turkey under the Texaco name.
Frequently Asked Questions
Oil types, application, and end-user are the segments provided in the transformer oil market report.
Increasing demand for electric grid from Asia Pacific is projected to drive the transformer oil market.
The transformer oil market is anticipated to expand at a Compound Annual Growth Rate (CAGR) of 6.6% during the forecast period, 2022 – 2030.
The transformer oil market is projected to reach USD 4 billion by 2030.
The transformer oil market size was around USD 2 billion in 2021.
Asia Pacific is projected to dominate the transformer oil market during the forecast period.
Hyrax Oil Sdn Bhd; Lubrita; M&I Materials Limited; Nynas AB; Petro-Canada; PetroChina Company Limited; Phillips 66 Company; Repsol; Royal Dutch Shell; Savita Oil Technologies Limited; Sinopec Lubricant Company; and Valvoline are some of the leading players in the transformer oil market.
Table Of Content
1. Executive Summary2. Assumptions and Acronyms Used
3. Research Methodology
4. Transformer Oil Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Transformer Oil Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Transformer Oil Market - Supply Chain
4.5. Global Transformer Oil Market Forecast
4.5.1. Transformer Oil Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Transformer Oil Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Transformer Oil Market Absolute $ Opportunity
5. Global Transformer Oil Market Analysis and Forecast by Types
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Types
5.2.2. Y-o-Y Growth Projections by Types
5.3. Transformer Oil Market Size and Volume Forecast by Types
5.3.1. Bio-based
5.3.2. Silicone
5.3.3. Mineral Oil
5.4. Absolute $ Opportunity Assessment by Types
5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Transformer Oil Market Analysis and Forecast by Applications
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by Applications
6.2.2. Y-o-Y Growth Projections by Applications
6.3. Transformer Oil Market Size and Volume Forecast by Applications
6.3.1. Switchgear
6.3.2. Reactor
6.3.3. Transformer
6.4. Absolute $ Opportunity Assessment by Applications
6.5. Market Attractiveness/Growth Potential Analysis by Applications
7. Global Transformer Oil Market Analysis and Forecast by End Users
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by End Users
7.2.2. Y-o-Y Growth Projections by End Users
7.3. Transformer Oil Market Size and Volume Forecast by End Users
7.3.1. Power generation
7.3.2. Railways & Metros
7.3.3. Transmission & Distribution
7.3.4. Others
7.4. Absolute $ Opportunity Assessment by End Users
7.5. Market Attractiveness/Growth Potential Analysis by End Users
8. Global Transformer Oil Market Analysis and Forecast by Region
8.1. Market Trends
8.2. Introduction
8.2.1. Basis Point Share (BPS) Analysis by Region
8.2.2. Y-o-Y Growth Projections by Region
8.3. Transformer Oil Market Size and Volume Forecast by Region
8.3.1. North America
8.3.2. Latin America
8.3.3. Europe
8.3.4. Asia Pacific
8.3.5. Middle East and Africa (MEA)
8.4. Absolute $ Opportunity Assessment by Region
8.5. Market Attractiveness/Growth Potential Analysis by Region
8.6. Global Transformer Oil Demand Share Forecast, 2019-2026
9. North America Transformer Oil Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.2. North America Transformer Oil Market Size and Volume Forecast by Country
9.2.1. U.S.
9.2.2. Canada
9.3. Absolute $ Opportunity Assessment by Country
9.4. North America Transformer Oil Market Size and Volume Forecast by Types
9.4.1. Bio-based
9.4.2. Silicone
9.4.3. Mineral Oil
9.5. Basis Point Share (BPS) Analysis by Types
9.6. Y-o-Y Growth Projections by Types
9.7. North America Transformer Oil Market Size and Volume Forecast by Applications
9.7.1. Switchgear
9.7.2. Reactor
9.7.3. Transformer
9.8. Basis Point Share (BPS) Analysis by Applications
9.9. Y-o-Y Growth Projections by Applications
9.10. North America Transformer Oil Market Size and Volume Forecast by End Users
9.10.1. Power generation
9.10.2. Railways & Metros
9.10.3. Transmission & Distribution
9.10.4. Others
9.11. Basis Point Share (BPS) Analysis by End Users
9.12. Y-o-Y Growth Projections by End Users
9.13. Market Attractiveness/Growth Potential Analysis
9.13.1. By Country
9.13.2. By Product Type
9.13.3. By Application
9.14. North America Transformer Oil Demand Share Forecast, 2019-2026
10. Latin America Transformer Oil Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Latin America Average Pricing Analysis
10.2. Latin America Transformer Oil Market Size and Volume Forecast by Country
10.2.1. Brazil
10.2.2. Mexico
10.2.3. Rest of Latin America
10.3. Absolute $ Opportunity Assessment by Country
10.4. Latin America Transformer Oil Market Size and Volume Forecast by Types
10.4.1. Bio-based
10.4.2. Silicone
10.4.3. Mineral Oil
10.5. Basis Point Share (BPS) Analysis by Types
10.6. Y-o-Y Growth Projections by Types
10.7. Latin America Transformer Oil Market Size and Volume Forecast by Applications
10.7.1. Switchgear
10.7.2. Reactor
10.7.3. Transformer
10.8. Basis Point Share (BPS) Analysis by Applications
10.9. Y-o-Y Growth Projections by Applications
10.10. Latin America Transformer Oil Market Size and Volume Forecast by End Users
10.10.1. Power generation
10.10.2. Railways & Metros
10.10.3. Transmission & Distribution
10.10.4. Others
10.11. Basis Point Share (BPS) Analysis by End Users
10.12. Y-o-Y Growth Projections by End Users
10.13. Market Attractiveness/Growth Potential Analysis
10.13.1. By Country
10.13.2. By Product Type
10.13.3. By Application
10.14. Latin America Transformer Oil Demand Share Forecast, 2019-2026
11. Europe Transformer Oil Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Europe Average Pricing Analysis
11.2. Europe Transformer Oil Market Size and Volume Forecast by Country
11.2.1. Germany
11.2.2. France
11.2.3. Italy
11.2.4. U.K.
11.2.5. Spain
11.2.6. Russia
11.2.7. Rest of Europe
11.3. Absolute $ Opportunity Assessment by Country
11.4. Europe Transformer Oil Market Size and Volume Forecast by Types
11.4.1. Bio-based
11.4.2. Silicone
11.4.3. Mineral Oil
11.5. Basis Point Share (BPS) Analysis by Types
11.6. Y-o-Y Growth Projections by Types
11.7. Europe Transformer Oil Market Size and Volume Forecast by Applications
11.7.1. Switchgear
11.7.2. Reactor
11.7.3. Transformer
11.8. Basis Point Share (BPS) Analysis by Applications
11.9. Y-o-Y Growth Projections by Applications
11.10. Europe Transformer Oil Market Size and Volume Forecast by End Users
11.10.1. Power generation
11.10.2. Railways & Metros
11.10.3. Transmission & Distribution
11.10.4. Others
11.11. Basis Point Share (BPS) Analysis by End Users
11.12. Y-o-Y Growth Projections by End Users
11.13. Market Attractiveness/Growth Potential Analysis
11.13.1. By Country
11.13.2. By Product Type
11.13.3. By Application
11.14. Europe Transformer Oil Demand Share Forecast, 2019-2026
12. Asia Pacific Transformer Oil Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Asia Pacific Average Pricing Analysis
12.2. Asia Pacific Transformer Oil Market Size and Volume Forecast by Country
12.2.1. China
12.2.2. Japan
12.2.3. South Korea
12.2.4. India
12.2.5. Australia
12.2.6. Rest of Asia Pacific (APAC)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Asia Pacific Transformer Oil Market Size and Volume Forecast by Types
12.4.1. Bio-based
12.4.2. Silicone
12.4.3. Mineral Oil
12.5. Basis Point Share (BPS) Analysis by Types
12.6. Y-o-Y Growth Projections by Types
12.7. Asia Pacific Transformer Oil Market Size and Volume Forecast by Applications
12.7.1. Switchgear
12.7.2. Reactor
12.7.3. Transformer
12.8. Basis Point Share (BPS) Analysis by Applications
12.9. Y-o-Y Growth Projections by Applications
12.10. Asia Pacific Transformer Oil Market Size and Volume Forecast by End Users
12.10.1. Power generation
12.10.2. Railways & Metros
12.10.3. Transmission & Distribution
12.10.4. Others
12.11. Basis Point Share (BPS) Analysis by End Users
12.12. Y-o-Y Growth Projections by End Users
12.13. Market Attractiveness/Growth Potential Analysis
12.13.1. By Country
12.13.2. By Product Type
12.13.3. By Application
12.14. Asia Pacific Transformer Oil Demand Share Forecast, 2019-2026
13. Middle East & Africa Transformer Oil Market Analysis and Forecast
13.1. Introduction
13.1.1. Basis Point Share (BPS) Analysis by Country
13.1.2. Y-o-Y Growth Projections by Country
13.1.3. Middle East & Africa Average Pricing Analysis
13.2. Middle East & Africa Transformer Oil Market Size and Volume Forecast by Country
13.2.1. Saudi Arabia
13.2.2. South Africa
13.2.3. UAE
13.2.4. Rest of Middle East & Africa (MEA)
13.3. Absolute $ Opportunity Assessment by Country
13.4. Middle East & Africa Transformer Oil Market Size and Volume Forecast by Types
13.4.1. Bio-based
13.4.2. Silicone
13.4.3. Mineral Oil
13.5. Basis Point Share (BPS) Analysis by Types
13.6. Y-o-Y Growth Projections by Types
13.7. Middle East & Africa Transformer Oil Market Size and Volume Forecast by Applications
13.7.1. Switchgear
13.7.2. Reactor
13.7.3. Transformer
13.8. Basis Point Share (BPS) Analysis by Applications
13.9. Y-o-Y Growth Projections by Applications
13.10. Middle East & Africa Transformer Oil Market Size and Volume Forecast by End Users
13.10.1. Power generation
13.10.2. Railways & Metros
13.10.3. Transmission & Distribution
13.10.4. Others
13.11. Basis Point Share (BPS) Analysis by End Users
13.12. Y-o-Y Growth Projections by End Users
13.13. Market Attractiveness/Growth Potential Analysis
13.13.1. By Country
13.13.2. By Product Type
13.13.3. By Application
13.14. Middle East & Africa Transformer Oil Demand Share Forecast, 2019-2026
14. Competition Landscape
14.1. Global Transformer Oil Market: Market Share Analysis
14.2. Transformer Oil Distributors and Customers
14.3. Transformer Oil Market: Competitive Dashboard
14.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
14.4.1. APAR Industries
14.4.2. Calumet Specialty Products
14.4.3. Chevron Corporation
14.4.4. Eden Oil
14.4.5. Engen Petroleum Ltd.
14.4.6. Ergon, Inc.
14.4.7. Exxon Mobil Corporation
14.4.8. Gandhar Oil
14.4.9. Hydrodec Group Plc
14.4.10. Hyrax Oil Sdn Bhd
14.4.11. Lubrita
14.4.12. M&I Materials Limited
14.4.13. Nynas AB
14.4.14. Petro-Canada
14.4.15. PetroChina Company Limited
14.4.16. Phillips 66 Company
14.4.17. Repsol
14.4.18. Royal Dutch Shell
14.4.19. Savita Oil Technologies Limited
14.4.20. Sinopec Lubricant Company
14.4.21. Valvoline
Methodology
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