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PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1390091

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PUBLISHER: Knowledge Sourcing Intelligence | PRODUCT CODE: 1390091

Transformer Oil Market Forecasts from 2023 to 2028

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The global transformer oil market was valued at US$2.329 billion in 2021 and is expected to grow at a CAGR of 6.82% during the forecast period.

Transformer oil is an essential fluid driven from crude petroleum through partial distillation and is used in transformers for insulation and cooling purposes during their normal operation without interruption. Transformer oil is broadly classified into two types namely paraffin-based transformer oil and naphtha-based transformer oil. The rise in industrialization is the prominent driver boosting the transformer oil market size year-by-year.

Rapid industrialization is bolstering the transformer oil market growth.

The rapid industrialization and urban development witnessed in emerging economies have a significant impact on electricity consumption and infrastructure expansion. As these economies are growing, the electricity demand has increased which necessitates the installation of new transformers to support power distribution. Consequently, this surge in transformer installations fuels the demand for transformer oil, which is crucial for the insulation and cooling of transformers. According to the International Energy Agency, in 2040, it is projected that India's urban population will witness impressive growth, with approximately 270 million people expected to be added. /

The growing oil & gas sector is expanding the transformer oil market size.

The oil and gas industry plays a pivotal role in driving the transformer oil market, as the industry heavily relies on transformers for various operations, including exploration, drilling, refining, and transportation. Transformers require efficient insulation and cooling, which transformer oil provides. The growing global demand for oil and gas leads to the installation of new transformers, thus increasing the need for transformer oil. According to the International Trade Administration, government-owned companies have held a prominent position in India's oil and gas sector, these companies currently contribute to approximately 80% of domestic oil and gas production and possess a refining capacity of nearly 70%.

The rise in mining activities

Mining operations depend heavily on the utilization of extensive equipment and machinery, including excavators, haul trucks, and crushers. These machinery units often rely on transformers for efficient power distribution and voltage regulation. Transformer oil plays a crucial role in ensuring the insulation and cooling of these transformers and as the mining activities are increasing the demand for transformer oil is witnessing a simultaneous increase.

The European region is expected to dominate the transformer oil market.

Europe is considered dominant in the transformer oil market due to the region's well-established and growing industrial sector, extensive electricity infrastructure, and a strong focus on renewable energy integration. According to the Federal Ministry For Economic Affairs And Climate Action, the European Commission successfully increased the industrial share of the EU's GDP to 20% by 2020. This achievement highlights the Commission's effective measures and strategies aimed at promoting and strengthening the industrial sector within the European Union.

Rising dry-type transformer usage is restraining the transformer oil market growth.

The transformer industry is witnessing a growing trend toward the adoption of dry-type transformers, which utilize solid insulation materials instead of liquid transformer oil. This shift is driven by several factors, including the perceived advantages of dry-type transformers such as enhanced safety, reduced maintenance needs, and environmental benefits. Dry-type transformers eliminate the risk of oil leaks, fire hazards, and the need for oil containment systems, making them a preferred choice in certain applications. Consequently, this increasing preference for dry-type transformers limits the demand for traditional transformer oil, impacting the market dynamics of the transformer oil industry.

Key Developments

  • August 2022: Nynas AB, a prominent producer of naphthenic oil, introduced NYTRO RR 900X, a groundbreaking circular transformer fluid. This innovative product is developed using advanced and highly efficient re-refining technology, resulting in a transformer fluid with exceptional performance capabilities.
  • October 2021: Royal SMIT, a subsidiary of the SGB-SMIT Group, announced its acquisition of the Transformer Oil Laboratory of DNV. This strategic move allows the SGB-SMIT Group to enhance its offerings in insulation oil analysis and solidify its expertise in servicing and maintaining technologically advanced transformers.
  • September 2021: SGB-SMIT Group announced a collaboration with Zhuzhou Electric. This partnership aims to leverage the individual strengths of both companies in the field of oil-immersed transformers. By joining forces, SGB-SMIT and Zhuzhou Electric seek to combine their expertise, resources, and capabilities to enhance the development and production of high-quality oil-immersed transformers
  • September 2020: Shell, a leading energy company, introduced Shell Diala S5 BD This innovative transformer oil is produced using gas-to-liquids (GTL) technology, offering biodegradable properties. Shell Diala S5 BD stands out for its ability to eliminate the risk of corrosion caused by corrosive sulfur.

Company Products

  • Phillips 66 Transformer Oil: Philips 66 transformer oil is a precisely refined electrical insulating oil its composition is tailored to meet the specific requirements of these electrical equipment applications, ensuring reliable and efficient performance. This specialized oil adheres to the stringent standards set by ANSI/ASTM D3487-09, ensuring it meets the requirements of Type II inhibited oils as specified by equipment manufacturers.
  • POWEROIL: This transformer oil provided by APAR Industries meets the Bureau of Indian Standards: IS 335 -1993 Specification and finds applicability in oil-immersed transformers, capacitors, tap changers, and circuit breakers.


By Type

  • Paraffin-Based Transformer Oil
  • Naphthenic Based Transformer Oil

By Transformer Type

  • Distribution Transformer
  • Utility Transformer
  • Power Transformer
  • Others

By Application

  • Industrial
  • Oil & Gas
  • Power & Energy
  • Mining
  • Others

By Geography

  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Others
  • Europe
  • Germany
  • UK
  • France
  • Spain
  • Others
  • Middle East and Africa
  • Saudi Arabia
  • UAE
  • Others
  • Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Other
Product Code: KSI061615596



  • 1.1. Market Overview
  • 1.2. Market Definition
  • 1.3. Scope of the Study
  • 1.4. Market Segmentation
  • 1.5. Currency
  • 1.6. Assumptions
  • 1.7. Base, and Forecast Years Timeline


  • 2.1. Research Data
  • 2.2. Research Process


  • 3.1. Research Highlights


  • 4.1. Market Drivers
  • 4.2. Market Restraints
  • 4.3. Porter's Five Force Analysis
    • 4.3.1. Bargaining Power of Suppliers
    • 4.3.2. Bargaining Power of Buyers
    • 4.3.3. Threat of New Entrants
    • 4.3.4. Threat of Substitutes
    • 4.3.5. Competitive Rivalry in the Industry
  • 4.4. Industry Value Chain Analysis


  • 5.1. Introduction
  • 5.2. Paraffin-Based Transformer Oil
  • 5.3. Naphthenic Based Transformer Oil


  • 6.1. Introduction
  • 6.2. Distribution Transformer
  • 6.3. Utility Transformer
  • 6.4. Power Transformer
  • 6.5. Others


  • 7.1. Introduction
  • 7.2. Industrial
  • 7.3. Oil & Gas
  • 7.4. Power & Energy
  • 7.5. Mining
  • 7.6. Others


  • 8.1. Introduction
  • 8.2. North America
    • 8.2.1. USA
    • 8.2.2. Canada
    • 8.2.3. Mexico
  • 8.3. South America
    • 8.3.1. Brazil
    • 8.3.2. Argentina
    • 8.3.3. Others
  • 8.4. Europe
    • 8.4.1. Germany
    • 8.4.2. UK
    • 8.4.3. France
    • 8.4.4. Spain
    • 8.4.5. Others
  • 8.5. Middle East and Africa
    • 8.5.1. Saudi Arabia
    • 8.5.2. UAE
    • 8.5.3. Others
  • 8.6. Asia Pacific
    • 8.6.1. China
    • 8.6.2. Japan
    • 8.6.3. South Korea
    • 8.6.4. India
    • 8.6.5. Australia
    • 8.6.6. Others


  • 9.1. Major Players and Strategy Analysis
  • 9.2. Market Share Analysis
  • 9.3. Mergers, Acquisitions, Agreements, and Collaborations


  • 10.1 . Shell Plc
  • 10.2 . Exxon Mobil Corporation
  • 10.3 . Chevron Corporation
  • 10.4 . China Petroleum & Chemical Corporation
  • 10.5 . Cargill, Incorporated
  • 10.6 . Phillips 66 Company
  • 10.7 . APAR Industries
  • 10.8 . NYNAS AB
  • 10.9 . GB Lubricants
  • 10.10. Gandhar Oil Refinery (India) Limited
Have a question?

Jeroen Van Heghe

Manager - EMEA



Christine Sirois

Manager - Americas


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