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1055031

Transformer Oil Market Forecasts to 2028 - Global Analysis By Oil Type (Mineral Oil, Silicone), Function (Insulator, Lubricant), Application (Reactor, Switchgear) and By Geography

Published: | Stratistics Market Research Consulting | 200+ Pages | Delivery time: 2-3 business days

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Transformer Oil Market Forecasts to 2028 - Global Analysis By Oil Type (Mineral Oil, Silicone), Function (Insulator, Lubricant), Application (Reactor, Switchgear) and By Geography
Published: January 1, 2022
Stratistics Market Research Consulting
Content info: 200+ Pages
Delivery time: 2-3 business days
  • Description
  • Table of Contents
  • List of Tables

According to Stratistics MRC, the Global Transformer Oil Market is accounted for $1.96 billion in 2021 and is expected to reach $3.49 billion by 2028 growing at a CAGR of 8.6% during the forecast period. Transformer Oil is oil that is stable at high temperatures and an exceptional insulator for electricity. This transformer oil is majorly derivatives of mineral oils, but substitute composition with better physical and chemical properties is growing in demand. Transformer oil is used in electrical power transformers to serve as a coolant and suppress corona discharge.

Market Dynamics:

Driver:

Rising Electric Grids and its Modernization

Most of the world's network of electricity generation, transmission and distribution resources is getting old. The need to upgrade technologies in order to reliably incorporate new systems, changing market dynamics and shifting consumer preferences is also rising. The technological modifications are outperforming both infrastructure capabilities and policy development while everyone seeks for ways to sync current policies with a rapidly changing energy market. Furthermore, the Office of Electricity (OE) is working to transform, strengthen, and improve energy infrastructure to guarantee access to reliable, secure, and clean sources of energy with its public and private partners. Additionally, the increase in installation of new transformer and switchgears and investments in the expansion of T&D system and grid network and by emerging economies to provide the potential increase in power demand owing to the growing urbanization and industrialization is also anticipated to fuel the demand for transformer oil.

Restraint:

Environmental Concerns Associated With the Usage of Mineral-Based Transformer Oil

Naphthenic mineral oil has long been the most preferred transformer oil because of its high efficiency, easy availability, and its useful chemical properties such as good pour point at low temperature and exceptional thermal cooling capacity. Adoption of paraffinic mineral oil had gained traction over the years, due to its excellent oxidation stability. Though, both paraffinic and naphthenic variants of the mineral oil are products of highly refined, purified, and processed petroleum, thus being highly non-biodegradable. The mineral oil is characterized by biodegradability ranging from 0-40% and is sourced from a non-renewable resource. The global economies, both the developed and the developing, are transitioning towards adopting green and environmentally friendly technologies. This transition might hinder the adoption of mineral-based transformer oils in the near future, and become a restraint to the mineral oil market over the long run.

Opportunity:

Growth in Cross-Border Electricity Trade

Cross-border electricity trade has gained traction in the recent past and the number of economies participating in the electricity trade has exponentially increased over the years. For instance, the European Union (EU) is planning to strengthen the power grids of individual countries and establish a pan-European grid. Recently, the Indian Energy Exchange (IEX) has proposed to create an integrated South Asian regional power market through cross-border electricity trade involving countries such as Myanmar, Bhutan, Sri Lanka, Bangladesh, and Nepal. These developments are likely to result in the expansion of the grid network and the setting up of new transmission lines, ultimately increasing the demand for transformer and switchgears, and also for transformer oils over the coming years.

Threat:

Instabilities in Crude Oil Prices

Crude oil is the most important energy resource to conduct economic activities, and the uncertainty in the evolution of crude oil prices has an important effect on economic stability. Transformer oil is a highly refined, processed, and purified product of crude oil. Therefore, the fluctuations in the price of crude oil will have a direct impact on the transformer oil manufacturers, creating a situation of uncertainty. However, prices had witnessed a rising trend, which resulted in higher demand for production enhancement activities. Because of these situations of uncertainty, brought about by the fluctuation of crude oil prices, the decision to buy crude oil for the right price becomes difficult for the transformer oil manufacturers.

Transmission & Distribution segment is expected to be the largest during the forecast period

The transmission & distribution segment has the largest share of the Transformer Oil Market owing to the global growth in the production and consumption of electricity. Transmission & distribution utilities own and operate the transmission & distribution system. Thus, growing demand for power will necessitate the expansion of the transmission & distribution network, thereby enhancing the demand for electrical components, such as transformers, reactors, and switchgears, leading to an increase in the demand for transformer oil.

The Mineral Oil segment is expected to have the highest CAGR during the forecast period

The Mineral Oil segment has emerged as the dominant raw material segment. The Mineral Oil is further segmented into Naphthenic oil and Paraffinic oil. Mineral Transformer Oil is primarily used in insulating and cooling processes by transformers, reactors, and switchgear. Mineral oil enhances the dielectric strength of the winding and prevents oxidation of the core by surrounding a transformer core-coil assembly. Mineral oil has a low-cost index and is easily available over other types of oils, which are fuelling the transformer oil market growth for this segment.

Region with highest share:

The Asia Pacific is projected to hold the highest market share, due to the rising demand for electricity in densely populated countries such as India and China, the development of grid infrastructure, and increasing investments in the power sector. With an extensive demand for energy grids in the emerging economies of the developing nations of India and China, supply is expected to rise to an eye-raising amount. China is the leading manufacturing hub in the province due to the industrial revolution which augmented the trading of transformer oils and transformers. The increasing necessity to upgrade & transform existing electricity distribution infrastructure in developing countries such as India, China, Vietnam, Thailand, and Indonesia in the Asia Pacific area is one of the key driving factors for the growing demand for transformer oil.

Region with highest CAGR:

North America is projected to have the highest CAGR, due to modernization, technical upgrade, and improvement of the already present transformers, and manufacturing new transformers as per consumer's demand is on the rise in the North American section, giving rise to the interest of investors and manufacturers in the region. Increasing Investment and improvement in the power grid lead to growth in the number of substations is expected to boost the demand for transformers, resulting in the growth of the transformer oil demand in the North America region.

Key players in the market:

Some of the key players profiled in the Transformer Oil Market include: Apar Industries Limited, Cargill, Incorporated, China Petroleum & Chemical Corporation, Dairen Chemical Corp, Eden Oils., Engen Limited, Ergon Inc., Gandhar Oil Refinery (India) Limited, Hydrodec Group plc, Nynas AB, Royal Dutch Shell, San Joaquin Refining Co. Inc., Valvoline Inc.

Key developments:

  • In January 2020: Ergon International expanded its naphthenic refinery in Vicksburg, Mississippi, which help the company position itself, ensuring its longevity of systems and operations while performing the activity.
  • In March 2020: Nynas AB, announced that it extended the 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 produced from renewable sources.
  • In December 2021: Cargill has announced the opening of its first FR3 natural ester fluid manufacturing facility located at Yangjiang of Guangdong Province, publicizing FR3 as a superior-performing transformer fluid, which is better and more reliable for the planet than mineral oil.

Oil Types Covered:

  • Mineral Oil
  • Synthetic Oils
  • Silicone
  • Bio-Based
  • Other Oil Types

Functions Covered:

  • Chemical Stabilizer
  • Cooling Agent
  • Insulator
  • Lubricant

Transformer Types Covered:

  • Distribution Transformer
  • Instrument Transformer
  • Large-Scale Transformers
  • Power Transformer
  • Small-Scale Transformers
  • Transformer
  • Utility Transformers
  • Oil Filled Transformer

Applications Covered:

  • Circuit Breakers
  • Reactor
  • Switchgear
  • Other Applications

End Users Covered:

  • Residential
  • Commercial
  • Industrial
  • Transmission and Distribution
  • Railways & Metros
  • Power Generation

Regions Covered:

  • North America
    • US
    • Canada
    • Mexico
  • Europe
    • Germany
    • UK
    • Italy
    • France
    • Spain
    • Rest of Europe
  • Asia Pacific
    • Japan
    • China
    • India
    • Australia
    • New Zealand
    • South Korea
    • Rest of Asia Pacific
  • South America
    • Argentina
    • Brazil
    • Chile
    • Rest of South America
  • Middle East & Africa
    • Saudi Arabia
    • UAE
    • Qatar
    • South Africa
    • Rest of Middle East & Africa

What our report offers:

  • Market share assessments for the regional and country-level segments
  • Strategic recommendations for the new entrants
  • Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
  • Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
  • Strategic recommendations in key business segments based on the market estimations
  • Competitive landscaping mapping the key common trends
  • Company profiling with detailed strategies, financials, and recent developments
  • Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

  • Company Profiling
    • Comprehensive profiling of additional market players (up to 3)
    • SWOT Analysis of key players (up to 3)
  • Regional Segmentation
    • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
  • Competitive Benchmarking
    • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Product Code: SMRC21338

Table of Contents

1 Executive Summary

2 Preface

  • 2.1 Abstract
  • 2.2 Stake Holders
  • 2.3 Research Scope
  • 2.4 Research Methodology
    • 2.4.1 Data Mining
    • 2.4.2 Data Analysis
    • 2.4.3 Data Validation
    • 2.4.4 Research Approach
  • 2.5 Research Sources
    • 2.5.1 Primary Research Sources
    • 2.5.2 Secondary Research Sources
    • 2.5.3 Assumptions

3 Market Trend Analysis

  • 3.1 Introduction
  • 3.2 Drivers
  • 3.3 Restraints
  • 3.4 Opportunities
  • 3.5 Threats
  • 3.6 Application Analysis
  • 3.7 End User Analysis
  • 3.8 Emerging Markets
  • 3.9 Impact of Covid-19

4 Porters Five Force Analysis

  • 4.1 Bargaining power of suppliers
  • 4.2 Bargaining power of buyers
  • 4.3 Threat of substitutes
  • 4.4 Threat of new entrants
  • 4.5 Competitive rivalry

5 Global Transformer Oil Market, By Oil Type

  • 5.1 Introduction
  • 5.2 Mineral Oil
    • 5.2.1 Naphthenic
      • 5.2.1.1 Inhibited
      • 5.2.1.2 Uninhibited
    • 5.2.2 Paraffinic
      • 5.2.2.1 Inhibited
      • 5.2.2.2 Uninhibited
    • 5.2.3 Aromatic Oils
  • 5.3 Synthetic Oils
    • 5.3.1 Dibutyl Phthalate
    • 5.3.2 Diisobutyl adipate
    • 5.3.3 Dioctyladipate
  • 5.4 Silicone
  • 5.5 Bio-Based
  • 5.6 Other Oil Types
    • 5.6.1 Esters
    • 5.6.2 Fluorocarbon
    • 5.6.3 Nanofluids
    • 5.6.4 Tetra Fatty Acids

6 Global Transformer Oil Market, By Function

  • 6.1 Introduction
  • 6.2 Chemical Stabilizer
  • 6.3 Cooling Agent
  • 6.4 Insulator
  • 6.5 Lubricant

7 Global Transformer Oil Market, By Transformer Type

  • 7.1 Introduction
  • 7.2 Distribution Transformer
  • 7.3 Instrument Transformer
  • 7.4 Large-Scale Transformers
  • 7.5 Power Transformer
  • 7.6 Small-Scale Transformers
  • 7.7 Transformer
  • 7.8 Utility Transformers
  • 7.9 Oil Filled Transformer

8 Global Transformer Oil Market, By Application

  • 8.1 Introduction
  • 8.2 Circuit Breakers
  • 8.3 Reactor
  • 8.4 Switchgear
  • 8.5 Other Applications
    • 8.5.1 Fluorescent Lamp Ballasts
    • 8.5.2 Generators
    • 8.5.3 High Voltage Switches
    • 8.5.4 High-Voltage capacitors
    • 8.5.5 Submersible
    • 8.5.6 Welding Set
    • 8.5.7 X-Ray Machine

9 Global Transformer Oil Market, By End User

  • 9.1 Introduction
  • 9.2 Residential
  • 9.3 Commercial
  • 9.4 Industrial
  • 9.5 Transmission and Distribution
  • 9.6 Railways & Metros
  • 9.7 Power Generation

10 Global Transformer Oil Market, By Geography

  • 10.1 Introduction
  • 10.2 North America
    • 10.2.1 US
    • 10.2.2 Canada
    • 10.2.3 Mexico
  • 10.3 Europe
    • 10.3.1 Germany
    • 10.3.2 UK
    • 10.3.3 Italy
    • 10.3.4 France
    • 10.3.5 Spain
    • 10.3.6 Rest of Europe
  • 10.4 Asia Pacific
    • 10.4.1 Japan
    • 10.4.2 China
    • 10.4.3 India
    • 10.4.4 Australia
    • 10.4.5 New Zealand
    • 10.4.6 South Korea
    • 10.4.7 Rest of Asia Pacific
  • 10.5 South America
    • 10.5.1 Argentina
    • 10.5.2 Brazil
    • 10.5.3 Chile
    • 10.5.4 Rest of South America
  • 10.6 Middle East & Africa
    • 10.6.1 Saudi Arabia
    • 10.6.2 UAE
    • 10.6.3 Qatar
    • 10.6.4 South Africa
    • 10.6.5 Rest of Middle East & Africa

11 Key Developments

  • 11.1 Agreements, Partnerships, Collaborations and Joint Ventures
  • 11.2 Acquisitions & Mergers
  • 11.3 New Product Launch
  • 11.4 Expansions
  • 11.5 Other Key Strategies

12 Company Profiling

  • 12.1 Apar Industries Limited
  • 12.2 Cargill Incorporated
  • 12.3 China Petroleum & Chemical Corporation
  • 12.4 Dairen Chemical Corp
  • 12.5 Eden Oils
  • 12.6 Engen Limited
  • 12.7 Ergon Inc
  • 12.8 Gandhar Oil Refinery (India) Limited
  • 12.9 Hydrodec Group plc
  • 12.10 Nynas AB
  • 12.11 Royal Dutch Shell
  • 12.12 San Joaquin Refining Co Inc
  • 12.13 Valvoline Inc

List of Tables

  • Table 1 Global Transformer Oil Market Outlook, By Region (2019-2028) (US $MN)
  • Table 2 Global Transformer Oil Market Outlook, By Oil Type (2019-2028) (US $MN)
  • Table 3 Global Transformer Oil Market Outlook, By Mineral Oil (2019-2028) (US $MN)
  • Table 4 Global Transformer Oil Market Outlook, By Naphthenic (2019-2028) (US $MN)
  • Table 5 Global Transformer Oil Market Outlook, By Inhibited (2019-2028) (US $MN)
  • Table 6 Global Transformer Oil Market Outlook, By Uninhibited (2019-2028) (US $MN)
  • Table 7 Global Transformer Oil Market Outlook, By Paraffinic (2019-2028) (US $MN)
  • Table 8 Global Transformer Oil Market Outlook, By Inhibited (2019-2028) (US $MN)
  • Table 9 Global Transformer Oil Market Outlook, By Uninhibited (2019-2028) (US $MN)
  • Table 10 Global Transformer Oil Market Outlook, By Aromatic Oils (2019-2028) (US $MN)
  • Table 11 Global Transformer Oil Market Outlook, By Synthetic Oils (2019-2028) (US $MN)
  • Table 12 Global Transformer Oil Market Outlook, By Dibutyl Phthalate (2019-2028) (US $MN)
  • Table 13 Global Transformer Oil Market Outlook, By Diisobutyl adipate (2019-2028) (US $MN)
  • Table 14 Global Transformer Oil Market Outlook, By Dioctyladipate (2019-2028) (US $MN)
  • Table 15 Global Transformer Oil Market Outlook, By Silicone (2019-2028) (US $MN)
  • Table 16 Global Transformer Oil Market Outlook, By Bio-Based (2019-2028) (US $MN)

Table17 Global Transformer Oil Market Outlook, By Other Oil Types (2019-2028) (US $MN)

  • Table 18 Global Transformer Oil Market Outlook, By Esters (2019-2028) (US $MN)
  • Table 19 Global Transformer Oil Market Outlook, By Fluorocarbon (2019-2028) (US $MN)
  • Table 20 Global Transformer Oil Market Outlook, By Nanofluids (2019-2028) (US $MN)
  • Table 21 Global Transformer Oil Market Outlook, By Tetra Fatty Acids (2019-2028) (US $MN)
  • Table 22 Global Transformer Oil Market Outlook, By Function (2019-2028) (US $MN)
  • Table 23 Global Transformer Oil Market Outlook, By Chemical Stabilizer (2019-2028) (US $MN)
  • Table 24 Global Transformer Oil Market Outlook, By Cooling Agent (2019-2028) (US $MN)
  • Table 25 Global Transformer Oil Market Outlook, By Insulator (2019-2028) (US $MN)
  • Table 26 Global Transformer Oil Market Outlook, By Lubricant (2019-2028) (US $MN)
  • Table 27 Global Transformer Oil Market Outlook, By Transformer Type (2019-2028) (US $MN)
  • Table 28 Global Transformer Oil Market Outlook, By Distribution Transformer (2019-2028) (US $MN)
  • Table 29 Global Transformer Oil Market Outlook, By Instrument Transformer (2019-2028) (US $MN)
  • Table 30 Global Transformer Oil Market Outlook, By Large-Scale Transformers (2019-2028) (US $MN)
  • Table 31 Global Transformer Oil Market Outlook, By Power Transformer (2019-2028) (US $MN)
  • Table 32 Global Transformer Oil Market Outlook, By Small-Scale Transformers (2019-2028) (US $MN)
  • Table 33 Global Transformer Oil Market Outlook, By Transformer (2019-2028) (US $MN)
  • Table 34 Global Transformer Oil Market Outlook, By Utility Transformers (2019-2028) (US $MN)
  • Table 35 Global Transformer Oil Market Outlook, By Oil Filled Transformer (2019-2028) (US $MN)
  • Table 36 Global Transformer Oil Market Outlook, By Application (2019-2028) (US $MN)
  • Table 37 Global Transformer Oil Market Outlook, By Circuit Breakers (2019-2028) (US $MN)
  • Table 38 Global Transformer Oil Market Outlook, By Reactor (2019-2028) (US $MN)
  • Table 39 Global Transformer Oil Market Outlook, By Switchgear (2019-2028) (US $MN)
  • Table 40 Global Transformer Oil Market Outlook, By Other Applications (2019-2028) (US $MN)
  • Table 41 Global Transformer Oil Market Outlook, By Fluorescent Lamp Ballasts (2019-2028) (US $MN)
  • Table 42 Global Transformer Oil Market Outlook, By Generators (2019-2028) (US $MN)
  • Table 43 Global Transformer Oil Market Outlook, By High Voltage Switches (2019-2028) (US $MN)
  • Table 44 Global Transformer Oil Market Outlook, By High-Voltage capacitors (2019-2028) (US $MN)
  • Table 45 Global Transformer Oil Market Outlook, By Submersible (2019-2028) (US $MN)
  • Table 46 Global Transformer Oil Market Outlook, By Welding Set (2019-2028) (US $MN)
  • Table 47 Global Transformer Oil Market Outlook, By X-Ray Machine (2019-2028) (US $MN)
  • Table 48 Global Transformer Oil Market Outlook, By End User (2019-2028) (US $MN)
  • Table 49 Global Transformer Oil Market Outlook, By Residential (2019-2028) (US $MN)
  • Table 50 Global Transformer Oil Market Outlook, By Commercial (2019-2028) (US $MN)
  • Table 51 Global Transformer Oil Market Outlook, By Industrial (2019-2028) (US $MN)
  • Table 52 Global Transformer Oil Market Outlook, By Transmission and Distribution (2019-2028) (US $MN)
  • Table 53 Global Transformer Oil Market Outlook, By Railways & Metros (2019-2028) (US $MN)
  • Table 54 Global Transformer Oil Market Outlook, By Power Generation (2019-2028) (US $MN)

Note- Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.