Transformer Oil Market Research Report – Forecast to 2027

Transformer Oils Market Research Report: By Type (Naphthenic Oil, Paraffinic Oil, Bio-Based Oil, Silicone Oil), By Application (Large Transformers, Small Transformers, Utility & Others), And Region – Forecast till 2027

ID: MRFR/CnM/1237-CR | April 2017 | Region: Global | 163 pages

Transformer Oil Market Overview:


With demand and supply focused and studied the Transformer Oil Market will be able to reach the market value of more than 2.6 billion US dollars by the end of the forecast year. The Transformer Oil Market is expected to register a CAGR of 8% by the year 2023.


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 the process of 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.


The major factors involving the market growth are 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 as per consumer's demand in the North American region, rising investments in the power sector, rising investments in the power sector because of the introduction of advanced technological electronic devices, and others. However, dynamically changing and fluctuating cost of trading, exporting, importing raw materials, and changing consumer preferences towards dry transfers might challenge the market to a great extent.


COVID-19 Analysis:


The prevalence of ongoing pandemic has severely affected human lives globally. With the first case that originated in China to the global pandemic, the COVID-19 has proven to be fatal. The countries saw the loss of life, power, revenue, and others. The world went to a halt seeing the global pandemic and is still in the phase of misery with the outbreak of new strains and mutants. With vaccine under testing to control the adverse effects COVID-19 is likely to prevail for a longer duration. Market dynamics changed for industries around the world. The rate of utilization decreased enormously, which resulted in the shortage of supply for a significant number of end-users. The transformer oils market saw a downfall in various sectors, but it spiked significantly in the healthcare sectors and hospitals to maintain a continuity of services there to treat patients infected with the virus. Transformers are essential in healthcare sectors to maintain continuity of electricity so that it does not hamper patient care. The other industrial sectors are also expected to regain value and status as the world fight against the pandemic with combined forces.


Competitive Landscape:


The association of fundamental market players, revenue generated, application dominance, new market initiatives, pricing analysis, trade analysis, company financials, investors interest, market width and breadth, and robust nature of the manufacturing unit is analyzed, studied, and stockpiled under the competitive analysis section of the report.


The Audience attracted by the global transformer oils market are:


- Raw material transporters
- Distributors of transformer oils
- Transformer oils manufacturers
- Traders of transformer oils 
- Potential investors of the unit
- Industries involved in production units


The foremost market contenders include:


- Nynas AB (Sweden)
- Calumet Specialty Products (U.S.)
- PetroChina Company (China)
- Hydrodec Group Plc. (U.K)
- Engen Petroleum Limited (South Africa)
- San Joaquin Refining (U.S.)
- Ergon Inc. (U.S.)
- APAR Industries Limited (India)
- Sinopec Group (China)
- Cargill Inc. (U.S.)
- Valvoline Inc. (U.S.)
- Gandhar Oil Refining (India)


Market Dynamics:



  • Drivers:


- Extensive demand for energy grids in the emerging economies of the developing nations of India and China.


- Efforts to rely on renewable and biodegradable sources of energy.


- Modernization, technical upgrade, and improvement of the already present transformers, and manufacturing new transformers as per consumer's demand in the North American region.


- Rising investments in the power sector.
- High power consumption to meet the requirements of increasing electricity demands.
- Introduction of advanced technological electronic devices.


  •  Challenges:


- Dynamically changing and fluctuating cost of trading, exporting, importing raw materials.
- Introduction of dry transformers.
- Installation of a transformer is an expensive and time-consuming process

Technology Analysis:


By the process of 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. Insulation with 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. 


With high power comes difficulty to maintain supply continuity thus transformer oils are used for dissipating heat, insulating power equipment, cooling systems, and others. A global shift to adapt to the use of renewable and biodegradable sources of energy is leading the global transformer oil market. The factors that fueled the market growth in the emerging economies of the Asia-Pacific regions are Rapid urbanization, growing consumer requirements, rising demand for energy grids, exponential development, drastic industrialization, equipment maintenance, and improvement of rural electrification. Modernization, technical upgrade, and improvement of the already present transformers, and manufacturing new transformers as per consumer's demand in the North American region. However, installation of transformer is an expensive and time-consuming process, dynamically changing and fluctuating cost of trading, exporting, importing raw materials, and changing consumer preferences towards dry transfers might restrain the market growth.


Study Objectives:


- To share a brief note on Opportunity Analysis, Industry Forecast, Market Share, Market Value, Pricing Analysis, and Trading Analysis.
- To share analysis on the market dynamics studying the historic and current data.
- A study on regional analysis based on key market players, competition within regions,
- A qualitative review on technology analysis about the production of the transformer oils.

Segment Overview:


By Type:


The global Transformer Oil Market is segmented based on type as silicone oil, bio-based oil, naphthenic oil, and paraffinic oil.


By Application:


The global Transformer Oil Market is segmented based on application as small-scale transformers, large-scale transformers, utilities, and others.


Regional Analysis:


Geographically the global transformer oils market is segmented in the regions of The US and Canada in the North American region, Russia, Germany, Italy, The U.K., Spain, and France in the European region, India, China, and Japan in the Asia-Pacific region, Argentina, Mexico in the Latin American region, Turkey, Iran in The Middle East, Africa, and South Africa.


- Asia-Pacific region has emerged as the paramount market leader as per regional analysis collected over the period. 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. The region is expected to register a CAGR worth 10.57% of the total market through the end of the forecast period. China is the leading manufacturing hub in the region due to the industrial revolution which augmented the trading of transformer oils and transformers.
- North America accounts for a share of 30% of the total market value and share-making is the second leader of the world in the global transformer oils market. 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 region, giving rise to the interest of investors and manufacturers in the region.

Recent Developments:


- In 2016, as part of the Grid Modernization Initiative, a total investment of 220 million US dollars was made by the U.S. DOE manufacturing company to re-energize the power grid of the transformers to make them sustainable, resilient, and affordable. The increasing expenditure costs and rapid urbanization and modernization in the infrastructure sector stimulated business opportunities in the developed economies.
- In 2013, The European Union allocated 10.6 billion US dollars to fund the infrastructure of the energy network in the European region to meet the increasing electricity demand.
- To extend the traditional electricity grid, The World Bank shares an investment of 37 billion US dollars every year to achieve Sustainable Energy by the year 2030.

Report Overview:


- To study the strategies of profiled market players.
- The developments, trends, and expected revenue during the forecast period.
- To share a brief note on Opportunity Analysis, Industry Forecast, Market Share, Market Value, Pricing Analysis, and Trading Analysis.
- Segment-wise analysis of the market based on application, region, and application.
- To share analysis on the market dynamics studying the historic and current data.
- A study on regional analysis based on key market players, competition within regions,
- A qualitative review on technology analysis about the production of the transformer oils.
- Nynas AB is stated to be the world's largest manufacture of the transfer oil product.
- Understanding of source and target of the industry, audiences involved, and opportunities created.
- A comprehensive outlook on the value chain optimization, collaborations between key players, import-export within regions, and others.



Report Scope:
Report Attribute/Metric Details
  Market Size

  • 2023: USD 2.6 Billion
  • 2027: Significant value
  •   CAGR   8%(2018–2023)
      Base Year   2018
      Forecast Period   2020-2027
      Historical Data   2019
      Forecast Units   Value (USD Billion)
      Report Coverage    Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
      Segments Covered   By Type, By Application and Region
      Geographies Covered    North America, Europe, Asia-Pacific, and Rest of the World (RoW)
      Key Vendors   Nynas AB (Sweden),Calumet Specialty Products (U.S.),PetroChina Company (China),Hydrodec Group Plc. (U.K),Engen Petroleum Limited (South Africa),San Joaquin Refining (U.S.),Ergon Inc. (U.S.), APAR Industries Limited (India), Sinopec Group (China),Cargill Inc. (U.S.),Valvoline Inc. (U.S.),Gandhar Oil Refining (India)
      Key Market Opportunities

  • High resistivity
  • Excellent di-electricity
  • Thermal conductivity
  • Chemical stability
  •   Key Market Drivers

  • Efforts to rely on renewable and biodegradable sources of energy
  • Rising investments in the power sector
  • Extensive demand for energy grids in the emerging economies\r\n


  • Frequently Asked Questions (FAQ) :


    The transformer oil market is predicted to grow at an 8.63% CAGR between 2015-2023.

    The global transformer oil market is predicted to touch 4.002.8 million by 2023.

    Asia Pacific is predicted to have maximum share in the transformer oil market during the forecast period.

    Rising power consumption, increasing investment in the power sector, and expansion of power grids are key factors that is adding to the growth of the transformer oil market.

    Demand for dry transformers and volatile raw material cost may restrict the growth of the transformer oil market.