Authored By: Sarah
11 Jul 2024

 Transformer Oil Market to grow by USD 1128.1 million between 2024-2028

According to a research report “ Transformer Oil Market” by End-user (Industrial, Utilities, Commercial, Residential) Product (Mineral-based, Silicon-based, Bio-based) Geography (APAC, North America, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 1128.1 million at a CAGR of  8.09% during the forecast period. In the APAC region, economic expansion and industrial development in countries like China, Thailand, the Philippines, Vietnam, India, Japan, and Australia, are driving significant demand for power. Urbanization, a direct result of industrialization, is leading to increased construction activities in the residential and commercial sectors. India, with its rapid population growth and rising disposable incomes, is witnessing one of the fastest urban development rates globally. China, too, is experiencing similar trends, with half a billion people projected to move to urban areas between 2013 and 2025, necessitating massive investments in urban infrastructure. This economic and urban growth presents substantial opportunities for the transformer oil market in APAC..

Browse market data tables, figures, and in-depth TOC on “Transformer Oil Market” by End-user (Industrial, Utilities, Commercial, Residential) Product (Mineral-based, Silicon-based, Bio-based) Geography (APAC, North America, Europe, South America, Middle East and Africa) Global Forecast to 2028.

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By End-user, the Industrial segment is projected to dominate the market size in 2024.

The mineral-based segment led the global transformer oil market in 2023, driven by its superior properties such as high viscosity gradient, extended dielectric properties, and robust withstanding capabilities. Naphthenic and paraffinic oils, primary components in this category, are extensively used in transformer oil production and lubricant base stock. Furthermore, naphthenic oil's applications extend to the metalworking industry, particularly in metal shaping and forming processes, and its easy availability and wide usage in capacitors, high voltage switches, and circuit breakers fuel market growth.

By Product, Mineral-based  segment is expected to hold the largest market size for the year 2024.

In the business landscape of the US, industries are recognizing the value of transformer oil for its dependability advantages. This oil plays a crucial role in industrial settings, providing a stable and unwavering power source, thereby mitigating voltage inconsistencies and the potential for downtime. The digitalization trend in North America and Europe is expected to fuel a substantial portion of the demand for transformers. Despite the industrial sector's lower reliance on transformers compared to power utilities, the demand varies significantly between small-scale and large-scale users.

APAC is forecasted to hold the largest market size by region in 2024.

The Transformer Oil Market witnesses steady growth, driven by the increasing demand for electricity and the need for reliable power transmission. Key players in this market include Shell, ExxonMobil, and Chevron. These companies supply transformer oil to utilities and industries, ensuring efficient power distribution and minimizing downtime. The market is expected to expand, fueled by technological advancements and regulatory compliance.

The Transformer Oil Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Apar Industries Ltd.
  • BP Plc
  • Calumet Specialty Products Partners L.P.
  • Cargill Inc.
  • Chevron Corp.
  • Dow Chemical Co.
  • Edens Garden
  • Ergon Inc.
  • Exxon Mobil Corp.
  • Hinduja Group Ltd.
  • Lubrita Europe BV
  • Neste Corp.
  • Nynas AB
  • PETRONAS Chemicals Group Berhad
  • Phillips 66
  • Repsol SA
  • Savita Oil Technologies Ltd.
  • Shell plc
  • Sinopec Shanghai Petrochemical Co. Ltd.
  • TotalEnergies SE

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Research Analysis Overview

The Transformer Oil Market plays a crucial role in the power sector, particularly in High-performance Computing (HPC), power generation facilities, manufacturing facilities, and various industries such as automotive, food processing, chemicals, and steel. Transformer oil, also known as dielectric insulating fluid, is essential for the effective operation of three-phase distribution transformers, switchgear, circuit breakers, and capacitors. The Transformer Oil Market is influenced by several factors, including the availability and price of base oil, thermal stress, dielectric strength, and excess heat. Renewable energy resources, such as wind and solar, are driving the demand for transformer oil in power generation facilities. The COVID-19 pandemic has disrupted the supply chain, leading to fluctuations in the market. Crude oil prices and mineral-based products, including transformer oil, are closely linked. Government bodies and power utilities are actively seeking alternatives to mineral-based products, such as bio-based products, to reduce their carbon footprint and mitigate the risks associated with geopolitical instability in crude oil-producing countries like Libya and Iran. The <100 MVA segment and the Industrial segment are significant consumers of transformer oil. The Transformer Oil Market is expected to grow due to the increasing demand for electricity and the need to upgrade and maintain existing power infrastructure.

Market Research Overview

The Transformer Oil Market encompasses the production, sales, and distribution of various transformer oils used in electrical power systems. Key players in this market offer oil types such as silicon oil, ester liquids, and mineral oil for transformers, including dry-type and oil-filled transformers. These transformers are essential components in power generation facilities, automotive industries, manufacturing facilities, refineries, boilers, switchgear, circuit breakers, and capacitors. Renewable energy sources like geothermal power, hydroelectric, biomass, solar, and wind energy are increasingly being integrated into electrical grids, leading to a growing demand for transformer oils in the power sector. HVDC transmission systems, which are crucial for transmitting renewable energy resources over long distances, also require high-performance transformer oils. The transformer oil market is influenced by several factors, including the reliability and stability of electrical power systems, transmission capacity, and population centers. Government bodies and power utilities play a significant role in shaping market trends, with a focus on reducing transmission losses and promoting the use of renewable energy resources. The COVID-19 pandemic and crude oil prices have also impacted the market dynamics, with mineral-based products facing increased competition from bio-based products and dielectric insulating fluids.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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