Transformer Oil Market

Transformer oil, also known as insulating oil, is an oil that is stable at high temperatures and offers remarkable electrical insulating features. The main function of the transformer oil is to insulate, suppress corona discharge, and act as a coolant. It is most often based on mineral oil, however alternative formulations with better engineering or environmental features are gaining traction in the coming years. Transformer Oil Market has been segmented by its type, by application, by end-user, and by geographical region.

Transformer oil is an oil that is constant at high temperatures and a superlative insulator for electricity. This transformer oil is a derivative of mineral oils, but alternative composition with better physical and chemical properties is emerging in demand. Transformer oil is used in oil-filled and submersible transformers to maintain the temperature of the transformer. The application of transformer oil can be used in high-voltage circuit breakers and switches. The transformer oil is acting as a cooling agent to decrease the increasing temperature.

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Some of the major factors propelling the growth of transformer oil market include the upgradation of electric grids in developing economies due to the increasing industrialization and urbanization. Rising demand for modernization of aging grid infrastructure, along with large scale capacity addition, will further surge the market growth. For example, in 2016, the U.S. DOE invested USD 220 million under the Grid Modernization Initiative. Rapid urbanization, followed by growing expenditure across the infrastructure sector in developed countries, will further fuel the transformer oil market growth. The other key drivers boosting the market growth include increasing power consumption and rising investment in the power sector. The emerging demand for high-tech electronic devices and the increasing population and high disposable income has surged the demand for energy in developed regions. In addition to this, the rising trends towards renewable energy sources is another driver that is accelerating the market growth during the forecast period. On the other hand, the variations in raw material cost and the surging demand for dry transformers will hinder the market growth in the upcoming years.

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Based on the oil type, the market is segmented into mineral oil, silicone oil, and bio-based oil. The mineral oil segment is further categorized into naphthenic oil and paraffinic oil. The mineral oil segment is expected to grow at a higher CAGR during the forecast period. Mineral oil has low fire safety potential and low biodegradability, which is essential for the requirement for other insulating liquids to be used in reactors, transformers, and switchgears installed at high-fire risk areas, such as chemical factories. Mineral oils contain hydrocarbon components, which come from residual oil fractions of the appropriate viscosity level. Furthermore, mineral oil is a by-product of petroleum distillation. The combination of these factors are leading to the growth of the segment.

Based on the application, the market is segmented into transformer, reactor, and switchgear. The transformer segment is projected to grow at a higher CAGR during the forecast period. Growing electricity requirement owing to a rising population has resulted in an upsurge in investments for the expansion of the existing power grids and for the construction of new power infrastructure in developed and developing economies. All these factors are surging the growth of the segment in the market.

Based on the end-user, the market is segmented into transmission and distribution, power generation, railways & metros, and others. The transmission and distribution segment is expected to dominate the market during the forecast period due to increasing power requirements driven by growing urbanization, followed by a rising population, resulting in an upsurge in the transmission and distribution network worldwide. The increasing transmission and distribution network will lead to an upsurge in the number of substations, thus fuelling the demand for transformer oil owing to the installation of reactors, transformers, and switchgears in these substations.

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Based on the region, the Asia-Pacific segment is expected to grow at a higher CAGR during the forecast period due to rising demand for power in developing economies, such as India and China, and developed economies, such as Japan and China. Increasing power requirements, coupled with the upgradation of the aging electrical infrastructure, will lead to an upsurge in the number of substations.

Various notable players operating in the market include Ergon International, Nynas AB, PetroChina Company Limited, Apar Industries Ltd., Calumet Specialty Products Partners, L.P, China Petroleum & Chemical Corporation, Hydrodec Group plc, Cargill, Incorporated, ENGEN PETROLEUM LTD, and Exxon Mobil Corporation, among others. 

Key Developments:

• • In 2020, Nynas AB, 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.

The global transformer oil market has been segmented on the basis of oil type, application, end-user, and regions. Based on the oil type, the market is segmented into mineral oil, silicone oil, and bio-based oil. The mineral oil segment is further categorized into naphthenic oil and paraffinic oil. Based on the application, the market is segmented into transformer, reactor, and switchgear. Based on the end-user, the market is segmented into transmission and distribution, power generation, railways & metros, and others. 

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Key questions answered in this research report:

• • At what pace is global transformer oil market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in transformer oil market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global transformer oil market?
  • Which oil type generated maximum revenues in 2019 and identify the most promising oil type during the forecast period?
  • What are the various application areas of global transformer oil market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global Transformer Oil Market by Oil Type

• • Mineral oil
    • Naphthenic oil
    • Paraffinic oil
  • Silicone
  • Bio-based oil

Global Transformer Oil Market by Application

• • Transformer
  • Reactor
  • Switchgear

Global Transformer Oil Market by End-User

• • Transmission and Distribution
  • Power Generation
  • Railways & Metros
  • Others

Global Transformer Oil Market by Region

• • North America Transformer Oil Market (Option 1: As a part of the free 25% customization)
    • North America Market by Oil Type
    • North America Market by Application
    • North America Market by End-user
    • US Market All-Up
    • Canada Market All-Up
  • Europe Transformer Oil Market (Option 2: As a part of the free 25% customization)
    • Europe Market by Oil Type
    • Europe Market by Application
    • Europe Market by End-user
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Transformer Oil Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific Market by Oil Type
    • Asia-Pacific Market by Application
    • Asia-Pacific Market by End-user
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Transformer Oil Market (Option 4: As a part of the free 25% customization)
    • RoW Market by Oil Type
    • RoW Market by Application
    • RoW Market by End-user
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Transformer Oil market (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Ergon International
  • Nynas AB
  • PetroChina Company Limited
  • Apar Industries Ltd.
  • Calumet Specialty Products Partners, L.P
  • China Petroleum & Chemical Corporation
  • Hydrodec Group plc
  • Cargill, Incorporated
  • ENGEN PETROLEUM LTD
  • Exxon Mobil Corporation