Transformer Oil Market Outlook – 2030
The global transformer oil market size was valued at $2.3 billion in 2020 and is projected to reach $4.3 billion by 2030, growing at a CAGR of 6.3% from 2021 to 2030. Transformer oil is derived from crude petroleum. Transformer oil serves two important functions in a transformer, which include suppression of arcing and dissipation of heat generated in transformers. In addition, it is used for insulation and in the stabilization of chemicals. Transformer oil exhibits enhanced electrical insulation & high-temperature stability as well as prevents oxidation. Among the types of transformer oils, mineral oil and synthetic oil are majorly used oil types in transformer applications.
The global transformer oil market analysis is segmented into type, function, end use, application, and region. Depending on type, the market is categorized into naphthenic oil, paraffinic oil, silicone-based oil, bio-based oil, and others. On the basis of function, it is segregated into insulator, cooling agent, lubricant, and chemical stabilizer. Depending on end use, it is classified into small transformer, large transformer, utility transformers, distribution transformers, power transformers, and others. The applications covered in the study include residential, commercial, and industrial. Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players operating in the global transformer oil market are Neste, Petronas, Sinopec Lubricant Company, Royal Dutch Shell, Exxon Mobil Corporation, Total SE, Chevron Corporation, Exxon Mobil, Repsol, and Gulf Oil International. Other players operating in the market are Lubrita, Phillips 66 Company, Dow, Cargill Incorporated, Hydrodec Group Plc., Calumet Specialty Products Partners, L.P., Sasol, Hyrax Oil Sdn Bhd., and San Joaquin Refining Co. The transformer oil market is analyzed in accordance with the impacts of the drivers, restraints, and opportunities. The period studied in this report is 2021–2030. The report includes the study of the market with respect to the growth prospects and restraints based on the regional analysis. The study includes Porter’s five forces analysis of the industry to determine the impact of suppliers, competitors, new entrants, substitutes, and buyers on the market growth.
By Type
Paraffinic Oil is projected as the most lucrative segment.
Transformer Oil Market, By Type
By type, the Naphthenic Oil segment held the largest market share in 2020, owing to a rise in demand for transformer oil from electric utilities such as transmission systems, power plants, and other industrial applications. In addition, advantages associated with mineral oil such as high thermal, oxidation durability, cost-effectiveness, and easy availability are anticipated to fuel the growth of the global transformer oil market in the coming years.
By Function
Insulator is projected as the most lucrative segment.
Transformer Oil Market, By Function
On the basis of function, the insulation segment dominated the global market in 2020, in terms of share, owing to the rise in demand for transformer oil to insulate high-voltage electrical infrastructures such as transformers, capacitors, switches, and circuit breakers applications in electric utilities. It is majorly used as insulation between windings and other parts of the transformer, owing to its high dielectric strength, enough viscosity level, temperature flexibility, and other advantages.
By End-use
Small Transformer segment is projected as the most lucrative segment.
Transformer Oil Market, By End-use
By end-use, the small transformer segment garnered the highest market share in 2020. This is attributed to the extensive use of these systems to meet the increasing needs for electricity in rural areas. Rising power demands will increase the installation of transformers which in turn increase the demand for Transformer oil.
By Application
Industrial is projected as the most lucrative segment.
Transformer Oil Market, By Application
On the basis of application, the industrial segment exhibited the highest market share in 2020. This is attributed to rise in installation of standalone power generation systems in industrial applications, owing to varying loads and power demand in the industrial applications. In addition, rapid growth of industries such as building & construction, chemicals, oil & gas, and railways resulted in rise in demand for transformers, which, is turn, is expected to drive the growth of the market during the forecast period.
By Region
Asia-Pacific holds a dominant position in 2020 and would continue to maintain the lead over the forecast period.
Transformer Oil Market, By Region
Asia-Pacific garnered the highest share in the transformer oil market in 2020, in terms of revenue, and is anticipated to maintain its dominance throughout the forecast period. This is attributed to the presence of huge consumer base, rapid development of the renewable energy sector, expansion of high-voltage direct current (HVDC) system networks, and the existence of key players in the region. Moreover, presence of the high-power consuming countries such as China, Japan, and India are anticipated to contribute toward the growth of the market in the region.
Covid-19 Impact On The Market
Lockdown imposed due to the outbreak of COVID-19 pandemic resulted in temporary ban on import & export and manufacturing & processing activities across various industries and electrical utilities, which decreased the demand for electricity from these consumers. In addition, halt in building & construction of new electric utility infrastructures, renewable power plants, grid network, and other power plants, owing to unavailability of workers and increase in demand–supply gap are projected to hamper the market growth during the pandemic period. This resulted in decline in market growth in the second, third, and fourth quarters of 2020. However, the transformer oil market is expected to recover by the second quarter of 2021, as COVID-19 vaccination has begun in various economies across the globe, which is expected to improve the global economy.
Key Benefits For Stakeholders
- The report provides an extensive qualitative and quantitative analysis of the current transformer oil market trends and future estimations of the global market from 2021 to 2030 to determine the prevailing opportunities.
- A comprehensive analysis of the factors that drive and restrict the transformer oil market share is provided.
- Estimations and forecast are based on factors impacting the transformer oil market forecast, in terms of value.
- Profiles of leading players operating in the market are provided to understand the global competitive scenario.
- The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable transformer oil market growth.
Transformer Oil Market Report Highlights
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Analyst Review
Rapid industrialization and growth of energy sector are the key factors attributed to the leading position of Asia-Pacific. Huge potential in Asia-Pacific to set up power generation plants & industries and surge in high-voltage direct current (HVDC) transmission networks are expected to provide lucrative opportunities to leading transformer oil manufacturers.
Increase in demand for reliable and continuous power supply is the key factor driving the growth of the global transformer oil market during the forecast period. In addition, increase in cross-country power transmission & distribution networks and replacement of old units are anticipated to fuel the growth of the market during the analyzed time frame. However, fluctuating cost of raw material & component and availability of alternatives such as dry type transformers hamper the growth of the transformer oil market from 2021 to 2030. On the contrary, rapid growth of power generation, transmission, and distribution network in developing economies is anticipated to provide remunerative opportunities for key players to maintain the pace in the transformer oil market in the upcoming years.
Renowned global market leaders such as nestle are adopting various key growth strategies to strengthen their market position..
Among the analyzed regions, Asia-Pacific is likely to account for the highest revenue in the market throughout the forecast period, followed by North America, Europe, and LAMEA.
Agreement and product launch are the key growth strategy of Global Transformer oil Market players.
Paraffinic oil segment holds the maximum share of the Global transformer oil market
To get latest version of transformer oil market report can be obtained on demand from the website.
Transformer manufacturing companies and power grids and are the major customers of global transformer oil market.
Increasing demand of energy across the world, expansion of power grids, and rising demand if transformers are the major driving factors for the Global Transformer oil Market. In addition, increasing bio-based and corrosion free transformer oil creates the ample of opportunities for the transformer oil market.
The top ten market players are selected based on two key attributes - competitive strength and market positioning
North America and LAMEA will provide more business opportunities for Global transformer oil in future
Chevron Corporation, Exxon Mobil Corporation, Gulf Oil Lubricants India Limited, Neste, PETRONAS, Repsol, Royal Dutch Shell Plc, Sinopec Group, Total SE and Valvoline Inc.
The report provides an extensive qualitative and quantitative analysis of the current trends and future estimations of the global transformer oil market from 2020 to 2030 to determine the prevailing opportunities.
Increase in investment in power sector across the globe and rising production of transformer are the current trend expected to influence the Global transformer oil market in the next few years
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