Transformer Oil Market

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.

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 transformer oil from these consumers.

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.

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.

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.

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.

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.

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