Transformer Oil Market Growth On The Basis Of Type, Application, Region & Forecast To 2030: Grand View Research Inc.

 

San Francisco, 28 March 2024: The Report Transformer Oil Market Size, Share & Trends Analysis Report By Product (Mineral-based, Silicone-based), By Rating, By End-use (Utilities, Industrial), By Region, And Segment Forecasts, 2024 - 2030

The global transformer oil market size is expected to reach USD 6.12 billion by 2030, registering a CAGR of 12.3% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growth is driven by the high utilization of transformer oil in the power generation sector along with an increase in demand for electric grids in emerging economies.

The product is used to insulate high-voltage electrical transformers. It is developed to operate at very high temperatures. Transformer oil surrounds the windings and the core of transformers to prevent their wiring and cellulose-based insulation from corroding and oxidizing.

Recent market expansion is driven by technological development and rising R&D activities by key industry players. For instance, Cargill received an award from the U.S. Environmental Protection Agency, for developing transformer oil through natural esters. Market players are also focusing on manufacturing bio-based products to dominate the market.

Crude oil is the major raw material utilized for manufacturing transformer oil. Key industry participants involved in the production of this raw material are Saudi Aramco, Exxon Mobil Corporation, China Petroleum & Chemical Corporation, Shell Plc., and others. Some of the leading market players such as Exxon Mobil Corporation, China Petroleum & Chemical Corporation, and others are integrated across the value chain to produce crude oil, base oil, and transformer oil which increases their profitability margin.

This is attributed to the steadily growing power sector globally, along with advancements in electric grids in emerging economies. Every power and distribution transformer contains dielectric insulating fluid with strong electricity resistance and the ability to keep a transformer cool. Bio-based products are more fire resistant than others, thus expected to witness the highest growth till 2030. Since bio-based oils are fully non-toxic, which further facilitates disposal, they provide reliable and cleaner products. The demand for bio-based products is also anticipated to grow as a result of an increase in the installation of transformers occurring globally. Power utilities are also focusing on upgrading the safety and performance of both new and existing transformers, which is predicted to boost demand for bio-based products globally.

Request sample report of Transformer Oil Market@ https://www.grandviewresearch.com/industry-analysis/transformer-oil-market/request/rs1

Stringent regulation imposed by government bodies concerning energy wastage is expected to be the major challenge for product demand. For instance, the U.S. Environmental Protection Agency (EPA) has set up strict regulations on oil demand to control electricity wastage. Additionally, developed and developing economies are opting for green and environmental-friendly technologies, which are expected to restrain the growth of mineral-based products.

Transformer Oil Market Report Highlights

• By product, the bio-based segment is expected to register the fastest CAGR of 14.8% over the forecast period in terms of revenue due to growing regulations that are focused on reducing carbon emissions and increasing energy conservation
• By end-use, the residential segment is expected to register the fastest CAGR of 12.7% in terms of revenue over the forecast period owing to the growing population across the globe leading to an increase in the residential sector
• Asia Pacific is expected to register the fastest CAGR of 13.8% in terms of revenue over the forecast period owing to rapid industrialization in rural areas and investments by foreign bodies in the developing economies
• There is a significant demand for silicone-based products because of their capacity to extinguish themselves, making them acceptable for high-risk areas with possible fire threats. Due to their durability and lack of major maintenance requirements, silicones also contribute to longer transformer life
• In developing countries, the replacement of outdated transformers with new ones and technological advancements are anticipated to create numerous attractive job opportunities
• The U.S. Environmental Protection Agency, the Electricity & Cogeneration Regulatory Authority, and other federal agencies have adopted strict restrictions surrounding energy waste, and this has fueled demand for oil to reduce emissions and electricity waste.

The power sector plays a major role in any nation's economic growth and contributes significantly to its GDP growth rate. The number of electricity generation plants and investments related to them primarily depend on the governments of respective countries. Various major countries shifting their focus to rural electrification is anticipated to provide impetus to the demand for distribution transformers, thereby leading to an increased consumption of transformer oil.

Transformer Oil Market Report Scope

Report Attribute	Details
Market size value in 2024	USD 3.03 billion
Revenue forecast in 2030	USD 6.12 billion
Growth Rate	CAGR of 12.3% from 2024 to 2030
Base year for estimation	2023
Historical data	2018 - 2022
Forecast period	2024 - 2030

The market is moderately fragmented with key participants focusing on capacity and geographical expansions, as well as mergers & acquisitions, to expand their consumer base. These players are also focusing on R&D activities to formulate novel products to strengthen their market foothold. For instance, in May 2023 Cargill Inc. launched its FR3r natural ester, a new 100% biodegradable and environment-friendly transformer insulating fluid derived from more than 95% rapeseed oil. This new product launch will provide the company with a competitive edge.

List of Key Players in the Transformer Oil Market

• China Petroleum & Chemical Corporation
• Cargill Inc.
• Shell Plc.
• Nynas AB
• Ergon, Inc.
• Engen Petroleum Ltd.