Transformer Oil Market Size, Share & Industry Analysis, By Type ( Mineral-Based Oil, Silicone-Based Oil, Bio-Based Oil ), By Application ( Transformer, Switchgear, Reactor ), By End User ( Transmission and Distribution, Power Generation, Railways & Metros, Others ) and regional forecast 2023-2030

Transformer oil is an insulating oil used in the electrical transformer, which acts as a coolant. These oils are derived from crude oil through the fractional distillation process and they offer various properties such as excellent di-electricity, high resistivity, thermal conductivity, minimum power loss, and chemical stability, among others. It plays an important role to meet the residential, commercial, and industrial energy requirements and ensure a smooth operation of the power supply transformer. During operation, transformers dissipate heat which can damage the system if not controlled. Therefore, to achieve the seamless operation of the transformer by preventing heat damage the oil is used. Application of transformer oil can also be seen in high-voltage circuit breakers and switches. Transformer oil is also used in power generation and railways. Thus, the transformer oil market is gaining pace in the market and has demand in small transformers, larger transformers, and utility. and other applications.

Based on the type, the market is segmented into mineral-based, silicone-based, and bio-based oils. Mineral-based oil holds the market due to ease of availability and high compatibility with a diverse equipment, which has made it popular across a wide range of applications. It is increasingly being used for capacitors, high voltage switches, and circuit breakers.

Based on the application, the market is segmented as a transformer, switchgear, and reactor. The transformer is expected to dominate the market as transformer oils are used in applications such as power and distribution transformers. Also, rising electricity requirements due to an increasing population have increased transformer installations to vary supply voltage.

Based on the end-user type, the market is classified into transmission and distribution, power generation, railways and metros, and others. Transmission and distribution are expected to show positive growth in the market due to the growing need for electricity and the expansion of electricity distribution networks across industrial, residential, and commercial sectors.

The key market driver of this market is the increasing demand for electricity in urban and rural areas. The power demand has also increased across various sectors, which has increased the number of transformer installations. Further, the growing investment in the power sector, industrialization, and shifting trends towards renewable sources of energy will also drive the market.

The key market restraint is chemical reaction and volatility of the used oil. The efficiency of the oil as an insulating material gets reduced as the temperature rises, and moisture level increases. This changes the color, viscosity, and pH of the oil. Hence, transformer oil filtering is required to be done periodically to avoid a chemical reaction in the container. Other factors that hinder the market are the fluctuating raw material cost and the growing demand for dry transformers.

Key Market Driver -

Increasing demand for electricit in different sectors.

Key Market Restraint -

Chemical reaction and volatility of the crude oil.

Key Players Covered:

Some of the major companies in the Transformer Oil Market are Nynas AB, Ergon Inc., Calumet Specialty Products Partners, L.P., Apar Industries Limited, PetroChina International Inc., Hydrodec Group Plc., Engen, Valvoline Inc., Gandhar Oil Refinery India Ltd., SINOPEC, Hydrodec Group plc, and San Joaquin Refining.

Regional Analysis:

The global transformer oil market is studied across different regions like North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. The Asia-Pacific region is expected to lead the market due to the increasing demand for electricity in densely populated countries such as India, China, and Southeast Asia. Also, the expansion of grid infrastructure and increasing investments in the power sector will drive the growth of the market.  China is expected to lead the Asia-Pacific region, followed by India owing to the high demand for transformer oil in power transmission infrastructure. North America will uplift the market owing to the growing industrialization and increase in the production of electrical devices and equipment in the country like the US. In Europe, Russia and Germany are the largest consumers of transformer oil in the market. Increasing consumption of electricity and the development of new power plants are expected to provide healthy growth opportunities for the market in Europe. In Latin America and the Middle-East Africa region, the increase in the need for electricity and development of the required infrastructure will drive the adoption of various types of equipment and, therefore, transformer oil.

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Segmentation

Key Industry Developments

• In February 2020, Nynas AB extended its 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 made from renewable sources. NYTRO BIO 300X is a solution to the challenge of keeping transformers cool in the hot climate of the Middle East.


• In January 2020, Ergon International expanded its naphthenic refinery in Vicksburg, Mississippi, which will help the company position itself, ensuring its longevity of systems and operations while performing the activity.