Transformer Oil Market Size, Share, Growth and Global Industry Analysis By Type & Application, Regional Insights and Forecast to 2024-2032
Growth Factors of Transformer Oil Market
The transformer oil market size was valued at USD 2.97 billion in 2022, and the market is now projected to grow from USD 3.15 billion in 2023 to USD 4.88 billion by 2030, exhibiting a CAGR of 6.4% during the forecast period of 2023-2030.
The COVID-19 pandemic affected the transportation of equipment and closed many plants, affecting the transformer oil market growth in several ways. During lockdown many companies were either unable to manufacture transformers or were unable to continue construction work, implying that there was decreased demand and therefore reduced sales of transformers. Similarly, travel bans across countries affected project delivery, as the movement was also limited. However, the transformers market recovered in the post-pandemic period, so sales increased and there was positive growth in 2021.
High-performance computing is responsible for high electricity consumption due to areas of application such as fraud detection and healthcare. With this increasing demand, the transformer oil market share is anticipated to increase. At the same time, the increasing popularity of electric cars puts pressure on governments to expand utility networks around the world. For instance, based on the statistics from the International Energy Agency, electric vehicles used approximately 110 TWh of electricity in 2022. Such escalation in transmission and distribution levels will lead to high demand for new transmission and distribution transformers.
Further, with the rapid advancement of UHV DC transmission technology, UHV power transformers have become necessary for long-distance power transmission. The energy demand is growing all over the world still need to adopt renewable energy which led to the need to transmit electricity from far areas. These renewable resources are mainly dependent on the place and therefore, the need for long-distance transmission is vital. For this process, nearly 2 kiloliters of transformer oil is used and hence UHV power transformers are crucial. Therefore, long-distance transmission is anticipated to dictate the trading of the transmission oil market in the future.
Comprehensive Analysis of Transformer Oil Market
The transformer oil market and chemicals & advanced materials industry are rising at an exponential rate due to their market segmentation. This market expansion effectively provides a detailed regional assessments considering the dominant supply and demand forces that impact the chemicals & advanced materials industry. These segmentations are methodically segregated by type, by application and by end-user. The type includes, Mineral Oil, Ester Liquids and Silicone Oil. The application includes, Transformers and Electrical Components. The end-user include, Transmission & Distribution, Power Generation, Locomotives & Railway Lines and Others.
Asia Pacific reached a market size of USD 1.48 billion in 2022, making it the largest electric consumer globally, led by China, India and Japan. The region's extensive distribution and power transformer infrastructure support its high electricity demand. Consequently, Asia Pacific held the largest global transformer oil market share in 2022. Both China and India are investing significantly to expand their electric grid networks. This ongoing development is expected to sustain the region’s market dominance in the forecast period.
The top players in the market play a crucial role in the chemicals & advanced materials industry assuring industrial prospectus growth and setting market standards. These players include, Apar Industries Limited (India), Cargill (U.S.), Sinopec Corp (China), Nynas AB (Sweden), Total Energies (France), Dow (U.S.), Calumet Specialty Products Partners, L.P. (U.S.), Powerlink Oil Refinery Ltd (India), Wacker Chemie AG (Germany) and HP Lubricants (India). These market players provide a level-playing competitive landscape.
In June 2023, M&I Materials Ltd. introduced a new product within its ester transformer fluid lineup. This ester transformer fluid is created through the recycling of used fluids, making it an environmentally friendly option.
Segmentation Table
Global Transformer Oil Market Scope
Study Period 2019-2030
Base Year 2022
Forecast Period 2023-2030
Growth Rate CAGR of 6.4% during 2023-2030
Historical Period 2019-2021
Unit Value (USD Billion) and Volume (Million liter)
Segmentation By Type, Application, End- Use, and Region
By Type Mineral Oil
Naphthenic
Paraffinic
Ester Liquids
Silicone Oil
By Application Transformers
Electrical Components
By End-use Transmission & Distribution
Power Generation
Locomotives & Railway Lines
Others
By Region North America (By Type, Application, End-use, Country)
U.S. (By End-use)
Canada (By End-use)
Europe (By Type, Application, End-use, Country)
Russia (By End-use)
Germany (By End-use)
U.K. (By End-use)
France (By End-use)
Italy (By End-use)
Rest of Europe (By End-use)
Asia Pacific (By Type, Application, End-use, Country)
China (By End-use)
India (By End-use)
Japan (By End-use)
Rest of Asia Pacific (By End-use)
Latin America (By Type, Application, End-use, Country)
Brazil (By End-use)
Mexico (By End-use)
Rest of Latin America (By End-use)
Middle East and Africa (By Type, Application, End-use, Country)
GCC (By End-use)
South Africa (By End-use)
Rest of the Middle East & Africa (By End-use)
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