North America Transformer Oil Market Size - By Product (Mineral Based {Naphthenic, Paraffinic}, Silicon Based, Bio Based), By Application (Distribution Transformer, Power Transformer, Instrument Transformer) & Forecast, 2023 - 2032

North America Transformer Oil Market Size - By Product (Mineral Based {Naphthenic, Paraffinic}, Silicon Based, Bio Based), By Application (Distribution Transformer, Power Transformer, Instrument Transformer) & Forecast, 2023 - 2032

North America Transformer Oil Market is expected to register CAGR of around 7.4% from 2023 to 2032, owing to the region's extensive power infrastructure. The ongoing investments in grid modernization and renewable energy projects, significantly contributes to the product adoption. As per Wood Mackenzie, 25 investor-owned utilities in the U.S. invested $36.4 billion into grid modernization, with 80% focusing on Advanced Metering Infrastructure, grid hardening, and distribution automation.

Additionally, the product acts as a vital component in enhancing the performance and longevity of transformers, ensuring the insulation and cooling of electrical equipment. With growing environmental concerns and regulatory standards, the demand for high-quality transformer oils that comply with safety will propel market growth.

North America transformer oil industry is classified based on product, application, and region.

Bio-based segment is poised to witness significant growth over the forecast period, propelled by rising emphasis on sustainability. As regulatory frameworks encourage the adoption of eco-friendly alternatives, the bio-based transformer oil is prominent for its renewable and biodegradable properties. Industries in North America are recognizing the environmental benefits of the product, such as lower carbon footprint.

Distribution transformer segment is anticipated to observe a significant growth during 2023 and 2032. With ongoing urbanization and infrastructure development in the region, there is a rising need for reliable power distribution systems. These transformers help in stepping down voltage for local consumption. The efficiency & versatility of these transformers in meeting various energy needs, will favor its integration, pushing the demand for oils.

Canada transformer oil industry size will grow significantly through 2032, backed by the shift towards renewable energy sources. The increasing integration of wind and solar power projects in Canada enhances the demand for transformer oils, particularly those with high dielectric strength and superior thermal conductivity. Moreover, the geographical extent of the nation’s power infrastructure, coupled with its diverse climate conditions, amplifies the necessity for transformer oils that offer robust insulation and efficient cooling.