Paraffinic Transformer Oil Market Size - By Application (Distribution Transformer, Power Transformer, Instrument Transformer), Growth Opportunities & Forecast, 2023 - 2032

Paraffinic Transformer Oil Market Size - By Application (Distribution Transformer, Power Transformer, Instrument Transformer), Growth Opportunities & Forecast, 2023 - 2032

Global Paraffinic Transformer Oil Market size will expand at 6.9% CAGR from 2023-2032. The rising investments for upgrading and modernizing electrical grid infrastructure, such as replacing and refurbishing aging transformers is significantly surging the demand for transformer oils. For instance, in November 2022, the U.S. Department of Energy (DOE) disclosed $13bn investment for supporting the upgrade and expansion of electric grids in the U.S.

Moreover, the ongoing R&D efforts for improving the performance and environmental characteristics, including biodegradability, stability, and fire safety of transformer oils is adding to the enhanced preference for paraffinic transformer oils. To illustrate, in March 2023, BBGI Partnered with SCGC and QTC for driving the first green innovation in Thailand for commercial bio transformer oil production and quality testing.

The overall paraffinic transformer oil industry is bifurcated based on application and region.

With respect to application, the market share from the instrument transformer segment is poised to depict more than 8.5% growth rate from 2032-2032. On account of its excellent insulating properties and effectively preventing electrical discharges and breakdowns, paraffinic transformer oil is widely used for insulating the windings and core of transformers. This oil also offers high dielectric strength in instrument transformers in terms of withstanding high electrical voltages without breaking down and experiencing electrical discharges.

Regionally, Europe paraffinic transformer oil industry size is expected to witness over 7.5% CAGR through 2032 on account of the rising implementation of stringent environmental regulations for limiting the environmental impacts of several industries. Leading manufacturers in the region are actively investing in R&D activities to produce bio-based paraffinic transformer oils to offer improved performance characteristics. For instance, in September 2022, Swedish specialty naphthenic oil provider Nynas AB disclosed the rerefining of used electrical transformer oils at its Nynashamn-based base oil plant in Sweden to make new transformer oils offer small greenhouse gas footprint.