Global Transformer Oil Market: Snapshot

Thanks to the increasing need for power across the world, the global transformer oil market has been witnessing a high growth rate. The rising distribution of oil filled transformers in developing nations, such as China and India, where the focus of the governments is to expand the power infrastructure is also boosting this market substantially.

Going forward, the augmenting demand for transformer oil in developed regions, such as North America and Europe, where the existing power infrastructure is anticipated to be overhauled, is likely to propel this market over the next few years. However, the advent of smart transformers and dry type transformers may restrict this market to registering a steady growth in the years to come. In 2015, the overall opportunity in the global transformer oil market was US$1.99 bn in 2015 and is anticipated to reach US$3.26 bn by 2024, rising at a CAGR of 5.70% between 2016 and 2024.


global transformer oil market


Demand for Mineral Oil to Remain High

Mineral oil, silicone-based oil, and bio-based oil are the main products available in the global market. Among these, the demand for mineral oil is higher and trend is expected to remain so over the next few years. However, the demand for bio-based oil is likely to increase at a significant rate in the near future.

Based on the application, the global market for transformer oil is categorized into power transformers and distribution transformers. The demand for transformer oil has been higher from distribution transformers due to the fact that distribution transformers outnumber power transformer by large. This scenario is likely to remain so over the next few years, thanks to the initiatives of various governments to expand the power infrastructure, especially in developing regions such as Asia Pacific, Latin America, and Africa.

Power transformers are also projected to report a significant uptake of transformer oil in the years to come while others application areas, such as switchgears, circuit boards, and high voltage capacitors are expected to are anticipated to hold an insignificant share in the worldwide market for transformer oil.

Asia Pacific to Retain Lead in Global Transformer Oil Market

Geographically, the worldwide market for transformer oil is segmented into the Middle East and Africa, Latin America, Asia Pacific, Europe, and North America. Asia Pacific dominated the global market in 2015 with a share of more than 43%. Thanks to the increasing focus of the governments in Asian countries, such as China, India, and Korea, on the advancement of the power infrastructure in these nations, the Asia Pacific market for transformer oil is likely to retain its dominance over the next few years.

In developed regions, such as North America and Europe, the market for transformer oil is in its maturity, so the growth is expected to be sluggish. Over the coming years, these regional markets are expected to be driven by the refurbishment of the present power infrastructure. Especially, the market in Europe is projected to be driven by the development of offshore wind farms for power generation.

ExxonMobil Corp., China Petroleum & Chemical Corp., Nynas AB, Royal Dutch Shell Plc, Dow Corning Corp., Apar Industries Ltd., Cargill Inc., Calumet Specialty Products Partners L.P., Gulf Oil Middle East Ltd., Engen Petroleum Ltd., Electrical Oil Services Ltd., Ergon Inc., and San Joaquin Refining Co. Inc. are the key vendors of transformer oil across the world.

Global Transformer Oil Market: Overview

Transformer oil is an oil used in oil filled transformers for insulation purposes. It is also used as a coolant and to prevent arcing and corona discharges in a transformer. The report provides in-depth analysis and forecast of the transformer oil market on the global as well as on regional level. It further includes value chain analysis to help understand the industry thoroughly. Value chain analysis comprises detailed evaluation of the roles of various entities involved in the transformer oil industry, from raw material suppliers to end-users.

Various processes employed in the manufacture of transformer oil have been included in the value chain analysis. Porter’s five forces model has been included to determine the degree of competition in the market during the forecast period. Furthermore, market attractiveness analysis has been conducted to analyze application segments that are expected to be lucrative during the forecast period. This is based on various factors such as market size, growth rate, profitability, raw material procurement, and competition in each application segment.

Global Transformer Oil Market: Research Methodology

The report includes forecast for the period from 2016 to 2024 in terms of volume (kilo tons) and revenue (US$ Mn). Quantitative data has been derived through extensive secondary research of the global transformer oil market. Secondary sources typically include company websites, relevant magazines, government documents, and press releases. The top-down approach has been adopted to derive the regional numbers from global revenue and volume figures. Furthermore, the bottom-up approach has been employed to derive data for various product type and application segments based on demand for transformer oil in each geographical segment. A combination of top-down and bottom-up approaches helps in validation of the quantitative data of the market. The data was further validated with the help of primary research with industry experts to ensure accuracy of derived numbers.

Detailed analysis of various factors driving the global transformer oil market has been included for astute decision making. Impact of these drivers during the forecast period has been included with data to substantiate research findings. Furthermore, factors restraining market growth have been included for better understanding of the market. Impact of these restraints has been analyzed over the forecast period. The report also comprises various opportunities available for market growth over the next eight years. Opportunities entail untapped or recently explored factors that are anticipated to drive the transformer oil market during the forecast period.

Global Transformer Oil Market: Segmentation

The global transformer oil market is divided on the basis of product type as mineral oil, silicone based and bio based transformer oil. The mineral oil segment is further classified into naphthenic oil and paraffinic oil. Based on application type, the transformer oil market has been segmented into power transformers, distribution transformers and others application segment.

In terms of region, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Demand for transformer oil in each application segment type has been analyzed and forecast for a period of eight years. The report comprises detailed analysis of all the segments in the regional and global markets and forecast based on current and future trends in the industry in terms of volume (kilo tons) and revenue (US$ Mn).

Companies Mentioned in the Report

The report also comprises profiles of leading companies in the transformer oil market. These include Nynas AB, Sinopec Corp., ExxonMobil Corp., Royal Dutch Shell Plc, Cargill Incorporated, Apar Industries Ltd., Gulf Oil Middle East Ltd., and Ergon Inc. among others. Various attributes of these companies such as company overview, business strategies, and recent developments form the core of the company profiles section.

This report segments the global transformer oil market as follows:

By Product

  • Mineral Oil
    • Naphthenic Oil
    • Paraffinic Oil
  • Silicone based
  • Bio based

By Application

  • Power Transformers
  • Distribution Transformers
  • Others

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Italy
    • Spain
    • France
    • Germany
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan & Korea
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa (MEA)
    • GCC
    • South Africa
    • Rest of MEA