Insulating oil used in an electrical transformer is usually known as transformer oil. These oils are widely used in switch gears, florescent ballast lamps, oil-filled transformers, and various types of high voltage capacitors. Transformer oil acts as a coolant. Such oil is mainly derived from crude oil through the process of fractional distillation. In a transformer, transformer oil serves two crucial functions such as dissipation of heat which is generated inside of the transformers and suppression of arcing. Such oil exhibits excellent properties such as high resistivity, di-electricity, chemical stability, minimum power loss, and thermal conductivity. Transformer oils are stable at high temperature. Such USPs are driving the global transformer oil market. Apart from this, increasing rate of power consumption, and rapid expansion of electrical grids in developing economies are further fueling growth in the global transformer oil market. Along with this, growing demand for electrical energy worldwide is also propelling expansion in the global transformer oi market.
According to experts, the global transformer oil market is anticipated to register revenue valued at US$3.26 bn by 2024 end. The growth is prophesized to occur at a promising CAGR of 5.70% during the assessment period from 2016 to 2024. Transformer oil is required for repairing and renovating the existing power sector infrastructure. The market is mainly segmented on the basis of product type, application, and region.
Power Transformers Anticipated to Hold an Insignificant Share in Market
From the perspective of product type, the global transformer oil market is segmented into silicone-based oil, mineral oil, and bio-based oil. Among these segments, mineral oil is expected to showcase fantastic expansion in the next few years, especially during the forecast period – 2016 to 2024. This is because of the mushrooming industrialization, rapid urbanization, and huge demand for mineral oil from various industries. However, apart from mineral oil, bio-based oil is the next segment to witness largest sale due to their high performance properties along with a wide range of application areas.
In terms of application, the global transformer oil market is bifurcated into following segments – distribution transformers and power transformers. Among these applications, the distribution transformers segment is expected to witness highest proliferation due to the ability of distribution transformers to outnumber power transformers to a high extent. The maximum demand for transformer oil is coming from distribution transformers, thanks to the governments’ initiatives in expanding the power infrastructure in developing economies. Power transformers is expected to become the next dominating segment during the forecast period due to their significant uptake of transformer oil and broadening application areas such as circuit boards and switchgears.
Asia Pacific Showcases Largest Share in Transformer Oil Market
On the regional front, the global transformer oil market is segmented into Latin America, Asia Pacific, the Middle East and Africa, North America, and Europe. Among these, Asia Pacific dominated the global transformer oil market with a lion’s share of above 43%. This is because the region has seen the rapid advancement in the power infrastructure. In Europe, rapid development of offshore wind farms for power generation is driving demand for transformer oil market.
Some of the prominent players operating in the global transformer oil market are Dow Corning Corp, Cargill, Gulf oil Middle East Ltd, Electrical Oil Services Ltd, and ExxonMobil Corp. These players are expanding their product portfolio to gain a competitive edge in the market.
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:
- Mineral Oil
- Naphthenic Oil
- Paraffinic Oil
- Silicone based
- Bio based
- Power Transformers
- Distribution Transformers
- North America
- Rest of Europe
- Asia Pacific
- Japan & Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa (MEA)
- South Africa
- Rest of MEA