Transformer Oil Market: Current Analysis and Forecast (2021-2027)

Transformer oil, also known as insulating oil, is the oil used in transformers which has excellent insulating properties. The primary function of transformer oil is to cool and insulate a transformer. Transformer oil have high dielectric strength and are stable at high temperatures. It is used in switchgears and circuit breakers and also in distribution and power transformers. The factors that are driving the market demand for transformer oil is mainly owing to surging power consumption, increasing expansion of electric grid in developing countries coupled with implementation of regulatory reforms for the development of a reliable grid network along with increasing investments in power sector further contribute to the growth of the transformer oil market. However, factors such as volatility in crude oil prices and increasing adoption of dry transformers are expected to hamper the market growth.

Based on Oil Type, the market is segmented into mineral based, silicon and bio-based. Currently, mineral based oil segment expected to captured considerable market share. It is mainly owing to a its low cost index and easy availability compared to other transformer oils.

Based on Application, the market is classified into transformer, reactor and switchgear. Currently, transformer holds considerable demand and expected to grow at an influential rate in the projected period. It is mainly owing to the to rising power demands upgrade and expansion of electric grids has escalated the installation of transformers, which is expected to eventually propel the growth of the transformer segment.

Based on End-Users, the market is segmented transmission and distribution, railways and metros, power generation and others. Transmission and distribution holds significant share in the transformer oil market and expected to have influential growth rate in the forecasted period as well. As growing demand for power would necessitate the expansion of the transmission & distribution network, thereby enhancing the demand for electrical components, such as transformers, reactors, and switchgears, leading to an increase in the demand for transformer oil.

For a better understanding of the market adoption of transformer oil , the market is analyzed based on its worldwide presence in the countries such as North America (United States, Canada), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia and Rest of APAC), and Rest of World. Asia Pacific constitutes the largest market for the industry and expected to have an influential growth rate in the projected years predominantly due to growth of industrial and commercial sectors, will lead to an increase in the number of substations which in turn would generate the demand for transformer oil.

Some of the major players operating in the market include Apar Industries Limited, Cargill, Incorporated, China Petroleum & Chemical Corporation, Engen Limited, Ergon, Inc., Gandhar Oil Refinery (India) Limited, Hydrodec Group plc, Nynas AB, San Joaquin Refining Co. Inc., Valvoline Inc.