Transformer Oil Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 5.30 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Transformer Oil Market Analysis
The Transformer Oil Market size is estimated at 5.74 Billion liters in 2024, and is expected to reach 7.44 Billion liters by 2029, growing at a CAGR of 5.30% during the forecast period (2024-2029).
The market was negatively impacted by COVID-19 in 2020. The COVID-19 pandemic affected the transformer oil market negatively because of disruption in the supply chain. During the pandemic, many factories responsible for production were shut down. Further, there was a decline in the demand for power required for various activities, thereby decreasing the demand. Currently, the market has recovered from the pandemic in 2022 and is expected to grow steadily in the future.
- Over the short term, the growing electric grids in the Asia-Pacific region and the upgradation and replacement of existing transformers in developed economies are some of the driving factors that are stimulating market demand.
- Environmental concerns regarding the usage of mineral transformer oil and fluctuations in crude oil prices are hindering the market's growth.
- The growing demand for bio-based transformer oils is expected to create opportunities for the market in the coming years.
- Asia-Pacific region is likely to dominate the market and is also expected to witness the highest CAGR during the forecast period.
Transformer Oil Market Trends
Transformer Application to Dominate the Market
- Transformer oil is used in transformers to preserve its core and windings. They also serve the purpose of preventing oxidation of the insulation. The transformer oil acts as a barrier between the atmospheric oxygen and the insulation. It is, thereby, avoiding direct contact and minimizing oxidation. Transformers are used in power transmission plants.
- China is the world’s largest electricity producer. The country’s top two utility operators are making large investments in green energy. The country is focusing on increasing its grid networks through ultrahigh-voltage (UHV) power transmission networks.
- The State Grid Corp of China announced plans in 2022 to invest USD 79 billion in domestic grid construction, an increase of 9 % year on year compared to 2021. Over the next 5 years, the company plans to build 38 UHV lines.
- In January 2022, the Cabin Cabinet Committee of Economic Affairs (CCEA) of India approved the second phase of the green energy corridor scheme. Here around 10,750 circuit kilometers (ckm) of transmission lines and around 27,500 mega volt-amperes (MVA) of sub-station capacity will be installed for renewable energy projects across the country.
- Further, according to the, India Brand Equity Foundation, the power generation capacity of India increased to nearly 400 GW in 2022. It represented an increase of nearly 4% compared to 2021.
- Japan is considering doubling its inter-regional power grid capacity to facilitate the expansion of renewable energy. It is in accordance with its goal to achieve carbon neutrality by 2050.
- Furthermore, in Germany, according to the Federal Ministry for Economic Affairs and Climate Action, Germany is at the heart of the European network. Its geographical location in the heart of Europe makes it a major player in the European power market and a hub for pan-European power flows. Germany is also increasing electricity exports to neighboring countries. Germany holds the largest power plant capacity in Europe and produces and consumes the most electricity.
- Owing to all these factors, the market for transmission oil is likely to grow globally during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region saw a notable growth in the transformer oils market, with countries such as China and India accounting for significant consumption of transformer oil.
- According to the International Energy Agency (IEA), the demand for power in China is expected to grow at a rate of 4.5% from 2022 to 2024.
- The Asia-Pacific thermal sector is registering growth, with China primarily driving the growth of the sector. China includes the most coal-fired power plants of any country or territory in the world. On the Chinese Mainland, as of July 2022, there were 1,118 operational coal power plants. It is approximately four times the number of such power plants in India, which came in second place. China accounts for more than 50% of the world's coal electricity generation.
- India is among the largest producers of electricity worldwide, and the growing population and increasing per capita electricity utilization are expected to drive the demand for power in the country.
- In March 2022, National Thermal Power Corporation (NTPC) announced readiness of the start of partial power generation of 10 GW from a 92 MW floating solar energy plant which was set up at NTPC's unit in Kerala. The company also announced that it will start commercial operations of 74.88 MW capacity of its 296 MW Fatehgarh solar project in Rajasthan. The growing power generation in India is increasing the demand for transformer oils.
- With the growing power generation and the increasing electricity grids in the Asia Pacific region, the market is expected to drive the growth of transformer oils in the forecast period.
Transformer Oil Industry Overview
The transformer oils market is partially consolidated in nature. The major players (not in any particular order) include Shell plc, China Petrochemical Corporation, Chevron Corporation, PETRONAS Lubricants International, and NYNAS AB, among others (not in any particular order).
Transformer Oil Market Leaders
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Shell plc
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Chevron Coproration
-
PETRONAS Lubricants International
-
NYNAS AB
-
China Petrochemical Corporation
*Disclaimer: Major Players sorted in no particular order
Transformer Oil Market News
- June 2023: Nynas launched a new high-quality circular transformer fluid NYTRO RR 900X, based on the powerful and effective re-refining technology. The Nynas refining process recovers valuable molecules that are no longer fit for service in their present form, making use of the fluid original production impact.
- February 2023: Cargill launched FR3r natural ester, a new transformer insulating fluid derived from more than 95% rapeseed oil.
Transformer Oil Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Drivers
- 4.1.1 Growing Electric Grids in the Asia Pacific Region
- 4.1.2 Upgradation and Replacement of Existing Transformers in Developed Economies
-
4.2 Restraints
- 4.2.1 Environmental Concerns Regarding the Usage of Mineral Transformer Oil
- 4.2.2 Fluctuations in Crude Oil Prices
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
-
5.1 Type
- 5.1.1 Mineral-Based
- 5.1.2 Silicone-Based
- 5.1.3 Bio-Based
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5.2 Application
- 5.2.1 Transformer
- 5.2.2 Switchgear
- 5.2.3 Circuit breaker
- 5.2.4 Capacitor
- 5.2.5 Other Applications (Reactors, Etc.)
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5.3 End-user Industry
- 5.3.1 Power Generation
- 5.3.2 Transmission and Distribution
- 5.3.3 Railways and Metros
- 5.3.4 Other End-user Industries (Construction, Etc.)
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5.4 Geography
- 5.4.1 Asia-Pacific
- 5.4.1.1 China
- 5.4.1.2 India
- 5.4.1.3 Japan
- 5.4.1.4 South Korea
- 5.4.1.5 Malaysia
- 5.4.1.6 Indonesia
- 5.4.1.7 Thailand
- 5.4.1.8 Vietnam
- 5.4.1.9 Rest of Asia-Pacific
- 5.4.2 North America
- 5.4.2.1 United States
- 5.4.2.2 Canada
- 5.4.2.3 Mexico
- 5.4.3 Europe
- 5.4.3.1 Germany
- 5.4.3.2 United Kingdom
- 5.4.3.3 Italy
- 5.4.3.4 France
- 5.4.3.5 NORDIC Countries
- 5.4.3.6 Russia
- 5.4.3.7 Turkey
- 5.4.3.8 Rest of Europe
- 5.4.4 South America
- 5.4.4.1 Brazil
- 5.4.4.2 Argentina
- 5.4.4.3 Rest of South America
- 5.4.5 Middle East and Africa
- 5.4.5.1 Saudi Arabia
- 5.4.5.2 South Africa
- 5.4.5.3 Nigeria
- 5.4.5.4 Qatar
- 5.4.5.5 Egypt
- 5.4.5.6 United Arab Emirates (UAE)
- 5.4.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Cargill, Incorporated
- 6.4.2 Chevron Corporation
- 6.4.3 China Petrochemical Corporation
- 6.4.4 Exxon Mobil Corporation
- 6.4.5 Gulf Oil International Ltd
- 6.4.6 LUBRITA Europe B.V.
- 6.4.7 NYNAS AB
- 6.4.8 PETRONAS Lubricants International
- 6.4.9 Repsol
- 6.4.10 savita
- 6.4.11 Shell plc
- 6.4.12 TotalEnergies
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Growing Demand for Bio-Based Transformer Oils
- 7.2 Other Opportunities
Transformer Oil Industry Segmentation
Transformer oils are used to serve two critical functions, which include suppression of arcing and dissipation of heat generated in transformers. Further, they also provide insulation and stabilization of chemicals. Transformer oils provide enhanced electrical insulation and high-temperature stability and also prevent oxidation.
The transformer oil market is segmented by type, application, end-user industry, and geography. By type, the market is segmented into mineral-based, silicone-based, and bio-based. By application, the market is segmented into transformers, switchgear, circuit breakers, capacitors, and other applications (reactors, etc.). By end-user industry, the market is segmented into power generation, transmission and distribution, railway and metros, and other end-user industries (construction, etc.). The report also covers the market size and forecasts for the market in 25 countries across the globe. For each segment, the market sizing and forecasts are done on the basis of volume (million liters).
| Type | Mineral-Based | |
| Silicone-Based | ||
| Bio-Based | ||
| Application | Transformer | |
| Switchgear | ||
| Circuit breaker | ||
| Capacitor | ||
| Other Applications (Reactors, Etc.) | ||
| End-user Industry | Power Generation | |
| Transmission and Distribution | ||
| Railways and Metros | ||
| Other End-user Industries (Construction, Etc.) | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Malaysia | ||
| Indonesia | ||
| Thailand | ||
| Vietnam | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Canada | ||
| Mexico | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| NORDIC Countries | ||
| Russia | ||
| Turkey | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Rest of South America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| South Africa | ||
| Nigeria | ||
| Qatar | ||
| Egypt | ||
| United Arab Emirates (UAE) | ||
| Rest of Middle East and Africa |
Transformer Oil Market Research FAQs
How big is the Transformer Oil Market?
The Transformer Oil Market size is expected to reach 5.74 billion liters in 2024 and grow at a CAGR of 5.30% to reach 7.44 billion liters by 2029.
What is the current Transformer Oil Market size?
In 2024, the Transformer Oil Market size is expected to reach 5.74 billion liters.
Who are the key players in Transformer Oil Market?
Shell plc, Chevron Coproration, PETRONAS Lubricants International, NYNAS AB and China Petrochemical Corporation are the major companies operating in the Transformer Oil Market.
Which is the fastest growing region in Transformer Oil Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Transformer Oil Market?
In 2024, the Asia-Pacific accounts for the largest market share in Transformer Oil Market.
What years does this Transformer Oil Market cover, and what was the market size in 2023?
In 2023, the Transformer Oil Market size was estimated at 5.44 billion liters. The report covers the Transformer Oil Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Transformer Oil Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Transformer Oil Industry Report
Statistics for the 2024 Transformer Oil market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Transformer Oil analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
