Market Size of Transformer Oil Industry
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 |
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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 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 | |||||||||||
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Transformer Oil Market Size Summary
The transformer oil market is poised for significant growth over the forecast period, driven by the expansion of electric grids in the Asia-Pacific region and the modernization of transformer infrastructure in developed economies. The market experienced a downturn due to the COVID-19 pandemic, which disrupted supply chains and reduced demand for power. However, it has since rebounded and is expected to grow steadily. The Asia-Pacific region, particularly China and India, is anticipated to dominate the market, benefiting from substantial investments in grid networks and renewable energy projects. Despite challenges such as environmental concerns over mineral transformer oil and fluctuating crude oil prices, the market is expected to find new opportunities in the growing demand for bio-based transformer oils.
Transformer oil plays a crucial role in preserving the core and windings of transformers, acting as a barrier against oxidation by preventing direct contact with atmospheric oxygen. The market's growth is supported by China's aggressive expansion of ultrahigh-voltage power transmission networks and India's initiatives to enhance its green energy corridor. Additionally, Germany's strategic position in the European power market and its increasing electricity exports further contribute to the market's expansion. The market is partially consolidated, with major players like Shell plc, China Petrochemical Corporation, and NYNAS AB leading the way. Recent innovations, such as Nynas's circular transformer fluid and Cargill's natural ester, highlight the industry's focus on sustainable solutions.
Transformer Oil Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Growing Electric Grids in the Asia Pacific Region
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1.1.2 Upgradation and Replacement of Existing Transformers in Developed Economies
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1.2 Restraints
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1.2.1 Environmental Concerns Regarding the Usage of Mineral Transformer Oil
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1.2.2 Fluctuations in Crude Oil Prices
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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2. MARKET SEGMENTATION (Market Size in Volume)
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2.1 Type
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2.1.1 Mineral-Based
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2.1.2 Silicone-Based
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2.1.3 Bio-Based
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2.2 Application
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2.2.1 Transformer
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2.2.2 Switchgear
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2.2.3 Circuit breaker
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2.2.4 Capacitor
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2.2.5 Other Applications (Reactors, Etc.)
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2.3 End-user Industry
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2.3.1 Power Generation
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2.3.2 Transmission and Distribution
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2.3.3 Railways and Metros
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2.3.4 Other End-user Industries (Construction, Etc.)
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2.4 Geography
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2.4.1 Asia-Pacific
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2.4.1.1 China
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2.4.1.2 India
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2.4.1.3 Japan
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2.4.1.4 South Korea
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2.4.1.5 Malaysia
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2.4.1.6 Indonesia
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2.4.1.7 Thailand
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2.4.1.8 Vietnam
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2.4.1.9 Rest of Asia-Pacific
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2.4.2 North America
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2.4.2.1 United States
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2.4.2.2 Canada
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2.4.2.3 Mexico
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2.4.3 Europe
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2.4.3.1 Germany
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2.4.3.2 United Kingdom
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2.4.3.3 Italy
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2.4.3.4 France
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2.4.3.5 NORDIC Countries
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2.4.3.6 Russia
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2.4.3.7 Turkey
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2.4.3.8 Rest of Europe
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2.4.4 South America
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2.4.4.1 Brazil
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2.4.4.2 Argentina
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2.4.4.3 Rest of South America
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2.4.5 Middle East and Africa
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2.4.5.1 Saudi Arabia
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2.4.5.2 South Africa
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2.4.5.3 Nigeria
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2.4.5.4 Qatar
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2.4.5.5 Egypt
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2.4.5.6 United Arab Emirates (UAE)
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2.4.5.7 Rest of Middle East and Africa
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Transformer Oil Market Size 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.