Transformer Oil Market Size
|2019 - 2029
|Base Year For Estimation
|> 5.00 %
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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Transformer Oil Market Analysis
The Global Transformer Oil Market is projected to register a CAGR of over 5% during the forecast period (2022-2027).
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 demand for power required for various activities, thereby decreasing the demand for the market. However, the market is gradually returning to pre-COVID levels.
- 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 which are stimulating the 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 likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.
Transformer Oil Market Trends
This section covers the major market trends shaping the Transformer Oil Market according to our research experts:
Transformer Application to Dominate the Market
- Transformer oil is used in transformers to preserve the transformer's 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, thereby avoiding direct contact and hence 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 to invest USD 79 billion in domestic grid construction in 2022, an increase of 9 % year on year compared to 2021. Over the next 5 years, the company plans to build 38 UHV lines.
- Similarly, the other major utility operator, China Southern Power Grid, announced that it would invest CNY 670 billion in grid construction between 2021 to 2025 to ensure power supply stability and increase green power consumption. Such growth of electric grids in China is increasing the demand for transformer oil in the country.
- In January 2022, the cabinet committee on economic affairs (CCEA) of India approved the second phase of the green energy corridor scheme where 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.
- Japan is considering doubling its inter-regional power grid capacity to facilitate the expansion of renewable energy. This is in accordance with its goal to achieve carbon neutrality by 2050.
- 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 has seen significant 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 2022-2024. In 2021, the country's power generation volume increased by 8.1% year on year to 8, 112.2 Terra Watt Hours (TWh) after an increase of 11% in 2019.
- Further, the Chinese government has announced to increase its renewable contribution in the power sector to 35% by 2030. Such factors are increasing the demand for transmission oils from the power generation sector of China.
- India is the third-largest producer 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 that it was ready to start partial power generation of 10 GW from a 92 MW floating solar energy plant being 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 are expected to drive the growth of transformer oils the forecast period.
Transformer Oil Industry Overview
The transformer oils market is partially consolidated in nature. Some of the major players in the market include Shell plc, China Petroleum & Chemical Corporation, Chevron Corporation, PETRONAS Lubricants International, and Nynas AB among others (not in any particular order).
Transformer Oil Market Leaders
China Petroleum & Chemical Corporation
PETRONAS Lubricants International
*Disclaimer: Major Players sorted in no particular order
Transformer Oil Market News
- In December 2021, Cargill opened its first FR3 natural ester manufacturing facility in Guangdong province. The FR3 fluid is derived from 100% natural vegetable oil with performance-enhancing additives and has been proven to be readily biodegradable. FR3 fluid is better than mineral oil in overall cost savings, grid resiliency, transformer performance, fire safety, and environmental benefits.
- In June 2021, Nynas announced that the company's NYTRO BIO 300X transformer oil product has received the United States Department of Agriculture's (USDA) Certified Biobased Product label.
- In May 2021, Calumet Specialty Products and Aeviatas Inc announced a partnership to provide premier transformer oil products to the Canadian market.
Transformer Oil Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Growing Electric Grids in the Asia Pacific Region
4.1.2 Upgradation and Replacement of Existing Transformers in Developed Economies
4.2.1 Environmental Concerns Regarding the Usage of Mineral Transformer Oil
4.2.2 Fluctuations in Crude Oil Prices
4.3 Industry Value-Chain Analysis
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
5.2.3 Circuit breaker
5.2.5 Other Applications
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
22.214.171.124 South Korea
126.96.36.199 Rest of Asia-Pacific
5.4.2 North America
188.8.131.52 United States
184.108.40.206 United Kingdom
220.127.116.11 Rest of Europe
5.4.4 South America
18.104.22.168 Rest of South America
5.4.5 Middle-East and Africa
22.214.171.124 Saudi Arabia
126.96.36.199 South Africa
188.8.131.52 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
6.4 Company Profiles
6.4.1 Cargill, Incorporated
6.4.2 Calumet Specialty Products Partners
6.4.3 Chevron Corporation
6.4.4 China Petroleum & Chemical Corporation
6.4.5 Exxon Mobil Corporation
6.4.6 Gulf Oil Middle East Ltd
6.4.7 LUBRITA Europe B.V.
6.4.9 Nynas AB
6.4.10 PETRONAS Lubricants International
6.4.11 Phillips 66 Company
6.4.13 SAVITA OIL TECHNOLOGIES LIMITED
6.4.14 Shell plc
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Demand for Bio-Based Transformer Oils
Transformer Oil Market Research FAQs
What is the current Transformer Oil Market size?
The Transformer Oil Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in Transformer Oil Market?
Shell plc, China Petroleum & Chemical Corporation, Chevron Coproration, PETRONAS Lubricants International and Nynas AB 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?
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.