Transformer Oil Market

Global Transformer Oil Market Size (2024 to 2029)

As per our analysis report, the global Transformer Oil Market is expected to reach USD 3.69 billion by 2029 from USD 2.68 billion in 2024, growing at a compound annual growth rate (CAGR) of 6.6% during the forecast period.

MARKET OVERVIEW

A transformer is a type of passive electrical device that converts electrical energy from one circuit to another. A changing current in any one transformer coil causes a changing magnetic flux in the core, which causes a changing electromotive force across all other coils wrapped around the same core. Without a metallic link between the two circuits, electrical energy can be moved between them.

Transformers are often employed in electric power applications to increase low AC voltages at the high current or decrease high AC voltages at the low current, as well as to couple the stages of signal processing circuits. They may also be used for isolation, using independent coils that are not electrically coupled to one another and where the voltage in equals the voltage out.

To minimize dangerous mishaps in transformers, insulating oil, also known as transformer oil, is used as a coolant in the components of electrical transformers. Transformer oil is derived from crude oil using the fractional distillation technique. High resistivity, superior di-electricity, thermal conductivity, chemical stability, minimum power loss, and other chemical features of transformer oil make them very useful.    

MARKET DRIVERS

A significant driving factor for this market is the growing electrification plans in various emerging economies. During the anticipated period, favorable government policies for the renovation of existing grid infrastructure are likely to drive this segment's market growth. The large-scale integration of renewable energy resources is expected to contribute to the segment's continued market expansion. The renovation of old grid infrastructure is required in a number of rising economies, and this is aided by favorable government policies. This particular component contributes to the Transformer Market's growth. Consumer demand for smart monitoring devices and environmentally friendly electrical networks is predicted to fuel the business outlook for the forecast period. The rising implementation of smart grid technologies is likely to boost this segment's total market demand.

MARKET RESTRAINTS

Because of its high efficiency, ease of availability, and helpful chemical features such as good pour point at low temperatures and great thermal cooling capability, naphthenic mineral oil has long been the most popular transformer oil. Because of its exceptional oxidation stability, paraffinic mineral oil has gained popularity throughout the years. Both paraffinic and naphthenic mineral oils, on the other hand, are made from highly refined, purified, and processed petroleum, making them extremely non-biodegradable. Mineral oil has a biodegradability range of 0–40% and is derived from a non-renewable resource. Green and ecologically friendly technology are being adopted by both developed and emerging economies throughout the world. This change might restrict the use of mineral-based transformer oils in the near future, as well as become a long-term constraint on the mineral oil industry.

Impact of COVID-19 on the global transformer oil market

The continuing epidemic has had a devastating effect on human life all around the world. COVID-19 has been shown to be lethal since the first incidence in China led to the global epidemic. The countries suffered losses in terms of lives, electricity, revenue, and other factors. The world came to a standstill as a result of the worldwide pandemic, and it is currently in a state of agony as new strains and variants emerge. COVID-19 is anticipated to persist for a longer period of time, as vaccination is being tested to reduce the negative effects. The rate of usage dropped dramatically, resulting in a supply constraint for a large number of end-users. The transformer oils market saw a decline in numerous sectors, but it soared dramatically in the healthcare sector and hospitals to ensure that patients afflicted with the virus received treatment. Transformers are necessary for the healthcare industry to ensure that power is not disrupted while patients are being cared for. As the globe fights the epidemic with joined forces, other industrial sectors are likely to regain value and prestige.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Transformer Market By Product

Instrument transformers are electrical devices with great precision that are used to isolate or transform voltage or current levels. The power transformer is a type of transformer that is used to transmit electrical energy between the generator and the distribution primary circuits in any component of the electrical or electronic circuit. A distribution transformer, also known as a service transformer, is a transformer used in the electric power distribution system to deliver the final voltage transformation.

Global Transformer Market By Core

The Berry core transformer has a core that resembles the spokes of a wheel. This type of transformer is housed in tight-fitting metal sheet tanks with transformer oil within. A center limb and two additional outside limbs make up a shell core transformer. A double magnetic circuit is present, with HV and LV coils on the center limb. Closed core transformers are made in the core form, which means that the windings surround the core and the transformer is in core form.

Global Transformer Market By Application

Industrial transformers are used to boost or reduce a facility's or location's voltage capability. To prevent energy waste, the transformer's core directs the magnetic field route between the main and secondary coils for utility. Transformers are used to modify the voltage of electricity as it goes from the power plant to the home in the case of electrical utilities. Commercial areas, such as shopping malls, require a large quantity of power on a regular basis, and transformers are constructed to keep the voltage at these locations at an appropriate level.

REGIONAL ANALYSIS

The Asia-Pacific region has emerged as the market leader. With such high demand for energy networks in the growing economies of India and China, supply is likely to skyrocket.

Through the conclusion of the forecast period, the region is predicted to have a CAGR of 10.57 percent of the entire market.

North America accounts for 30% of the overall market value, and it is the world's second-largest transformer oil market.

In the North American area, modernization, technological upgrading, and enhancement of existing transformers, as well as manufacturing new transformers in response to customer demand, are on the rise.

KEY PLAYERS IN THE GLOBAL TRANSFORMER OIL MARKET

CG Power and Industrial Solutions Ltd, Eaton Corporation, Elsewedy Electric, SPX Transformer Solutions Inc, Toshiba Corporation, Schneider Electric, ABB, Mitsubishi Electric Corporation, Siemens AG are some of the notable companies in the global Transformer Oil market.

RECENT HAPPENINGS IN THE MARKET

• 17^th December 2021: In Yangjiang, Guangdong Province, Cargill has built its first FR3 natural ester fluid manufacturing facility. FR3 fluid is a tried-and-true, higher-performing transformer fluid that is safer for communities and the environment than mineral oil. The Yangjiang plant increases Cargill's bio-industrial business to encompass a total of 6 FR3 fluid facilities globally, with a total investment of 50 million RMB (more than $7 million USD). Natural ester dielectric fluid is made from 100 percent vegetable oil with performance-improving additives and has been shown to be rapidly biodegradable, which supports China's environmental aims.

DETAILED SEGMENTATION OF THE GLOBAL TRANSFORMER OIL MARKET INCLUDED IN THIS REPORT

This research report on the global transformer oil market has been segmented and sub-segmented based on product, core, application, and region.

By Product

• Instrument Transformer

• Power Transformer

• Distribution Transformer

• Others

By Core

• Berry

• Shell

• Closed

By Application

• Industrial

• Utility

• Residential and Commercial

By Region

• North America 

• Europe

• Asia Pacific 

• Latin America

• Middle east and Africa