Fairfield Market Research Transformer Oil Market Size and Share, Growth Type 2023-2030

Transformer Oil Market

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 - By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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Industry: Energy & Natural Resources


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This study intends to analyse diverse aspects of the global transformer oil market. The insights offered in this report are expected to aid in market growth examination over the forecast timeline.

Market Analysis in Brief

The unwavering demand for electricity leads to a subsequent increase in demand for transformer oil. Surging population figures, globalization, and industrialization have contributed to this increase in demand. While the mineral oil segment represents a measurably large share in the overall valuation of transformer oil market, the biodegradable transformer oil segment is in fact more likely to index the fastest growth rate through the forecast period. Research primarily reveals that the transformer oil market of Asia Pacific may continue to account for the most profitable revenue share in global transformer oil industry.

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Key Report Findings

  • The global transformer oil market was valued at approximately US$2 Bn in 2020
  • ABB Ltd., Cargill Inc., Nynas AB, Ergon Inc., PetroChina Company Limited, and Sinopec Corp., are the largest transformer oil companies globally
  • Mineral oil segment accounted for the largest revenue share; however, the biodegradable transformer oil segment is slated to index the highest CAGR
  • Asia Pacific to account for the majority share of the worldwide transformer oil industry over the forecast period

Growth Drivers

Rapidly Increasing Consumption and Distribution of Electricity

The ever-expanding transmission and distribution of energy around the world is one of the primary factors driving the growth of transformer oil market. Electricity consumption is increasing because of growing urbanization and industrialisation, particularly in emerging countries with high population densities such as India and China. As a result, governments in these countries are launching steps to provide uninterrupted power supply and extend the current grid infrastructure, which in turn is influencing the growth of transformer oil market. Furthermore, increased investments in power grid development in industrialized regions such as Europe and North America is a major growth-inducing driver for the transformer oil market.

For instance, because of the excellent economic performance of BRIC countries, and the promotion of electrification, global power consumption has risen to almost 23,000 terawatt-hours. Electricity markets around the world faced unprecedented demand in 2021. Strong economic growth, paired with colder winters and warmer summers, increased worldwide electricity demand by more than 6%, the highest increase since the financial crisis ended in 2010. The number of transformer installations has also increased as electricity demand has expanded across various sectors. Furthermore, this market will be driven by increasing investments in the power sector, industrialization, and the shifting trend toward the adoption of renewable energy sources.

Ease of Availability, and High Compatibility of Mineral Oil

Over the projection period, the mineral oil segment is estimated to account for the largest revenue share in the transformer oil market, exhibiting the fastest rate of growth. Mineral oil is primarily used in transformers, reactors, and switchgear for cooling and insulation. It's also used to dissipate heat away from the transformer's internal windings. Mineral oil is further divided into naphthenic and paraffinic oils, with mineral oil being used as an insulating fluid in most existing and new transformers. Mineral oil demand is predicted to increase over the projection period due to its low-cost index, and the ease of availability when compared to other transformer oils.

Growth Challenges

Environmental Concerns, and Volatility of Crude Oil Prices

Transformer oil is a petroleum-based product that could have a negative impact on the environment if not disposed of properly. Apart from hampering the environment, transformer oil can be hazardous to human health resulting in respiratory problems and skin irritation, among other concerns, which could lead to a greater demand for alternatives. This factor in conjunction with the imposing of stringent environmental safeguards by various nations could ultimately hinder the further progression of the global transformer oil market.

Growth Opportunities Across Regions

Asia Pacific Spearheads with Shooting Investments in Electricity

The growing demand for power in highly populated nations such as India, China, and in Southeast Asia; the Asia Pacific region is likely to lead this market. In addition, this market is expected to grow due to the expansion of grid infrastructure and increased investments in the power sector. Because of the significant need for transformer oil in power transmission infrastructure, China is likely to lead the Asia Pacific region, followed by India. The demand for transformers will increase as the number of substations rises, boosting the growth of transformer oil market across Asia Pacific.

In 2019, power energy investments in the Asia Pacific region totalled a little over US$48 billion. This was more than quadruple the amount invested in renewable energy in the Asia Pacific region in 2010. Moreover, Asia led Transmission & Distribution (T&D) investments in 2020, accounting for around 44.5% of global T&D spending which is estimated to be around US$386 Bn by 2030. Grid reinforcement, the replacement of obsolete T&D infrastructure, and grid extension initiatives are all covered by this expenditure. Furthermore, T&D investment in the Indian subcontinent is expected to expand at a CAGR of 6.72% from 2020 to 2030, signifying a significant growth of the region's electric grid network.

The developing economies of Asia Pacific are investing in the expansion of their T&D systems and grid networks to meet the expected increase in power consumption caused by rapid industrialization, and urbanization across the region. Installation of new transformers, and switchgear because of the development of the grid network, and T&D system is expected to fortify the expansion of the region’s transformer oil market.

Because of expanding industrialisation efforts and an increase in the manufacturing of electrical devices and equipment in countries such as the United States, North America will significantly contribute to boosting the expansion of the transformer oil market. Russia and Germany remain the largest transformer oil consumers in Europe. Increased electricity consumption and the construction of new power plants are expected to supplement the European transformer oil market with promising growth potential. Increased demand for energy in Latin America, and the Middle East Africa regions, as well as the construction of necessary infrastructure, are slated to promote the adoption of several types of equipment, and as a result, transformer oil.

Key Market Players – Transformer Oil Landscape

Some of the key companies in the global transformer oil market include Royal Dutch Shell (Netherlands), Repsol (Spain), Exxon Mobil Corporation (US), Engen Petroleum Limited (South Africa), Nynas AB (Sweden), Sinopec Lubricant Company (China), APAR Industries (India), Cargill Incorporated. (US), PetroChina Company Limited (China), Savita Oil Technologies Limited (India), Chevron Corporation (US), Petro-Canada (Canada), Gandhar Oil (India), Lubrita (Netherlands), Calumet Specialty Products Partners L.P. (US), Phillips 66 Company (US), Gulf Oil International (UK), Dow (US), Hydrodec Group Plc (UK), M&I Materials Limited (UK), Sasol (South Africa), Hyrax Oil Sdn Bhd. (Malaysia), San Joaquin Refining Co. (US), Valvoline Cummins (India), and Ergon Inc. (US). To gain a competitive edge, various established industry players are now more focused on new product launches, partnerships, collaborations, acquisitions, and alliances.

Recent Notable Developments

  • In May 2021, Cargill Inc. Partnered with Delta Star Inc., to supply retro-filling services of its Environtemp range of dielectric fluids to its customers in the Western US

  • In December 2020, Chevron Lubricants and Petrol Ofisi, a marketer of lubricants in Turkey, signed an agreement to ensure the manufacture and distribution of Chevron lubricants by Petrol Ofisi in Turkey, under the Texaco brand

  • In October 2020, Ergon International Inc. Increased its storage capacity at the Antwerp terminal in Belgium. This expansion was initiated to ensure a continuous supply of speciality oils to its customers

Regional Classification of the Global Transformer Oil Market is Listed Below:

North America

  • U.S.
  • Canada

Europe

  • Germany
  • France
  • Spain
  • U.K.
  • Italy
  • Russia
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Southeast Asia
  • Rest of Asia Pacific

 Latin America

  • Brazil
  • Mexico
  • Rest of Latin America

Middle East and Africa

  • GCC
  • South Africa
  • Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Transformer Oil Market

  • Transformer Oil Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value and Volume, 2018 - 2022
  • Volume Consumption at Regional and Country Level, 2023 - 2030
  • Market Dynamics and Economic Overview
  • Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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1. Executive Summary
     1.1. Global Transformer Oil Market Snapshot
     1.2. Key Market Trends
     1.3. Future Projections
     1.4. Analyst Recommendations

2. Market Overview
     2.1. Market Definitions and Segmentations
     2.2. Market Dynamics
            2.2.1. Drivers
                   2.2.1.1. Driver A
                   2.2.1.2. Driver B
                   2.2.1.3. Driver C
            2.2.2. Restraints
                   2.2.2.1. Restraint 1
                   2.2.2.2. Restraint 2
            2.2.3. Market Opportunities Matrix
     2.3. Value Chain Analysis
     2.4. Porter’s Five Forces Analysis
     2.5. Covid-19 Impact Analysis
            2.5.1. Supply
            2.5.2. Demand
     2.6. Government Regulations
     2.7. Technology Roadmap
     2.8. Global Lubricants Market - Overview
     2.9. Economic Analysis
     2.10. PESTLE Analysis

3. Production Output Analysis, 2018 - 2022
     3.1. Transformer Oil Supply-Demand Analysis
     3.2. Regional Production Statistics
            3.2.1. North America
            3.2.2. Europe
            3.2.3. Asia Pacific
            3.2.4. Rest of the World

4. Price Trends Analysis and Future Projects, 2018 - 2030
     4.1. Key Highlights
     4.2. Prominent Factors Affecting Prices
     4.3. By Region

5. Global Transformer Oil Market Outlook, 2018 - 2030
     5.1. Global Transformer Oil Market Outlook, by Oil Type, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            5.1.1. Key Highlights
                   5.1.1.1. Mineral Oil
                          5.1.1.1.1. Naphthenic
                          5.1.1.1.2. Paraffin
                   5.1.1.2. Silicone
                   5.1.1.3. Bio-based
     5.2. Global Transformer Oil Market Outlook, by Application, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            5.2.1. Key Highlights
                   5.2.1.1. Transformers
                   5.2.1.2. Switch Gears
                   5.2.1.3. Regulators
                   5.2.1.4. Reactors
                   5.2.1.5. Misc.
     5.3. Global Transformer Oil Market Outlook, by End-user, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            5.3.1. Key Highlights
                   5.3.1.1. Transmission & Distribution
                   5.3.1.2. Power Generation
                   5.3.1.3. Railways & Metros
                   5.3.1.4. Misc.
     5.4. Global Transformer Oil Market Outlook, by Region, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            5.4.1. Key Highlights
                   5.4.1.1. North America
                   5.4.1.2. Europe
                   5.4.1.3. Asia Pacific
                   5.4.1.4. Latin America
                   5.4.1.5. Middle East & Africa

6. North America Transformer Oil Market Outlook, 2018 - 2030
     6.1. North America Transformer Oil Market Outlook, by Oil Type, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            6.1.1. Key Highlights
                   6.1.1.1. Mineral Oil
                          6.1.1.1.1. Naphthenic
                          6.1.1.1.2. Paraffin
                   6.1.1.2. Silicone
                   6.1.1.3. Bio-based
     6.2. North America Transformer Oil Market Outlook, by Application, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            6.2.1. Key Highlights
                   6.2.1.1. Transformers
                   6.2.1.2. Switch Gears
                   6.2.1.3. Regulators
                   6.2.1.4. Reactors
                   6.2.1.5. Misc.
     6.3. North America Transformer Oil Market Outlook, by End-user, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            6.3.1. Key Highlights
                   6.3.1.1. Transmission & Distribution
                   6.3.1.2. Power Generation
                   6.3.1.3. Railways & Metros
                   6.3.1.4. Misc.
     6.4. North America Transformer Oil Market Outlook, by Country, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            6.4.1. Key Highlights
                   6.4.1.1. U.S.
                   6.4.1.2. Canada
            6.4.2. BPS Analysis/Market Attractiveness Analysis

7. Europe Transformer Oil Market Outlook, 2018 - 2030
     7.1. Europe Transformer Oil Market Outlook, by Oil Type, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            7.1.1. Key Highlights
                   7.1.1.1. Mineral Oil
                          7.1.1.1.1. Naphthenic
                          7.1.1.1.2. Paraffin
                   7.1.1.2. Silicone
                   7.1.1.3. Bio-based
     7.2. Europe Transformer Oil Market Outlook, by Application, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            7.2.1. Key Highlights
                   7.2.1.1. Transformers
                   7.2.1.2. Switch Gears
                   7.2.1.3. Regulators
                   7.2.1.4. Reactors
                   7.2.1.5. Misc.
     7.3. Europe Transformer Oil Market Outlook, by End-user, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            7.3.1. Key Highlights
                   7.3.1.1. Transmission & Distribution
                   7.3.1.2. Power Generation
                   7.3.1.3. Railways & Metros
                   7.3.1.4. Misc.
     7.4. Europe Transformer Oil Market Outlook, by Country, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            7.4.1. Key Highlights
                   7.4.1.1. Germany
                   7.4.1.2. France
                   7.4.1.3. Italy
                   7.4.1.4. Turkey
                   7.4.1.5. Russia
                   7.4.1.6. Rest of Europe
            7.4.2. BPS Analysis/Market Attractiveness Analysis

8. Asia Pacific Transformer Oil Market Outlook, 2018 - 2030
     8.1. Asia Pacific Transformer Oil Market Outlook, by Oil Type, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            8.1.1. Key Highlights
                   8.1.1.1. Mineral Oil
                          8.1.1.1.1. Naphthenic
                          8.1.1.1.2. Paraffin
                   8.1.1.2. Silicone
                   8.1.1.3. Bio-based
     8.2. Asia Pacific Transformer Oil Market Outlook, by Application, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            8.2.1. Key Highlights
                   8.2.1.1. Transformers
                   8.2.1.2. Switch Gears
                   8.2.1.3. Regulators
                   8.2.1.4. Reactors
                   8.2.1.5. Misc.
     8.3. Asia Pacific Transformer Oil Market Outlook, by End-user, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            8.3.1. Key Highlights
                   8.3.1.1. Transmission & Distribution
                   8.3.1.2. Power Generation
                   8.3.1.3. Railways & Metros
                   8.3.1.4. Misc.
     8.4. Asia Pacific Transformer Oil Market Outlook, by Country, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            8.4.1. Key Highlights
                   8.4.1.1. China
                   8.4.1.2. Japan
                   8.4.1.3. South Korea
                   8.4.1.4. India
                   8.4.1.5. Southeast Asia
                   8.4.1.6. Rest of Asia Pacific
            8.4.2. BPS Analysis/Market Attractiveness Analysis

9. Latin America Transformer Oil Market Outlook, 2018 - 2030
     9.1. Latin America Transformer Oil Market Outlook, by Oil Type, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            9.1.1. Key Highlights
                   9.1.1.1. Mineral Oil
                          9.1.1.1.1. Naphthenic
                          9.1.1.1.2. Paraffin
                   9.1.1.2. Silicone
                   9.1.1.3. Bio-based
     9.2. Latin America Transformer Oil Market Outlook, by Application, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            9.2.1. Key Highlights
                   9.2.1.1. Transformers
                   9.2.1.2. Switch Gears
                   9.2.1.3. Regulators
                   9.2.1.4. Reactors
                   9.2.1.5. Misc.
     9.3. Latin America Transformer Oil Market Outlook, by End-user, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            9.3.1. Key Highlights
                   9.3.1.1. Transmission & Distribution
                   9.3.1.2. Power Generation
                   9.3.1.3. Railways & Metros
                   9.3.1.4. Misc.
     9.4. Latin America Transformer Oil Market Outlook, by Country, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            9.4.1. Key Highlights
                   9.4.1.1. Brazil
                   9.4.1.2. Mexico
                   9.4.1.3. Rest of Latin America
            9.4.2. BPS Analysis/Market Attractiveness Analysis

10. Middle East & Africa Transformer Oil Market Outlook, 2018 - 2030
     10.1. Middle East & Africa Transformer Oil Market Outlook, by Oil Type, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            10.1.1. Key Highlights
                   10.1.1.1. Mineral Oil
                          10.1.1.1.1. Naphthenic
                          10.1.1.1.2. Paraffin
                   10.1.1.2. Silicone
                   10.1.1.3. Bio-based
     10.2. Middle East & Africa Transformer Oil Market Outlook, by Application, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            10.2.1. Key Highlights
                   10.2.1.1. Transformers
                   10.2.1.2. Switch Gears
                   10.2.1.3. Regulators
                   10.2.1.4. Reactors
                   10.2.1.5. Misc.
     10.3. Middle East & Africa Transformer Oil Market Outlook, by End-user, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            10.3.1. Key Highlights
                   10.3.1.1. Transmission & Distribution
                   10.3.1.2. Power Generation
                   10.3.1.3. Railways & Metros
                   10.3.1.4. Misc.
     10.4. Middle East & Africa Transformer Oil Market Outlook, by Country, Volume (Kilo Tons) and Value (US$ Mn), 2018 - 2030
            10.4.1. Key Highlights
                   10.4.1.1. GCC
                   10.4.1.2. South Africa
                   10.4.1.3. East Africa
                   10.4.1.4. Rest of Middle East & Africa
            10.4.2. BPS Analysis/Market Attractiveness Analysis

11. Competitive Landscape
     11.1. Company Market Share Analysis, 2022
     11.2. Manufacturer Portfolio Matrix
     11.3. Competitive Dashboard
     11.4. Tier Structure Analysis
     11.5. Company Profiles
            11.5.1. Royal Dutch Shell
                   11.5.1.1. Company Overview
                   11.5.1.2. Product Portfolio
                   11.5.1.3. Financial Overview
                   11.5.1.4. Business Strategies and Development
            11.5.2. ExxonMobil
            11.5.3. Chevron
            11.5.4. Total SA
            11.5.5. Lukoil
            11.5.6. Sinopec
            11.5.7. Fuchs
            11.5.8. Valvoline
            11.5.9. Nynas AB
            11.5.10. HP Lubricants
            11.5.11. BP
            11.5.12. Repsol SA
            11.5.13. Savita Oil Technologies Ltd.

12. Appendix
     12.1. Research Methodology
     12.2. Report Assumptions
     12.3. Acronyms and Abbreviations

Our Research Methodology

Considering the volatility of business today, traditional approaches to strategizing a game plan can be unfruitful if not detrimental. True ambiguity is no way to determine a forecast. A myriad of predetermined factors must be accounted for such as the degree of risk involved, the magnitude of circumstances, as well as conditions or consequences that are not known or unpredictable. To circumvent binary views that cast uncertainty, the application of market research intelligence to strategically posture, move, and enable actionable outcomes is necessary.

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