Transformer Oil Market Size
| Study Period | 2019 - 2030 |
| Market Volume (2024) | 5.32 Billion liters |
| Market Volume (2030) | 7.31 Billion liters |
| CAGR (2024 - 2030) | 5.45 % |
| 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 5.32 Billion liters in 2024, and is expected to reach 7.31 Billion liters by 2030, at a CAGR of 5.45% during the forecast period (2024-2030).
The COVID pandemic impacted value chains in the transformer oil market. The disruptions in the supply chain affected the market negatively. However, the market demand recovered in 2021 and will likely grow significantly in the coming years.
- Growing electric grids in the Asia-Pacific region and upgrading and replacing existing transformers in developed economies will likely drive the demand for transformer oils in the coming years.
- Conversely, environmental and health hazards associated with using mineral transformer oil and fluctuations in crude oil prices might hinder the market's growth.
- However, 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 expected to witness the highest growth during the forecast period.
Transformer Oil Market Trends
Transformer Application to Dominate the Market
- Transformer oil insulates the various live parts within the transformer. It prevents electrical breakdown and ensures safe operation.
- The oil helps prevent arcing and corona discharge due to high voltage. It helps in heat dissipation, preserves the core and windings of the transformers, and acts as a barrier against oxidation by minimizing direct contact with atmospheric oxygen.
- In August 2024, Toshiba Transmission & Distribution Systems (India) Pvt. Ltd. (TTDI) announced plans to boost its transformer manufacturing capacity in India by approximately 1.5 times its current level. This investment aims to bolster TTDI's assembly and testing capabilities for both distribution and power transformers, catering to transmission grids and distribution networks.
- With the upgraded testing facilities, TTDI targets ramping up transformer exports and satisfying the surging demand for 400 kilovolt (kV) and 765 kV transformers within the Indian market.
- In September 2023, Hitachi Energy Ltd inaugurated a state-of-the-art transformer manufacturing facility in China. This facility is poised to meet the surging demand for grid electrification in the region, leveraging cutting-edge digital manufacturing techniques.
- In June 2023, Virginia Transformer Corp activated a new transformer at the University of Maine's east substation. This new transformer is set to support load growth and enhance reliability, ensuring that the campus's evolving infrastructure is seamlessly integrated into its electrical system.
- Moreover, in August 2024, Saudi Arabia's Ministry of Energy announced the initiation of the first transformer installation at the 500-kilovolt (kV) Egyptian-Saudi interconnection station located in Badr City. Such new transformer installations are likely to boost the demand for transformer oils over the forecast period.
- Such investments in the installation of new transformers coupled with the growing manufacturing capabilities of transformers across the globe are likely to positively impact the studied market.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region consumes a lot of transformer oil and is estimated to lead in terms of demand, with countries such as China, Japan, and India accounting for significant consumption.
- In August 2024, the State Grid Corporation of China announced the commencement of construction on the world's first ultra-high voltage flexible direct current (UHVDC) transmission project. Once completed, the Gansu-Zhejiang ±800 kV UHVDC Transmission Project will transmit over 36 billion kWh of electricity annually from Gansu to Zhejiang, with over half of the electricity sourced from renewable energy.
- India is among the largest electricity producers worldwide, and the growing population and increasing per capita electricity utilization are expected to drive the country's demand for power.
- In June 2024, the State Minister for Finance, Human Resources Management, and Energy of Tamil Nadu announced plans to purchase 2,500 new distribution transformers. These transformers, with capacities ranging from 25 kVA to 250 kVA, will be acquired at a total cost of INR 200 crore (USD 23.79 million).
- As of August 2024, Bangalore Electricity Supply Company Limited (BESCOM) reported 510,465 distribution transformers active in the city. According to BESCOM, the city adds approximately 36,500 transformers annually on average.
- After the debut of Japan's first large-scale commercial offshore wind project in January 2023, located in two port areas of Akita Prefecture, the Ishikari Bay New Port in Hokkaido commenced operations for its second offshore wind project in January 2024. Additionally, multiple offshore wind projects are currently being developed. Consequently, with the government aiming for targets of 10 GW by 2030 and 30–45 GW by 2050, Japan's offshore wind market is poised for significant growth in the coming years.
- In 2023, The Tokyo Electric Power Company Holdings, Inc., declared its commitment to invest JPY 470 billion (equivalent to USD 3.25 billion) by the financial year 2027. This investment aims to bolster its power grid, catering to the surging electricity demand from AI data centers. The company is set to triple its investments in power grid infrastructure over the next half-decade.
- 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, Exxon Mobil Corporation, TotalEnergies, and APAR Industries Ltd., among others (not in any particular order).
Transformer Oil Market Leaders
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Shell plc
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China Petrochemical Corporation
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Exxon Mobil Corporation
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TotalEnergies
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APAR Industries Ltd.
*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, thereby providing a competitive edge.
- August 2024: In Australia's EnergyConnect project, the most extensive transmission line initiative in the Southern Hemisphere, transformers are supported by HyVolt-branded transformer oils from Ergon, Inc. Molekulis, an Australian specialty oils distributor, in collaboration with Ergon, Inc., distributes these oils, which serve as the insulating oil to enhance transformer performance.
- January 2024: Shell U.K. Limited has successfully acquired MIDEL and MIVOLT from M&I Materials Ltd., a Manchester-based company. As part of Shell's expansive global lubricants portfolio, the company will manufacture, distribute, and market the MIDEL and MIVOLT product lines. With the acquisition of MIDEL, Shell enhances its specialized position in transformer oils, which are pivotal for power distribution, offshore wind parks, utility companies, and traction power systems.
Transformer Oil Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
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
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
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.)
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.)
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
6.4 Company Profiles
6.4.1 APAR Industries Ltd.
6.4.2 Calumet, Inc.
6.4.3 Cargill, Incorporated
6.4.4 Chevron Corporation
6.4.5 China Petrochemical Corporation
6.4.6 Ergon, Inc.
6.4.7 Exol Lubricants Limited
6.4.8 Exxon Mobil Corporation
6.4.9 Gulf Oil International Limited
6.4.10 NYNAS AB
6.4.11 Petro-canada Lubricants Inc.
6.4.12 Phillips 66 Company
6.4.13 Repsol SA
6.4.14 Savita Oil Technologies Limited
6.4.15 Shell Plc
6.4.16 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 or insulating oils are highly refined mineral oils that are stable at high temperatures and have excellent electrical insulating properties. They are used in oil-filled wet transformers, high-voltage capacitors, tap changers, high-voltage switches, and circuit breakers.
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 . By end-user industry, the market is segmented into power generation, transmission and distribution, railway and metros, and other end-user industries. The report also covers the market size and forecasts for the market in 28 countries across the globe. For each segment, the market sizing and forecasts are done based on 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 Research FAQs
How big is the Transformer Oil Market?
The Transformer Oil Market size is expected to reach 5.32 billion liters in 2024 and grow at a CAGR of 5.45% to reach 7.31 billion liters by 2030.
What is the current Transformer Oil Market size?
In 2024, the Transformer Oil Market size is expected to reach 5.32 billion liters.
Who are the key players in Transformer Oil Market?
Shell plc, China Petrochemical Corporation, Exxon Mobil Corporation, TotalEnergies and APAR Industries Ltd. 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 (2024-2030).
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 5.03 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, 2029 and 2030.
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.
Transformer Oil Market Report Snapshots
