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. Read More

What is the current Transformer Oil Market size?

In 2024, the Transformer Oil Market size is expected to reach 5.32 billion liters. Read More

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. Read More

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). Read More

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. Read More

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. Read More

Transformer Oil Market Trends

Market Trends of Transformer Oil Industry

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.

Transformer Oil Market, Volume in Million Liters, Transformer, Global, 2020-2030

Understand The Key Trends Shaping This Market

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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.