NEW
YORK, July 12, 2024 /PRNewswire/ -- The global
transformer oil market size is estimated to grow by USD 1.12 billion from 2024-2028, according to
Technavio. The market is projected to grow at a CAGR of 8.09%
during this period. The expansion of transmission and distribution
(T&D) networks is driving market growth, with a trend towards
eco-efficient transformers. However, fluctuations in crude oil
prices pose a challenge. Key market players include Apar Industries
Ltd., BP Plc, and Exxon Mobil Corp. Regions such as Asia-Pacific and the Middle East are expected to see the highest
growth in transformer oil consumption.
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
End-user (Industrial,
Utilities, Commercial, and Residential), Product (Mineral-based,
Silicon-based, and Bio-based), and Geography (APAC, North America,
Europe, South America, and Middle East and Africa)
|
Region
Covered
|
APAC, North America,
Europe, South America, and Middle East and Africa
|
Key companies
profiled
|
Apar Industries Ltd.,
BP Plc, Calumet Specialty Products Partners L.P., Cargill Inc.,
Chevron Corp., Dow Chemical Co., Edens Garden, Ergon Inc., Exxon
Mobil Corp., Hinduja Group Ltd., Lubrita Europe BV, Neste Corp.,
Nynas AB, PETRONAS Chemicals Group Berhad, Phillips 66, Repsol SA,
Savita Oil Technologies Ltd., Shell plc, Sinopec Shanghai
Petrochemical Co. Ltd., and TotalEnergies SE
|
Key Market Trends Fueling Growth
Transformer manufacturers are responding to customer demand by
designing and producing eco-friendly transformers. These green
transformers offer minimal environmental hazards, improved life
cycle costs, and reduced maintenance requirements. General Electric
is among the manufacturers focusing on this trend, producing
energy-efficient, market-efficient, grid-reliable, and
environmentally friendly transformers. Green power transformers use
ester oil as an insulating agent instead of mineral oil,
significantly reducing pollution levels. Ester oils are
biodegradable and have minimal toxic substances, making them an
eco-friendly choice. These transformers also produce less noise and
offer enhanced fire safety, making them suitable for urban and
ecologically sensitive areas. The higher combustion point of ester
oil (above 3,500 degrees Celsius) makes green power transformers
less hazardous. These benefits are expected to drive the global
transformer oil market, as the demand for eco-efficient power
transformers grows.
The Transformer Oil Market is experiencing significant trends in
the power sector, with a focus on electric grids and advanced
insulating fluids. Dielectric insulating fluids, including
bio-based products, are gaining popularity among power utilities
and government bodies due to their environmental benefits.
Mineral-based products, such as base oil, continue to dominate the
market. Crude oil prices impact the cost of mineral-based
transformer oils. Iran and
Libya are key suppliers. The
COVID-19 pandemic has affected the market, particularly in the
<100 MVA segment and industrial applications, including
chemicals, food processing, steel, automotive industries, and power
generation facilities. Three-phase distribution transformers,
capacitors, circuit breakers, switchgear, boilers, refineries, and
power plants use transformer oil. High-performance computing (HPC),
renewable energy resources, electric vehicles, and HVDC
transmission systems are driving the demand for transformer oil in
the power sector. Excess heat and thermal stress require
transformer oils with high dielectric strength. Renewable energy
sources, including solar, are increasing the need for transformer
oil in the energy transition. The International Energy Agency
reports that dry-type transformers use ester liquids, silicon oil,
or mineral oil. The market includes both dry-type and oil-filled
transformers.
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Market Challenges
• The price
volatility of crude oil significantly influences the transformer
oil market. According to the International Energy Agency, the
average crude oil price was USD73.6
per barrel in October 2018. However,
the price surged to over USD100 per
barrel in the first half of 2022. Unpredictable oil price
fluctuations can disrupt the oil and gas industry, leading to
investment risks in the global transformer oil market. This market
relies heavily on mineral oils like naphthenic and paraffinic for
transformer applications. As a result, the transformer oil market
may face challenges due to the unstable crude oil prices during the
forecast period.
• The
Transformer Oil Market faces several challenges in various
industries such as Boilers, Refineries, Power plants, Manufacturing
facilities, and the Industrial segment. Key industries including
Chemicals, Food processing, Steel, Automotive, and Power generation
facilities utilize transformers for their operations. In the
transformer oil market, the <100 MVA segment and the Industrial
segment are significant consumers. Transformer oil plays a crucial
role in cooling, insulating, and providing electrical insulation
for transformers. However, challenges such as excess heat and
thermal stress impact dielectric strength, affecting the
performance of transformers. Renewable energy resources like Solar,
Biomass, Hydroelectric, and Geothermal power require transformers,
leading to increased demand for transformer oil in remote locations
and population centers. Transformer oil types include mineral oil,
ester liquids, and silicon oil. Dry-type transformers and
oil-filled transformers are commonly used in HVDC transmission
systems and renewable energy sources. Transmission losses,
stability, reliability, and transmission capacity are essential
factors driving the transformer oil market. The International
Energy Agency anticipates growth in the market due to the
increasing adoption of renewable energy sources and the development
of High-performance computing (HPC) and Electric vehicles.
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Segment Overview
This transformer oil market report extensively covers market
segmentation by
- End-user
- 1.1 Industrial
- 1.2 Utilities
- 1.3 Commercial
- 1.4 Residential
- Product
- 2.1 Mineral-based
- 2.2 Silicon-based
- 2.3 Bio-based
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Industrial- The global transformer oil market is
primarily driven by the dominance of mineral-based transformer oil,
which accounted for over 70% of the market share in 2023. This
product segment's popularity is due to its superior properties,
including high viscosity gradient, extended dielectric properties,
and excellent withstanding capabilities. Naphthenic and paraffinic
oils are the key base oils used in transformer oil production and
lubricant base stock. Naphthenic oil, in particular, is widely used
in the metalworking industry for metal shaping and forming
processes, such as structural steel, automotive body panels, and
other components. Its easy availability and usage in capacitors,
high voltage switches, and circuit breakers further boost demand.
In the industrial sector, where uninterrupted power supply is
crucial, mineral-based transformer oil is indispensable. Any power
interruptions can result in significant financial losses and
productivity downtime. Developing countries like China and India are investing in upgrading their power
infrastructure to ensure a reliable power supply, leading to the
replacement of transformers and subsequently driving the demand for
mineral-based transformer oil.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2018 - 2022) - Download a Sample Report
Research Analysis
The Transformer Oil Market is a critical component of the power
sector, serving electric grids worldwide. This market primarily
focuses on the production and supply of dielectric insulating
fluids used in transformers, which ensure efficient power transfer
and insulation. The market caters to various industries, including
power utilities, government bodies, and manufacturing facilities,
with a significant demand in the <100 MVA segment. Mineral-based
products dominate the market, derived from crude oil. However,
there is a growing trend towards bio-based products due to their
eco-friendly nature. The market is influenced by factors such as
crude oil prices, geopolitical tensions in oil-producing countries
like Iran and Libya, and the COVID-19 pandemic. Transformer
oil is used in various applications, including capacitors, circuit
breakers, switchgear, boilers, refineries, power plants, and
manufacturing facilities. It is essential for three-phase
distribution transformers, ensuring thermal stress resistance, high
dielectric strength, and resistance to excess heat. The market also
caters to industries like chemicals, food processing, steel,
automotive, and power generation facilities. Renewable energy
resources and high-performance computing (HPC) are emerging areas
of application for transformer oil, offering opportunities for
market growth. The market faces challenges from factors like
thermal stress, dielectric strength, and the need for
high-performance insulating fluids to meet the demands of modern
power grids.
Market Research Overview
The Transformer Oil Market is a critical component of the power
sector, serving as dielectric insulating fluid in electrical
transformers used in electric grids. The market includes
mineral-based products like mineral oil and ester liquids, such as
silicon oil, used in oil-filled transformers and dry-type
transformers. The market is driven by the increasing demand for
electricity in various industries, including power utilities,
manufacturing facilities, and power generation facilities. Factors
influencing the market include crude oil prices, government
policies, and the COVID-19 pandemic. Renewable energy resources,
such as solar, biomass, hydroelectric, and geothermal power, are
also driving the demand for transformer oil in remote locations and
population centers. The market caters to various segments,
including the <100 MVA segment, industrial segment, and power
utilities. Transformer oil plays a crucial role in ensuring the
stability, reliability, and transmission capacity of electrical
power systems. It helps mitigate thermal stress, excess heat, and
dielectric strength issues in transformers, circuit breakers,
switchgear, capacitors, boilers, refineries, and power plants. The
market is also influenced by emerging trends, such as
high-performance computing (HPC), electric vehicles, and HVDC
transmission systems. The International Energy Agency forecasts
continued growth in the transformer oil market due to the
increasing demand for electricity and the shift towards renewable
energy sources.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
-
- Industrial
- Utilities
- Commercial
- Residential
- Product
-
- Mineral-based
- Silicon-based
- Bio-based
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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