Transformer Oil Industry Overview

The global transformer oil market size was estimated at USD 2.73 billion in 2023 and is anticipated to expand at a compound annual growth rate (CAGR) of 12.3% from 2024 to 2030.

This is attributed to the steadily growing power sector globally, along with advancements in electric grids in emerging economies. Every power and distribution transformer contains dielectric insulating fluid with strong electricity resistance and the ability to keep a transformer cool. Bio-based products are more fire resistant than others, thus expected to witness the highest growth till 2030. Since bio-based oils are fully non-toxic, which further facilitates disposal, they provide reliable and cleaner products. The demand for bio-based products is also anticipated to grow as a result of an increase in the installation of transformers occurring globally. Power utilities are also focusing on upgrading the safety and performance of both new and existing transformers, which is predicted to boost demand for bio-based products globally.

Gather more insights about the market drivers, restrains and growth of the Transformer Oil Market

Stringent regulation imposed by government bodies concerning energy wastage is expected to be the major challenge for product demand. For instance, the U.S. Environmental Protection Agency (EPA) has set up strict regulations on oil demand to control electricity wastage. Additionally, developed and developing economies are opting for green and environmental-friendly technologies, which are expected to restrain the growth of mineral-based products.

Browse through Grand View Research's Petrochemicals Industry Research Reports.

  • The global diesel exhaust fluid market size was valued at USD 36.66 billion in 2023 and is projected to grow at a CAGR of 7.9% from 2024 to 2030, owing to its rising application in construction and agricultural equipment. 
  • The global cold flow improvers market size was estimated at USD 811.05 million in 2023 and is expected to grow at a CAGR of 5.6% from 2024 to 2030.

Transformer Oil Market Segmentation

Grand View Research has segmented the global transformer oil market  based on product, rating, end-use, and region:

Transformer Oil Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Mineral-based Oils
  • Silicone-based Oils
  • Bio-based Oils

Transformer Oil Rating Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • <100 MVA
  • 100 MVA to 500 MVA
  • 501 MVA to 800 MVA
  • >800 MVA

Transformer Oil End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • Utilities
  • Industrial
  • Residential
  • Commercial

Transformer Oil Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

  • North America
    • US
    • Canada
  • Europe
    • Germany
    • France
    • UK
    • Italy
    • Russia
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Indonesia
  • Central & America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Turkey

Key Companies profiled:

  • China Petroleum & Chemical Corporation
  • Cargill Inc.
  • Shell Plc.
  • Nynas AB
  • Ergon, Inc.
  • Engen Petroleum Ltd.

Key Companies & Market Share Insights

The market is moderately fragmented with key participants focusing on capacity and geographical expansions, as well as mergers & acquisitions, to expand their consumer base. These players are also focusing on R&D activities to formulate novel products to strengthen their market foothold. For instance, in May 2023 Cargill Inc. launched its FR3r natural ester, a new 100% biodegradable and environment-friendly transformer insulating fluid derived from more than 95% rapeseed oil. This new product launch will provide the company with a competitive edge.

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