The global transformer oil market size is expected to reach USD 6.12 billion by 2030, registering a CAGR of 12.3% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growth is driven by the high utilization of transformer oil in the power generation sector along with an increase in demand for electric grids in emerging economies.

The product is used to insulate high-voltage electrical transformers. It is developed to operate at very high temperatures. Transformer oil surrounds the windings and the core of transformers to prevent their wiring and cellulose-based insulation from corroding and oxidizing.

Recent market expansion is driven by technological development and rising R&D activities by key industry players. For instance, Cargill received an award from the U.S. Environmental Protection Agency, for developing transformer oil through natural esters. Market players are also focusing on manufacturing bio-based products to dominate the market.

Crude oil is the major raw material utilized for manufacturing transformer oil. Key industry participants involved in the production of this raw material are Saudi Aramco, Exxon Mobil Corporation, China Petroleum & Chemical Corporation, Shell Plc., and others. Some of the leading market players such as Exxon Mobil Corporation, China Petroleum & Chemical Corporation, and others are integrated across the value chain to produce crude oil, base oil, and transformer oil which increases their profitability margin.

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

Transformer Oil Market Report Highlights

• By product, the bio-based segment is expected to register the fastest CAGR of 14.8% over the forecast period in terms of revenue due to growing regulations that are focused on reducing carbon emissions and increasing energy conservation

• By end-use, the residential segment is expected to register the fastest CAGR of 12.7% in terms of revenue over the forecast period owing to the growing population across the globe leading to an increase in the residential sector

• Asia Pacific is expected to register the fastest CAGR of 13.8% in terms of revenue over the forecast period owing to rapid industrialization in rural areas and investments by foreign bodies in the developing economies

• There is a significant demand for silicone-based products because of their capacity to extinguish themselves, making them acceptable for high-risk areas with possible fire threats. Due to their durability and lack of major maintenance requirements, silicones also contribute to longer transformer life

• In developing countries, the replacement of outdated transformers with new ones and technological advancements are anticipated to create numerous attractive job opportunities

• The U.S. Environmental Protection Agency, the Electricity & Cogeneration Regulatory Authority, and other federal agencies have adopted strict restrictions surrounding energy waste, and this has fueled demand for oil to reduce emissions and electricity waste.

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

• The global biolubricants market size was valued at USD 2.95 billion in 2024 and is projected to grow at a CAGR of 13.7% from 2025 to 2030.

• The global automotive engine oil market size was valued at USD 41.2 billion in 2023 and is projected to grow at a CAGR of 3.7% 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

o Naphthenic Base Oils

o Paraffinic Base 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

o U.S.

o Canada

• Europe

o Germany

o France

o UK

o Italy

o Russia

• Asia Pacific

o China

o India

o Japan

o South Korea

o Australia

o Indonesia

• Central & America

o Brazil

o Argentina

• Middle East & Africa

o Saudi Arabia

o South Africa

o Turkey

Order a free sample PDF of the Transformer Oil Market Intelligence Study, published by Grand View Research.