Global Transformer Oil Market Report 2023: Forecast Market Size, Industry Growth Rate And Key Drivers

17 May, 2023

The global transformer oil market is expected to grow from $2.07 billion in 2022 to $2.22 billion in 2023 at a compound annual growth rate (CAGR) of 7.3%. The Russia-Ukraine war disrupted the chances of global economic recovery from the COVID-19 pandemic, at least in the short term. The war between these two countries has led to economic sanctions on multiple countries, a surge in commodity prices, and supply chain disruptions, causing inflation across goods and services and affecting many markets across the globe. The transformer oil market is expected to grow to $2.89 billion in 2027 at a CAGR of 6.8%.

Global Transformer Oil Market Key Driver

The growing number of power generation and distribution projects is expected to drive the growth of the transformer oil market. Power generation and distribution projects are facilities responsible for the safe, secure, dependable, and long-term generation, transmission, and distribution of electricity. The increasing number of power generation and distribution projects drives up demand for transformers, switches, capacitors, and circuit breakers, which drives up demand for transformer oils. For instance, in November 2022, according to the Energy Information Administration (EIA), a US-based government agency responsible for collecting, analyzing, and disseminating energy information, 8 new natural gas-fired combined-cycle gas turbine (CCGT) power plants were launched in the US electricity market. The ability of these new plants to produce electricity will increase the US electric system by 7,775 megawatts (MW). Therefore, the increasing number of power generation and distribution projects are driving the growth of the transformer oil market.

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Global Transformer Oil Market Segments

The global transformer oil market is segmented:
1) By Type: Naphthenic Oil, Paraffinic Oil, Silicone-based Oil, Bio-based Oil, Other Types
2) By Function: Insulator, Cooling Agent, Lubricant, Chemical Stabilizer
3) By Application: Residential, Commercial, Industrial
4) By End User: Transmission And Distribution, Railways And Metros, Power generation, Other End Users
5) By Geography: The regions covered in the transformer oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa. Among these regions, Asia-Pacific accounts for the largest share in the global transformer oil market.

Major Transformer Oil Industry Players

Shell plc., ExxonMobil Corporation, Repsol S.A., Ergon Inc., Nynas AB, Sinopec Lubricant Company, Cargill Incorporated, Savita Oil Technologies Limited, Chevron Corporation, M&I Materials Limited, Gandhar Oil Refinery India Ltd., Lubrita Europe B.V., Phillips 66 Company, Gulf Oil International, Petro-Canada Lubricants Inc., Hyrax Oil Sdn Bhd, Valvoline Cummins Private Limited, and Engen Petroleum Limited.

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Transformer Oil Market Overview

Transformer oil is a type of oil that is stable at high temperatures and has excellent electrical insulating properties. It is created by distilling refined crude oil at temperatures ranging from +300 °C to +400 °C (752 °F). The quality of crude base stock oil varies depending on where it is sourced, which affects the oil's properties.
Transformer Oil Global Market Report 2023 provides data on the global transformer oil market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The transformer oil market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.