- Asia-Pacific is estimated to be the largest market for transformer oil.
- Small transformer is the major application segment for the transformer oil.
- Mineral oil based transformer oil the most used transformer oil across the globe.
Global transformer oil market is projected to reach $2.79 Billion by 2020 at a CAGR of 7.14% from 2015 to 2020. Global transformer oil market growth is driven by the increasing electric demand in developing economies such as India, Brazil, and South Africa, which are expected to enhance their grid infrastructure to increase the electricity accessibility to the region’s population. In addition, rapidly increasing demands from various application industries and regions are generating several exciting markets opportunities for transformer oil.
The growth of the transformer oil market is directly proportional to the energy demand and industrialization activities across the globe. Bio-based transformer oil is being used in large number of transformers mainly in the North America due to its excellent insulation and biodegradable nature. The market observed a good rate of adoption of bio-based transformer oil due to these aspects in the recent five years; this trend is likely to continue globally and is further expected to increase. The recent technological developments, globally, in the transformer oil market have been very encouraging.
Asia Pacific: The leading market for transformer oil
Asia-Pacific is estimated to be the largest market for transformer oil and would remain the top consumer till the year 2020. Extensive demand for electricity especially in China and India is driving the expansion of electric networks increasing the installation and upgrade of transformers in turn increasing the demand for transformer oil. The growing transmission and distribution network across globe is key drivers for transformer oil market growth. Significant Transmission & Distribution expansion projects are ongoing in Asia-Pacific which is expected to be the biggest and the fastest growing market for transformer oil.
Small transformer is the major application segment for the transformer oil
The transformer oil market has exhibited steady growth over the last few years because of its increasing application in small transformers, large transformers, and utilities in emerging economies such as China and India. National utility companies across the world continue to invest in their power grids in order to meet the increasing demand of end-users giving scope for transformer oil market.
Small transformer is the largest application segment of the market. With national governments ramping up power generation capabilities, the demand for transformer oil is expected to increase. The increasing demand from OEMs, coupled with expansion of electric grids in BRICS nations is expected to drive the global market.
Mineral oil based transformer oil the most used transformer oil across the globe
Mineral-based transformer oil is the most widely used transformer oil having occupied the largest transformer oil industry share. However, the demand of bio-based transformer oil is expected to increase in the near future due to environmental benefits and superior operational advantages. Naphthenic and paraffinic mineral based transformer oils are the most consumed globally. However, this dominance is likely to reduce in the longer run due to the growing acceptance of bio-based transformer oils.
The leading transformer oil companies are focusing to expand their production capacities to meet up the growing demand. The global transformer oil market continues to witness numerous strategic developments being carried out by major manufacturers such as Nynas AB (Sweden), Ergon Inc. (U.S.), PetroChina (China), Calumet Specialty Products Partners (U.S.), and San Joaquin Refin ing Co. Inc. (U.S.). These companies together occupy a huge global market share, and also have been the most active companies in terms of strategic developments. The Nynas AB (Sweden) and Ergon Inc. (U.S.) in particular, are the fore front leading players in the industry.