PUBLISHER: The Business Research Company | PRODUCT CODE: 1425880
PUBLISHER: The Business Research Company | PRODUCT CODE: 1425880
Transformer Oil Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on transformer oil market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for transformer oil? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The transformer oil market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Transformer oil is a specialized oil known for its stability at high temperatures and excellent electrical insulation properties. It is produced through the distillation of refined crude oil, typically within the temperature range of +300°C to +400°C (752°F). The quality of the base stock oil, derived from different sources, significantly influences the characteristics of the resulting transformer oil.
Primary types of transformer oil include naphthenic oil, paraffinic oil, silicone-based oil, bio-based oil, and other variants. Naphthenic oil, categorized as a Group V base oil, is manufactured by hydro-treating sweet crude distillates under high pressures exceeding 2500 psi. It exhibits a low pour point, high solubility, minimal wax content, and low aromatic content. Naphthenic oil serves various functions such as insulation, cooling, lubrication, and chemical stabilization. It finds application across residential, commercial, and industrial sectors, catering to transmission and distribution systems, railways, power generation facilities, and other end-user industries.
The transformer oil market research report is one of a series of new reports from The Business Research Company that provides transformer oil market statistics, including transformer oil industry global market size, regional shares, competitors with a transformer oil market share, detailed transformer oil market segments, market trends and opportunities, and any further data you may need to thrive in the transformer oil industry. This transformer oil market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The transformer oil market size has grown strongly in recent years. It will grow from $2.21 billion in 2023 to $2.37 billion in 2024 at a compound annual growth rate (CAGR) of 7.2%. In the historical period, the growth in the transformer oil market can be linked to several factors including increased power demand, aging power grids requiring maintenance and upgrades, extensive electrification initiatives, rapid industrialization and urban development, expansion of renewable energy sources, and the enforcement of stringent regulations pertaining to transformer efficiency. These factors collectively contributed to the demand for transformer oil across various sectors.
The transformer oil market size is expected to see strong growth in the next few years. It will grow to $3.14 billion in 2028 at a compound annual growth rate (CAGR) of 7.3%. In the upcoming forecast period, the anticipated growth in the transformer oil market can be credited to several factors. These include the transition toward smart grids, an increased emphasis on fire safety regulations, a rising demand for biobased transformer oils due to sustainability concerns, the emergence of compact and highly efficient transformers, and an intensified focus on resilience planning to address extreme weather events. Additionally, major trends expected during this period encompass the replacement of aging transformers, the integration of digitalization and IoT for transformer monitoring, a growing preference for dry-type transformers, strategic collaborations and alliances in the oil industry, and continuous technological advancements in transformer designs.
The transformer oil market is anticipated to experience growth due to the increasing number of power generation and distribution projects. These projects, aimed at ensuring safe, secure, reliable, and sustainable electricity generation, transmission, and distribution, drive the demand for transformers, switches, capacitors, and circuit breakers, subsequently boosting the need for transformer oils. An example of this trend is evident in the Energy Information Administration's (EIA) report in November 2022, highlighting the launch of 8 new natural gas-fired combined-cycle gas turbine (CCGT) power plants in the US, contributing 7,775 megawatts (MW) to the electric system. The rise in such projects underscores the growth of the transformer oil market.
The transformer oil market is witnessing substantial growth, attributed to the increasing adoption of renewable energy sources. With renewable energy gaining prominence due to concerns like resource depletion, escalating fuel costs, pollution, and carbon emissions, transformer oils play a crucial role in supporting the expansion of renewable energy projects, including wind and solar power. These oils are essential for insulating and cooling transformers, ensuring their reliable and efficient operation. As governments globally prioritize renewable energy, the International Energy Agency predicts a growth of 2,400 gigawatts (GW) in global renewable power capacity from 2022 to 2027. This surge, exceeding the 2021 forecast by 30%, positions renewables to account for over 90% of global electricity expansion in the next five years. The increased adoption of renewable energy is poised to drive the transformer oil market.
In the transformer oil market, a key trend contributing to its dynamism is product innovation. Major market players are strategically focusing on developing innovative products to enhance their market position. A notable example is Nynas AB, a Sweden-based manufacturer, which, in May 2021, introduced the NYTRO BIO 300X. This innovative insulating liquid serves as a sustainable alternative to mineral insulating oil and ester liquids. The NYTRO BIO 300X boasts low viscosity, even at low temperatures, facilitating ease of handling and providing enhanced cooling in transformers. This product innovation aligns with stringent environmental requirements, supporting transformer operators in lowering the Total Cost of Ownership and establishing a competitive edge in the market.
Leading companies in the transformer oil market are increasingly forming strategic partnerships to enhance their market positioning. A strategic business partnership involves a structured affiliation between two or more commercial enterprises, often established through business agreements or contracts. A recent example is the partnership between BBGI, a biofuel energy and products company based in Thailand, and SCG Chemicals and QTC Energy. Executed in March 2023, this collaboration aims to collectively develop and manufacture bio transformer oil, marking the first such production trial in Thailand. SCG Chemicals, a Thailand-based petrochemical company, and QTC Energy, a transformer manufacturing company in Thailand, are key players in this strategic venture.
In a notable move from November 2021, Slicker Recycling Ltd., a UK-based company specializing in recycling and treating waste lubricating oils, made an undisclosed acquisition of Hydrodec. This strategic acquisition allows Slicker to expand its international reach and bolster its standing in the circular economy. Hydrodec, a US-based firm, specializes in collecting and hydrotreating used transformer and naphthenic oils. The acquisition contributes to Slicker's global presence and reinforces its commitment to sustainable practices within the transformer oil market.
Major companies operating in the transformer oil market report are Royal Dutch Shell PLC, Exxon Mobil Corporation, Repsol SA, Ergon Inc., Nynas AB, PetroChina Company Limited, Apar Industries Limited, Calumet Specialty Products Partners L.P., Cargill Incorporated, China Petroleum & Chemical Corporation (Sinopec), Valvoline Inc., San Joaquin Refining Co. Inc., Gandhar Oil Refinery Limited, Savita Oil Technologies Limited, Hydrodec Group PLC, Engen Petroleum Limited, Castrol Limited, Chevron Corporation, TotalEnergies SE, Fuchs Petrolub SE, Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, Bharat Petroleum Corporation Limited, Gulf Oil Corporation Limited, Sinopec Lubricant Company, Petroliam Nasional Berhad, CNOOC Oil & Petrochemicals Co. Ltd., SK Lubricants Co. Ltd., GS Caltex Corporation
Asia-Pacific was the largest region in the transformer oil market share in 2023. North America was the second-largest region in the transformer oil market analysis. The regions covered in the transformer oil market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the transformer oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The transformer oil market consists of sales of alkanes, cycloalkanes and aromatic hydrocarbons. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.