Global Transformer Oil Market: Snapshot
Thanks to the increasing need for power across the world, the global transformer oil market has been witnessing a high growth rate. The rising distribution of oil filled transformers in developing nations, such as China and India, where the focus of the governments is to expand the power infrastructure is also boosting this market substantially.
Going forward, the augmenting demand for transformer oil in developed regions, such as North America and Europe, where the existing power infrastructure is anticipated to be overhauled, is likely to propel this market over the next few years. However, the advent of smart transformers and dry type transformers may restrict this market to registering a steady growth in the years to come. In 2015, the overall opportunity in the global transformer oil market was US$1.99 bn in 2015 and is anticipated to reach US$3.26 bn by 2024, rising at a CAGR of 5.70% between 2016 and 2024.
Demand for Mineral Oil to Remain High
Mineral oil, silicone-based oil, and bio-based oil are the main products available in the global market. Among these, the demand for mineral oil is higher and trend is expected to remain so over the next few years. However, the demand for bio-based oil is likely to increase at a significant rate in the near future.
Based on the application, the global market for transformer oil is categorized into power transformers and distribution transformers. The demand for transformer oil has been higher from distribution transformers due to the fact that distribution transformers outnumber power transformer by large. This scenario is likely to remain so over the next few years, thanks to the initiatives of various governments to expand the power infrastructure, especially in developing regions such as Asia Pacific, Latin America, and Africa.
Power transformers are also projected to report a significant uptake of transformer oil in the years to come while others application areas, such as switchgears, circuit boards, and high voltage capacitors are expected to are anticipated to hold an insignificant share in the worldwide market for transformer oil.
Asia Pacific to Retain Lead in Global Transformer Oil Market
Geographically, the worldwide market for transformer oil is segmented into the Middle East and Africa, Latin America, Asia Pacific, Europe, and North America. Asia Pacific dominated the global market in 2015 with a share of more than 43%. Thanks to the increasing focus of the governments in Asian countries, such as China, India, and Korea, on the advancement of the power infrastructure in these nations, the Asia Pacific market for transformer oil is likely to retain its dominance over the next few years.
In developed regions, such as North America and Europe, the market for transformer oil is in its maturity, so the growth is expected to be sluggish. Over the coming years, these regional markets are expected to be driven by the refurbishment of the present power infrastructure. Especially, the market in Europe is projected to be driven by the development of offshore wind farms for power generation.
ExxonMobil Corp., China Petroleum & Chemical Corp., Nynas AB, Royal Dutch Shell Plc, Dow Corning Corp., Apar Industries Ltd., Cargill Inc., Calumet Specialty Products Partners L.P., Gulf Oil Middle East Ltd., Engen Petroleum Ltd., Electrical Oil Services Ltd., Ergon Inc., and San Joaquin Refining Co. Inc. are the key vendors of transformer oil across the world.