DUBLIN--(BUSINESS WIRE)--The "Transformer Oil Market by Type (Mineral Oil, Silicone, and Bio-based), Application (Transformer, Switchgear, and Reactor), End-User (Transmission and Distribution, Power Generation, Railways & Metros, and Others), and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.
The global transformer oil market is projected to reach USD 3.0 billion by 2025 from an estimated market size of USD 2.2 billion in 2020, at a CAGR of 6.9% during the forecast period.
The factors driving the growth for transformer oil are the upgradation of electrical grids in developing countries along with the expansion of electrical grids due to growing industrialization and urbanization.
The transformer segment is expected to dominate the transformer oil market in 2020.
The transformer segment is anticipated to constitute the majority of the transformer oil market share. Transformers are a vital component of an electrical grid. It helps in the transmission and distribution of electricity. A global increase in demand for electricity is expected to drive the demand for transformer oil across various sectors, such as the residential sector, industrial sector, and the commercial sector. Thus, the growing demand for transformers will boost the demand for transformer oil during the forecast period.
Mineral oil is expected to grow at the highest rate during the forecast period.
The mineral oil segment is estimated to grow at the fastest rate amongst all segments, by type, during the forecast period. Mineral oil is divided into naphthenic and paraffinic oils and are used in transformers, reactors, and switchgears majorly for cooling and insulation purposes. It is also used for heat dispersion and to avoid arcing to avoid short circuits. Mineral oil has been used traditionally for the cooling and insulation of electrical components, such as transformers. Mineral oil is comparatively cheaper than other transformer oils and is easily available. Naphthenic oil, a segment of mineral oil, is consumed extensively compared to other oils and is more stable in oxidation at different temperatures. Thus, a growing need for transformers, reactors, and switchgear and the easy availability of mineral oil at a low price will boost the demand for this segment.
APAC is expected to grow at the highest rate during the forecast period.
APAC is currently the fastest-growing transformer oil market, followed by North America and Europe. An increase in the consumption and production of electricity in APAC countries, such as China and India, is expected. Growing demand for electricity due to a growing population will lead to an increase in the transmission and distribution system, which is expected to boost the demand for electrical components, such as transformers, reactors, and switchgears, thereby increasing the demand for transformer oil.
- Upgradation of Electric Grids in Developing Countries
- Expansion of Electric Grids Due to Growing Industrialization and Urbanization
- Increasing Demand for Dry-Type Transformers
- Rising Competition from Unorganized Or Fragmented Transformer Oil Market
- Growing Demand for Bio-Based Transformer Oil Due to Environmental Concerns
- Rising Power Requirements in Apac and North America
Fluctuations in Crude Oil Prices
- Nynas AB
Petrochina Company Limited
Calumet Specialty Products Partners
Engen Petroleum Limited
Royal Dutch Shell
Gulf Oil International
M&I Materials Limited
San Joaquin Refining
Hyrax Oil Sdn Bhd
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