Global Transformer Oil Market 2025 – 2034

Reports Description

Electric grid and T&D expansion are boosting the Transformer Oil market

The size of the global Transformer Oil market was worth around USD 2.5 billion in 2021 and is expected to reach USD 2.9 billion in 2022. is predicted to grow to around USD 3.8 billion by 2030 with a compound annual growth rate (CAGR) of roughly 7% between 2022 and 2030.

The report analyses the Transformer Oil market’s drivers and restraints, as well as the impact they have on demand throughout the projection period. In addition, the report examines global opportunities in the global Transformer Oil market.

Transformer Oil Market: Overview

Crude petroleum serves as the source of transformer oil. In a transformer, transformer oil performs two crucial tasks: it prevents arcing and dissipates the heat produced by the device. It is additionally utilized as insulation and for chemical stabilization. Transformer oil has improved electrical insulation, is more stable at high temperatures, and inhibits oxidation. Synthetic oil, as well as mineral oil, are the two types of transformer oils that are most frequently utilized in transformer applications.

Transformer Oil Market: COVID–19 Impact Analysis

Manufacturers of specialized chemicals have experienced a range of effects from the COVID-19 pandemic. Most transformer oil producers have been able to lower their raw material costs as a result of the fall in crude oil prices. However, because of the supply chain disruption, firms are having problems with logistics and procurement. In addition, since storage requirements for transformer oil producers have increased due to the drop in demand, production costs have increased, which will have a drastic impact on the selling price of transformer oil.

Transformer oil producers have implemented a variety of measures to adjust to these dynamic market conditions, including improving manufacturing efficiency, expanding refineries and storage depots, expanding product lines through new product releases, and other inorganic strategies.

Transformer Oil Market: Growth Drivers

Electric grid expansion in the Asia Pacific region

According to the estimates, the Asia Pacific region is anticipated to take the lead in T&D investment globally during the coming few years. This investment relates to grid extension, grid reinforcement, and replacement of outdated T&D infrastructure. Additionally, it is anticipated that T&D investment in the Indian subcontinent will increase at an exponential rate between 2020 and 2030, significantly expanding the region’s electric grid network.

Developing nations in the APAC area are investing in the expansion of the T&D system and grid network to meet the expected rise in power consumption brought on by the region’s quick industrialization and urbanization. New transformers and switchgear will be installed as a result of the grid network and T&D system expansion, increasing the demand for transformer oil.

The surging cross-border electricity trade

The transfer of electricity across borders has recently acquired momentum, and the number of countries taking part in it has grown significantly over time. For instance, the European Union intends to build a pan-European grid and reinforce the electrical networks of the various nations. Recent proposals by the Indian Energy Exchange to trade electricity across borders with nations including Myanmar, Sri Lanka, Bhutan, Bangladesh, and Nepal aim to establish an interconnected South Asian regional power market.

During the coming years, these advancements are projected to lead to the grid network’s expansion and the construction of additional transmission lines, which will ultimately increase demand for transformers, switchgear, and transformer oils.

Transformer Oil Market: Segmentation Analysis

The Transformer Oil market is segmented into product and application in our research scope. By product, the mineral-based oils segment is anticipated to hold the largest share globally throughout the forecast period. It is widely used in circuit breakers, high voltage switches, and capacitors due to its widespread availability and great compatibility with a variety of equipment.

Naphthenic base oils and paraffinic base oils are further divided within this sector. Due to its inexpensive cost and wide availability throughout numerous global regions, the paraffinic base oil is used. Only a few countries, including China, Australia, Brazil, the US, and Venezuela, produce crude naphthenic oil, which limits its market penetration.

On the basis of application, the small-scale transformers led the transformer oil market in 2021. These systems are widely used to address the rising demand for electricity in rural or small-town settings. Growing urbanization and rural electrification in Southeast Asian nations like India, Bangladesh, and Sri Lanka have made a substantial contribution to category growth. In order to counterbalance the high costs associated with complex filling processes, consumers also frequently make bulk purchases, which has led to an increase in market volume and sales in recent years.

Report Scope

Key Insights:

• As per the analysis shared by our research analyst, the Transformer Oil market is estimated to grow annually at a CAGR of around 7% over the forecast period (2025-2034).
• In terms of revenue, the Transformer Oil market size was valued at around USD 2.5 billion in 2021 and is projected to reach USD 3.8 billion by 2030. Due to a variety of driving factors, the market is predicted to rise at a significant rate.
• Based on product segmentation, the bio-based oils segment is anticipated to witness the highest CAGR during 2025-2034.
• Based on application segmentation, the large-scale transformers segment is expected to witness tremendous growth.
• On the basis of geography/region, the Asia Pacific region was the leading revenue generator in 2021.

Regional Landscape

The Asia Pacific region dominated the transformer oil market in 2021. The rise in power demand and the upgrading of deteriorating infrastructure throughout developing countries is attributable to the rising need for transformer oil. Opportunities for the expansion of the transformer oil market in the Asia Pacific region lie in the region’s expanding industrial and commercial sectors. Additionally, it is anticipated that factors like rising urbanization and population expansion will broaden the market for transformer oil in the Asia Pacific region.

Competitive Landscape

To obtain a competitive edge in the market, new businesses are anticipated to carry out considerable R&D or engage in M&A through partnerships with established competitors. Existing multinationals are also implementing expanding & acquisitive strategies to strengthen their market positions.

List of the prominent players in the global Transformer Oil market:

• Royal Dutch Shell
• Exxon Mobil Corporation
• Repsol
• Ergon, Inc.
• Nynas AB
• Sinopec Lubricant Company
• APAR Industries
• PetroChina Company Limited
• Savita Oil Technologies Limited
• Chevron Corporation
• M&I Materials Limited
• Petro-Canada
• Gandhar Oil
• Lubrita
• Phillips 66 Company
• Gulf Oil International
• Cargill, Incorporated.
• Hydrodec Group plc
• Calumet Specialty Products Partners, L.P.
• Sasol
• Hyrax Oil Sdn Bhd
• San Joaquin Refining Co
• Valvoline Cummins
• Engen Petroleum Limited

Recent Development

• August 2022:  The Central Power Research Institute, based in Bengaluru (India), and the Chhattisgarh government entered into a memorandum of understanding (MoU) for the establishment of a regional testing facility in the Raipur area. The national-level testing unit will be formed on a 10-acre site and will have test facilities for transformers, transformer oil, energy meters, switch fuse units, as well as other equipment associated with electricity.
• March 2020: Nynas AB added a new bio-based high-performance transformer fluid to its portfolio. With the launch of NYTRO BIO 300X, the company completes its line of high-performance transformer fluids by introducing the first item in its new bio-based line.

The global Transformer Oil market is segmented as follows:

By Product

• Mineral-based oils
  • Naphthenic Base Oil
  • Paraffinic Base Oil
• Silicone-based oils
• Bio-based oil

By Application

• Utility Transformer Oils
• Small-scale Transformers
• Large-scale Transformers

On the basis of Geography

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America