The GMI Research speculates that the Transformer Oil Market will encounter an accelerating demand over the forecast period. This is because of the soaring power needs led by accelerating urbanization and elevating distribution and transmission networks.
Introduction of the Transformer Oil Market
The major function of the transformer oil is to safeguard, restrain corona discharge, and function as a coolant. It is normally based on mineral oil, but substitute formulations with enhanced engineering or environmental properties are alluring end users.
Key Players of Market:
- Nynas AB
- Ergon International
- Apar Industries Ltd.
- PetroChina Company Limited
- ENGEN PETROLEUM LTD
- Calumet Specialty Products Partners, L.P
- China Petroleum & Chemical Corporation
- Cargill, Incorporated
- Exxon Mobil Corporation
Transformer Oil Market Dynamics
The amelioration of electric grids across emerging nations as a result of rapid industrialization and accelerating urban population have strengthened the growth of the global transformer oil market. In addition, the growing requirement for remodeling of mature grid infrastructure accompanied by the excessive potential will stimulate market growth. For example, the U.S. DOE, in 2016, infused USD 220 million beneath the Grid Modernization Initiative.
In accordance with the Transformer Oil Market forecast, the surging disbursement across the infrastructure sector in emerging countries will bolster the market growth. Besides this, the growing energy demand as well the accelerating investment in the energy sector are other factors compounding the growth of the market.
Furthermore, the evolving tendency of technological electronic devices and the mounting population, along with the soaring disposable income, have propelled the market growth. However, the fluctuations in the prices of raw materials and the growing demand for dry transformers will curb the Transformer Oil Market Size.
Technology Segment Drivers
Based on the oil type, the market is divided into mineral, silicone, and bio-based oil. Further, the mineral oil is further divided into naphthenic and paraffinic oil. Amongst which, the mineral oil is contemplated to propel at a higher rate over the coming years. Mineral oil possesses less safety capability as well as low obsolescence required other insulating liquids used in transformers, reactors, and switchgear lodged at areas prone to higher fire risk, such as chemical factories. Also, the oil contains hydrocarbon components extracted from the remaining oil fractions of the suitable viscosity level. Furthermore, it is a by-product of petroleum purification. Thus, all these factors together will bolster the Transformer Oil Market Opportunities.
Based on the regional coverage, Asia-Pacific is projected to witness a higher Compound Annual Growth Rate during the forecast period. This is because of the rising demand for power across developing economies, such as India and China, and developed nations like Japan and China. Further, the surging power demand and elevation in aging electrical infrastructure will further drive the market growth.
Transformer Oil Market Segmentation:
Segmentation by Oil Type
- Mineral oil
- Naphthenic oil
- Paraffinic oil
- Bio-based oil
Segmentation by Application
Segmentation by End-User
- Transmission and Distribution
- Power Generation
- Railways & Metros
Segmentation by Region:
- United Kingdom
- Rest of Europe
- Asia Pacific
- Rest of APAC
- North America
- United States of America
- South Africa
- Saudi Arabia
About GMI Research
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