The Global Transformer Oil Market is Estimated to Grow from USD 2.0 Bn in 2023 to USD 3.0 Bn by 2030

The global transformer oil market is estimated to grow from USD 2.0 Billion in 2023 to USD 3.0 Billion by 2030. It is expected to record a CAGR of 5.9% during the forecast period.

The growth of the transformer oil market is attributed to the strengthing of electric grids in developing economies along with the modernization of electric grids in developed economies due to growing industrialization and urbanization.

The transformer oil market has been split into three types: mineral oil, silicone oil, and bio-based oil. Mineral oil is further segmented into naphthenic and paraffinic oil. The growth for mineral oil is owed to its convenient cost and easy availability compared to other transformer oils. Majority of the existing and new transformers manufactured utilizes mineral oil as an insulation fluid which eventually boosts the growth of mineral oil segment in transformer oil market. In addition, mineral oil has good cooling properties which help dissipate heat from tranformers core and prevents overheating which drives the growth of the mineral oil segment.

The transformer oil market has been segmented into transformer, switchgear, and reactor. The increasing number of substations due to increased demand for power generation in developing countries is one the primary factors driving the growth of the transformer segment. Transformers cater to various industries such as power generation, railways & metros, power utilities, and others to provide a consistent and reliable power supply, boosting the growth of the segment in the transformer oil market. During the forecast period, Asia Pacific is estimated to lead the transformer oil market within the transformer application segment.

The transformer oil market is segmented into transmission and distribution, power generation, railways & metros, and others during the forecast period. The transmission and distribution segment is expected to lead the transformer oil market during the forecast period owing to the significant investment in expanding and modernizing the transmission and distribution network to accommodate the growing electricity demand. Expanding the T&D network would create demand for transformer oils as they would be integrated into the power transformers for cooling and insulations, eventually propelling the market growth for transformer oils.

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