The report "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" 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 electric grids in developing countries along with the expansion of electric grids due to growing industrialization and urbanization.
The transmission and distribution segment is expected to be the most significant transformer oil market, by end-user, during the forecast period
The transmission and distribution segment is projected to be the most significant transformer oil market, by end-user, during the forecast period. It has the largest share of the transformer oil market owing to the global growth in the production and consumption of electricity. Transmission and distribution utilities own and operate the transmission and distribution system. Thus, growing demand for power will necessitate the expansion of the transmission and distribution network, thereby enhancing the demand for electrical components, such as transformers, reactors, and switchgears, leading to an increase in the demand for transformer oil.
The mineral oil segment is expected to be the largest transformer oil market, by type, during the forecast period
The mineral oil segment is expected to grow at the highest rate during the forecast period. Mineral oil is mainly used for cooling and insulation purposes in transformers, reactors, and switchgears. It is also used for heat dispersion and to protect the transformer’s internal windings. Mineral oil is further segmented into naphthenic and paraffinic oil, and a majority of the existing and new transformers manufactured use mineral oil as the cooling fluid. The demand for mineral oil is expected to grow during the forecast period because of its easy availability and low cost compared to other transformer oils.
APAC is expected to dominate the global transformer oil market during the forecast period.
In this report, the transformer oil market has been analyzed for 4 regions, namely APAC, North America, Europe, and RoW. APAC is expected to lead the market during the forecast period.
The rapid increase in the demand for electricity and an increase in the power generation capacity in developing countries such as India and China, along with the growth in industrial and commercial sectors, will lead to an increase in the number of substations. Growth in the number of substations will propel the demand for transformers, which will enhance the demand for transformer oil in APAC.
Source: ASDReports - Market Research
Date: May 25, 2020