Transformer Oils Market Overview
The global market for transformer oil is expected to grow at a CAGR of 8.3 percent till 2022 and will be mainly driven by the increased demand from the transmission and distribution segment of the power industry. The APAC, particularly India and China, will continue to drive the demand for transformer oil products due to the need for improving rural and urban infrastructure. The global transformer oil market will be driven by increasing demand for electricity in the emerging and developed countries, along with the growing infrastructure investment for energy access. In addition to this, replacement of aging transformers in Europe and North America is expected to drive the market further.
The growth of transformer oil manufacturers will be higher in developing markets on account of increased demand for new transformers. In addition to this, the demand for revamping old transformers in developed markets will be relatively lower as compared to those of new transformers. Mineral-based oil is the market leader for transformer oil production and will continue to lead till 2020, mainly because of established value chains. The report also provides a market overview in regional markets, such as North America, Europe, APAC, along with supplier profiles, cost & price analysis, industry trends, drivers & constraints, and industry best practices.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Transformer Oils Market Trends
Category Intelligence on Transformer Oils covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Transformer Oils Market Size and Global Outlook
- Asia Pacific will continue to dominate the market in terms of growth prospects through to 2020
- Increasing demand for electricity in the emerging and developed countries, along with the increasing infrastructure investment for energy access is expected to drive the transformer oil market globally. Also, replacement of ageing transformers in North America and Europe is expected to further drive the market
- The Transformer Oil market share is distributed worldwide as follows: APAC 44 percent, North America: 17 percent, Europe: 19 percent, Rest of World: 20 percent
- The transformer oil replacement is also making strides in transformer markets owing to its environment-friendly characteristics
- The annual global energy consumption increased 10 percent from 2010 to 2015 leading to an increase in investments in the transformer industry. This has led to a growth in the transformer oil industry.
- In developed countries, electricity generated from renewable energy technologies is on a rising trend.
- Volatility in base oil prices (on account of crude oil prices) is expected to restrain the growth of transformer oil globally.
- Environmental issues and regulations related to production and disposal have led to increased cost for suppliers, and new alternative (higher price/unit) categories of transformer oil are entering the market
- Transformer oil price lists are dependent on crude oil prices and supply–demand dynamics had been on an increasing trend throughout 2018
- Transformer oil procurement depends on the type of end-user and the respective application of transformer oil. Small scale and public end-users in emerging markets like Asia tend to purchase transformer oil when required based on the current transformer oil price
Global Market Size –Transformer Oil
- Power industry growth to drive the demand for transformer oil : The transformer oil market is expected to grow at a CAGR of 8.30 percent from 2017-2022 mainly driven by the increased demand from the T&D sector of power industry
- Significant growth is expected to come from the increasing demand for oil-filled transformers on account of increasing energy demand and increasing electrification and increased industrial usage in developing economies
- Asia-Pacific (especially China and India) is expected to lead the global transformer oil market in the next 5 – 8 years due to the need for improving the rural and urban development infrastructure
Global Transformer Oil Supply-Demand Analysis
Global Transformer Oil Demand by Application
- Major demand driver for transformer oil is from the OEM and that is expected to drive the demand in the near future. The market for utility demand in higher in developed markets due to the ageing infrastructure of transformers
- Demand for transformers is expected to grow at a CAGR of 7-8 percent: The transformer OEM contributes about 85 percent of the global transformer oil demand. Going forward, the demand is expected to increase owing to the robust transformer demand from developed and developing nations alike
- About 12 percent demand for transformer oil is derived from electrical utility companies that utilizes the transformer oil for maintenance of the existing transformers and upgrading power grids. Demand from this sector is also expected to grow with ageing transformers (primarily in the developed markets)
- Dielectric transformer oil is used in capacitors and contributes about 3 percent of the total transformer oil demand on a global level However, this type of capacitors, currently, are being replaced with solid state capacitors that offer superior performance and reliability. Therefore, demand from this sector is expected to dwindle going forward
- In 2016-17, there was an increase in the sales of used transformer oils for re-use in transformers (after refining for impurities) in developed markets like the US
Global Transformer oil production by category
- Mineral-based transformer is the market leader for transformer oil production and is expected to be the leader in 2020, mainly due to the established value chains and operational benefits. The alternate forms of transformer oil are also making strides in transformer markets owing to their environmental friendly characteristics.
- Mineral-based transformer oil has two types – Naphthenic and Paraffinic. The naphthenic type supply is higher in the global market due to the maturity of developed markets but the growth of the paraffinic type is expected to be higher due to the increase in demand from the developing markets
- There have been numerous environmental issues with mineral-based transformer oil due to production and end-of-life disposal. This has led to an increase in development of alternate types of transformer oil, i.e. silicone based and bio-based
- Many companies, like Dow Corning, Cargill (silicone-based) and Novvi-Chevron (bio-based), are focusing on alternate types of transformer oil due to their environment benefits; but, due to limited usage benefits as compared to mineral-based oil, their market share is expected to increase marginally
Why You Should Buy This Report
- The report details the different drivers and constraints in the transformer oil market. It gives a regional market overview of Europe, APAC and North America, including the market size, growth rate and major transformer oil suppliers in each.
- Porter’s five force analysis for the global transformer oil industry
- It provides key supplier profiles and SWOT analysis of major transformer oil manufacturers like Nynas AB, Ergon Inc., APAR industries Ltd., etc.
- The report gives the cost structure, transformer oil price trend analysis and forecast along with the best procurement practices.