Transformer Oils Market Intelligence

Transformer Oils Market Description

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 the rural and urban development 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 as they are now increasingly demanding 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.

Report Coverage

Global Transformer Oil Supply-Demand Analysis
Regional market outlook-Asia Pacific, Europe, RoW
Key Global Supplier Profiles
Cost Structure Analysis

Transformer Oils Market Trend, Analysis & Forecast

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

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Transformer Oil Executive Summary

1.1 Global Transformer Oil Market

2. Transformer Oil Market Analysis

2.1 Global Market Size
2.2 Global Demand-Supply Analysis
2.3 Global Production by Category
2.4 Market Maturity by region
2.5 Global Drivers and Constraints
2.6 Regional Market Outlook –Asia-Pacific, North America, Europe, Rest of World
2.7 Porter’sFive Forces Analysis

Transformer Oils Global Market 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

transformer-oil-global-market-size

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

Higher growth in transformer oil capacity due to the developing markets: Transformer oil growth in developing markets is expected to be higher as more demand is coming from new transformers in these markets. Demand from revamping of old transformers in developed markets will be comparatively lower to new transformers
Developing countries to drive the demand for transformer oil: The demand for transformer oil in developing nations like China, India and Brazil is expected to be largely driven by the installation of new electrical infrastructure due to the increasing population and building better infrastructure
Revamping activities to increase the demand in developed nations: In developed nations like US and Europe, significant investments in infrastructure were made during 1960-1980, and transformers have reached their lifetime (40 years). Therefore, a lot of revamping of the existing facilities were expected to fuel the demand for transformer oil in these regions
Large scale end-use players are direct buyers: Small quantity of transformer oil is sold through distributors and marketers. However, a large quantity is directly sold from the refiners to electrical distributors or transformer makers. Going forward, during 2017-2018, the demand for transformer oil is expected to put pressure on the supply leading to higher utilization of suppliers and capacity additions/expansions

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