Worldwide Transformer Oil Industry to 2027 - Key Players Include Chevron, Dow, ExxonMobil, Shell and TotalEnergies
DUBLIN, Dec. 30, 2022 /PRNewswire/ -- The "Transformer Oil Market - Global Outlook & Forecast 2022-2027" report has been added to ResearchAndMarkets.com's offering.
The global transformer oil market is expected to grow at a CAGR of 6.36% during 2022-2027.
Due to the booming construction and infrastructure industry, the electricity demand has increased with the increasing demand for residential housing and the commercial sector over the past few years. Such factors are majorly contributing to the growth of the global transformer oil market.
The global transformer oil market volume is expected to reach 2,584.99 kilotons by 2027. Transformers oil or insulating oil, or dielectric fluid, is an oil that is stable at high temperatures with the best electrical insulating properties. This type of oil is used in wet transformers or oil-filled transformers, some high-voltage switches, circuit breakers, and high-voltage capacitors.
The primary purpose of transformer oils is to insulate and maintain the temperature. Therefore, transformer oil must have the properties such as dielectric strength, chemical stability, thermal conductivity, and the ability to hold these properties for a longer duration.
The electricity distributors and industrial manufacturers regularly perform maintenance activities to avoid any transformers malfunctioning or interrupting electricity distribution. In addition, the increasing global population and use of various appliances have increased the per capita demand for electricity.
Therefore, the global transformer oil market is expected to increase significantly due to the abovementioned factors. Further, transformer oil market manufacturers have invested much capital in R&D to develop improved products to offer prolonged service life, oil purification, and low environmental impact.
Market Drivers and Opportunities
- Expansion in Cross-Border Electricity Trade
The cross-border electricity trade is increasing in Asia as the countries such as India, Bhutan, Nepal, Bangladesh, Shri Lanka, Thailand, Malaysia, and Singapore have established an electrical grid that helps in electricity trade. This trade can be bilateral unidirectional and bilateral bidirectional.
The evolving electricity industry in India is expected to improve the demand for cross-border electricity trade in South Asia. Similarly, the various countries in this region have laid down some net zero emission policies projected to boost the demand for renewable power generation.
This increase in renewable power generation is expected to increase the cross-border electricity trade. The existing cross-border electricity trade in south Asian countries such as India, Bhutan, Bangladesh, and Nepal has established a foundation that will build a good relationship that could result in easy electricity trade on a regional level.
- Expansion of Electric Grid in Emerging Economies
Industrialization drives economic growth in emerging economies. Emerging economies contribute almost 60% to the annual global growth as industrial development in China and India is high. In 2021, around 37 emerging countries accounted for 80% of the global population and approximately 70% of the world's gross domestic product (GDP) growth generated through emerging economies, according to the International Monetary Fund (IMF).
Emerging economies, especially India, China, and Brazil, represent profitable opportunities for the electricity industry due to their large populations. Oil & gas, agriculture, automotive, and pharmaceutical industries are major demand generators in emerging economies.
Therefore, the electrical grid is expanding in emerging economies to cater to the increasing electricity demand due to industrial development. This expansion in the electrical grid is projected to increase the use of various types of transformers for the transmission & distribution of electricity. Hence the demand for the transformer oil market is expected to grow significantly.
Industry Restraints
- Increasing Demand for Dry-Type Transformers
Dry-type transformer is a stationary solid-state device that requires minimal maintenance to function properly. There are no moving components in this transformer. Unlike liquid fill transformers, this transformer uses only high-temperature insulating technologies, which are extremely ecologically friendly.
These transformers provide a safe and steady power supply that does not require fire-resistant vaults, poisonous gas emissions, or catch basins. These safety features will enable these transformers to be used in various applications where fire safety is necessary, such as schools, buildings, hospitals, factories, and chemical plants.
This transformer does not employ a liquid-like silicone or oil to cool the core and coils. Therefore, the demand for dry transformers is expected to grow significantly due to the low cost of production and maintenance. Therefore, the need for oiled transformers is expected to decrease, likely negatively impacting the transformer oil market.
Vendor Landscape
The key companies in the global transformer oil market have formed strategic partnerships with transmission and distribution service providers and the various industries that use oil transformers. This gives companies a competitive advantage that boosts their industry share.
The key companies have undertaken different strategies to grow in the transformer oil market. Companies in the transformer oil industry compete strategically. The growth in sustainable processes and initiatives has challenged all companies globally. Investments in R&D, technological advancement, and environmental and economic challenges drive the demand for innovative and sustainable transformer oil products.
Some major players in the global transformer oil market include Chevron Corporation (U.S.), Shell (U.K.), Cargill (U.S.), DOW (U.S.), and Total Energies (France). These players have adopted strategies such as expansion, acquisitions, new product development, joint ventures, and others to increase their revenues in the transformer oil market.
Furthermore, other prominent companies such as HPCL(India), BPCL(India), Phillips 66(US), APAR(India), Nyas AB(Sweden), Petro China (China), and others have invested significant capital in R&D to develop transformer oil products that will appeal to the customers. Therefore, these other prominent companies give tough competition to major companies in the industry.
Key Vendors
- Chevron Corporation
- Dow
- ExxonMobil
- Shell PLC
- TotalEnergies
Other Prominent Vendors
- APAR Industries
- Bharat Petroleum Corporation Limited
- Calumet Specialty Products Partners, L.P.
- Cargill Incorporated
- Castrol Limited
- Engen Petroleum Limited
- Ergon Inc.
- Gandhar Oil
- Gulf Oil India Lubricants Limited
- Hydrodec Group PLC
- Indian Oil Corporation Limited
- Nynas AB
- Petro Canada Lubricants
- PetroChina
- Philips 66
- Repsol
- Sinopec
- Valvoline Inc.
Key Questions Answered
1. What is the revenue from the global transformer oil market?
2. What is the projected market size of the global transformer oil market by 2027?
3. What is the growth rate of the transformer oil market?
4. Which region dominates the global transformer oil market?
5. What are the key driving factors in the transformer oil market?
6. Who are the key players in the global transformer oil market?
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.1.1 Inclusions
4.1.2 Exclusions
4.1.3 Market Estimation Caveats
4.2 Base Year
4.3 Scope of the Study
4.3.1 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Premium Insights
6.1 Market Synopsis
6.1.1 Growth Enabler
6.1.2 Opportunities
6.1.3 Restraint
6.2 Segment Review
6.2.1 End-Use
6.2.2 Oil Type
6.2.3 Geography
6.3 Companies and Strategies
7 Market at a Glance
8 Introduction
8.1 Overview
9 Market Opportunities & Trends
9.1 Expansions of the Electric Grid in Emerging Economies
9.2 Increasing Electrification of Railways
10 Market Growth Enablers
10.1 Growing Demand for Bio-Based Transformer Oil
10.2 Growing Cross-Border Electricity Trade
11 Market Restraints
11.1 Increasing Demand for Dry-Type Transformers
11.2 Fluctuations in Crude Oil Prices
12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.3 Macroeconomic Factors
12.3.1 Infrastructure Industry
12.3.2 Power Generation
12.4 Five Forces Analysis
12.4.1 Threat of New Entrants
12.4.2 Bargaining Power of Suppliers
12.4.3 Bargaining Power of Buyers
12.4.4 Threat of Substitutes
12.4.5 Competitive Rivalry
13 End-Use
13.1 Market Snapshot & Growth Engine (Value)
13.2 Market Snapshot & Growth Engine (Volume)
13.3 Market Overview
13.4 Transmission & Distribution
13.4.1 Market Overview
13.4.2 Market Size & Forecast (Value & Volume)
13.4.3 Market by Geography
13.5 Power Generation
13.5.1 Market Overview
13.5.2 Market Size & Forecast (Value & Volume)
13.5.3 Market by Geography
13.6 Railways & Metros
13.6.1 Market Overview
13.6.2 Market Size & Forecast (Value & Volume)
13.6.3 Market by Geography
13.7 Others
13.7.1 Market Overview
13.7.2 Market Size & Forecast (Value & Volume)
13.7.3 Market by Geography
14 Oil Type
14.1 Market Snapshot & Growth Engine (Value)
14.2 Market Snapshot & Growth Engine (Volume)
14.3 Market Overview
14.4 Mineral Oil
14.4.1 Market Overview
14.4.2 Market Size & Forecast (Value & Volume)
14.4.3 Market by Geography
14.5 Bio-Based Oil
14.5.1 Market Overview
14.5.2 Market Size & Forecast (Value & Volume)
14.5.3 Market by Geography
14.6 Silicone Oil
14.6.1 Market Overview
14.6.2 Market Size & Forecast (Value & Volume)
14.6.3 Market by Geography
15 Geography
16 APAC
17 North America
18 Europe
19 Latin America
20 Middle East & Africa
21 Competitive Landscape
22 Key Company Profiles
23 Other Prominent Vendors
24 Report Summary
25 Quantitative Summary
26 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/j14szn
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