Transformer oil referred to as a kind of mineral oil obtained by distillation and refining in natural petroleum. It is a liquid natural hydrocarbon that is pure and stable, with low viscosity, sound insulation, and powerful cooling performance. Its main components are alkanes, naphthenic saturated hydrocarbons, aromatic unsaturated hydrocarbons, and other compounds.
The global transformer oil market has the potential to grow with USD 4.8 billion with bolstering CAGR in the forecast period from 2020-2027. The growing transition towards a renewable source of energy, increasing investment for enhancing the electricity grids, coupled with rising environmental concerns, are fueling the market share for the global transformer oils market.
Also, the rising demand for transformers oil is due to its characteristics such as low-flammability, and it helps in increasing the service life of automobiles, reduce the gear wear. Also, its high performing lubricin is boosting market demand in the automotive industry.
Transformers oil helps in reducing the wear of the automobiles, minimizes the chances of corrosion, and useful for the smooth operation of internal engine parts. In addition to it, the properties of transformer oil, which reduces the leakage of oil and reduces the oil consumption in vehicles are bolstering market demand for the transformer oil market.
Moreover, the replacement of old transformers with the modernization of existing transformers is majorly contributing to the adoption of transformer oil. Also, rapid urbanization and industrialization, changing modern power grids, and evolving consumer requirements are deriving the transformer oil market.
Furthermore, transformer oil considered as a medium for transferring the heat in an electric transformer. Additionally, it is used as a cooling agent during the voltage fluctuation to reduce the rising temperature. Transformer oil acts as an insulator by increasing the resistance between the windings, thus reduce the noise in the transformers.
Lowers pour point, and low-temperature viscosity are beneficial to the cold start of the transformer at low temperature. The pour point and low-temperature viscosity indexes are the primary basis for the power department to select the transformer oil grade according to the climatic conditions.
The main functions of explosion-proof dry-type transformer oil are as follows: arc-extinguishing effect: on oil circuit breakers and on-load voltage-regulating switches of explosion-proof dry-type transformers an arc generated when the contacts switched. Due to the excellent thermal conductivity of the explosion-proof dry-type transformer oil, and a large amount of gas touched under the action of the high temperature of the arc. Enormous pressure is generated, thereby improving the arc extinguishing performance of the medium and making the arc extinguish quickly.
Based on the type, the global transformer oil market classified into Mineral Oil, Silicone, and Bio-based. The mineral oil type segment accounted for the largest share in the global transformer oil logistics market. This product is a mixture of refined liquid hydrocarbons obtained from petroleum, mainly saturated naphthenic and paraffinic mixtures—also, mineral oil used in transformers where there is a high fire risk to avoid fire accidents. Thus, mineral oil lowers fire biodegradability and low fire safety potential, which increases requirements in transformers, switch gears, and reactors. Moreover, the mineral oil is reasonable and readily available are driving the market demand for global transformers oil.
Based on the application, the global transformer oil market segmented into Transformer, Switchgear, and Reactor. The transformers segment accounts for the largest share in the global transformer oil market. It is mainly due to the low viscosity index of transformer oil when the temperature rises, the viscosity drops rapidly, and the circulation speed is accelerated, thereby improving the effect of heat dissipation. Moreover, the growing population emerges the need for investment and expansion of existing power grids. Also, the upgradation and development of power grids are emerging owing to the construction of new power infrastructure in developing countries are propelling the market value of transformers oil.
Based on the end-use, the global transformer oil market categorized into Transmission and Distribution, Power Generation, Railways & Metros, and Others. The power generation segment accounts for the largest share in the global transformer oil market and will continue to grow in the forecast period from 2020-2027. The emerging population and increasing urbanization are creating an urgent need for the expansion of modern transformers. Moreover, with the continuous advancement of the national economic development process, people’s demand for energy is also getting higher and higher. As the current primary energy supply system, the power system shoulders the critical task of promoting social development. Therefore, transformers have gradually occupied the market due to their advantages of oil-free, low noise, superior moisture resistance, small size, and large capacity.
Based on geography, the global transformer oil market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. The Asia Pacific region dominates the market for the global transformer oil market. It is mainly owing to the emerging need for the upgradation of existing electricity grid infrastructure and transform electricity distribution infrastructure. Moreover, increasing environmental concerns and thus for maintaining of equipment by utilizing the oil are fueling market demand for transformer oil in the Asia Pacific.
Companies such as Nynas AB, Ergon International, Petrochina Company Limited, Apar Industries, Sinopec Lubricant, Calumet Speciality Products, Hydrodec Group, Cargill, Incorporated, and ExxonMobil and others are key players in the global transformer oil market.