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“The transformer oil market is projected to reach USD 3.0 billion by 2025, at a CAGR of 6.9% from 2020 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 electrical grids in developing countries along with the expansion of electrical grids due to growing industrialization and urbanization.
“The transformer segment is expected to dominate the transformer oil market in 2020.”
The transformer segment is anticipated to constitute the majority of the transformer oil market share. Transformers are a vital component of an electrical grid. It helps in the transmission and distribution of electricity. A global increase in demand for electricity is expected to drive the demand for transformer oil across various sectors, such as the residential sector, industrial sector, and commercial sector. Thus, the growing demand for transformers will boost the demand for transformer oil during the forecast period.
“Mineral oil is expected to grow at the highest rate during the forecast period.”
The mineral oil segment is estimated to grow at the fastest rate amongst all segments, by type, during the forecast period. Mineral oil is divided into naphthenic and paraffinic oils and are used in transformers, reactors, and switchgears majorly for cooling and insulation purposes. It is also used for heat dispersion and to avoid arcing to avoid short circuits. Mineral oil has been used traditionally for the cooling and insulation of electrical components, such as transformers. Mineral oil is comparatively cheaper than other transformer oils and is easily available. Naphthenic oil, a segment of mineral oil, is consumed extensively compared to other oils and is more stable in oxidation at different temperatures. Thus, a growing need for transformers, reactors, and switchgears and the easy availability of mineral oil at a low price will boost the demand for this segment.
“APAC is expected to grow at the highest rate during the forecast period.”
APAC is currently the fastest-growing transformer oil market, followed by North America and Europe. An increase in the consumption and production of electricity in APAC countries, such as China and India, is expected. Growing demand for electricity due to a growing population will lead to an increase in the transmission and distribution system, which is expected to boost the demand for electrical components, such as transformers, reactors, and switchgears, thereby increasing the demand for transformer oil.
Breakdown of primaries:
In-depth interviews have been conducted with various key industry participants, SMEs, C-level executives of key market players, and industry consultants, among other experts, to obtain and verify critical qualitative and quantitative information and assess future market prospects. The distribution of primary interviews is as follows:
- By Company Type: Tier I: 60%, Tier II: 25%, and Tier III: 15%
- By Designation: C-Level: 35%, Director Level: 25%, and Others: 40%
- By Region: APAC: 20%, North America: 25%, Europe: 35%, RoW: 20%
Note: “Others” includes sales managers, marketing managers, product managers, and product engineers.
The tiers of the companies are defined based on their total revenue as of 2018; Tier 1: USD 1 billion, Tier 2: USD 500 million–1 billion, and Tier 3:
The report defines, describes, and forecasts the global transformer oil market by type, application, end-user, and region. It also offers a detailed qualitative and quantitative analysis of the market. The report provides a comprehensive review of the major market drivers, restraints, opportunities, and challenges. It also covers various important aspects of the market. These include the analysis of the competitive landscape, market dynamics, market estimates, in terms of value, and future trends in the transformer oil market.