Transformer Oil Market is anticipated to reach over USD 3 billion by 2024. Growing demand for the upgradation of conventional grid infrastructure along with government funding for capacity addition will drive the product demand. For instance, the U.S. government under the Grid Modernization Initiative declared an investment worth USD 220 million in 2016 for the revival of the power grid thereby making the grid more affordable, resilient and sustainable.

Silicon based transformer oil market will witness growth of over 6.5% by 2024. Self-extinguishing nature, high flash & fire point, non-hazardous nature and low heat releasing properties are some of the key features that will escalate the product demand across the industry. However, growing adoption of bio-based oil is expected to offer competitive edge to silicon-based oils.

Transformer oil market in UK is anticipated to reach over 6% by 2024. Increasing demand for the replacement of existing grid networks along with the development of renewable energy infrastructure will strengthen the business outlook. Development of inter region transmission and distribution networks coupled with government supported electrification programs will further enhance the industry landscape.

Increasing demand for power has resulted in the widespread installation of new transformer units which in turn will drive the transformer oil market. Rising investments toward rural electrification along with considerable funding from nonprofit organizations will further propel the industry outlook. For instance, the electrical grid infrastructure in Southeast Asia attracted an investment worth USD 6.5 million from the Asian Development Bank in 2017.

Power transformers accounted for over 55% of the global transformer oil market share in 2017. Stringent regulatory measures for the development of energy efficient grids coupled with expansion of power networks in developing nations will strengthen the product demand. Extensive use of power transformers at the receiving and finishing end of high voltage transmission lines will further stimulate the industry landscape.

The China transformer oil market in 2017, accounted for over USD 250 million. Increasing investment for the restoration of aging grid infrastructure coupled with rapid urbanization will boost the industry growth. The National Energy Administration of China in 2015 announced its five-year investment plan toward power grid construction and restoration. Furthermore, an investment worth USD 302 billion was made to expand the transmission lines comprising of medium and high voltage networks.

Eminent industry leaders in the transformer oil market include APAR industries, Calumet, Valvoline, Cargill, Hydrodec, Nynas, Clearco, Electrical Oil Services, DOW Chemical and Engen amongst others. Strengthened distributary network annexed with product accreditations and cost competitiveness will serve as a vital strategic asset offering competitive edge across the industry.