Transformer Oil Market

Transformer Oil Market

Transformer Oil Market Forecasts to 2028 – Global Analysis By Oil Type (Mineral Oil, Silicone), Function (Insulator, Lubricant), Application (Reactor, Switchgear) and By Geography

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4.8 (15 reviews)
Published: 2022 ID: SMRC21338

This report covers the impact of COVID-19 on this global market

Years Covered


Estimated Year Value (2021)

US $1.96 BN

Projected Year Value (2028)

US $3.49 BN

CAGR (2021 - 2028)


Regions Covered

North America, Europe, Asia Pacific, South America, and Middle East & Africa

Countries Covered

US, Canada, Mexico, Germany, UK, Italy, France, Spain, Japan, China, India, Australia, New Zealand, South Korea, Rest of Asia Pacific, South America, Argentina, Brazil, Chile, Middle East & Africa, Saudi Arabia, UAE, Qatar, and South Africa

Largest Market

Asia Pacific

Highest Growing Market

North America

According to Stratistics MRC, the Global Transformer Oil Market is accounted for $1.96 billion in 2021 and is expected to reach $3.49 billion by 2028 growing at a CAGR of 8.6% during the forecast period. Transformer Oil is oil that is stable at high temperatures and an exceptional insulator for electricity. This transformer oil is majorly derivatives of mineral oils, but substitute composition with better physical and chemical properties is growing in demand. Transformer oil is used in electrical power transformers to serve as a coolant and suppress corona discharge.

Market Dynamics:


Rising Electric Grids and its Modernization

Most of the world’s network of electricity generation, transmission and distribution resources is getting old. The need to upgrade technologies in order to reliably incorporate new systems, changing market dynamics and shifting consumer preferences is also rising. The technological modifications are outperforming both infrastructure capabilities and policy development while everyone seeks for ways to sync current policies with a rapidly changing energy market. Furthermore, the Office of Electricity (OE) is working to transform, strengthen, and improve energy infrastructure to guarantee access to reliable, secure, and clean sources of energy with its public and private partners. Additionally, the increase in installation of new transformer and switchgears and investments in the expansion of T&D system and grid network and by emerging economies to provide the potential increase in power demand owing to the growing urbanization and industrialization is also anticipated to fuel the demand for transformer oil.


Environmental Concerns Associated With the Usage of Mineral-Based Transformer Oil 

Naphthenic mineral oil has long been the most preferred transformer oil because of its high efficiency, easy availability, and its useful chemical properties such as good pour point at low temperature and exceptional thermal cooling capacity. Adoption of paraffinic mineral oil had gained traction over the years, due to its excellent oxidation stability. Though, both paraffinic and naphthenic variants of the mineral oil are products of highly refined, purified, and processed petroleum, thus being highly non-biodegradable. The mineral oil is characterized by biodegradability ranging from 0–40% and is sourced from a non-renewable resource. The global economies, both the developed and the developing, are transitioning towards adopting green and environmentally friendly technologies. This transition might hinder the adoption of mineral-based transformer oils in the near future, and become a restraint to the mineral oil market over the long run.


Growth in Cross-Border Electricity Trade

Cross-border electricity trade has gained traction in the recent past and the number of economies participating in the electricity trade has exponentially increased over the years. For instance, the European Union (EU) is planning to strengthen the power grids of individual countries and establish a pan-European grid. Recently, the Indian Energy Exchange (IEX) has proposed to create an integrated South Asian regional power market through cross-border electricity trade involving countries such as Myanmar, Bhutan, Sri Lanka, Bangladesh, and Nepal. These developments are likely to result in the expansion of the grid network and the setting up of new transmission lines, ultimately increasing the demand for transformer and switchgears, and also for transformer oils over the coming years.


Instabilities in Crude Oil Prices

Crude oil is the most important energy resource to conduct economic activities, and the uncertainty in the evolution of crude oil prices has an important effect on economic stability. Transformer oil is a highly refined, processed, and purified product of crude oil. Therefore, the fluctuations in the price of crude oil will have a direct impact on the transformer oil manufacturers, creating a situation of uncertainty. However, prices had witnessed a rising trend, which resulted in higher demand for production enhancement activities. Because of these situations of uncertainty, brought about by the fluctuation of crude oil prices, the decision to buy crude oil for the right price becomes difficult for the transformer oil manufacturers.

Transmission & Distribution segment is expected to be the largest during the forecast period

The transmission & distribution segment has the largest share of the Transformer Oil Market owing to the global growth in the production and consumption of electricity. Transmission & distribution utilities own and operate the transmission & distribution system. Thus, growing demand for power will necessitate the expansion of the transmission & distribution network, thereby enhancing the demand for electrical components, such as transformers, reactors, and switchgears, leading to an increase in the demand for transformer oil.

The Mineral Oil segment is expected to have the highest CAGR during the forecast period

The Mineral Oil segment has emerged as the dominant raw material segment. The Mineral Oil is further segmented into Naphthenic oil and Paraffinic oil. Mineral Transformer Oil is primarily used in insulating and cooling processes by transformers, reactors, and switchgear. Mineral oil enhances the dielectric strength of the winding and prevents oxidation of the core by surrounding a transformer core-coil assembly. Mineral oil has a low-cost index and is easily available over other types of oils, which are fuelling the transformer oil market growth for this segment.

Region with largest share:

The Asia Pacific is projected to hold the highest market share, due to the rising demand for electricity in densely populated countries such as India and China, the development of grid infrastructure, and increasing investments in the power sector. With an extensive demand for energy grids in the emerging economies of the developing nations of India and China, supply is expected to rise to an eye-raising amount. China is the leading manufacturing hub in the province due to the industrial revolution which augmented the trading of transformer oils and transformers. The increasing necessity to upgrade & transform existing electricity distribution infrastructure in developing countries such as India, China, Vietnam, Thailand, and Indonesia in the Asia Pacific area is one of the key driving factors for the growing demand for transformer oil.

Region with highest CAGR:

North America is projected to have the highest CAGR, due to modernization, technical upgrade, and improvement of the already present transformers, and manufacturing new transformers as per consumer's demand is on the rise in the North American section, giving rise to the interest of investors and manufacturers in the region. Increasing Investment and improvement in the power grid lead to growth in the number of substations is expected to boost the demand for transformers, resulting in the growth of the transformer oil demand in the North America region.

Key players in the market:

Some of the key players profiled in the Transformer Oil Market include Apar Industries Limited, Cargill, Incorporated, China Petroleum & Chemical Corporation, Dairen Chemical Corp, Eden Oils., Engen Limited, Ergon Inc., Gandhar Oil Refinery (India) Limited, Hydrodec Group plc, Nynas AB, Royal Dutch Shell, San Joaquin Refining Co. Inc., Valvoline Inc.

Key developments:

In January 2020: Ergon International expanded its naphthenic refinery in Vicksburg, Mississippi, which help the company position itself, ensuring its longevity of systems and operations while performing the activity.

In March 2020: Nynas AB, announced that it extended the product reach of NYTRO BIO 300X transformer oil in the Middle East, which is the world’s first high-performance bio-based transformer hydrocarbon fluid produced from renewable sources.

In December 2021: Cargill has announced the opening of its first FR3 natural ester fluid manufacturing facility located at Yangjiang of Guangdong Province, publicizing FR3 as a superior-performing transformer fluid, which is better and more reliable for the planet than mineral oil.

Oil Types Covered:
• Mineral Oil
• Synthetic Oils
• Silicone
• Bio-Based
• Other Oil Types

Functions Covered:
• Chemical Stabilizer
• Cooling Agent
• Insulator
• Lubricant

Transformer Types Covered:
• Distribution Transformer
• Instrument Transformer
• Large-Scale Transformers
• Power Transformer
• Small-Scale Transformers
• Transformer
• Utility Transformers
• Oil Filled Transformer  

Applications Covered:
• Circuit Breakers
• Reactor
• Switchgear
• Other Applications

End Users Covered:
• Residential
• Commercial
• Industrial
• Transmission and Distribution
• Railways & Metros
• Power Generation  

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan       
o China       
o India       
o Australia 
o New Zealand
o South Korea
o Rest of Asia Pacific   
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025 and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances

Table of Contents

1 Executive Summary    
2 Preface    

 2.1 Abstract   
 2.2 Stake Holders   
 2.3 Research Scope   
 2.4 Research Methodology   
  2.4.1 Data Mining  
  2.4.2 Data Analysis  
  2.4.3 Data Validation  
  2.4.4 Research Approach  
 2.5 Research Sources   
  2.5.1 Primary Research Sources  
  2.5.2 Secondary Research Sources  
  2.5.3 Assumptions  
3 Market Trend Analysis    

 3.1 Introduction   
 3.2 Drivers   
 3.3 Restraints   
 3.4 Opportunities   
 3.5 Threats   
 3.6 Application Analysis   
 3.7 End User Analysis   
 3.8 Emerging Markets   
 3.9 Impact of Covid-19   
4 Porters Five Force Analysis    
 4.1 Bargaining power of suppliers   
 4.2 Bargaining power of buyers   
 4.3 Threat of substitutes   
 4.4 Threat of new entrants   
 4.5 Competitive rivalry   
5 Global Transformer Oil Market, By Oil Type    
 5.1 Introduction   
 5.2 Mineral Oil   
  5.2.1 Naphthenic Inhibited Uninhibited 
  5.2.2 Paraffinic Inhibited Uninhibited 
  5.2.3 Aromatic Oils  
 5.3 Synthetic Oils   
  5.3.1 Dibutyl Phthalate  
  5.3.2 Diisobutyl adipate  
  5.3.3 Dioctyladipate  
 5.4 Silicone   
 5.5 Bio-Based   
 5.6 Other Oil Types   
  5.6.1 Esters  
  5.6.2 Fluorocarbon  
  5.6.3 Nanofluids  
  5.6.4 Tetra Fatty Acids  
6 Global Transformer Oil Market, By Function    
 6.1 Introduction   
 6.2 Chemical Stabilizer   
 6.3 Cooling Agent   
 6.4 Insulator   
 6.5 Lubricant   
7 Global Transformer Oil Market, By Transformer Type    
 7.1 Introduction   
 7.2 Distribution Transformer    
 7.3 Instrument Transformer   
 7.4 Large-Scale Transformers   
 7.5 Power Transformer   
 7.6 Small-Scale Transformers   
 7.7 Transformer   
 7.8 Utility Transformers       
 7.9 Oil Filled Transformer   
8 Global Transformer Oil Market, By Application    

 8.1 Introduction   
 8.2 Circuit Breakers   
 8.3 Reactor   
 8.4 Switchgear   
 8.5 Other Applications   
  8.5.1 Fluorescent Lamp Ballasts  
  8.5.2 Generators  
  8.5.3 High Voltage Switches  
  8.5.4 High-Voltage capacitors  
  8.5.5 Submersible  
  8.5.6 Welding Set  
  8.5.7 X-Ray Machine  
9 Global Transformer Oil Market, By End User    
 9.1 Introduction    
 9.2 Residential   
 9.3 Commercial   
 9.4 Industrial   
 9.5 Transmission and Distribution   
 9.6 Railways & Metros   
 9.7 Power Generation   
10 Global Transformer Oil Market, By Geography    
 10.1 Introduction   
 10.2 North America   
  10.2.1 US  
  10.2.2 Canada  
  10.2.3 Mexico  
 10.3 Europe   
  10.3.1 Germany  
  10.3.2 UK  
  10.3.3 Italy  
  10.3.4 France  
  10.3.5 Spain  
  10.3.6 Rest of Europe  
 10.4 Asia Pacific   
  10.4.1 Japan  
  10.4.2 China  
  10.4.3 India  
  10.4.4 Australia  
  10.4.5 New Zealand  
  10.4.6 South Korea  
  10.4.7 Rest of Asia Pacific  
 10.5 South America   
  10.5.1 Argentina  
  10.5.2 Brazil  
  10.5.3 Chile  
  10.5.4 Rest of South America  
 10.6 Middle East & Africa   
  10.6.1 Saudi Arabia  
  10.6.2 UAE  
  10.6.3 Qatar  
  10.6.4 South Africa  
  10.6.5 Rest of Middle East & Africa  
11 Key Developments    
 11.1 Agreements, Partnerships, Collaborations and Joint Ventures   
 11.2 Acquisitions & Mergers   
 11.3 New Product Launch   
 11.4 Expansions   
 11.5 Other Key Strategies   
12 Company Profiling    
 12.1 Apar Industries Limited   
 12.2 Cargill Incorporated   
 12.3 China Petroleum & Chemical Corporation   
 12.4 Dairen Chemical Corp   
 12.5 Eden Oils   
 12.6 Engen Limited   
 12.7 Ergon Inc   
 12.8 Gandhar Oil Refinery (India) Limited   
 12.9 Hydrodec Group plc   
 12.10 Nynas AB   
 12.11 Royal Dutch Shell   
 12.12 San Joaquin Refining Co Inc   
 12.13 Valvoline Inc   

List of Tables     
1 Global Transformer Oil Market Outlook, By Region (2019-2028) (US $MN)     
2 Global Transformer Oil Market Outlook, By Oil Type (2019-2028) (US $MN)     
3 Global Transformer Oil Market Outlook, By Mineral Oil (2019-2028) (US $MN)     
4 Global Transformer Oil Market Outlook, By Naphthenic (2019-2028) (US $MN)     
5 Global Transformer Oil Market Outlook, By Paraffinic (2019-2028) (US $MN)     
6 Global Transformer Oil Market Outlook, By Aromatic Oils (2019-2028) (US $MN)     
7 Global Transformer Oil Market Outlook, By Synthetic Oils (2019-2028) (US $MN)     
8 Global Transformer Oil Market Outlook, By Dibutyl Phthalate (2019-2028) (US $MN)     
9 Global Transformer Oil Market Outlook, By Diisobutyl adipate (2019-2028) (US $MN)     
10 Global Transformer Oil Market Outlook, By Dioctyladipate (2019-2028) (US $MN)     
11 Global Transformer Oil Market Outlook, By Silicone (2019-2028) (US $MN)     
12 Global Transformer Oil Market Outlook, By Bio-Based (2019-2028) (US $MN)     
13 Global Transformer Oil Market Outlook, By Other Oil Types (2019-2028) (US $MN)     
14 Global Transformer Oil Market Outlook, By Esters (2019-2028) (US $MN)     
15 Global Transformer Oil Market Outlook, By Fluorocarbon (2019-2028) (US $MN)     
16 Global Transformer Oil Market Outlook, By Nanofluids (2019-2028) (US $MN)     
17 Global Transformer Oil Market Outlook, By Tetra Fatty Acids (2019-2028) (US $MN)     
18 Global Transformer Oil Market Outlook, By Function (2019-2028) (US $MN)     
19 Global Transformer Oil Market Outlook, By Chemical Stabilizer (2019-2028) (US $MN)     
20 Global Transformer Oil Market Outlook, By Cooling Agent (2019-2028) (US $MN)     
21 Global Transformer Oil Market Outlook, By Insulator (2019-2028) (US $MN)     
22 Global Transformer Oil Market Outlook, By Lubricant (2019-2028) (US $MN)     
23 Global Transformer Oil Market Outlook, By Transformer Type (2019-2028) (US $MN)     
24 Global Transformer Oil Market Outlook, By Distribution Transformer  (2019-2028) (US $MN)     
25 Global Transformer Oil Market Outlook, By Instrument Transformer (2019-2028) (US $MN)     
26 Global Transformer Oil Market Outlook, By Large-Scale Transformers (2019-2028) (US $MN)     
27 Global Transformer Oil Market Outlook, By Power Transformer (2019-2028) (US $MN)     
28 Global Transformer Oil Market Outlook, By Small-Scale Transformers (2019-2028) (US $MN)     
29 Global Transformer Oil Market Outlook, By Transformer (2019-2028) (US $MN)     
30 Global Transformer Oil Market Outlook, By Utility Transformers (2019-2028) (US $MN)           
31 Global Transformer Oil Market Outlook, By Oil Filled Transformer (2019-2028) (US $MN)     
32 Global Transformer Oil Market Outlook, By Application (2019-2028) (US $MN)     
33 Global Transformer Oil Market Outlook, By Circuit Breakers (2019-2028) (US $MN)     
34 Global Transformer Oil Market Outlook, By Reactor (2019-2028) (US $MN)     
35 Global Transformer Oil Market Outlook, By Switchgear (2019-2028) (US $MN)     
36 Global Transformer Oil Market Outlook, By Other Applications (2019-2028) (US $MN)     
37 Global Transformer Oil Market Outlook, By Fluorescent Lamp Ballasts (2019-2028) (US $MN)     
38 Global Transformer Oil Market Outlook, By Generators (2019-2028) (US $MN)     
39 Global Transformer Oil Market Outlook, By High Voltage Switches (2019-2028) (US $MN)     
40 Global Transformer Oil Market Outlook, By High-Voltage capacitors (2019-2028) (US $MN)     
41 Global Transformer Oil Market Outlook, By Submersible (2019-2028) (US $MN)     
42 Global Transformer Oil Market Outlook, By Welding Set (2019-2028) (US $MN)     
43 Global Transformer Oil Market Outlook, By X-Ray Machine (2019-2028) (US $MN)     
44 Global Transformer Oil Market Outlook, By End User (2019-2028) (US $MN)     
45 Global Transformer Oil Market Outlook, By Residential (2019-2028) (US $MN)     
46 Global Transformer Oil Market Outlook, By Commercial (2019-2028) (US $MN)     
47 Global Transformer Oil Market Outlook, By Industrial (2019-2028) (US $MN)     
48 Global Transformer Oil Market Outlook, By Transmission and Distribution (2019-2028) (US $MN)     
49 Global Transformer Oil Market Outlook, By  Railways & Metros (2019-2028) (US $MN)     
50 Global Transformer Oil Market Outlook, By Power Generation  (2019-2028) (US $MN)     
Note- Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.    

List of Figures


Research Methodology

We at Stratistics opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.

Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.

Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.

Data Mining

The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.

Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.

Data Analysis

From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:

  • Product Lifecycle Analysis
  • Competitor analysis
  • Risk analysis
  • Porters Analysis
  • PESTEL Analysis
  • SWOT Analysis

The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.

Data Validation

The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.

We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.

The data validation involves the primary research from the industry experts belonging to:

  • Leading Companies
  • Suppliers & Distributors
  • Manufacturers
  • Consumers
  • Industry/Strategic Consultants

Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.

For more details about research methodology, kindly write to us at

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