The global transformer oil market size was estimated at USD 2.73 billion in 2023 and is anticipated to expand at a compound annual growth rate (CAGR) of 12.3% from 2024 to 2030. This is attributed to the steadily growing power sector globally, along with advancements in electric grids in emerging economies. Every power and distribution transformer contains dielectric insulating fluid with strong electricity resistance and the ability to keep a transformer cool. Bio-based products are more fire resistant than others, thus expected to witness the highest growth till 2030. Since bio-based oils are fully non-toxic, which further facilitates disposal, they provide reliable and cleaner products. The demand for bio-based products is also anticipated to grow as a result of an increase in the installation of transformers occurring globally. Power utilities are also focusing on upgrading the safety and performance of both new and existing transformers, which is predicted to boost demand for bio-based products globally.

Stringent regulation imposed by government bodies concerning energy wastage is expected to be the major challenge for product demand. For instance, the U.S. Environmental Protection Agency (EPA) has set up strict regulations on oil demand to control electricity wastage. Additionally, developed and developing economies are opting for green and environmental-friendly technologies, which are expected to restrain the growth of mineral-based products.

Transformer Oil Market Report Highlights

• By product, the bio-based segment is expected to register the fastest CAGR of 14.8% over the forecast period in terms of revenue due to growing regulations that are focused on reducing carbon emissions and increasing energy conservation
• By end-use, the residential segment is expected to register the fastest CAGR of 12.7% in terms of revenue over the forecast period owing to the growing population across the globe leading to an increase in the residential sector
• Asia Pacific is expected to register the fastest CAGR of 13.8% in terms of revenue over the forecast period owing to rapid industrialization in rural areas and investments by foreign bodies in the developing economies
• There is a significant demand for silicone-based products because of their capacity to extinguish themselves, making them acceptable for high-risk areas with possible fire threats. Due to their durability and lack of major maintenance requirements, silicones also contribute to longer transformer life
• In developing countries, the replacement of outdated transformers with new ones and technological advancements are anticipated to create numerous attractive job opportunities
• The U.S. Environmental Protection Agency, the Electricity Cogeneration Regulatory Authority, and other federal agencies have adopted strict restrictions surrounding energy waste, and this has fueled demand for oil to reduce emissions and electricity waste.

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• The global aerospace lubricants market sizewas valued at USD 2.13 billion in 2023 and is projected to grow at a CAGR of 5.0% from 2024 to 2030.
• The global polymer modified bitumen market size was valued at USD 12.86 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 4.0% from 2024 to 2030.

Segments Covered in the Report

Grand View Research has segmented the global transformer oil market  based on product, rating, end-use, and region:

Transformer Oil Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

• Mineral-based Oils
  • Naphthenic Base Oils
  • Paraffinic Base Oils
• Silicone-based Oils
• Bio-based Oils

Transformer Oil Rating Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

• 100 MVA
• 100 MVA to 500 MVA
• 501 MVA to 800 MVA
• 800 MVA

Transformer Oil End-use Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

• Utilities
• Industrial
• Residential
• Commercial

Transformer Oil Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 - 2030)

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Indonesia
• Central America
  • Brazil
  • Argentina
• Middle East Africa
  • Saudi Arabia
  • South Africa
  • Turkey

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