Published: 2019 April 09
Updated : 2023 March 17

Transformer Oil Market Size, Competitive Landscape and Market Forecast - 2030

SKU : EP386
180 pages
Report Summary
Table Of Content
List of Tables & Figures

Transformer Oil Market is segmented By Type (Paraffinic Mineral Oil-Based, Naphthenic Mineral Oil-Based, Silicone-Based, Bio-based oil, Others), By Application (Distribution Transformer, Power Transformer, Instrument Transformer, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030


Transformer Oil Market Overview

Transformer Oil Market size was worth US$ XX million in 2023 and is estimated to reach US$ XX million by 2030, growing at a CAGR of XX% during the forecast period (2023-2030).Transformer oil is a special oil with outstanding electrical insulating properties and is also known as insulating oil or mineral-based oil,

which is recognized for its dielectric strength. The transformer oil stabilizes the transformer's heat and prevents arcing. The oil acts as a coolant, which protects the windings and core because these two are submerged within the oil. The oil is a key element in checking the physical condition of the unit. The oil used in the transformer works like a cooling agent and an insulator.

Transformer Oil Market Scope and Summary



Market CAGR


Segments Covered

By Type, By Application, By End-User, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America


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Transformer Oil Market Dynamics and Trends

The power and distribution transformer is filled with dielectric insulating fluid, which strongly resists electricity and keeps the transformer cool. Bio-based products are fully non-toxic and free of PCBs, facilitating disposal and providing reliable and cleaner products. Bio-based products are more fire-resistant than their peers. Thus, power utilities are focusing on upgrading the performance and safety of new and existing transformers, which is expected to boost the demand for bio-based products globally. The connection of new transformers has been compelled by the rising global demand for power, which is estimated to accelerate the market. 

The adoption of bio-based oil drives the growth of the global market

Bio-based transformer oil is made from renewable resources, such as vegetable oils, which can be easily replenished, unlike mineral oil which is a finite resource. Bio-based oil is cost-effective as it is made from inexpensive raw materials and does not require additional treatments. It offers high performance and can withstand high temperatures, pressure and extreme weather conditions. Further, bio-based transformer oil is non-toxic, non-flammable and non-corrosive, making it safe. 

The growing interest in the environment and the need to reduce carbon emissions is driving the adoption of bio-based transformer oil, made from renewable and biodegradable resources that don't release harmful chemicals into the environment. Additionally, government regulations and policies to promote bio-based products are driving the adoption of bio-based transformer oil. Thus, the growing adoption of bio-based transformer oil is driving the growth of the global transformer oil market as it offers environmental benefits, government regulations, cost-effectiveness, high performance, safe to use and renewable resources.

The regulations and environmental policies, fluctuating raw material prices and growing adoption of dry-type transformers 

The global transformer oil market is restrained by various factors, such as stringent regulations on the disposal of used transformer oil, which can be environmentally hazardous. The high cost of transformer oil and associated maintenance costs may affect the market growth. The limited availability of raw materials used in the production of transformer oil affects the supply chain and the oil cost may be increased, which is one factor restraining the market. The growing adoption of dry-type transformers, which do not require the use of transformer oil and fluctuations in crude oil prices, can affect the pricing of transformer oil. The above factors may hamper the growth of the transformer oil market. waste. 

COVID-19 impact analysis on Transformer Oil Market 

The COVID-19 pandemic has had a mixed impact on the global transformer oil market. The COVID-19 pandemic has significantly impacted the global transformer oil market. Many countries went into lockdown and the electricity demand fell, leading to a decrease in the use of transformer oil. Further, the price of crude oil, which is used to produce transformer oil, fluctuated extensively during the pandemic, thus further affecting the market. However, while the decrease in demand from many industries has negatively impacted the market, the increased focus on maintaining the power supply has provided some support.

It's important to note that the situation is fluid in some countries, including China and the market could change in response to the evolution of the pandemic and the government's actions. An increased focus on maintaining the continuity of power supply, particularly in healthcare and other essential services, leads to frequent supply of transformers and their oil. It has increased demand for transformer oil to maintain, repair and replace transformers.

Transformer Oil Market Segment Analysis

The global transformer oil market is segmented into oil type, application, end-user and region. 

Owing to the higher demand for electricity and the need for distribution & transmission, the transmission & distribution end-user segment dominates globally 

The transmission and distribution end-user segment dominates the global transformer oil market due to the high demand for electricity and the need to transmit and distribute it efficiently. Transformers in transmission and distribution systems require transformer oil for insulation and cooling. As the demand for electricity increases and transmission and distribution networks are expanded, the demand for transformer oil also increases. Additionally, the maintenance and replacement of existing transformer oil in transmission and distribution systems contribute to market growth.

Transformer Oil Market Geographical Share

The global transformer oil market is segmented into oil type, application, end-user and region. 

The increase in demand for electricity and the need to expand transmission and distribution networks  and the high presence of key transformer manufacturers in the region supplements the growth of the Asia-Pacific transformer oil market

The Asia-Pacific dominates the global transformer oil market due to several factors. Firstly, the region has a rapidly growing population and urbanization, which leads to an increase in demand for electricity and the need to expand transmission and distribution networks. The respective fact drives the demand for transformer oil as it is used in transmission and distribution systems. Additionally, the region has many developing countries, such as China and India, investing heavily in their infrastructure, including power generation and transmission and distribution networks. This also contributes to the market growth in the region. Furthermore, the presence of major transformer manufacturers and vendors in the region also supports market growth. 

Transformer Oil Companies and Competitive Landscape

The global transformer oil market is competitive due to the availability of a wide range of Transmission & Distribution & distribution that caters to different applications. The major players contributing to growth in the market are Nynas AB, Sinopec lubricant company, Valvoline, Cargill Inc, Ergon International Inc, PetroChina lubricant company, Calumet specialty products, Apar industries Ltd., Engen petroleum Ltd. and Hydrodec Group plc. The major players in the market adopt several growth strategies such as formulating and patenting new molecules, researching new sources, collaborations and joint ventures to contribute to growth in the industry.

Nynas AB

Overview: Nynas AB is a specialty oil company that produces and sells naphthenic specialty oils, bitumen and other products derived from crude oil. It operates in more than 30 countries worldwide and its products are used in various industrial applications such as lubricants, electrical insulation, fuel additives, rubber and plastics.

The company was established in 1929 and is headquartered in Stockholm, Sweden. It is a privately held company owned by the Venezuelan state oil company PDVSA. Nynas specializes in refining heavy crude oil into specialty products used in various industrial and consumer applications. The company's core business is the production of naphthenic specialty oils used in various industrial applications such as lubricants, electrical insulation, fuel additives, rubber and plastics. Nynas operates two refineries, one in Harburg, Germany and the other in Gothenburg, Sweden. The company also has an R&D center in Hamburg, Germany, where it develops new products and technologies to meet the changing needs of its customers.

Product Portfolio

  • Transformer oils: The products are used in other electrical devices, including high-voltage switches, circuit breakers and insulating and cooling transformers. Transformer oils must be capable of long-term stability at high temperatures.

Key Developments

  • In October 2022, One of the world's top producers of naphthenic oil, Nynas AB, introduced NYTRO RR 900X, a circular transformer fluid built on the most potent and efficient re-refining technology. The company gives utilities and OEMs the chance to participate in the circular economy and help meet greenhouse gas reduction goals by introducing NYTRO RR 900X.

The global transformer oil market report would provide approximately 57 market data tables, 61 figures and 210 pages.

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What is the Transformer Oil Market growth?
The market is growing at a CAGR of 7.54%.
Who are the key players in the Transformer Oil Market?
Nynas AB, Royal Dutch Shell Plc, and Columbia Petro Chem Pvt. Ltd is the leading supplier of transformer oils in the world.