Transformer Oil Market: Current Analysis and Forecast (2021-2027)

Report Description

Global transformer oil market was valued approximately USD 2 billion in 2020 and is expected to grow at a CAGR of around 6% during the forecast period (2021-2027). Surging consumption of electricity in developing countries are escalating the adoption electric grid which in turn has positively influence the market demand for transformer oil. Others factors that are driving the market demand for transformer oil is mainly owing to surging power consumption, increasing expansion of electric grid in developing countries coupled with implementation of regulatory reforms for the development of a reliable grid network along with increasing investments in power sector further contribute to the growth of the transformer oil market. However, factors such as volatility in crude oil prices and increasing adoption of dry transformers are expected to hamper the market growth.

The COVID-19 pandemic has had a negative impact on specialty chemical manufacturers. The decline in the prices of crude oil has enabled a majority of transformer oil manufacturers to achieve reduced raw material costs. However, depending upon the capital availability and financial conditions, utilities defer some of their generation and T&D investments, thus affecting transformer manufacturing activities the coupled with issues related to procurement and logistics due to the supply chain breakdown had also negative impact on the transformer oil market. Hence, increasing the cost of production which will have a cascading effect on the selling price of the transformer oil.

Different Types of Transformer Oil, 2020

Apar Industries Limited, Cargill Incorporated, China Petroleum & Chemical Corporation, Engen Limited, Ergon Inc., Gandhar Oil Refinery (India) Limited, Hydrodec Group plc, Nynas AB, San Joaquin Refining Co. Inc., Valvoline Inc. are some of the prominent players operating in the global transformer oil market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.

Insights Presented in the Report

“Amongst Oil Type, Mineral based Oil segment holds the major share”

Based on Oil Type, the market is segmented into mineral based, silicon and bio-based. Currently, mineral based oil segment captured considerable market share. It is mainly owing to its low cost and easy availability compared to other types of transformer oils.

 “Amongst Application, Transformer segment holds the major share”

Based on Application, the market is classified into transformer, reactor and switchgear. Currently, transformer holds considerable demand and expected to grow at an influential rate in the projected period. It is mainly owing to the to rising power demands resulted in the upgrade and expansion of electric grids as a result escalated the installation of transformers.

“Amongst End-User, Transmission and Distribution segment holds the major share”

Based on End-Users, the market is segmented transmission and distribution, railways and metros, power generation and others. Transmission and distribution holds significant share in the transformer oil market and expected to have influential growth rate in the forecasted period as well. As growing demand for power would 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.

“Asia Pacific represents one of the largest markets of Global Transformer Oil Market”

For a better understanding of the market dynamics of the global Transformer Oil market, a detailed analysis was conducted for different regions including Asia Pacific, North America, Europe and Rest of the World. Asia Pacific constitutes the largest market for the industry and expected to have an influential growth rate in the projected years predominantly due to growth of industrial and commercial sectors, will lead to an increase in the number of substations which in turn would generate the demand for transformer oil.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
• The report presents a quick review of overall industry performance at one glance
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry

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Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future market of the global transformer oil market were the three major steps undertaken to create and analyze the adoption of transformer oil system in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global transformer oil market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the global transformer oil market through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the global transformer oil market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as oil type, application, end-users. Further, country-level analyses were conducted to evaluate the overall adoption of testing models in that region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of global transformer oil market. Further, we conducted factor analysis using dependent and independent variables such as increasing power demand and growing transmission & distribution activities. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, merger and acquisition, business expansion, and product launches in the global transformer oil market sector across the globe.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global transformer oil market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., top-down/bottom-up approach was applied to arrive at the market forecast about 2027 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of value (US$) and the adoption rate of global transformer oil market across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the global transformer oil market in terms of oil type, application, end-user. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the global transformer oil market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of oil type, application, end-users of the global transformer oil market.

The main objective of the Global Transformer Oil Market Study

The current & future market trends of global transformer oil market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of global transformer oil market in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include areas of oil type, application and end-user.
• Define and analysis of the regulatory framework for the global transformer oil market industry
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
• Analyze the current and forecast market size of the global transformer oil market for the major region
• Major regions studied in the report include Asia Pacific, Europe, North America and Rest of the world.
• Company profiles of the global transformer oil market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive regional level analysis of the industry