The global transformer oil market mainly depicts the presence of a strongly consolidated vendor landscape, says Transparency Market Research, on the basis of a recently published research report. Such a state of consolidation is likely to remain in a similar situation over the upcoming few years. This consolidated vendor landscape mainly exists due to the presence of a handful of players. To be more specific, four leading players in the market – ExxonMobil, Shell, Nynas AB, and Sinopec, comprised over 45% of the total shares in the global transformer oil market in 2015. Most companies are focusing on developing novel, safe, and green bio-based transformer oils from a commercial perspective, which can be sold at competitive prices. Many businesses in the global transformer oil market are making extensive efforts to reinforce their status by improving product quality and enhancing product rates.
As per expert analysts, the global transformer oil market was valued at US$1.99 bn in 2015, which is further expected to register revenue valued at US$3.26 bn by the end of 2024. This growth is projected to occur at an impressive CAGR of 5.70% during the forecast period ranging from 2016 to 2024.
Increasing need for More Power Leads to High Demand of Transformer Oil
Rising need for more power and increased requirement for state-of-the-art energy infrastructure is primarily responsible for driving the global transformer oil market. This is mainly due to the existence of an increasing demand for more power as a result of surging global population along with rapid urbanization and industrialization. With rapidly enhancing power infrastructural setups in developing economies such as China and India, the market is prophesized to progress with leaps and bounds. In addition, continuous renovations and repairs occurring in the existing power sector infrastructure too has been responsible for driving the global transformer oil market. This is mainly due to the requirement of the transformer oil present on a large-scale perspective while undertaking repairs and renovations.
High Costs of Manufacturing Transformer Oil Products Stunts Progress
However, use of transformer oil and associated systems still witnesses a low acceptance rate in many regions, consequently posing as a key factor hindering the market’s growth. Moreover, high costs of the oil as well as setting up required equipment from a long-term perspective might discourage those having less disposable income from not opting for the systems, owing to a costly end output. Another growth hampering factor involves the increasing use of smart and dry transformers in the form of alternatives, which do not require the use of transformer oil. Nevertheless, several companies are coming up with quality innovations with regards to the production of transformer oil. This could certainly help offset most restraints affecting the global transformer oil market.
The information presented in this review is based on a Transparency Market Research report, titled, “Transformer Oil Market (Product – Mineral Oil (Naphthenic Oil and Paraffinic Oil), Silicone-based Oil, and Bio-based Oil; Application – Power Transformers and Distribution Transformers – Global Industry Analysis Size Share Growth Trends and Forecast 2016 – 2024.”
Rising need for more power and increased requirement for state-of-the-art energy infrastructure is primarily responsible for driving the global transformer oil market.
Most companies are focusing on developing novel, safe, and green bio-based transformer oils from a commercial perspective, which can be sold at competitive prices.