The size of the global Transformer Oil market was worth around USD 2.5 billion in 2021 and is predicted to grow to around USD 3.8 billion by 2030 with a compound annual growth rate (CAGR) of roughly 7% between 2022 and 2030.

The report analyses the Transformer Oil market’s drivers and restraints and the impact they have on-demand throughout the projection period. In addition, the report examines global opportunities in the global Transformer Oil market.

Transformer Oil Market: Overview

Transformer oil, commonly called insulating oil, is a unique oil with great electrical insulation and high-temperature stability. Oil is used in oil-immersed transformers as insulation, to prevent discharge and aura discharge, and to dissipate heat from the transformer (i.e., acting as a coolant).

By completely submerging them in the oil, transformer oil is also used to preserve the transformer’s core and windings. The insulating oil’s ability to stop the oxidation of cellulose-based paper insulation is another significant quality. The transformer oil acts as a barrier to prevent direct contact between the oxygen in the air and the cellulose, so reducing oxidation. With the use of a Magnetic Oil Level Gauge, the transformer oil level is determined.

Browse the full “Transformer Oil Market Size, Trends and Insights By Product (Mineral-based oils,  Naphthenic Base Oil, Paraffinic Base Oil, Silicone-based oils, Bio-based oil), By Application (Utility Transformer Oils, Small-scale Transformers, Large-scale Transformers), and By Region – Global Industry Overview, Statistical Data, Competitive Analysis, Share, Outlook, and Forecast 2023–2032” report at

Growth Factors

The power sector’s expansion to fulfil rising electricity demand has significantly advanced the transformers sector. The market demand has been fueled by the growing emphasis on rural electrification in developing nations like China and India, as well as a general knowledge of equipment maintenance.

The use of energy has increased as a result of rapid urbanization, drastic industrialization, and gradual access to modern electrical grids in many rural areas of Asia Pacific. Just in this area, the electricity demand has roughly doubled in recent years. Growing customer demands and exponential distribution network expansions have also fueled market growth.

Global Transformer Oil Market 2023 – 2032 (By Application)

Segmental Overview

The market for Transformer Oil is segmented into product and application. Based on application, the large-scale transformer segment is estimated to witness a slower CAGR. Due to the severe environmental rules that have been put in place and encouraged reduced carbon emissions and improved energy efficiency, eco-friendly transformers are in high demand. Growth in this market has been fueled by technological development, increased industrial output, and proactive R&D to create improved energy generation and recovery equipment.

The production of renewable energy primarily uses utilities. Typically, such transformers are used in conjunction with solar power plants and wind turbines, primarily for offshore wind energy generation. Additionally, this equipment needs maintenance oils that can withstand high moisture content, high air pressure, and harsh environmental conditions. When compared to the other two parts, it is projected that the segment will grow more slowly.

Regional Overview

The Asia Pacific is estimated to dominate the Transformer Oil market in 2021. The increase in demand for power in developing nations like China and India is the cause of this region’s expansion. According to projections, the number of substations will rise as a result of increasing power demands and upgrading the electrical infrastructure, which is getting older. Due to the maturity of the industrial & manufacturing sectors, North America is expected to develop at a steady rate and is now the second-largest consumer. Growth in the nation is expected to be driven by technical advancement, modernization of already installed transformers, and falling crude oil prices.

Report Scope

Feature of the Report Details
Market Size in 2021 USD 2.5 Billion
Projected Market Size in 2030 USD 3.8 Billion
CAGR Growth Rate 7% CAGR (2022-2030)
Base Year 2023
Forecast Period 2024-2033
Prominent Players Royal Dutch Shell, Exxon Mobil Corporation, Repsol, Ergon Inc., Nynas AB, Sinopec Lubricant Company, APAR Industries, PetroChina Company Limited, Savita Oil Technologies Limited, Chevron Corporation, M&I Materials Limite, Petro-Canada, Gandhar Oil, Lubrita, Phillips 66 Company, Gulf Oil International, Cargill Incorporated., Hydrodec Group plc, Calumet Specialty Products Partners L.P., Sasol, Hyrax Oil Sdn Bhd, San Joaquin Refining Co, Valvoline Cummins, Engen Petroleum Limited. and Others
Key Segment By Product, Application, and Region
Report Coverage Revenue Estimation and Forecast, Company Profile, Competitive Landscape, Growth Factors and Recent Trends
Regional Scope North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America
Buying Options Request tailored purchasing options to fulfil your requirements for research.

Competitive Landscape/ Key Players Insights

The market for Transformer Oil is highly fragmented. The large concentration of players operating in the Transformer Oil market influences the overall pricing strategy of the product, as per prevailing market conditions. The presence of a strong supplier base with a large customer base moderately limits the chances of competitive rivalry amongst the producers. Further, companies are focused on introducing new products to capture market share.

Some of the Prominent Players

  • Royal Dutch Shell
  • Exxon Mobil Corporation
  • Repsol
  • Ergon, Inc.
  • Nynas AB
  • Sinopec Lubricant Company
  • APAR Industries
  • PetroChina Company Limited
  • Savita Oil Technologies Limited
  • Chevron Corporation
  • M&I Materials Limited
  • Petro-Canada
  • Gandhar Oil
  • Lubrita
  • Phillips 66 Company
  • Gulf Oil International
  • Cargill, Incorporated.
  • Hydrodec Group plc
  • Calumet Specialty Products Partners, L.P.
  • Sasol
  • Hyrax Oil Sdn Bhd
  • San Joaquin Refining Co
  • Valvoline Cummins
  • Engen Petroleum Limited

Recent Developments:

2021: Cargill, Incorporated. and Delta Star, Inc. entered a partnership to offer retro-filling services of its Envirotemp portfolio of dielectric fluids to its clients in the Western US. The agreement represents Delta Star, Inc. as a service centre of Cargill, Inc. in the Western US market.

2020: The storage capacity at the Antwerp terminal (Belgium) has been expanded by Ergon International, Inc., a part of Ergon Refinery, Inc. 39,000 m3 will be the capacity following the enlargement. This growth was made to ensure that the company’s clients would always have access to speciality oils.

Global Transformer Oil Market 2023 – 2032 (By Billion)

The global Transformer Oil market is segmented as follows:

By Product

  • Mineral-based oils
    • Naphthenic Base Oil
    • Paraffinic Base Oil
  • Silicone-based oils
  • Bio-based oil

By Application

  • Utility Transformer Oils
  • Small-scale Transformers
  • Large-scale Transformers

On the basis of Geography

North America

  • The U.S.
  • Canada
  • Mexico


  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe

Asia Pacific

  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific

The Middle East & Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa

Latin America

  • Brazil
  • Argentina
  • Rest of Latin America