Delray Beach, FL, Dec. 08, 2025 (GLOBE NEWSWIRE) -- The global Transformer Oil Market size is expected to grow from USD 2.0 billion in 2023 to USD 3.0 billion by 2030, at a CAGR of 5.9% according to a new report by MarketsandMarkets™. Transformer oil is a special kind of oil that is primarily used in transformers to facilitate insulation and cooling. Transformer oil caters to the T&D, railways and metros, power generation, industrial, and commercial end users. The most commonly used transformer oil is mineral oil-based, which includes naphthenic and paraffinic types. The other variants of transformer oil include bio-based and silicone-based transformer oils. The increasing energy demand has pushed developing and developed economies to expand their electric grids and modernize their grid network, respectively. These developments are expected to drive the transformer oil demand. On the contrary, environmental concerns associated with mineral-based transformer oil and competition from the unorganized sector can negatively impact the growth of the transformer oil market.
The growth in transformer oil demand in recent years is due to the increased investment in transmission and distribution projects due to growing urbanization. The market for transformer oils is projected to benefit greatly from the rising expansion of smart electricity grids and networks.
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Transformer Oil Market Scope:
| Report Coverage | Details |
| Market Size | USD 3.0 billion by 2030 |
| Growth Rate | 5.9% of CAGR |
| Largest Market | Asia Pacific |
| Market Dynamics | Drivers, Restraints, Opportunities & Challenges |
| Forecast Period | 2023–2030 |
| Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Transformer Oil Market by oil type, application, end-user, and region. |
| Geographies Covered | Asia Pacific, North America, Europe, the Middle East & Africa, and South America. |
| Report Highlights | Updated financial information / product portfolio of players |
| Key Market Opportunities | Increased investment in HVDC transmission systems |
| Key Market Drivers | Modernization of electric grids and adoption of smart grids in developed economies |
Transformer oils are key in the transmission and distribution industries, as transformers rely on them for insulation and cooling. Robust investments in the renovation of transmission systems will further foster market growth. The growing investments in building electricity grids to meet rising power demand to provide lucrative opportunities to players operating in the transformer oil market. Transformer oils are extensively used in power and distribution transformers. Growing power demands and aging transformers will likely lead to installing new transformers, which is anticipated to increase the demand for transformer oils.
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Transformer Oil Market Dynamics:
Drivers:
- Expansion of electric grid network in Asia Pacific
- Modernization of electric grids and adoption of smart grids in developed economies
Restraints:
- Environmental concerns over use of mineral transformer oil
- Increasing demand for dry-type transformers
- Competition from players in unorganized sector
Opportunities:
- Growing demand for bio-based transformer oil due to environmental concerns
- Increase in cross-border electricity trade
- Increasing investments in HVDC transmission systems
Challenges:
- Constant fluctuations in crude oil prices
North America is expected to be the second-largest region in the transformer oil market
North America is expected to be the second-largest transformer oil market during the forecast period. Growing demand for reliable power and investments in the T&D sector for upgrading the aging infrastructure will enhance the requirement for transformers, which is expected to boost the demand for transformer oil in North America. Moreover, the expansion of Canada’s transmission network plays a crucial role in the growth of transformer oil market. Hence, increasing investments toward expanding and upgrading power grid infrastructure is expected to provide ample opportunities for the providers of transformer oils in the region.
Key Market Players:
Some of the major players in the Transformer Oil Market are Nynas AB (Sweden), Ergon, Inc. (US), PetroChina Company Limited (China), Shell (UK), APAR Industries Limited (India), and Calumet Specialty Products Partners, L.P. (US).
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