Transformer oil market to reach a CAGR of 6.9% in 2025
The global transformer oil market is expected to reach a CAGR of 6.9% and $4.02 B by 2025 according to Energias Market Research report.
Increase in power consumption is expected to drive the market growth over the forecast period. Moreover, increasing demand from emerging economies is anticipated to foster the demand for transformer oil in the coming years.
Mineral-based segment held the largest share of the market in 2018 and the trend is likely to continue over the forecast period. This segment is bifurcated into naphthenic, and paraffinic transformer oil. Naptha oil is more prone to an oxidation reaction but the oxidation products formed is a soluble sludge which does not precipitate at the bottom of the tank. However, due to easy availability, paraffinic oil is preferred over its mineral-based counterpart. Additionally, low cost of paraffinic-based oil has led to the growth of this sub-segment in the past years.
The key companies operating in the market are: Cargill, Clearco Products, Castrol, The Dow Chemical Company, Calumet Specialty Products Partners L.P., Electrical Oil Services Limited, Ergon International, Exxon Mobil, Engen Petroleum Limited, and Apar Industries Limited.
Asia-Pacific held the largest share of the global market in the year 2018, and the trend is likely to continue over the forecast period. China held the major share of the market in this region owing to the electrification of rural areas and expansion of electrical network in urban areas. Moreover, the perpetual increase in power consumption due to population rise is expected to drive the APAC regional market. Additionally, installation of transformers in new facilities, or upgrades in older facilities, has enabled steady growth in the market of this region. North America is anticipated to register a steady growth rate owing to upgrade of existing infrastructure.
Report covers the following regions: North America, Europe, Asia-Pacific (APAC), Central and South America, Middle East and Africa.
Source: Globe News Wire