The global transformer oil market for is currently strongly consolidated, and is likely to remain in a similar state over the coming years, reaching $3.26 billion by the end of 2024, according to a new research study by Transparency Market Research.
The global transformer oil market was valued at $1.99 billion in 2015 and is predicted to expand at a CAGR of 5.7% during the forecast period, reports Find Market Research.
Government projects and initiatives aimed at increasing the power infrastructure, specifically in emerging economies from Latin America, Asia Pacific, and Africa will drive the market growth.
In 2015, Asia Pacific led the global transformer oil market with a share of over 43%, and is expected to remain in the lead, thanks to the rising emphasis on the advancement of the power infrastructure in key Asian countries.
Over the given forecast period, the continuous renovation and repairs in the existing power sector infrastructure is also expected to spur the demand for transformer oil.
However, the emergence of smart transformers and dry transformers may limit the growth of this market in the years to come, notes the research study.
Power transformers are expected to show a significant upswing in usage, ramping up their demand for transformer oils in the years to come.
As for the type of oils, the demand for mineral oil is higher and trend is expected to remain so over the next few years. However, the demand for bio-based oil is likely to increase at a significant rate in the near future.
The leading players in the market that took up over 45% of its overall value in 2015 are ExxonMobil, Shell, Nynas AB, and Sinopec.
Source: Find Market Research