Transformer Oil Market 2015-2025: North America, South America and Europe Lucrative Region According to FMI
In order to meet the residential, commercial and industrial energy requirements and ensure a smooth operation of power supply transformer plays an important role. During transformer operation, transformers dissipate heat which can damage the system if not controlled. In order to achieve seamless operation of transformer by preventing from heat damage the oil are used. Transformer oil is used in oil-filled and submersible transformers to maintain temperature of transformer. Application of transformer oil can also be seen in high-voltage circuit breakers and switches. Since the oil is in constant contact with components it is therefore susceptible to chemical interaction. It is therefore essential to check for the quality of transformer oil at regular intervals since with continuous reaction the chemical composition of the oil may change and this may render it unfit for use.
The market for transformer oil is subjected to the demands of the various end-use industries such as chemicals and automotive, and the type of transformer used. The oil used in transformers is hydrocarbon mineral oil. There are two major types of transformer oil used in the industry; naphthenic and paraffinic based. Though bio based transformer oil have gained attention due to stringent environmental issues but their usage is restricted due to limited advantage. The market of transformer oil will be driven by the expanding energy demand and growing installation of power grids in urban scenario. Due to growing population, the power grid companies needs to expand and upgrade their existing capacities causing penetration of transformers to increase which in turn fuel the market for transformer oil. The transition towards renewable sources of energy, strict environmental laws and shift towards organic oils may restraint the market of mineral based transformer oil.
Asia is one of the largest consumer of transformer oils followed by North America, South America and Europe. For the forecasted year’s Asia-pacific transformer oil market will continue to lead in terms of consumption. The demand for transformer oil in Asia Pacific is rapidly growing for emerging markets of India and China. This demand is transformer oil is attributed to the increasing focus on rural and urban development in infrastructure. This involves a shift in focus from high capacity transformer to small and mid-segment transformers for domestic and agricultural uses. The transformer oil markets of China, India and also Brazil will dominate owing to the government initiative for the electricity accessibility to the country’s population. The demand for in the mineral based is anticipated to stabilize due to the shift towards green (bio based) alternatives. The demand for transformer oil in regions of Americas and Europe is related to high capacity industrial transformers. The demand for transformer oil in these regions is anticipated to be slower than those in Asia Pacific owing to the significant development of renewable sources of energy and reduced dependability on conventional sources of energy.