The global bio-based transformer oil market attained revenue of USD 132.2 Million in 2019 and is estimated to garner USD 220.7 Million in 2028 by growing at a CAGR of 5.9% over the forecast period i.e., 2020-2028. The market is anticipated to grow on account of the rising demand for transformers backed by the increasing demand for electricity worldwide. Bio-based transformer oil is the oil filled with the dielectric insulating fluid in transformers. The oil is resistant to heat and electricity and is made from vegetable oil feedstock. It is a replacement for mineral-oil-based products, is environmentally friendly and provides excellent performance.
Globally, the demand for electricity is significantly increasing on the back of the increasing need amongst the end users for water supply, air conditioning, and others. According to the statistics by the International Energy Agency (IEA), the total electricity consumption around the world in the year 2018 reached 22315 TWh, which was an increase by 4% than the previous year. The key players manufacturing transformer oil are focusing on the development of new bio-based products. As a result, the investment has also increased over the years to boost the production process of the bio-based oil. CLICK TO DOWNLOAD SAMPLE REPORT
Regionally, the global bio-based transformer oil market is segmented into five major regions including North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa. Among the markets in these regions, the Europe bio-based transformer oil market is projected to grow with the highest CAGR of 7.4% throughout the forecast period and further attain a revenue of USD 51366.7 Million in 2028, up from USD 27702.2 Million in 2019. Rising investment in the modernization of the aging infrastructure is one of the major factors expected to drive the market growth in the region. Further, amongst the countries in the region, the market in Germany is anticipated to hold a significant market share of 22.7% by the end of 2028. Alternatively, the market in North America is expected to hold the largest market share of 53.73% by the end of 2028. The market in the region can be attributed to the growing need amongst the government to shift to greener alternatives, backed by the rising concern for the environment. In the United States, many utility companies are using bio-based transformer oils in their transformers to support sustainability goals.
The global bio-based transformer oil market is segmented by type into jatropha oil, karanja oil, and others. Amongst these segments, the jatropha oil segment is anticipated to hold a significant market share in the coming years. Jatropha oil is derived from the species Jatropha curcas and is also used widely for manufacturing biodiesel. The seeds of the plant contain around 27-40% oil and the plants are resistant to drought and pests. The karanja oil segment, on the other hand, is anticipated to hold the second leading stance and further attain a market revenue of USD 55,948.1 Million by the end of 2028. The market is further segmented by application into power transformer, distribution transformer, others. Amongst these, the distribution transformer segment is anticipated to hold the largest share throughout the forecast period, backed by the need to replace the aging power line distribution systems.
Our report has covered detailed company profiling comprising company overview, business strategies, key product offerings, financial performance, key performance indicators, risk analysis, recent developments, regional presence, and SWOT analysis among other notable indicators for competitive positioning. Some of the prominent industry leaders in the global bio-based transformer oil market that are included in our report are Cargill, Incorporated, M&I Materials Ltd, Savita Oil Technologies Limited, Nynas AB, ABB Ltd. and others.
FREQUENTLY ASKED QUESTIONS
The increasing modernization in the transformers and increasing demand for clean energy are the major factors responsible for the growth of the market.
The market is anticipated to attain a CAGR of 5.9% over the forecast period i.e., 2020-2028.
Availability of inexpensive substitute is one of the major factors estimated to act as barriers to the market growth.
Europe is estimated to create notable growth opportunities for market growth over the forecast period.
The major players in the market are Cargill, Incorporated, M&I Materials Ltd, Savita Oil Technologies Limited, Nynas AB, ABB Ltd. and others.
The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
The market is segmented by type, application, and by region.
The distribution transformer segment is anticipated to hold largest market size in value and is estimated to display significant growth opportunities.
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