Bio-based Transformer Oil Market Size & Share, by Type (Jatropha Oil, Karanja Oil, Naphthalene Mineral Oil); Application (Power Transformer, Distribution Transformer); End-user (Residential, Commercial, Industrial, Utilities) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 1030
  • Published Date: Aug 21, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023 - 2035

Bio-based Transformer Oil Market size is estimated to reach USD 138 Million by the end of 2035, growing at a CAGR of 6% during the forecast period, i.e., 2023 – 2035. In the year 2022, the industry size of bio-based transformer oil was USD 69 Million. The market growth increasing modernization in the transformer for the production of electricity, followed by the surging adoption of transformers across the globe. As per recent data, the demand for electricity across the globe is expected to rise by 56 % by the end of 2050.

Bio-based transformer oil is biodegradable and has a greater environmental benefit as compared to traditional transformers. In addition, by reducing the carbon footprint from the transformers, manufacturers of consumer goods can improve their brand image. The growth of the bio based transformer oil industry is thus driven by the growing awareness related to biodegradable products.


Bio-based Transformer Oil Market Size
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Bio-based Transformer Oil Market: Growth Drivers and Challenges;

Growth drivers

  • Energy Efficiency and Cost Saving -Bio-based transformer oil contributes to energy efficiency, translating to potential cost saving for industries. Their superior cooling properties and reduced viscosity lead to lower energy consumption, resulting in improved operational efficiency. By 2030, energy production capacity will reach over 820 GW and more than 500 GW from non-fossil fuel sources in India.
  • Development of Smart Grids- With the adoption of the smart grid network concept for improving aging power assets, there has been a rising installation of smart grids. Hence, it is predicted to boost the growth of bio-based transformer oil in smart grids. In the United States, more than 100 million advanced meters were installed, as of 2021.
  • Expansion in Cross-Border Electricity Trade- Trade in electricity, through the mitigation of power crises, reducing supply bottlenecks, facilitating decarbonization, and providing an incentive for bio-based transformer oil market expansion and integration, can help to lower energy prices. In Asia, where countries like India, Bhutan, Nepal, Bangladesh, Sri Lanka, Thailand, Malaysia, and Singapore have established a power grid that can help in electricity trading, the cross-border trade is growing. The demand for electricity trade across the border between South Asia and India should be improved by the evolution of the power sector in India.

Challenges;

  • High Cost of the Oil Bio-based transformer oils offer long time cost savings through improved energy efficiency and reduced maintenance, their initial cost can be a deterrent for some companies. At present, the production of bio-based oil might involve higher expenses due to limited economies of scale and the procurement of renewable feedstocks. The sourcing and availability of renewable feedstocks for bio-based transformer oils present a significant challenge. Some rely on specific crops or raw materials, which can lead to supply chain disruptions and volatility in prices.
  • Availability of Inexpensive Substitute
  • Lack of Awareness

Bio-based Transformer Oil Market: Key Insights

  Base Year

  2022

  Forecast Year

  2023-2035

  CAGR 

  ~ 6%

  Base Year Market Size (2022)

  ~ USD 69 million

  Forecast Year Market Size (2035)

  ~ USD 138 million

  Regional Synopsis

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
 
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Bio-based Transformer Oil Segmentation:

End User (Residential, Commercial, Industrial, Utilities)

The industrial segment in the bio-based transformer oil market is set to hold a significant share of 45 % during the forecasted timeframe. Rapid industrialization in emerging economies such as India, and China, are increasing the use of transformers in various industries for providing a reliable and constant power supply. Industrial production has raised by nearly 3.5 % year on year in June 2023 in India.

Application (Power Transformer, Distribution Transformer)

Bio-based transformer oil market from the distribution transformer segment is expected to garner higher growth of 5.95% in the forecast period. This segment growth can be propelled by the increasing expansion of distribution transformers across the globe. Moreover, there are various types of transformers in the distribution system, including single-phase, three phases, underground, pad-mounted, and pole mounted for accommodating the rising demand for electricity. As per the Indian Electrical and Electronics Manufacturers Association, the power transformers has shown 13.8 % growth in the FY2023.

Our in-depth analysis of the global bio-based transformer oil market includes the following segments:

 

  Type

  • Jatropha Oil
  • Karanja Oil
  • Naphthalene Mineral Oil

  Application

  • Power Transformer
  • Distribution Transformer

  End User

  • Residential
  • Commercial
  • Industrial
  • Utilities

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Bio-based Transformer Oil Industry- Regional Synopsis

North-America Market Analysis

North America bio-based transformer oil market is anticipated to reach at a share of 31 % during the forecasted timeframe. The growing demand for electricity in different sectors, including residential, commercial, and industrial, which is a major driver of the oil-filled transformer industry in the region. Moreover, the development of the infrastructure in the region, due to the ongoing smart cities project, is increasing the requirement of transformers in the North America region.

Asia-Pacific Market Analysis

The bio-based transformer oil market in the Asia Pacific region is also set to grow at a significant share in the upcoming years. This can be impelled by the rapidly developing transmission & distribution network across Asia that facilitates the efficient supply of electricity. In addition, the Asian Pacific transformer oil market is expected to grow at an annual growth rate of around 6.5 % over the forecast period. The electricity demand in the Asia Pacific region continued to grow, driven by population growth and economic development.

Research Nester
Bio-based Transformer Oil Market
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Companies Dominating the Bio-Based Transformer Oil Market

top-features-companies
    • APAR Industries
    • Business strategy
    • Key product offerings
    • Financial performance
    • Risk analysis
    • Recent development
    • Regional presence
    •  SWOT Analysis
    • Calumet Speciality Product Partners, L.P.
    • ENGEN PETROLEUM LTD
    • NYNAS AB
    • The DOW Chemical Company
    • Shell Group
    • Novvi, LLC.
    • AICHI ELECTRIC CO., LTD.

In-the-news

In The News

  • In September 2020, Shell Group has recently unveiled a new biodegradable gas-to-liquids (GTL) transformer oil with exceptional quality and consistent composition known as Shell Diala S5 BD. This inhibited transformer oil is of high grade and offers superior performance. With the integration of renewable energy sources and increasing energy demands, transformers often experience variable loads
  • October 2022: NYNAS AB published its findings with regard to the new product. A more environmentally friendly cooling solution is Nyna's NYTRO BIO 300X transformer liquid. The efficient cooling of the power transformer is enhanced by its improved performance with a low viscosity, which offers better heat transfer.

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 1030
  • Published Date: Aug 21, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

growing rate by increasing modernization in the transformer and increasing demand for clean energy.

The market size of bio-based transformer oil market is anticipated to attain a CAGR of 6% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Calumet Speciality Product Partners, L.P., ENGEN PETROLEUM LTD, NYNAS AB, The DOW Chemical Company, HCS Group GmbH, Shell Group, Novvi, LLC., and others.

The distribution transformer segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The market in Europe region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Bio-based Transformer Oil Market Report Scope
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