Oil Filled Transformer Market Trends

Growth Drivers

• Growing Demand for Renewable Energy: Over the past two decades, the worldwide usage of renewable energy has extensively expanded. In 2022, consumption was expected to almost certainly hit about 44 exajoules. Hence, with this, the demand for oil filled transformers is also growing. Oil-filled transformers are projected to be critical in facilitating this shift to renewable energy sources. For instance, they are employed in wind turbines in order to boost the voltage of the electricity produced and enable long-distance transmission to the grid.
• Rising Use of Natural Oil in Oil Filled Transformer: Usually, mineral oil is extensively used in oil filled transformer. However, owing to the growing prevalence of pollution the need for alternative oil is growing. Therefore, it has been observed that many organizations are making use of various vegetable oil which includes soybean oil, rapeseed, and sunflower. Since these oils are environmentally friendly they are also estimated to boost the preference for oil-filled transformers.
• Surge in Construction of Tall Buildings: According to the Council on Tall Buildings and Urban Habitat, about 83% of the 200-meter-plus structures in the world were constructed in the past two decades. These tall buildings require a huge supply of electricity for the efficient functioning of elevators, HVAC systems, and more. Therefore, they mostly choose oil-filled transformers, hence further influencing oil filled transformer market expansion.

Challenges

• Availability of Alternative Technologies - In contrast to oil-filled transformers, which have their windings and core submerged in an insulating liquid, dry-type transformers have their windings and core put inside a sealed tank pressurized with air. Hence, the widespread use of oil-filled transformers is expected to be hindered by this rise in demand for dry-type transformers, which will put pressure on the market.
• Rising Environmental Issues
• Strict Government Regulations