According to a new report by Allied Market Research, entitled, "World Transformer Oil Market - Opportunities and Forecasts, 2014-2020," the sales of transformer oil is estimated to reach US$3.4 billion globally by 2020, with the mineral oil-based transformer oil segment to maintain its dominance until 2020.
Transformer oils are electrical insulating oils stable at high temperature, which serves two important functions in a transformer, viz., suppression of arcing and dissipation of heat generated in the transformer. The ability of transformer oil to fulfil these functions are chiefly responsible for its adoption, and thus drives the market growth. Other important factors stimulating its growth include electrification of rural areas, expansion of power grids and increasing investment in the power sector. However, factors such as volatility in crude oil prices and increasing adoption of dry transformers are expected to hamper the market growth.
Mineral oil-based transformer oil dominates the market while bio-based is projected to be the fastest growing segment. Bio-based transformer oil has emerged as an alternative for crude oil-based transformer oil, owing to its biodegradability, high dielectric strength, and low toxic risk and reduced carbon footprint. Silicone transformer oil is the second fastest growing segment caused by its increasing demand as a fire safe and eco-friendly alternative to traditional transformer oil.
Distribution transformers segment dominates the global transformer oil market, accounting for nearly half of the overall market, in terms of volume. The key factors responsible for this dominance is increase in energy usage coupled with the increasing number of subtransmission lines to residential homes.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/13012016/transformer-oil-market-worth-over-3-billion-by-2020-2141/