Mineral-Based Oil Segment Will Dominate the Global Transformer Oil Market with an Impressive Market Share of 90% in 2020, Says Technavio
According to the latest market study released by Technavio,
the global
transformer oil market is expected to grow at a CAGR of nearly
9% during the forecast period.
This research report titled ‘Global
Transformer Oil Market 2016-2020’ provides an in-depth analysis
of the market in terms of revenue and emerging market trends. To
calculate the market size, Technavio has considered the demand for
transformer oil from power and distribution transformers across the
globe.
Global energy consumption increased by approximately 10% from 2010 to
reach 20,567 TWh in 2015. It is expected to increase by almost 15%-20%
by 2020. T&D network expansion and renovation are required to cater to
the growing need for uninterrupted and quality power supply. Curbing
electrical faults in equipment responsible for the transmission and
distribution of electric power ensures the required supply. Transformer
oil plays a major role in arc-quenching in transformers, protecting them
from any fire damage.
Request sample report: http://goo.gl/2u8Ioa
Technavio’s heavy
industry analysts categorizes the global transformer oil market
into three major segments by product. They are:
-
Mineral-based
-
Silicone-based
-
Bio-based
|
Market share by product type 2015 and 2020 (revenue %)
|
|
Product type
|
|
|
2015
|
|
|
|
2020
|
|
Mineral-based
|
|
91%
|
|
90%
|
Silicone-based
|
|
5%
|
|
6%
|
Bio-based
|
|
4%
|
|
5%
|
Source: Technavio
|
|
Global mineral-based transformer oil market
The mineral-based oil segment of the global transformer oil market
generated the most revenue in 2015, valued at USD 1.834 billion. This
will likely rise to USD 2.791 billion by 2020, growing at an estimated
CAGR of close to 9%. The main factor driving this segment is the
wide-scale use of mineral-based transformer oil in power and
distribution transformers, switchgear, and circuit breakers, especially
in APAC. This oil is priced reasonably compared to other forms and is
therefore, popular among the cost-sensitive customers in the region.
Mineral-based transformer oil can be further segmented into:
-
Naphthenic oil
-
Paraffinic oil
Naphthenic crude oil undergoes fractional distillation and a subsequent
hydrotreating process to produce naphthenic oil. Similarly, paraffinic
crude oil undergoes solvent separation and hydrocracking procedures to
form paraffinic oil.
Global silicone-based transformer oil market
The silicone-based oil segment of the global transformer oil market was
valued at USD 109.4 million in 2015 and should reach USD 180.2 million
by 2020, growing at an estimated CAGR of almost 11%. According to Gaurav
Mohindru, a lead unit
operations research analyst, “Silicone-based
transformer oil is used in applications that prioritize fire safety and
thermal stability. This type of oil is a polymer whose molecular
structure consists of oxygen atom, silicone atom, and methyl group.”
The molecular weight of the fluid is determined based on the number of
times the molecular structure is repeated, which determines the
viscosity of the fluid.
Silicone-based transformer oils have the following properties:
-
Environmentally friendly
-
Non-flammable
-
Excellent dielectric coolants
-
High dielectric strength
-
Lower viscosity than petroleum-based oils
Global bio-based transformer oil market
The bio-based segment of the global transformer oil market was valued at
USD 83.1 million in 2015, which Technavio expects to reach USD 141.3
million by 2020, growing at an estimated CAGR of more than 11%. “Bio-based
transformer oil is produced from vegetable oil feedstock. It does not
have impurities, such as petroleum hydrocarbons, silicones, or halogens.
In the event of leakage or spillage, the oil biodegrades quickly, and
its non-toxic nature and higher fire-resistant attributes may help this
segment gain traction in the market. In addition, the rising demand for
renewable energy sources from manufacturing companies is a major factor
driving growth in this segment,” adds Gaurav.
Vendor Spotlight: Ergon, Inc.
Founded in 1954 and headquartered in Jackson, Mississippi, Ergon, Inc.,
and its consolidated subsidiaries are built on a foundation of
petroleum-related enterprises. Ergon operates as a sophisticated crude
oil processor, transporter and marketer of refined products. In 1978,
the company formed Ergon Refining and began production of fuels at its
first refinery in Vicksburg, Mississippi. The refinery has grown to be
the largest manufacturer of naphthenic process oils in the world and
currently has a processing capacity of up to 25,000 barrels of crude oil
per day. It produces some of the highest quality transformer oils,
HyVolt, along with process and base oil stocks. After recent investments
in the facility, Ergon will be the world’s second largest Group I bright
stock supplier by year’s end.
Ergon offers various market solutions on a global scale, in North and
South America as well as the EMEA & Asia regions. The company’s primary
brands are represented by HyVolt - insulating oils, HyPrene - process
oils, HyGold - base oils, and HyPrint - ink oils.
Other top vendors highlighted by Technavio’s research analysts in this
report include:
-
Apar Industries
-
Nynas
-
PetroChina
-
Sinopec
Browse Related Reports:
Do you need a report on a market in a specific geographical cluster
or country but can’t find what you’re looking for? Don’t worry,
Technavio also takes client requests. Please contact enquiry@technavio.com
with your requirements and our analysts will be happy to create a
customized report just for you.
About Technavio
Technavio
is a leading global technology research and advisory company. The
company develops over 2000 pieces of research every year, covering more
than 500 technologies across 80 countries. Technavio has about 300
analysts globally who specialize in customized consulting and business
research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research
techniques to ascertain the size and vendor landscape in a range of
markets. Analysts obtain information using a combination of bottom-up
and top-down approaches, besides using in-house market modeling tools
and proprietary databases. They corroborate this data with the data
obtained from various market participants and stakeholders across the
value chain, including vendors, service providers, distributors,
re-sellers, and end-users.
If you are interested in more information, please contact our media team
at media@technavio.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160817005306/en/
Copyright Business Wire 2016