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North America Transformer Oil Market Size - By Product (Mineral Based {Naphthenic, Paraffinic}, Silicon Based, Bio Based), By Application (Distribution Transformer, Power Transformer, Instrument Transformer) & Forecast, 2023 – 2032

  • Report ID: GMI7289
  • Published Date: Nov 2023
  • Report Format: PDF

North America Transformer Oil Market Size

North America Transformer Oil Market was valued at USD 600 million in 2022 and is expected to register CAGR of around 7.4% from 2023 to 2032. The region's aging power infrastructure necessitates regular maintenance and upgrades, driving the demand for transformer oils to insulate and cool transformers effectively. Additionally, the growing emphasis on renewable energy sources and the integration of smart grids have resulted in the need for reliable and efficient transformers, further boosting the market. According to Enerdata, the proportion of renewable energy in U.S. electricity production witnessed significant growth, rising from 8.8% in 2000 to 22.2% in 2022.

North America Transformer Oil Market

Environmental regulations promoting the use of environmentally friendly and biodegradable transformer oils are also influencing the market dynamics. Furthermore, the surge in industrialization and urbanization is increasing electricity consumption, leading to an expansion of the transformer fleet. These factors, coupled with innovations in transformer oil technology, are contributing to the steady growth.


COVID– 19 Impact

Initially, the COVID-19 pandemic caused disruptions in the North America transformer oil market due to supply chain interruptions and reduced industrial activities. However, as the economy gradually rebounded, the market experienced recovery, driven by the need for infrastructure upgrades and maintenance in the aging power sector, which remained essential for ensuring reliable electricity supply, particularly as remote work and online activities surged during the pandemic. The increased reliance on digital services further underscored the importance of robust and well-maintained transformers, supporting the transformer oil market's resilience in the face of COVID-19 challenges.

North America Transformer Oil Market Trends

The North America transformer oil industry several notable trends. One significant trend is the growing adoption of eco-friendly and biodegradable transformer oils in response to environmental concerns and regulatory mandates. With an emphasis on sustainability, there's an increasing shift away from traditional mineral oil-based transformer fluids. Additionally, the region's aging power infrastructure is driving demand for transformer oil as maintenance and modernization efforts intensify. As renewable energy sources continue to gain prominence, the market is also influenced by the need for efficient transformers and transformer oils to support their integration into the grid.

North America Transformer Oil Market Analysis

North America Transformer Oil Market Size, By Product, 2021 - 2032, (USD Million)

Based on product, the mineral based transformer oil segment is likely to register7%  grow at a CAGR of overgrowth rate through 2032, attributed to its excellent dielectric properties, which ensure effective insulation and heat dissipation in power transformers. Moreover, mineral-based oils are renowned for their fire-resistant characteristics, offering enhanced safety in critical electrical applications. In the coming years, the preference for mineral-based transformer oils is likely to persist, further boosting the market growth as the region continues to invest in grid enhancements and the replacement of outdated equipment, ensuring the stability and efficiency of its electrical systems.

 North America Transformer Oil Market Revenue Share, By Application, 2022

Based on application, the power transformers segment is projected to showcase 6.5% CAGR from 2023 to 2032. The power transformers play a critical role in the electrical grid by facilitating the efficient transmission and distribution of electricity. As North America continues to modernize its power infrastructure, expand its renewable energy capacity, and enhance grid resilience, the demand for power transformers and the accompanying transformer oil is projected to surge. The anticipated growth in the power transformer segment is poised to be a significant driver of the North America transformer oil market.

U.S. Transformer Oil Market Size, 2021 - 2032, (USD Million)

U.S. transformer oil market is anticipated to grow at a CAGR of over 6.5% through 2032, owing to the ongoing expansion and upgrading of the country's electrical grid and power infrastructure, along with the replacement of aging transformers. Environmental regulations and safety standards are promoting the use of high-quality transformer oils to ensure the reliability and performance of transformers. Moreover, the market benefits from ongoing technological advancements, which result in more efficient and sustainable transformer oils. The emphasis on grid modernization, renewable energy integration, and grid resilience also spurs the demand for transformer oils in the U.S., making it a robust and dynamic market with considerable growth potential.

North America Transformer Oil Market Share

Among the companies listed, Exxon Mobil Corporation stands out as a dominant player and market leader. With a strong global presence and a wide range of high-quality transformer oil products, Exxon Mobil has consistently demonstrated its commitment to innovation, reliability, and sustainability in the energy sector. The company's extensive research and development efforts have led to the formulation of transformer oils that meet the stringent requirements of modern power grids and electrical systems, ensuring optimal performance and longevity. Exxon Mobil's comprehensive portfolio, along with its dedication to environmental stewardship and safety, positions it as a preferred choice for utility companies, industries, and grid modernization projects, making it a market leader.

The major contenders in the North America transformer oil industry include:

  • APAR
  • Calumet Specialty Products Partners, L.P.
  • Cargill, Incorporated
  • Clearco Products Co., Inc. All
  • Dow
  • HCS Group
  • Ergon, Inc.
  • Exxon Mobil Corporation
  • Gandhar Oil Refinery (India) Limited
  • Hydrodec Group plc
  • Novvi, LLC
  • Royal Dutch Shell, PLC
  • San Joaquin Refining Co. Inc.
  • Lubline
  • Phillips 66 Company

North America Transformer Oil Industry News

  • In February 2023, Cargill made headlines with the introduction of FR3rTM natural ester, a transformer insulating oil majorly derived from rapeseed oil, boasting a composition exceeding 95%. This eco-friendly insulating fluid not only outperforms traditional mineral oil but also enhances the reliability of transformers. As a result, this innovative solution is gaining traction among transformer users across the nation, rapidly replacing conventional mineral oil.
  • In September 2020, Shell revealed a gas-to-liquids (GTL) biodegradable transformer oil, characterized by its consistent composition and exceptional quality. This top-tier inhibited transformer oil offers remarkable performance, a crucial feature in a landscape marked by variable loads due to the integration of renewable energy sources and rising energy demands. Shell's advanced GTL transformer oil effectively addresses this challenge, underscoring its significance in the evolving energy sector.

This North America transformer oil market research report includes in-depth coverage of the industry with estimates & forecast in terms of Million Liters and “USD Million” from 2019 to 2032, for the following segments:

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By Product

  • Mineral Based
    • Oil
      • Naphthenic
      • Paraffinic
    • Application
      • Distribution Transformer
      • Power Transformer
      • Instrument Transformer
      • Others
  • Silicon Based
    • Distribution Transformer
    • Power Transformer
    • Instrument Transformer
    • Others
  • Bio-Based
    • Distribution Transformer
    • Power Transformer
    • Instrument Transformer
    • Others

By Application

  • Distribution Transformer
  • Power Transformer
  • Instrument Transformer
  • Others

The above information has been provided for the following countries:

  • U.S.
  • Canada
  • Mexico
Authors: Ankit Gupta, Vishal Saini

Frequently Asked Questions (FAQ) :

The market size of North America transformer oil was worth USD 600 million in 2022 and is estimated to reach USD 1.2 billion by 2032, due to the aging power infrastructure necessitating the regular maintenance and upgrades of transformers in the region.

The mineral-based product segment in the North America transformer oil market is expected to register over 7% CAGR from 2023 to 2032, due to its excellent dielectric properties to ensure effective insulation and heat dissipation.

U.S. transformer oil industry is set to record over 6.5% CAGR from through 2032, owing to the ongoing expansion and upgrading of the electrical grid and power infrastructure along with the higher replacement of aging transformers.

Some of the influential North America transformer oil market players are APAR, Calumet Specialty Products Partners, L.P., Cargill, Incorporated, CASTROL LIMITED, Clearco Products Co., Inc. All, Dow, HCS Group, Ergon, Inc., Exxon Mobil Corporation, among others.

North America Transformer Oil Market Scope

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  • Base Year: 2022
  • Companies covered: 17
  • Tables & Figures: 332
  • Countries covered: 3
  • Pages: 280
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