Transformer Oil Market Expansion is Propelled by the Increasing Industrialization and Urbanization Globally
Austin, Jan. 13, 2026 (GLOBE NEWSWIRE) — According to SNS Insider, The Transformer Oil Market Size is estimated at USD 2.82 Billion in 2025 and is expected to reach USD 5.74 Billion by 2033 and grow at a CAGR of 9.32% over 2026-2033. The growing demand for electricity, rising power grid costs, and rising investments in the integration of renewable energy sources are the main drivers of the transformer oil market growth.
Due to widespread grid modernization, expanding electricity demand, and substantial integration of renewable energy sources, the U.S. transformer oil market is predicted to grow at a compound annual growth rate (CAGR) of 10.71% from 2026 to 2033, from its estimated USD 0.41 billion in 2025 to USD 0.92 billion by 2033.
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Expanding Number of Power Grids to Augment Market Growth Globally
The market for transformer oil is expanding due to improved power infrastructure and rising electricity demand. The deployment of new transformers is being driven by the increasing demand for electricity, renewable energy, and urban structure upgrades. Additionally, energy-efficient designs that require high-performance insulating oils are replacing outdated transformers. The need for mineral oils will be sustained by this trend, which will also encourage the development of premium synthetic and bio-based transformer oils with improved thermal performance and longer lifespans.
Major Players Analysis Listed in the Transformer Oil Market Report
- Shell plc
- ExxonMobil Corporation
- Chevron Corporation
- China Petroleum & Chemical Corporation (Sinopec)
- PetroChina Company Limited
- Nynas AB
- APAR Industries Limited
- Calumet Specialty Products Partners L.P.
- Cargill, Incorporated
- Ergon, Inc.
- Hydrodec Group PLC
- Valvoline Inc.
- Savita Oil Technologies Limited
- Engen Petroleum Limited
- Castrol Limited
- Gandhar Oil Refinery India Limited
- Phillips 66 Company
- TotalEnergies SE
- Repsol S.A.
- Indian Oil Corporation Limited
Transformer Oil Market Segmentation Analysis:
By Product
In 2025, Mineral-Based Oils led the market with a share of 63.45% due to their cost-effectiveness, widely available and have high insulating properties. Bio-Based Oils is the fastest-growing segment with a CAGR of 10.24% owing to increasing stringent environmental regulations, growing sustainability concerns and the worldwide trend towards green and biodegradable products.
By Rating
In 2025, the 100 MVA to 500 MVA segment led the market with a share of 41.68% due to its extensive use in industrial and utility transformers for middle range power distribution. >800 MVA segment is the fastest-growing with a CAGR of 9.76% due to increasing adoption of ultra-high voltage and large capacity transformers in modern grid projects and renewable based power generating facilities.
By Application
In 2025, Transformer applications led the market with a share of 68.34% as transformer oils are primarily used for insulation and cooling purpose in power and distribution transformers at utilities and industrial facilities. Reactor segment is the fastest-growing with a CAGR of 9.87% owing to rising use of reactors for voltage regulation, reactive power control and stabilization in today’s smart grids and renewable energy integration projects.
By End-Use
In 2025, the Utilities segment led the market with a share of 54.72% owing to extensive usage of transformers in power generation, transmission and distribution systems. Industrial segment is the fastest-growing with a CAGR of 9.45% driven by increased manufacturing, private substations and renewable energy integration in industrial plants.
Based on Region, Asia Pacific Led the Market in 2025 and is Expected to be the Fastest-Growing Region in the Market During 2026-2033
The Asia Pacific dominated the Transformer Oil Market in 2025E, with over 52.16% revenue share, due to strong power grid expansion, growing electricity demand and heavy investment in transmission and distribution infrastructure. The North America region is expected to have the fastest-growing CAGR 10.82%, driven by grid upgradation projects, growing investments for renewable energy integration and replacement of old power infrastructure.
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Transformer Oil Market Recent Developments
- In April 2025, Shell launched its MIDEL ester-based transformer liquid globally, expanding its portfolio alongside Shell Diala GTL for better energy-efficiency and sustainability.
- In March 2024, Nynas introduced a new transformer oil with enhanced performance and environmental sustainability. The company also strengthened its global supply network to support rising transformer fluid demand.
Exclusive Sections of the Report (The USPs)
- RELIABILITY & FAILURE IMPACT METRICS – helps you understand the extent to which transformer oil degradation contributes to equipment failures by analyzing the percentage of failures linked to oil quality, mean time between failures (MTBF) across different oil types, and replacement rates driven by oil-related issues, supporting asset reliability and maintenance planning.
- SUSTAINABILITY & BIODEGRADABLE OIL PENETRATION INDEX – helps you assess the industry’s transition toward eco-friendly solutions by tracking the share of biodegradable transformer oils, market penetration of vegetable-based and ester-based oils versus mineral oils, and their potential for carbon footprint and greenhouse gas emission reduction.
- SUPPLY CHAIN & LOGISTICS RESILIENCE DASHBOARD – helps you identify sourcing and delivery risks through insights into average transformer oil lead times, dependency on imported versus locally produced oils by country, and the geographic distribution of global supply and distribution hubs.
- FIRE SAFETY & OPERATIONAL RISK REDUCTION METRICS – helps you evaluate risk mitigation effectiveness by analyzing the number of fire incidents prevented through the use of fire-resistant oils and the role of advanced oil formulations in enhancing transformer safety performance.
- STANDARDS COMPLIANCE & INSURANCE RISK ANALYSIS – helps you gauge regulatory and financial exposure by tracking the percentage of transformers compliant with IEC 60296 and ASTM D3487 standards and insurance claim trends linked to transformer oil failures.
- ASSET PROTECTION & LIFECYCLE OPTIMIZATION INDICATOR – helps you understand how oil selection influences transformer lifespan by correlating oil quality, safety compliance, and failure statistics with long-term asset protection and replacement cycles.
Transformer Oil Market Report Scope
| Report Attributes | Details |
| Market Size in 2025E | USD 2.82 Billion |
| Market Size by 2033 | USD 5.74 Billion |
| CAGR | CAGR of 9.32% From 2026 to 2033 |
| Base Year | 2025E |
| Forecast Period | 2026-2033 |
| Historical Data | 2022-2024 |
| Key Segments | • By Product (Mineral-Based Oils (Naphthenic Base Oils, Paraffinic Base Oils), Silicone-Based Oils, Bio-Based Oils) • By Rating (<100 MVA, 100 MVA to 500 MVA, 501 MVA to 800 MVA, >800 MVA) • By Application (Transformer, Reactor, Switchgear) • By End-use (Utilities, Industrial, Residential, Commercial) |
| Regional Analysis/Coverage | North America (US, Canada), Europe (Germany, UK, France, Italy, Spain, Russia, Poland, Rest of Europe), Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN Countries, Rest of Asia Pacific), Middle East & Africa (UAE, Saudi Arabia, Qatar, South Africa, Rest of Middle East & Africa), Latin America (Brazil, Argentina, Mexico, Colombia, Rest of Latin America). |
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