According to the latest report from Persistence Market Research, the global transformer oil market is expected to grow at a compound annual growth rate (CAGR) of 8.5% during the forecast period from 2024 to 2033, with a market valuation expected to reach $10.1 billion by 2033. Behind this growth trend is the strong investment in power infrastructure construction by various countries and the rapid development of the new energy generation industry.

Driven by urbanization, industrialization, and population growth, global energy demand continues to rise, prompting countries to modernize and expand their power grids. As a key component of the power transmission and distribution system, the normal operation of power transformers relies on the insulation and cooling effects of transformer oil. With the increasing investment in power system upgrades by various countries, the demand for transformer oil has also skyrocketed.

Especially in emerging markets such as Asia and Africa, the rapid economic growth has greatly stimulated the demand for electricity. Taking India as an example, the US Energy Information Administration predicts that between 2024-2025, India will become one of the largest contributors to the growth of global liquid energy demand, which is also reflected in the number of transformer installations. The large-scale construction of substations and transmission line projects has led to an explosive growth in the market demand for transformer oil.

The Asia Pacific region currently holds 55% of the global transformer oil market share and has become the core region driving market growth. In addition, the laying of long-distance transmission lines has driven the growth of demand for transmission oil, while the development of ultra-high voltage direct current transmission lines (used for long-distance high-power transmission over 1000 kilometers) has stimulated the demand for ultra-high voltage power transformers, thereby driving the increase in the market share of transformer oil. With the widespread use of renewable energy sources (solar, wind, and hydro), long-distance transmission has become an inevitable choice due to the geographical distribution limitations of these energy sources, which will further drive the growth of transformer oil demand.