The global transformer oil market size is estimated to grow by USD 1.12 billion from 2024-2028, The market is projected to grow at a CAGR of 8.09% during this period. The expansion of transmission and distribution (T&D) networks is driving market growth, with a trend towards eco-efficient transformers. However, fluctuations in crude oil prices pose a challenge. Key market players include Apar Industries Ltd., BP Plc, and Exxon Mobil Corp. Regions such as Asia-Pacific and the Middle East are expected to see the highest growth in transformer oil consumption.

Key Market Trends Fueling Growth

Transformer manufacturers are responding to customer demand by designing and producing eco-friendly transformers. These green transformers offer minimal environmental hazards, improved life cycle costs, and reduced maintenance requirements. General Electric is among the manufacturers focusing on this trend, producing energy-efficient, market-efficient, grid-reliable, and environmentally friendly transformers. Green power transformers use ester oil as an insulating agent instead of mineral oil, significantly reducing pollution levels. Ester oils are biodegradable and have minimal toxic substances, making them an eco-friendly choice. These transformers also produce less noise and offer enhanced fire safety, making them suitable for urban and ecologically sensitive areas. The higher combustion point of ester oil (above 3,500 degrees Celsius) makes green power transformers less hazardous. These benefits are expected to drive the global transformer oil market, as the demand for eco-efficient power transformers grows.