Bio-based Transformer Oil Market size is projected to increase from USD 77.58 million to USD 159.49 million, exhibiting a CAGR of over 5.7% during the forecast period, from 2025 to 2037. In the year 2025, the industry size of bio-based transformer oil is evaluated at USD 81.12 million.
The market growth can be ascribed to increasing modernization in the transformer for the production of electricity, followed by surging adoption of transformers across the globe. As per recent data, the demand for electricity across the globe is expected to rise by 56 % by the end of 2050. Bio-based transformer oil is biodegradable and has a greater environmental benefit as compared to traditional transformers. In addition, by reducing the carbon footprint from the transformers, manufacturers of consumer goods can improve their brand image.
Growth drivers
Challenges;
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
5.7% |
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Base Year Market Size (2024) |
USD 77.58 million |
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Forecast Year Market Size (2037) |
USD 159.49 million |
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Regional Synopsis |
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End User (Residential, Commercial, Industrial, Utilities)
The industrial segment in the bio-based transformer oil market is set to hold a significant share of 45% during the forecasted timeframe. Rapid industrialization in emerging economies such as India, and China, are increasing the use of transformers in various industries for providing a reliable and constant power supply.
Application (Power Transformer, Distribution Transformer)
Bio-based transformer oil market from the distribution transformer segment is expected to witness lucrative growth till 2037, propelled by increasing expansion of distribution transformers across the globe. Moreover, there are various types of transformers in the distribution system, including single-phase, three phases, underground, pad-mounted, and pole mounted for accommodating the rising demand for electricity. As per the Indian Electrical and Electronics Manufacturers Association, the power transformers has shown 13.8 % growth in the FY2023.
Our in-depth analysis of the global bio-based transformer oil market includes the following segments:
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Type |
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Application |
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End User |
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North American Market Analysis
North America market is likely to dominate majority revenue share of 31% by 2037. The growing demand for electricity in different sectors, including residential, commercial, and industrial, which is a major driver of the oil-filled transformer industry in the region. Moreover, the development of the infrastructure in the region, due to the ongoing smart cities project, is increasing the requirement of transformers in the region.
Asia Pacific Market Analysis
The Asia Pacific bio-based transformer oil market is set to grow at significant CAGR in the upcoming years, impelled by rapidly developing transmission & distribution network across Asia that facilitates the efficient supply of electricity. In addition, the Asian Pacific transformer oil market is expected to grow at an annual growth rate of around 6.5% during the forecast period. The electricity demand in the Asia Pacific region continued to grow, driven by population growth and economic development.
Author Credits: Rajrani Baghel
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