Analysts’ Viewpoint on Silicon Transformer Oil Market Scenario
Leading players in the silicon transformer oil market are focusing on R&D activities and infrastructure development to stabilize their businesses after the COVID -19 pandemic. Aging energy generation and distribution infrastructure is one of the key challenges being faced by developed countries. It puts considerable pressure on energy generation and distribution infrastructure to provide reliable, cost-effective electricity. Several countries in Europe are grappling with high costs associated with disruptions, customer minutes lost, as well as the investment needed to maintain and upgrade the network. According to the U.S. Department of Energy report, the country has a grid system aged 25 years or older. Consequently, power generation and distribution companies are spending more than US$ 50 Mn on the upgrade of aging equipment. Silicon transformer oil companies are enhancing their market presence by increasing their installation and investment capacity.
Silicon transformer oil is an insulating fluid that serves as a coolant in electrical transformers. It is a synthetic transformer oil composed primarily of demethylsiloxane polymers and possesses a variety of properties, including superior di-electricity, high resistivity, thermal conductivity, low power loss, and chemical stability.
It plays a vital role in meeting the residential, commercial, and industrial energy requirements as well as ensuring smooth operation of the power supply transformer. Silicon transformer oil can also be used in high-voltage circuit breaks, switches, power generation, and railways.
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Silicone transformer oil is a K class transformer fluid. It has a fire point above 370°C whereas mineral oil has a flash point of about 150oC. Thus, it protects the transformer from firetrap due to an arc or lightning strike.
Silicone transformer oil is utilized in applications where fire protection is critical. Fire safety is a crucial factor in certain areas. These include distribution transformers in built-up areas, oil & gas operations, and manufacturing facilities handling flammable substances, trains, and wind turbines.
Silicone transformer oil provides overall electrical insulation due to its high dielectric strength. In addition to the good resistance to high temperature, UV, and ozone, it is hydrophobic and does not promote surface insulation failures. Specially formulated silicone transformer oil helps smooth electrical fields within the connection end and ensures long-term performance.
Silicone oil for transformer possesses high electrical, thermal, and flammability properties as compared to mineral oil and polychlorinated biphenyl fluids. The U.S. is striving to eliminate the use of crude oil with synthetic fuel, which could be employed in energy systems in order to increase fuel efficiency and reduce CO2 emissions.
Advancements in the power generation technology make it important that energy distribution and generation infrastructure be able to handle planned and purposeful improvements. Energy distribution and generation facilities should work in order with future-proof networks, as additional coal plants are dismantled. Both renewables and electric transition network are projected to play a larger role in electricity generation in the future. New technologies and fuel options would require to be integrated into the electric grid in the near future.
The new smart grid technology could improve demand risk from the utility’s standpoint and delivery system to allow for greater automation in grid operation at virtually every node, including facilitating data communication and operations between all agents in the system, which include generators, system operators, and final demanders.
The number of people gaining access to electricity doubled from 9 million a year between 2000 and 2013 to 20 million people between 2014 and 2018 in Middle East & Africa, especially in rural parts of countries in Africa. This also includes East Africa, which comprises countries such as Kenya, Ethiopia, and Tanzania. Kenya was a key country in the region; the access to electricity rate in the country rose from 25% in 2013 to 75% in 2018. Most of the progress made in Africa over the last decade can be ascribed to grid connections.
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Based on application, the distribution transformer segment dominated the North America, Europe & Japan silicone transformer oil market in 2021. The segment constituted prominent share of 94.2% of the North America, Europe & Japan silicon transformer oil market in 2021. The segment was valued at US$ 255.1 Mn in 2020 and is expected to reach US$ 402.2 Mn by 2031. The demand for this type of transformer oil is lower, as better cost-efficient and high flash point transformer oil is available. Distribution transformer is an electrical isolation transformer that converts high voltage electricity to low voltage level, which can be used in residential and commercial places. Distribution transformers are generally used for supply application, lightning, motorized machine, and power load from electrical distribution system.
The power transformer segment is likely to grow at a moderate pace during the forecast period. The segment held 5.4% share of the silicon transformer oil market in 2021. The segment is anticipated to provide US$ 402.2 Mn of opportunity during the forecast period. Naphthenic mineral oil has long been the most preferred insulating liquid for power transformer, as it has a good pouring point at low temperatures, good thermal cooling capacity, and low cost.
North America dominated the silicon transformer oil market. In terms of value, the market in the region was valued at US$ 131.1 Mn in 2021 and is expected to reach US$ 200.5 Mn by 2031, growing at a CAGR of 4.3% during the forecast period. The region is estimated to maintain its dominant position in the market during the forecast period. In the region, the U.S. is a prominent country with major consumption. In the U.S., around 70% of transformers are over 25 years, and 60% of distribution poles are 30 years old, relatively, approaching the end of their useful life. Therefore, equipment require replacement and upgrade of existing infrastructure. The U.S. reported that between 35% and 48% of their transmission and distribution assets either currently need or would soon need replacement. Power generation and distribution companies are spending more than US$ 51 Bn on upgrade of aging equipment.
Europe is another notable market for silicon transformer oil. The silicon transformer oil market in the region is mature, and it is estimated to grow at a CAGR of 4.1%, during the forecast period.
Japan accounted for relatively minor share of the market in 2021. However, the market in the regions is projected to grow at a rapid pace during the forecast period.
The silicon transformer oil market is consolidated with a small number of large-scale vendors controlling majority of the market share. Many firms are spending significantly on comprehensive research & development, primarily to develop environment-friendly products. Diversification of product portfolios and mergers & acquisitions are major strategies adopted by key players. Dow Inc., Cargill, Eden Transformer Oil Ltd., DGE-Smart Specialty Chemicals, Electrical Oil Services, Clearco Products co, Inc. are the prominent entities operating in the market.
Each of these players has been profiled in the silicon transformer oil market report based on parameters such as company overview, financial overview, business strategies, product portfolio, business segments, and recent developments.
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Attribute |
Detail |
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Market Size Value in 2021 |
US$ 266.8 Mn |
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Market Forecast Value in 2031 |
US$ 402.2 Mn |
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Growth Rate (CAGR) |
4.2% |
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Forecast Period |
2022–2031 |
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Historical Data Available for |
2020 |
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Quantitative Units |
US$ Mn for Value and Tons for Volume |
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Market Analysis |
It includes cross segment analysis at as well as regional level. Furthermore, qualitative analysis includes drivers, restraints, opportunities, key trends, Porter’s Five Forces analysis, value chain analysis, and key trend analysis. |
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Competition Landscape |
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|
Format |
Electronic (PDF) + Excel |
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Market Segmentation |
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Countries Covered |
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Companies Profiled |
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Customization Scope |
Available upon request |
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Pricing |
Available upon request |
The market stood at US$ 266.5 Mn in 2021.
The market is expected to grow at a CAGR of 4.2% from 2022 to 2031.
Overdependence on fossil fuel, and modernization of infrastructure and increase in electricity consumption to boost the demand for silicon transformer oil.
Distribution transformer was the largest segment that held 94.3% share in 2021.
North America was the most lucrative region of the global silicon transformer oil market in 2021.
Cargill, Eden Transformer Oil Ltd., DGE-Smart Specialty Chemicals, Electrical Oil Services, and Clearco Products Co, Inc.
1. Executive Summary
1.1. Silicon Transformer Oil Market Snapshot
1.2. Current Market and Future Potential
2. Market Overview
2.1. Market Segmentation
2.2. Market Definitions
2.3. Market Indicators
3. Market Dynamics
3.1. Drivers and Restraints Snapshot Analysis
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunities
3.2. Porter’s Five Forces Analysis
3.2.1. Threat of Substitutes
3.2.2. Bargaining Power of Buyers
3.2.3. Bargaining Power of Suppliers
3.2.4. Threat of New Entrants
3.2.5. Degree of Competition
3.3. Regulatory Scenario
3.4. Value (US$ Mn) Chain Analysis
3.4.1. List of Manufacturers
3.4.2. List of Potentials Customers
3.5. Cost Analysis
4. Price Trend Analysis
5. Production Output Analysis
6. COVID-19 Impact Analysis
6.1. Impact on Demand for Oil
7. North America, Europe and Japan Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Analysis, by Application
7.1. Key Findings and Introduction
7.2. North America, Europe and Japan Silicon Transformer Oil Market Value (US$ Mn) Share Analysis, by Application, 2020–2031
7.2.1. North America, Europe and Japan Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Power Transformer, 2020–2031
7.2.2. North America, Europe and Japan Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Distributive Transformer, 2020–2031
7.3. North America, Europe and Japan Silicon Transformer Oil Market Attractiveness Analysis, by Application
8. North America, Europe and Japan Silicon Transformer Oil Market Analysis, by Region, 2020–2031
8.1. Key Findings
8.2. North America, Europe and Japan Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Analysis & Forecast, by Region, 2020–2031
8.3. North America, Europe and Japan Silicon Transformer Oil Market Attractiveness Analysis, by Region
9. North America Silicon Transformer Oil Market Analysis, 2020–2031
9.1. Key Findings
9.2. North America Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Analysis & Forecast, by Application, 2020–2031
9.3. North America Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Analysis & Forecast, by Country, 2020–2031
9.3.1. U.S. Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Application, 2020–2031
9.3.2. Canada Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Application, 2020–2031
9.4. North America Silicon Transformer Oil Market Attractiveness Analysis, by Application
10. North America, Europe and Japan Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Analysis, by Application
10.1. Key Findings and Introduction
10.2. North America, Europe and Japan Silicon Transformer Oil Market Value (US$ Mn) Share Analysis, by Application, 2020–2031
11. Europe Silicon Transformer Oil Market Analysis, 2020–2031
11.1. Key Findings
11.2. Europe Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Analysis & Forecast, by Application, 2020–2031
11.3. Europe Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Analysis & Forecast, by Country and Sub-region, 2020–2031
11.3.1. Germany Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Application, 2020–2031
11.3.2. U.K. Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, Application, 2020–2031
11.3.3. France Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Application, 2020–2031
11.3.4. Italy Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Application, 2020–2031
11.3.5. Spain Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Application, 2020–2031
11.3.6. Russia & Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Application, 2020–2031
11.3.7. Rest of Europe Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Forecast, by Application, 2020–2031
11.4. Europe Silicon Transformer Oil Market Attractiveness Analysis, by Application
11.5. Europe Silicon Transformer Oil Market Attractiveness Analysis, by Country and Sub-region
12. Japan Silicon Transformer Oil Market Analysis, 2020–2031
12.1. Key Findings
12.2. Japan Silicon Transformer Oil Market Volume (Tons) and Value (US$ Mn) Analysis & Forecast, by Application , 2020–2031
12.3. Japan Silicon Transformer Oil Market Attractiveness Analysis, by Application
13. Competition Landscape
13.1. North America, Europe & Japan Market Share Analysis, by Company (2021)
13.2. Company Profiles
13.2.1. Dow
13.2.1.1. Company Details
13.2.1.2. Company Description
13.2.1.3. Business Overview
13.2.1.4. Financial Overview
13.2.1.5. Strategic Overview
13.2.2. Cargill
13.2.2.1. Company Details
13.2.2.2. Company Description
13.2.2.3. Business Overview
13.2.2.4. Financial Overview
13.2.2.5. Strategic Overview
13.2.3. Eden Transformer Oil Ltd.
13.2.3.1. Company Details
13.2.3.2. Company Description
13.2.3.3. Business Overview
13.2.3.4. Financial Overview
13.2.3.5. Strategic Overview
13.2.4. DGE-Smart Specialty Chemicals
13.2.4.1. Company Details
13.2.4.2. Company Description
13.2.4.3. Business Overview
13.2.4.4. Strategic Overview
13.2.5. Electrical Oil Services
13.2.5.1. Company Details
13.2.5.2. Company Description
13.2.5.3. Business Overview
13.2.5.4. Strategic Overview
13.2.6. Clearco Products Co, Inc.
13.2.6.1. Company Details
13.2.6.2. Company Description
13.2.6.3. Business Overview
13.2.6.4. Strategic Overview
14. Primary Research –Key Insights
15. Appendix
16. Research Methodology and Assumptions
List of Tables
Table 01: North America, Europe & Japan Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 02: North America, Europe & Japan Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 03: North America Power Transformer Oil Market, by Country
Table 04: North America Silicon Transformer Oil Market Volume (Tons), by Country, 2020-2031
Table 05: North America Silicon Transformer Oil Market Value (US$ Mn), by Country, 2020-2031
Table 06: North America Silicon Transformer Oil Market, by Application 2020–2031
Table 07: North America Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 08: North America Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 09: U.S. Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 10: U.S. Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 11: Canada Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 12: Canada Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 13: Europe Silicon Transformer Oil Market Volume (Tons), by Country & Sub-region, 2020-2031
Table 14: Europe Silicon Transformer Oil Market Value (US$ Mn), by Country & Sub-region, 2020-2031
Table 15: Europe Silicon Transformer Oil Market, by Application 2020–2031
Table 16: Europe Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 17: Europe Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 18: Germany Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 19: Germany Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 20: France Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 21: France Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 22: U.K. Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 23: U.K. Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 24: Italy Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 25: Italy Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 26: Spain Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 27: Spain Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 28: Russia & CIS Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 29: Russia & CIS Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 30: Rest of Europe Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 31: Rest of Europe Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
Table 32: Japan Silicon Transformer Oil Market Volume (Tons), by Application, 2020-2031
Table 33: Japan Silicon Transformer Oil Market Value (US$ Mn), by Application, 2020-2031
List of Figures
Figure 01: North America Silicon Transformer Oil Market Value Share Analysis, by Country, 2021, 2025, and 2031
Figure 02: North America Silicon Transformer Oil Market Attractiveness Analysis, by Application, 2021, 2025, and 2031
Figure 03: North America Silicon Transformer Oil Market Attractiveness Analysis, by Country, 2021, 2025, and 2031
Figure 04: Europe Silicon Transformer Oil Market Value Share Analysis, by Country and Sub-region, 2021, 2025, and 2031
Figure 05: Europe Silicon Transformer Oil Market Attractiveness Analysis, by Application, 2021, 2025, and 2031
Figure 06: Europe Silicon Transformer Oil Market Attractiveness Analysis, by Country and Sub-region, 2021, 2025, and 2031
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Silicon Transformer Oil Market
*86 figures and 60 tables includes