Transformer or insulation oil is extremely refined oil that remains stable even at increased temperatures. It also has super electrical insulating properties. As a result, transformer oil has numerous applications in the oil-filled electrical transformers. Transformer oil is also called as dielectric oil. The primary function of this oil is to cool down the electric windings and transformers. Transfer oil market is showing great strength in terms of recovery from the past financial setback to the industry. This strength is visible in the increased demands and revenue channels from all over the world. The global transfer oil market is booming and will sustain similar trends for next few years.
Application of Transformer Oil Creates Business Opportunity
Oxidation is the major threat to the electric transformers. Avoiding this process is the biggest function of transformer or insulation oil. The core and windings of the transfer are dipped in this oil so that they stay out of reach from oxygen. Any contact with oxygen leads to oxidation. The transformer oil market is segmented based on these applications, types and geographical demand pattern. As far as the types are concerned, silicone oil, bio-based oil and mineral oil are the major types of insulation oil. Mineral oil is cost effective and it has the maximum electrical properties. It is an excellent coolant as well. Owing to all these attributes, mineral oil is leading the market in present scenario.
North America, Asia Pacific and Europe are the major markets for Transformer Oil Market. All these markets present great opportunities for bio-based, silicone, paraffinic and naphthenic oil. Since the financial crisis, various reasons have triggered growth and revenue in the market for transformer oil. Inclination towards using alternative and renewable energy sources is one of the biggest reasons behind the increased demand for this oil. Several other factors affecting the market trends for transformer oil include increased number of electric grids, increase in the requirement for power supply, increased investments in the transformer oil market and rapid economic developments in the developing countries like China and India.
As far as forecasting reports are concerned, the market is inclined towards bio-based oils. Mineral oils are highly associated with fire accidents. Hence, businesses tend to avoid the risk. Bio-based oils on the other hand are eco-friendly as they are biodegradable, non-toxic and incombustible in nature. All these attributes make them popular on global platform. Green energy is the prevailing trend in the electric market, which reflects in the demands and production of energy sources in this market.
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