Press release
With Increasing Demand for Electricity and new power generation projects, electric utilities are likely to invest around US$ 3.2 trillion at a global level
The global demand for dielectric fluids experienced a major fall in the first and second quarter of 2020 due to lockdown and other stringent regulation imposed by the government for public safety creating drasting effect on the sales.Leading as well as small companies operating in the dielectric fluids market suffered the dire consequences of the situation. Now as recovery commences in 2021, the demand has started witnessing immense rise forcing the players to focus more on R&D activities to deliver bestest products and services to their customers.
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Leading manufacturing companies like 3M Corporation, Cargill Incorporation, Engineered Fluids, Green Revolution Cooling Incorporation, Shrieve Chemical Company, Soltex Incorporation, Solvay SA and M&I Materials Limited are adopting both organic as well as inorganic growth strategies for improving their global presence such as geographical expansion, collaboration, joint ventures, partnership agreements, expansions, diversifications, innovations, acquisitions, research and developments, mergers, technological upliftments, e-selling, sales agreements, product line extensions etc.
Hiring of technical expertise as well as acquiring latest IT infrastructure is an important step that high budget corporations are undertaking to bring improvisations in their quality and services in 2021.
For instance, Hirschmann Corporation introduced ‘IonoPlus 3000 Synthetic Dielectric Fluid’ after long years of research OEL HELD introduces an entirely new powerful concept into dielectrics. IonoPlus 3000 is a dielectric fluid enriched with Chemical Satellite Electrodes suited for all operations from the finest finishing processes to the most effective roughcut. Unlike other EDM fluids, IonoPlus 3000 is a 100 % pure synthetic product not a mineral based oil eliminating frequent oil changes and ends skin irritation problems.
Besides having the best possible effectiveness in flushing and the greatest possible disruptive strength, it offers a whole series of unique advantages. These increase the electrical conductivity in the spark gap which reduces ionization time and allows greater metal removable rates in roughig, semi-finishing and finishing using the same settings.
It has a number of attributes including greater efficiency in metal removal, resistance to electrode wear, improved surface quality, shining results in the finishing process and increasing swarf removal rate. IonoPlus 3000 has been thoroughly tested by the Institute for Research and Control of Work Materials in Baden-Wurttemberg Germany in respect to operational safety and industrial hygiene. It can be used in all conventional filter plants.
In addition to that, Cargill Corporation announced the launch of ‘Modified FR3 Dielectric Fluid’ which is derived from 100 % renewable vegetable oils on in 2020. It has strong dielectric strength even at very cold temperatures. This newly modified dielectric fluid is validated, field and lab tested in millions of distribution and power transformers worldwide.
It has been proven to be the superior dielectric fluid to mineral oil and is simply the choice for dielectric fluid in use today. FR3 fluids outperforms mineral oil in overall cost savings, grid resilency, transformer performance, fire safety and environmental benefits. It is acting as a smart solution for performance, value as well as peace of mind. It provides with measurable value to improve the performace while giving best service to the customers.
Asia Pacific is currently dominating the market for dielectric fluids in 2021 owing to rapid industrialization in China, Australia and India. Government efforts to encourage developments in automotive industries, electrical industries, defense industries and aerospace industries is providing enormous contribution towards the growth of this market in Asia Pacific regions.
It is estimated that it will continue to maintain its ruling position through 2030 and will rise at a fastest CAGR globally. On the other hand, Europe is predicted to occupy second position in terms of market share. Excessive usage of dielectric fluids in Germany and France as a lubricant in aerospace as well as automotive industries is predicted to accelerate the growth rate exponentially through the predicted time frame.
Where are Dielectric Fluids Used?
Dielectric fluids are widely used as electrical insulators to prevent electric discharges in high voltage application such as transformers and capacitors. The dielectric fluids are also used in variety of liquid-filled electrical equipment in order to provide fire safety, biodegradability, high performance over wide range of temperature, and oxygen stability. Transmission and distribution of electrical energy from power generating sources require change of voltage at different ends that need transformers at every stage.
Dielectric fluids are used in these transformers to reduce loss of transmission and short circuit in high voltage transmission and to provide optimum operational temperature range. This has led to surge in the demand for dielectric fluids.
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Owing to increasing usage of dielectric fluids in a variety of applications, the global dielectric fluids market is anticipated to expand at steady rate in the coming years. Demand for dielectric fluids is mainly driven by its significant advantages such as low viscosity, high flash point, rapid heat dissipation, and oxidation resistance which in turn will possibly boost growth of the dielectric fluids.
Rising scope of application in mold industry, tool & die industry, regulators, hardware, valves, and even in the manufacturing of various aerospace components is foreseen to contribute to sales of dielectric fluids.
Energy Infrastructure to Augment Use of Transformer Dielectric Fluids
In the coming decade, with increasing demand for electricity and new power generation projects, electric utilities are likely to invest around US$ 3.2 trillion at a global level for new transmission as well as replacement transmission and distribution infrastructure, which is expected to auger well for power and distribution transformers.
In addition, transformer and energy infrastructure industry is witnessing steady growth with increasing government initiatives that has resulted in an upsurge in the power sector. Dielectric fluids, being a vital component for cooling and providing electrical resistance in distribution and power transformers, is expected to witness significant demand during the assessment period, consequently supporting the supply-demand of dielectric fluids.
Biodegradable Dielectric Fluids: The Most Eco-Friendly Solution
Polychlorinated biphenyls (PCBs) were initially used in dielectric fluids and coolants in transformers for heat transfer applications. However, several problems associated with environmental toxicity were witnessed that banned the use of polychlorinated biphenyls in dielectric fluids. Environment Agency and Department for Environment, Food and Rural Affairs have imposed regulations regarding the use and disposal of polychlorinated biphenyls to reduce environmental hazards.
This led to the development of biodegradable dielectric fluids that offer better performance and are environment friendly. For example, Cargill Incorporated has developed Envirotemp FR3 dielectric fluid that is bio-based natural ester fluid used in transformers. Its fire safety property, electrical property, environment friendliness and chemical properties are in accordance with the ASTM D6871 and IEC 62770 rules.
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It does not contain silicones, halogens, corrosive sulfur or petroleum and thoroughly biodegrades at a rapid pace with low carbon footprint. This has spurred the use of biodegradable dielectric fluids, thus contributing to the overall sales of dielectric fluids.
EDMs Prefer Synthetic Dielectric Fluids
Electrical Discharge Machines (EDMs) are widely used in metal industry for metal removal by using a series of electric sparks. Dielectric fluids are used in electrical discharge machine operations to facilitate proper circulation of sparks. This is expected to push the adoption of dielectric fluids thus supporting their market’s growth.
Moreover, the demand for EDM is significantly high in other end use industries such as aerospace and defense where it is used to manufacture aerospace components. EDM is also used in mold industry, manufacturing of regulators and hardware. This has accelerated the use of dielectric fluids in these end use industries, consequently increasing their application scope.
With this, manufacturers have been focusing on developing advanced dielectric fluids for electrical discharge machines to ensure efficient functioning of the machine with reduced downtimes. For example, Hirschmann GmbH has developed synthetic dielectric fluid – IonoPlus 3000 – a universal dielectric fluid that is suitable for various operations.
It offers optimal flushing effectiveness along with maximum disruptive strength. According to the Institute of Research and Control of Work Materials, situated in Baden, Germany, that has tested the operational effectiveness, industrial hygiene and safety of this synthetic dielectric fluids, allergic or toxic symptoms are absent while using this fluid, making it environment friendly.
Additionally, higher resistance against electrode wear, enhanced quality of the surface and high dispersing capacity are few of the advantages of IonoPlus 3000 dielectric fluids, which have gained sufficient traction across filter plants. Such developments are expected to positively influence the demand for dielectric fluids.
Key participants in the global market for dielectric fluids are focusing on expanding their reach via strategic alliances with end users of dielectric fluids. For instance, Westrafo Srl, a transformer manufacturing company, has partnered with Cargill Incorporated for development of new transformer series – SPL transformers – that have higher capability in terms of resistance against peak loads of electric grid, thus improving safety of individuals industrial and civil applications. Cargill is providing its natural ester dielectric fluids, the FR3, for developing SPL transformers, as it offers eco sustainability, high performance, efficient cooling and insulation, fire safety and reduced maintenance.
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