Press release
Silicon Transformer Oil Market is Expected to Surpass the value US$ 402.2 Mn by 2031
Silicon Transformer Oil Market Outlook 2031The silicon transformer oil market was valued at US$ 266.8 Mn in 2021
It is estimated to grow at a CAGR of 4.2% from 2022 to 2031
The silicon transformer oil market is expected to reach value of US$ 402.2 Mn by the end of 2031
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silicon transformer oil market
Overview of Silicon Transformer Oil Market
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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Silicon Oil as Safer Alternative to Mineral Oil to Drive Silicon Transformer Oil Market
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.
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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.
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Modernization of Facilities and Increase in Electricity Consumption to Boost Silicon Transformer Oil Market
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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Extensive Use of Silicon Transformer Oil in Distribution Transformer to Propel Market
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.
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