Uninhibited Transformer Oil: Introduction

• Uninhibited transformer oil is highly refined, clean, and efficient performing transformer oil, which provides low temperature performance and high dielectric strength. Uninhibited transformer oil possesses good oxidation stability and is produced by distillation of virgin paraffinic and naphthenic crude oils. Uninhibited transformer oil is used in transformers, condensers, inductors, switchgear, circuit breakers, transducers, and other equipment as an insulating oil. Uninhibited transformer oil insulates current carrying parts from each other and also from the ground. It also transmits heat away and avoids glow discharges.
• Uninhibited transformer oil is a mineral oil, which does not contain any additives such as di-tertiary-butyl-para-cresol (DBPC) or di-butyl phthalate (DBP). The primarily function of a transformer oil is to provide electrical insulation between the various energized parts. Additionally, it is used to provide a protective coating on the transformer in order to prevent oxidation on metal surfaces.
• Transformer oil possesses good thermal conductivity due to its low viscosity and viscosity index, which ensures that heat is efficiently removed from core and windings. It also offers higher oxidation stability in order to provide good resistance to the degradation of oil. This boosts the overall life of transformer, with minimum maintenance.

Key Drivers and Restraints of Uninhibited Transformer Oil Market

• Attributes of uninhibited transformer oil, such as high dielectric strength and low power loss, make it an ideal oil for usage in transformers and insulators. High purity, high flash point, and good cooling capacity help maintain optimum temperature of the system. Uninhibited transformer oil provides more protection to electrical equipment, as it does not contain additives. Increase in usage of power equipment in developing as well as developed countries owing to its good thermal conductivity and higher oxidation stability is expected to boost the market during the forecast period.
• Advancements in transmission lines and replacement of old transformer units across the world are projected to drive the deployment of transformers in the near future. This, in turn, is estimated to drive the global uninhibited transformer oil market.
• Transformers are highly expensive and failure of these systems can result in economic losses during power interruptions. Beneficial characteristics of uninhibited transformer oil, such as higher oxidation stability and good heat transfer, are expected to drive the demand for the oil in the near future.
• Uninhibited transformer oil faces stiff competition from its counterparts such as inhibited transformer oil. Uninhibited oils contain natural inhibitors or synthetic inhibitors to a maximum concentration of 0.08% by weight. Inhibited oils contain natural inhibitors or synthetic inhibitors to a maximum concentration of 0.4% by weight.
• Inhibited oils also offer higher quality, high consistency, and good base oil composition, thereby resulting in exceptional performance including long oil life and hassle-free transformer operation. This is estimated to hamper the uninhibited transformer oil market during the forecast period.

Uninhibited Transformer Oil: Application Segment

• Based on application, the uninhibited transformer oil market can be segregated into transformers, circuit breakers, oil filled switches, and others
• The transformer segment is estimated to account for major share of the global uninhibited transformer oil market in the next few years. Increase in power generation through greenhouse technology, wind energy, tidal energy and other renewable energy sources is emerging as a global trend. Rise in usage of power generation equipment for energy generation through these technologies is also boosting the demand for uninhibited transformer oil.
• Uninhibited transformer oil extends transformer life, which gives it a vantage point for its increasing use among end-consumers. It has low pour point and low viscosity, and provides good fluidity at low temperature. It maintains working efficiency of the transformer due to its low dissipation power and high dielectric point. Uninhibited transformer oil is highly refined and clean; therefore, it resists sludge deposit and provides long service life.

COVID-19 Impact on Uninhibited Transformer Oil Market

• The COVID-19 outbreak has resulted in many countries halting all operations including production and distribution of goods. This has hampered economies of many countries.
• Several governments and private sector businesses are operating at a limited capacity or have ceased operations completely due to recent events surrounding the COVID-19 pandemic
• Disruption of logistics and non-availability of the workforce due to nationwide lockdowns and restriction on movement have adversely affected the production and usage of uninhibited transformer oil
• Manufacture of various consumer goods and other products across the globe came to a halt due to the unavailability of raw materials, shortage of labor, etc. This is expected to hamper the uninhibited transformer oil market.

Asia Pacific Holds Major Share of Uninhibited Transformer Oil Market

• In terms of region, the uninhibited transformer oil market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
• Asia Pacific is anticipated to hold major share of the global uninhibited transformer oil market. High market share held by the region can be ascribed to the expansion of electric networks and increase in installation and upgrade of transformers in the regions.
• Rise in initiatives by governments in Asia Pacific is expected to increase the drive the demand for uninhibited transformer oil. For instance, in 2015, the Government of India launched a scheme called ‘Deen Dayal Upadhyaya Gram Jyoti Yojana (abbr. DDUGJY)’ to provide continuous power supply to rural India. The government plans to invest Rs. 756 Bn (US$ 11 Bn) for rural electrification under this scheme in the next few few years.
• North America and Europe held large share of the global market in 2020 owing to the increase in demand for uninhibited transformer oil in the chemical industry in these regions