Liquid-Immersed Transformer Market – Evolution of Eco-Efficient Power Transformer and Increasing Popularity of Bio-Based and Naphthenic Transformer Oil Drives Demand


A transformer is an electric device which is used to transfer electrical energy from one voltage to another. There are two main types of transformer, they are liquid-immersed transformer and dry transformer. A liquid-immersed transformer is a transformer whose cores and coils are immersed in an insulating liquid such as oil which functions as the cooling/heat transfer medium and the insulator to control stray currents. An insulating oil remains stable at high temperatures and has excellent electrical insulating properties. The main purpose of using liquid-immersed transformer is to remove the waste heat dissipated from the transformer windings with the help of transformer oil and conducts it to the outside of the transformer. Liquid-immersed transformers are of two types, power transformer and distribution transformer. Power transformers are used in transmission network of higher voltages for step-up and step-down application.

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Distribution transformers are used in transmission network of lower voltage application. Liquid-immersed transformer consists of transformer tank, high voltage and low voltage bushing, cooling radiator, cooling fans, conservator tank, oil temperature/pressure gauges, system ground terminal, and drain valve. Liquid-immersed transformers are used in various applications such as commercial, residential, and industrial applications as it offers good reliability, efficiency, and durability.

The major driving factor for growth of the global liquid-immersed transformer market is due to increasing use of the transformer in various applications such as residential, commercial, and industrial process. Moreover, to reduce the short circuit and transmission losses in high voltage transmission, liquid-immersed transformer is used that have mineral oil as an electric insulating medium. In addition to this, liquid-immersed transformers are lower in cost as compared to dry transformers. Considering these factors, liquid-immersed transformers market is expected to show significant growth during the forecast period. Moreover, wind, solar, geothermal, and hydroelectric are among the major forms of renewable energy.

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Due to increasing demand for power dependence on these renewable sources is also increasing and to generate power from these renewable sources requires installation of grid which is expected to drive demand for the liquid-immersed transformer market in coming years. Due to increase in demand for kilowatt hour (kWh) that is unit of energy, along with increasing cost of space, specifically in the urban areas is expected to show substantial growth prospect for the liquid-immersed transformer market. Along with this, evolution of eco-efficient power transformer and increasing popularity of bio-based and naphthenic transformer oil are market trend for the liquid-immersed transformer market. However, fire prevention is very important in liquid-immersed transformer as the use of a cooling liquid medium may catch fire if it is improperly protected, which is expected to be the major factor to restrain growth of the global liquid-immersed transformer market.

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