The global bio-based transformer oil market is expected to double by 2033, driven by an 8.2% CAGR and growing demand for sustainable insulation fluids. The market size reached $220 million in 2024 and is projected to rise to $457 million by 2033. This growth is driven by the shift towards environmentally friendly alternatives to conventional mineral-based transformer oils, due to stricter environmental regulations and a global push to reduce carbon footprints. Bio-based transformer oils, made from renewable sources, provide a reliable and eco-friendly solution for insulating and cooling electrical equipment.
The Asia Pacific region leads the market, followed by North America and Europe, with Latin America and the Middle East & Africa emerging as growing markets. Key players in the market include Cargill, ABB Ltd., Siemens AG, and Shell plc, among others. The adoption of bio-based transformer oils is driven by the energy sector’s shift towards greener practices, and they are expected to become the future standard for insulating and cooling electrical equipment.