Key Market Overview:
Compressor Oil Market size was worth USD 8.7 Billion in 2021, accounting for a CAGR of 4.8% during the forecast period (2022-2030), and the market is projected to be worth USD 13.27 Billion by 2030.
Compressor oil is a kind of lubricant used in compressors to avoid wear & tear, and friction, and enhance efficiency to extend the life span of the machinery or equipment. Compressors play a crucial role in industrial operations and are necessary to ensure smooth performance and efficiency. Without adequate lubrication, compressors break down, which leads to unscheduled maintenance & repairs. Compressor oil forms a protective layer between metal surfaces, aiding in preventing rust, overheating, and corrosion of the equipment. Efficiently lubricated compressors run more efficiently, decreasing energy consumption, and cutting costs. Furthermore, the increasing applications of compressor oil in manufacturing, oil & gas, and automotive industries are bolstering the market growth of the product.
The advent of zinc-free (ashless) compressor oils is further enhancing the compressor oil market growth. Zinc is a key element used in the production of compressor oil and is toxic and non-biodegradable. Pre-treatment of used lubricants before releasing them into the environment is a very essential and expensive process. Thus, the rise in the production of zinc-free compressor oils is benefitting many industries to reduce costs, further attributing to market growth.
The increasing demand for compressors across various industries, such as industrial manufacturing, oil & gas, automotive, and others is driving the market growth of compressor oil. Additionally, increasing demand for energy-efficient solutions for environmental benefits and cost efficiency is propelling the acceptance of energy-efficient compressors. The systems require proper lubrication which further enhances the application of compressor oil which in turn is driving the market growth of the product. Additionally, the rising popularity of synthetic oils owing to enhanced performance and increased lifespan is further accelerating the demand for compressor oils, driving the market growth of the product.
The availability of alternative lubricants, such as hydraulic oils and grease is hampering the market growth. Moreover, the availability of oil-free- compressors reduces the risk of contamination further restraining the usage of compressor oils across various industries. Thus, the above-mentioned factors are restraining the demand for compressor oils in the market.
Technological advancements in compressors, such as the development of high-pressure and high-temperature compressors, are expected to create lucrative opportunities for the compressor oil market to grow in the future. Such compressors need dedicated and specialized oils for optimal performance, which is expected to enhance the application of compressor oils and drive market growth over the forecast period.
Compressor Oil Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||13.47 billion|
|By Type||Synthetic Compressor Oil and Mineral Compressor Oil|
|By Application||Refrigeration, Air Conditioning, Automobiles, and Others|
|By End-use||Industrial Manufacturing, Oil & Gas, Automotive, and Others.|
|By Region||North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa|
|Key Players||Shell PLC, Exxon Mobil, Sinopec, Chevron, Indian Oil Corporation Limited, Dow Chemical Company, BP plc., Sasol Limited, Fuchs Petrolub AG, and Valvoline|
Based on type, the market is bifurcated into synthetic compressor oil and mineral compressor oil. The mineral compressor oil segment dominates the global compressor oil market with the highest market share. This is owing to the extensive usage of the product in various compressor applications and relatively low cost compared to other compressor oils. Additionally, mineral compressor oils have a well-established market owing to prolonged usage for several years which is attributed to a dominant market share. Synthetic compressor oil is the fastest-growing global compressor oil market segment. It is a refined oil manufactured from synthetic materials, rather than petroleum, causes less carbon build compared to standard oils, and is more resistant to oxidation. Owing to the mentioned properties the synthetic compressor oil market is expected to grow at a significant rate over the forecast period.
The application segment is categorized into refrigeration, air conditioning, automobiles, and others. The refrigeration segment holds the largest market share of compressor oils in terms of application. This is due to the extensive usage of compressor oils in refrigeration systems, aiding in maintaining the efficiency of the compressor. The increasing demand for refrigerators in both commercial and residential settings, especially in developing nations, is propelling the growth of the compressor oil market across the refrigeration segment. Furthermore, the air conditioning application segment is anticipated to witness the fastest growth over the forecast period. Compressor oil is a necessary constituent in the air conditioning system which consists of a compression mechanism. The oil is utilized for lubrication and removal of heat. The increasing application of air-conditioning systems across residential, commercial, and industrial sectors is expected to drive the market growth of compressor oils over the forecast period.
The end-use segment is categorized into industrial manufacturing, oil & gas, automotive, and others. The industrial manufacturing segment is dominating the compressor oil market, owing to the increasing application of compressors in the food & beverage, chemical, pharmaceutical, and paper industries. Growing industrialization coupled with the requirement for energy-efficient solutions is fueling the demand for compressors, which in turn, is driving the market growth of compressor oils. Furthermore, the oil & gas segment is anticipated to witness the fastest-growing CAGR over the forecast period. This is owing to the increasing demand for compressor oils in the oil & gas industry to enhance the production & storage of oil and gas.
The regions include North America, Europe, Asia Pacific, Latin America, the Middle East, and Africa. The Asia Pacific region dominates with the highest market share in the global compressor oil market. Growing industrialization across manufacturing, power generation, and automotive sectors, especially in countries such as China, Japan, South Korea, and India is enhancing the application of compressor oils, thus driving market growth. North America is expected to witness the fastest growth rate in the global compressor oil market during the forecast period. The presence of a well-established oil & gas, power generation, and chemical industry is expected to propel the demand for compressors that should drive the demand for compressor oils in the future. Additionally, the presence of leading players in the region, and the rising demand for solutions that are energy efficient, is also expected to enhance the demand for compressor oils in the future.
Compressor Oil Market Competitive Landscape:
The market is highly competitive, with many players operating at the global and regional levels. The players are competing on various parameters such as price, quality, innovation, and customer service. They are constantly investing in research and development to improve product quality and expand market share. Mergers, acquisitions, new product development, and strategic partnerships & collaborations are other strategies employed by the companies to enhance their market position. Key players in the market include:
- Shell PLC
- Exxon Mobil
- Indian Oil Corporation Limited
- Dow Chemical Company
- BP plc.
- Sasol Limited
- Fuchs Petrolub AG
- In 2022, Valvoline, a U.S. based manufacturer, launched Valcomp Compressor Oil Synth 68. The product is formulated with zinc-free additives which have high efficiency and very less impurities in it.
- In 2020, Exxon Mobil, a US-based natural gas company, launched Mobil Rarus 400 series. It is a premium performance ashless air compressor oil.
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