Compressor Oil Market By Oil Type (Synthetic Oil, Mineral Oil, Semi Synthetic Oil), Compressor (Reciprocating Compressors, Sliding Vane Compressors, Centrifugal Compressors), End Use (Oil & Gas, Automotive, Power) & Region - Forecast to 2021- 2031
Compressor Oil Market - Analysis, Outlook, Growth, Trends, Forecasts
- May 2021
- 300 pages
- Chemicals & Materials
About the Report
Compressor oil market is expected to grow at a positive rate during the assessment period from 2021 to 2031. The growth is being contributed by the growing demand from various industries including manufacturing, oil & gas industries, automotive, and power sectors. Synthetic oil is estimated to remain dominant product type through the forecast period. Increasing installations of various types of compressors and regular replacement of old compressors are enabling growth in the market across the globe. The increasing requirement of lubrication for the proper functioning of compressor is expected to remain a key factor fuelling the demand for compressor oil during the forecast period.
ESOMAR-certified market analysis and consulting company Future Market Insights (FMI) provides insights driving Compressor Oil market demand in latest report. Additionally, to find the effect of COVID-19 on the Compressor Oil market in general, the study monitor global Compressor Oil sales in 20+ high-growth markets and addresses their end-user in particular.
How the Historical and Future Outlook of the Compressor Oil Market Match Up?
Compressor oil market is witnessing a significant growth, especially in East Asia and South Asia Pacific. Strong industrial infrastructure spending in regions such as Europe and North America has resulted in the significant growth in the market. The demand is expected to rise consistently in industries such as, oil & gas, power generation, automotive, chemical industry, pharmaceuticals, food and beverages, air separation and others.
According to FMI’s analysis, the compressor oil market has been estimated to witness a CAGR of 4.6% CAGR between 2021 and 2031. Growth is expected to be contributed by utilization of various compressors such as reciprocating compressors, rotary compressors, centrifugal compressors, screw compressors, and other types in various industries. The rising investment in R&D is also contributing to the growth.
The demand also is expected to rise for bio based compressor oil. This type of oil is associated with low carbon emission and is witnessing significant growth in the regions with stringent regulations. Bio Based oil is also expected to remain a key aspect for the sustainable development in the market of compressor oil in the coming years.
Despite changing preference of industries, synthetic type oil is expected to remain the leading product type with its ever-increasing use in different types of compressors. However, the market is expected to register dwindling growth amid the COVID-19 countries. Unfavorable economic and social scenario for instance made 2020 a highly challenging year for the market.
The demand decelerated amid restrictions and lockdown imposed across various industries, which also resulted in the shutdown of industries. The impact of these developments was not much favorable for the market. Low demand from manufacturing industries and the oil and gas sector created obstacles for the compressor oil market.
How Is Increasing Demand For Reliable Power Supply Affecting Compressor Oil Sales?
The power and energy sector is one of the most prominent and rapidly growing industrial sectors in the globe. Rapid growth in the industrialization supported by economic growth across nations and growing population have fueled the demand for continuous power supply.
Electricity is one of the key aspects of the energy and power sector and electrification of several industries is a pathway for the sustainable growth. Electricity today accounts for a significant share of the total final consumption of energy, a share that is set to increase as the demand for electricity outpaces all other fuels.
Implementation of new policies and swift industrial growth are expected result in the electricity accounting for nearly 25% share in the energy and power sector in the forthcoming years. The rising demand for reliable & uninterrupted power supply is anticipated to result in growth of the energy and power industry. Increasing energy/power generation activities are expected to drive the demand for compressor oils in the future.
Market Research Methodology - Perfected through Years of Diligence
A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.
Is The Penetration Of Oil Free Compressors A Key Challenge?
Compressors used by industries had to utilize oil-lubed pumps, which uses lubrication and regular change of oils. Oil compressors are preferred by industries since these compressors have long life and oil enhances the life of compressors. However, with the growing investment in research and development, innovative compressors are emerging into markets which also includes oil free compressors. These oil free compressors have working life of about 2000 hours which results into more returns for the manufacturers and industrialist.
For instance, Campbell Hausfeld, which manufactures compressors, had developed an oil free air compressor with a capacity of 6 gallon, which also has an extended product life and further provides maintenance operations. Design of oil free compressors requires self-lubricating materials and parts which allows piston to freely move in the cylinder. Oil free compressors are being modified continuously with investment by key manufacturers to cater the growing demand from the end use industries. Some designs of oil-free compressors also utilize water instead of oil for cooling and lubrication purposes.
These alternate solutions protect the pump and also allows the piston to move smoothly without the need for any oil-based or synthetic lubrication. Oil free compressors are used in food and beverage, brewery, medical, pharmaceutical, and other industries. This however doesn’t bode well for compressor oil producers.
Rising Application across Diverse Sectors Remains Key Growth Driver
Increasing demand in oil & gas, power, automotive, and other industries has resulted due to a number of factors such as increasing consumer power, focus on sustainability, urbanization, consolidation, and a growing middle class population. These changes are propelling the demand for investments and economies of scale, which is creating up significant opportunities for compressor oil.
Compressor oil is characterized by rising living standards of people across the globe and increasing household investment in several appliances like refrigerators, AC, and others. These appliances require compressors. Thus, the sales of compressors are anticipated to rise significantly in the near future which will boost the demand of compressor oil. Hence, the rising demand for consumer appliances and increasing industrial infrastructure across the globe are creating significant opportunities for compressor oil manufacturers.
What is the Share of the U.S. in the Compressor Oil Market?
The U.S. is anticipated to remain one of the leading countries in the global market for compressor oil. The development of industries such as oil & gas, automobile, power generation, food and beverage industries, chemical industries, and others s has led to the increasing demand & use of various types of compressors. This has boosted the compressor oil demand in the U.S. The country also has presence of a fair share of key market participants and also is estimated to account for about one sixth of the global market in terms of demand of compressor oil.
What are the Factors Driving Growth in China?
Expansion of various end-use industries has led to the significant growth of compressor oil market in China. China also is projected to witness an increasing growth over forecast period in the sales of Compressor oil owing to the growing demand from the end use industries such as, chemical industries, power industries, food and beverages industries, automotive and transportation industries, pharmaceuticals, mining and metals and many other industries.
Will the Germany Remain a Key Market for Compressor Oil Market?
Germany is anticipated to remain a key market for compressor oil. Significant growth in the end use sectors including automotive industries, power generation sector, pharmaceutical industries and other manufacturing industries had fuelled the demand of compressor oil in Germany. Germany is also anticipated to account for about one-fifth of the overall market of compressor oil in Europe.
What is Driving Compressor Oil Market in India?
Industrialization in India has been a key contributor to the expansion of the compressor oil market. Thanks to the rising demand for electricity and power supply to accommodate a growing economy, the demand will continue surging through the forecast period. Besides this, opportunities across industries such as, pharmaceuticals, chemicals, food and beverages, mining and metals, automotive and transportation, power generation, oil and gas, and others will give tailwinds to growth in India.
Is Demand for Compressor Oil Increasing in GCC Countries?
Demand for compressor oil in GCC countries can be attributed to the growth in the oil and gas industry. The imbalance in the oil demand all across the globe has however affected the oil and gas industry in GCC region to a significant extent. Excess oil production by Russia and the U.S. in past few years has changed the oil pricing dynamics. Further the decrease in the compressor oil demand owing to decrease in the demand of oil & gas during the pandemic crisis has also impacted the growth. Increasing trend of Electric Vehicle is also estimated to impact the oil & gas industries in GCC countries in the coming years.
Which is the Preferred Compressor Oil Type?
Synthetic oil is anticipated to remain the key compressor oil type in the global market. Synthetic oil is prepared by using a synthetic oil base. It is refined oil which has high demand in the market, as it causes less carbon build-up than standard oils. Synthetic oils are better for compressor performance and longevity of compressors. Synthetic oil includes PAG (Polyalkylene Glycol), PAO (Polyalkylene olefins), ester base stock, and ammonia base oils. This type of oil are used in several types of compressors like centrifugal compressors, reciprocating compressors and screw compressors and other compressors.
How Big Is the Reciprocating Compressor Segment?
Reciprocating compressor is a positive displacement compressor. It is also called as piston compressor and primarily adopts back and forth piston motion in a cylinder synchronized with suction and discharge valves to compress the vaporized refrigerant from low pressure region to high pressure region. Reciprocating compressors are utilized in various applications, which includes household refrigerators and freezers, residential and commercial air conditioning and refrigeration, natural gas processing and delivery process, chemical plants, oil refineries and many other industries.
Who is the Key End User of Compressor Oil?
Manufacturing industries are estimated to emerge as key end users of compressors which makes them key consumers of compressor oil. Industries such as the chemical industry, food and beverages, pharmaceutical, metal and mining, industrial air separation, and others have been exhibiting demand for compressor oil. Expansion of these industries will result in increasing demand for compressor oil over the forecast period. Manufacturing segment is further estimated to account for about more than half of the overall consumption of compressor oil.
Which is the Preferred Sales Channel for Compressor Oil?
Original equipment manufacturers or OEMs are projected to remain key sales channel in the global market for compressor oil during the assessment period. OEMs manufacturer original product, which is marketed by another company. Several key players gave contracts with the compressor oil manufacturers and buy a significant quantity of oil and sell by their name. This type of sales channel is estimated to remain one of the key sales channel during the forecast period owing to its growing trend.
Key players in the compressor oil market are continuously searching for ways to provide higher quality products at lower costs and a stable supply for long durations, which will help manufacturers to carry on their industrial operations smoothly. Most of the smaller companies are going into long-term contracts with contract manufacturers to supply customized products at cost-competitive prices for the end use applications.
Some of the leading companies operating in the market are:
- Exxon Mobil Corporation
- Total S.A.
- Sinopec group
- Royal Dutch Shell plc
- Atlas Copco Group
- BASF SE
- British Petroleum plc
- Croda International
- Sasol Limited
- Chevron Corporation
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value and KT for Volume
Key Regions Covered
North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, brazil, Mexico, GCC Countries, Turkey, Northern Africa, South Africa.
Key Segments Covered
Product Type, Application and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
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- Is this research conducted by Future Market Insights?
Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst
- What research methodology is followed by FMI?
FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions. Request detailed methodology
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- What are the sources of secondary research?
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Compressor Oil Market by Category
By Oil Type
- Synthetic Oil
- Mineral Oil
- Semi Synthetic Oil
- Bio Based Oil
- Reciprocating Compressors
- Sliding Vane Compressors
- Centrifugal Compressors
- Screw Compressors
- Rotary Compressors
By End Use
- Oil & Gas
- Manufacturing and Others
By Sales Channel
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East and Africa (MEA)