The global PAG compressor oil market is currently valued at USD 1.4 Billion in 2023 and is anticipated to expand at a CAGR of 8.7%. Owing to the increasing application in the end-use industry the market is likely to propel to USD 3.22 billion by 2033.
Rapid industrialization and increased application in end-use industries are likely to drive the growth of the Silicone surfactant market in the forecast period.
| Report Attribute | Details |
|---|---|
| Expected Market Value (2023) | USD 1.4 Billion |
| Projected Forecast Value (2033) | USD 3.22 Billion |
| Global Growth Rate (2023 to 2033) | 8.7% CAGR |
The PAG Compressor oil market is witnessing 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 significant growth in the market. The demand is expected to rise consistently in industries such as generation, automotive, chemical industry, pharmaceuticals, food and beverages, and others.
According to FMI’s analysis, the PAG compressor oil market has been estimated to witness a CAGR of % CAGR between 2022 and 2033. Growth is expected to be contributed by the utilization of various compressors such as reciprocating compressors, rotary compressors, centrifugal compressors, screw compressors, and other types in various industries. The rising investment in Research and Development is also contributing to the growth.
PAG Compressor oil demand witnessed a marginal decline during the COVID-19 outbreak. The market for PAG Compressor oil recorded a CAGR (2018 to 2022) between % during the same period. The suspension of transportation operations and the closure of industrial plants both had an impact on the demand for lubricants as well as the PAG compressor oil market.
The growing automotive industry provides an opportunity for the market growth
The rise in population and urbanization are key factors that are expected to boost vehicle production volumes across the globe. This, in turn, is expected to increase the demand for PAG compressor oil during the forecast period.
Increasing demand from the automotive industry for high-performance lubricants that can withstand high temperatures and extreme pressure is expected to drive the growth of the PAG compressor oil market.
Asia Pacific has become the hub of the automotive industry in the last few years. The surge in demand for automobiles in expanding economies, such as China and India, is driving the global automobile industry, which in turn is boosting the need for the PAG compressor oil market.
The rise in the number of investments in the automotive sector, typically in the Middle East & Africa, is expected to be a key factor that propels the PAG compressor oil market in the region.
Increasing Application in End-Use Industry to Drive the Market Growth
Increasing demand in mining, 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 significant opportunities for PAG compressor oil.
Rising awareness about the benefits offered by polyalkene glycol PAG-based lubricants among consumers is also expected to boost the PAG compressor oil market sales over the next few years.
Compressor oils ensure smoother operation and help in reducing the downtime and repair of the machine. Moreover, heat generated by compressors during operations results in more power consumption and wear & tear on the machine Thus, the sales of compressor oil are anticipated to rise significantly in the near future which will boost the demand for PAG compressor oil. Hence, the rising demand for consumer appliances and increasing industrial infrastructure across the globe are creating significant opportunities for PAG compressor oil manufacturers.
Fluctuating Prices May Impede the Market Growth
Although multiple application of PAG compressor oil is driving market demand there exist market restraining factors as well. Increasing fluctuations in raw material prices would impede industry growth. The constant changes in crude oil, additives, and base oils prices make it difficult for product manufacturers to maintain cost-effectiveness in production cycles while adding to higher costs and reduced profit margins.
Rapid Industrialization in North America to Boost the Market Growth
North America dominates the market with a CAGR of 8.6% in 2023. Changes in regulatory norms regarding the control of harmful gas emissions are expected to drive the market in the region during the forecast period. Nearly 80% of harmful emissions come from manufacturing units, mines, and thermal power plants.
An increase in pressure by the government to maintain air quality and equipment is boosting the demand for PAG compressor oil in the industrial sector in North America. Latin America and the Middle East & Africa are relatively less attractive regions of the global PAG compressor oil market.
Demand in North America is also largely driven by rapid industrialization in Mexico, which has emerged as a major automobile manufacturing hub over the past decade. Low tariffs and production costs on account of the country’s extensive free trade agreements are strengthening the potential for Mexico to become a prime global export base.
The regional market presents numerous opportunities for innovators to introduce new products with advantageous product characteristics to tap into niche applications.
Well-Established Industrial Sector in The Region to Drive The PAG Compressor Oil Market
The Europe PAG compressor oil market is expected to rise at a CAGR of 8.5 % from 2023 to 2033. Europe is the second-largest shareholder in the market, mainly due to the growing end-use industries in the region. Europe PAG compressor oil market size is anticipated to be valued at more than USD million by 2032.
This is attributed to the expanding presence of various end-user industries including chemical, manufacturing, mining, food and beverage, and automotive in the European continent. As these verticals are expanding at a stellar pace, the demand for PAG compressor oils with improved operation cycles and the ability to reduce maintenance time would gain massive traction in the ensuing year
Rising industrial activities and the modernization of industrial machinery are likely to drive growth in the European market. The presence of countries such as Germany France, and Spain with their established industrial sector is expected to drive the market growth.
The Growing Automotive Industry in Asia Pacific Propels the Market Growth
Asia Pacific PAG compressor oil market held a CAGR of 8.5% in 2023. The growth of the market in Asia Pacific is attributed to the high growth rate of major end-use industries such as metalworking, food processing, chemicals, and textiles, coupled with rapid urbanization and industrialization.
Asia Pacific is the largest PAG compressor oil market dusting the forecast period owing to the high growth of the construction and mining industries in emerging countries such as China, India, and South Korea.
Domestic and foreign investment in the construction industry has been consistently growing over the past decade in this region. Moreover, rising investment in infrastructure development in developing countries of Asia Pacific is fueling the demand for the PAG compressor oil market.
| United Kingdom | 8.5 % |
|---|---|
| India | 8.4 % |
| South Korea | 8.3% |
| China | 8.5% |
| USA | 8.6% |
Centrifugal Compressor Segment Remains Dominant Among Other
The centrifugal compressors segment is projected to surge beyond the CAGR of 8.3% by 2033. In centrifugal compressors, PAG oil is utilized to lubricate radial and thrust rolling elements bearing and radial and thrust journal bearings across different industries.
In addition, the mounting product demand from natural gas processing facilities, thermal power plants, chemical plants, and oil refineries would complement the centrifugal compressors segment growth
General Manufacturing Segment Generates High Revenue in PAG Compressor Oil Market
The general manufacturing segment is projected to account for more than 8.1% CAGR during the forecast period.
The general manufacturing sector is the largest user of compressors, and therefore, PAG compressor oils are likely to witness the highest demand from this sector. The growth of the sector can be attributed to rising maintenance activities and lubrication applications.
Rapid industrialization in the Asia Pacific along with the booming automotive industry is poised to boost the sales of compressors, thereby augmenting the demand for compressor oil over the forecast period.
On the other hand, the demand for PAG compressor oil in the oil & gas industry is likely to increase on account of growing compressor installations. Burgeoning consumption of natural gas is one of the key factors contributing to the growth of the segment.
Infrastructure development in this industry is capital-intensive owing to which it is necessary to improve the efficiency of equipment to avoid cutting down profits. Rising planned shutdowns for maintenance are expected to drive product demand in the oil & gas industry over the forecast period.
How do New Entrants Contribute to the PAG Compressor Oil Market?
With technological innovations happening at a rapid pace, and companies looking for ways to increase customer engagement, start-ups are taking all possible steps to establish a name for themselves in the PAG compressor oil market.
Value Lubricants Pvt Ltd - is engaged in offering a quality-proven range of PAG Lubricant Oil. The offered oil is processed from superior-grade chemical compounds and contemporary techniques in sync with the set industry standards. Find their widespread usage in the automobile industry.
Idemitsu Lubricants America, Boss Lubricant, Castrol, Phillip 66 Lubricant, Total Lubricant USA Inc., Mannol, AMSOIL, Exxon Mobil Corporation, Technical Lubricants International B.V., Shandong Shing Chemical Co., Ltd. are some of the key players in the PAG Compressor Oil industry.
The manufacturers are involved in the production of PAG Compressor Oil in a larger capacity. The global PAG Compressor Oil Market is consolidated with the presence of major international players. However, the presence of small- and medium-sized domestic players makes the market highly competitive.
| Report Attribute | Details |
|---|---|
| Growth Rate | 8.7% CAGR from 2023 to 2033 |
| Expected Market Value (2023) | USD1.4 Billion |
| ProjectedForecast Value (2033) | USD3.22 Billion |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD Million & CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive L&scape, Growth Factors, Trends & Pricing Analysis |
| Segments Covered | Compressor Oil, End-User, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East and Africa(MEA) |
| Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, United Kingdom, France, Spain, Italy, Malaysia, Thail&, India, Singapore, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Idemitsu Lubricants America; Boss Lubricant; Castrol; Phillip 66 Lubricant; Total Lubricant USA Inc.; Mannol; AMSOIL; Exxon Mobil Corporation; Technical Lubricants International B.V.; Shandong Shing Chemical Co., Ltd. |
| Customization | Available Upon Request |
The global PAG compressor oil market is likely to reach a valuation of USD 1.4 billion by the end of 2023.
Idemitsu Lubricants America, Boss Lubricant, Castrol, Phillip 66 Lubricant, Total Lubricant USA Inc., and Mannol are some of the key players in the global PAG compressor oil market
Sales of the PAG compressor oil market are likely to expand at 8.7% CAGR through 2033.
The USA, Canada, Japan, China, & Germany are expected to drive most of the demand for the PAG compressor oil market.
By the end of 2033, the global market for PAG compressor oil market is predicted to reach a valuation of USD 3.22 Billion
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