Industrial Oil Market: Current Analysis and Forecast (2021-2027)

Industrial Oils Market is expected to exceed the market valuation of than US$ 90.1 billion in 2027 and is expected to grow at a significant CAGR of 5.8% during the forecast period (2021-2027). Industrial oils are petroleum oils that are used for the lubrication of machinery at home or in industries. Crude oils like Baku, Emba and eastern types are used to produce these. Industrial oils can sometimes contain vegetable oils. Industrial oils also contain little mixtures of vegetable oils like castor, mustard, rapeseed as additives and a few thickenings, antioxidant, and anticorrosive dopes used for improving their service qualities. Industrial oils are also constantly being varied and supplemented with new brands, especially synthetic oils like silicon, fluorohydrocarbon and polyester. According to viscosity, industrial oils can be subdivided into light, medium and heavy types. Light oils have the viscosity of 5-10 centistokes at 50 C, these are used to lubricate high-speed, low-load machinery.
The dynamics of the industry are changing in terms of source, as industries are shifting towards biobased lubricants as compared to synthetic or mineral sources which were popular before. According to USDA and other regulatory organizations, when at least 50% or greater amount of material is used in the industrial oil formulation, it is to be considered a bio-based industrial oil. Trade of vehicles and their spare parts is constantly growing and is expected to fuel the growth of automotive oils and greases. The growth of the industrial oils market is directly proportional to the growth of the manufacturing sector. The manufacturing sector is growing due to favorable foreign investments and increasing pool of skilled labors. Additionally, high growth in niche manufacturing sectors like the medical devices and 3D printing sectors is also complementing the industrial oils market growth. Rapid industrialization in the BRICS countries is expected to drive this growth rate in the industrial oils market.
Cargill, Bunge Limited, Wilmar International, Louis Dreyfus Company B.V., Archer Daniels Midland (ADM), Buhler Group, CHS Inc., Ag Processing Inc., A&A Fratelli Parodi Spa, and Gemtek Products. are some of the prominent players operating in the Industrial Oils market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst Source, Natural segment holds the major share”
Based on source, the industrial oils market is segmented into Natural, Mineral, and Synthetic. Amongst source, the natural segment of the market held significant market share in 2020. Natural industrial oils, more commonly known as bio-based industrial oils have gained tremendous popularity over the last decade. Usage of mineral-based oils heavily relies on extracting from petroleum products.
“Amongst Product Type, Heat Transfer Oil Segment holds the major share”
Based on Product Type, the industrial oils market is segmented into Turbine Oil, Refrigeration Oil, Compressor Oil, Electrical Oil, and Heat Transfer Oil. Amongst product type, Heat Transfer Oil segment accounted for significant market share. Heat transfer oil is needed in many industrial applications and for heating homes during the winter. Heat is provided indirectly by hot oil through the heat exchanger, which reduces hotspots and increases the safety of the heating process.
“Amongst Type, Grade I (Light) Segment holds the major share”
Based on Type, the industrial oil market is segmented into Grade I (Light), Grade II (Medium), and Grade III (Heavy). The Grade I segment accounted for significant market share in 2020. Group I base oils has less than 90% saturates, viscosity-index range of 80-120 and greater than 0.03% sulfur. Their temperature ranges from 32-150 degrees F.
“Amongst End-Use, Automotive segment holds the major share”
Based on end-use, the industrial oils market is segmented into Automotive, Engineering, Automation, Manufacturing, Food processing, Oil & Gas, and Medical. Amongst end-user, the automotive segment of the market accounted for the significant market share in 2020. Nowadays, automakers are stiving for extended warranties and promising longer intervals between vehicles services. This requires the use of good quality lubricants to ensure the vehicles longer and efficient functions.
“Asia Pacific represents one of the largest markets of Industrial Oils market”
For a better understanding of the market dynamics of the Industrial Oils market, a detailed analysis was conducted for different regions across the globe including North America (the U.S, Canada, and the Rest of North America), Europe (Germany, France, Italy, United Kingdom, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, and Rest of APAC) and Rest of the World. Asia Pacific dominated the market owing to increased industrialization in the region.
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• The study includes market sizing and forecasting analysis validated by authenticated key industry experts
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• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
• The study comprehensively covers the market across different segments
• Deep dive regional level analysis of the industry
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