The global compressor oil market size was valued at USD 3.75 billion in 2017. The demand for the product has witnessed upsurge over past few years, which can be attributed to expansion of end-use industries including manufacturing, food processing, chemical, automotive, construction, and aerospace.
Compressor oils ensure smoother operation and help in reducing the downtime and repair of the machine. Moreover, heat generated by compressors during operations result in more power consumption and wear & tear of the machine. These lubricants assist in heat dissipation, keeping the equipment temperature in control.
The adoption of cost optimization practices is a one of the key trends escalating market growth. Organizations that implement such continuous improvements have been observed to have reduced their power consumption and ensure constant operational flow as a result of good lubrication practices.
Increasing need for cost optimization is expected to be one of the primary growth stimulants for the market. Several cases of rotary screw gas compressor shut downs have been reported due to wear in the past decade in which viscosity and gas solubility were identified to be the decisive factors. Lubricating a compressor is an important step in the implementation of cost optimization measures. Usage of these lubricants result in cooling and sealing of internal components of the device. This reduces the risk of machine wear and tear and allows smooth functioning.
In the pipeline transport industry, compressor stations are built along a transportation pipeline for compressing the gas to the desired pressure, thus enabling it to keep moving through the pipeline. All pipeline systems have an initial injection station where the product is injected into the line with the help of a compressor. Rising number of planned and under construction pipeline projects are estimated to propel the market over the forecast period.
Positive displacement compressors are used in different manufacturing sectors including chemical, petrochemical, metal production, and construction & mining equipment. They capture a volume of air into the chamber and reduce the volume of chamber to compress the air.
Rotary screw, reciprocating piston, scroll, and rotary vane are different types of positive displacement compressors. The demand for positive displacement compressors is bolstered by factors such as its high performance and efficiency. The segment is projected to lead the market in terms of value throughout the forecast period.
Dynamic compressors are widely used in petroleum refining, pulp & paper, mining, food processing, and automotive industries. Unlike positive displacement compressors, they do not reduce volume of chamber, but rather speed the air up to high velocity. After achieving high velocity, they restrict air flow, which reduces velocity, causing pressure to increase in the chamber.
Dynamic compressors include axial and centrifugal compressors. Rising need for gas turbine maintenance services and oil refinery processes are anticipated to fuel the product demand in this segment during the forecast period.
The manufacturing sector is the largest user of compressors, and therefore, 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 Asia Pacific along with booming automotive industry is poised to boost the sales of compressors, thereby augmenting the demand for compressor lubricants over the forecast period.
The demand for the product 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 is expected to drive product demand in the oil & gas industry over the forecast period.
Synthetic oils are cleaner, less expensive, last longer, and less prone to contamination than conventional ones. Owing to this, these lubricants are gaining popularity among industry participants. Soaring need to minimize downtime and maintenance requirements is estimated to foster the growth of the synthetic oil segment during the forecast period. The segment is anticipated to dominate the compressor oil market throughout the forecast period.
Semi-synthetic oils are blends of synthetic and mineral oils. The demand for this oil type depends upon compressor type and its application. However, its demand is projected to experience upswing on account of factors such as lower prices of semi-synthetic oil compared to synthetic type and shifting preference of end-use industries from mineral oil to synthetic/semi-synthetic ones.
Asia Pacific was the leading revenue contributor in the global arena in 2017 owing to high growth rate of major end-use industries such as metalworking, food processing, chemicals, and textiles, coupled with rapid urbanization and industrialization. The regional market presents numerous opportunities to innovators to introduce new products with advantageous product characteristics to tap into niche applications.
Resurgence in industrial activities along with modernization of industrial machinery is poised to augur well for the market in Europe during the forecast period. The region is characterized by presence of countries such as Russia, France, and Spain with well-established and developed industrial and automotive sectors.
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 country’s extensive free trade agreements are strengthening the potential for Mexico to become a prime global export base.
The global market is competitive in nature and comprises of industry participants, raw material suppliers, and distributors. The market consists of major crude oil extraction companies that offer different lubricants. Major companies are focusing on product differentiation to increase their market share. Manufacturers try to establish strategic alliances with buyers, as this strategy plays a vital role in ensuring continuous supply of products.
Establishing good relations with the OEM market is likely to be the key factor for sustaining competition. Many companies produce compressor oils that meet the specifications of OEMs. Fuchs developed lube, which has been approved by major OEMs including Siemens, MAN Energy, and ALSTOM. Similarly, Lukoil has approvals from GE, Volvo, Robert Bosch GmbH, Cummins, Denison Hydraulics, and Siemens.
Merger & acquisition is expected to play a key role in achieving global market share. Significant vendors supplying raw materials for lube manufacturing include BASF, Dow Chemicals, Clariant, AkzoNobel, Huntsman Corporation, ExxonMobil, and Ashland. Major manufacturers include Fuchs Lubricants, ExxonMobil, Royal Dutch Shell, Chevron, and Total SA.
Base year for estimation
Actual estimates/Historical data
2014 - 2016
2018 - 2025
Volume in kilotons, revenue in USD million & CAGR from 2018 to 2025
North America, Europe, Asia Pacific, Central & South America, Middle East & Africa
Revenue forecast, competitive landscape, growth factors and trends
U.S., Canada, Mexico, U.K., France, Germany, Spain, Russia, China, India, Japan, South Korea, Australia, Saudi Arabia, South Africa, Kuwait, Iraq, Brazil, Argentina and Venezuela.
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global compressor oil market report on the basis of compressor type, base oil, end-use, and region:
Compressor Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Positive Displacement Compressor
Base Oil Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
End-use Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Oil & Gas
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Middle East & Africa
Central & South America
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The prevalence of COVID-19 has led to decreased utilization rates of refineries across the globe, resulting in supply shortages for various end-use sectors. The health crisis has, on a different note, has led to a sudden spike in demand for olefins which find usage in the formulation of sanitizers and other cleaning products. The report will account for Covid19 as a key market contributor.