The global industrial oil market is estimated to be valued at around USD 65,757.6 million in 2023. Sales of industrial oil are projected to increase at an average CAGR of 3.5% and are expected to top a valuation of USD 92,575.6 million by 2033. Increasing industrial oil applications in various industries, such as energy generation, are expected to boost the market during the assessment period.
Growing demand to enhance equipment reliability and uptime in various industries may benefit the sales of industrial oil in the coming decade. Mineral and synthetic oil demand are predicted to remain significant in the power generation industry.
Owing to significant development in the industrial sector, China and the United States are expected to remain the most lucrative market for oil consumption. The global consumption of industrial oil is estimated to be around 2.8% of the global crude oil market.
| Attributes | Details |
|---|---|
| Global Market Valuation in 2022 | USD 63,690.3 million |
| Estimated Global Market Share in 2023 | USD 65,757.6 million |
| Forecasted Global Market Size by 2033 | USD 92,757.6 million |
| Projected Global Market Growth Rate from 2023 to 2033 | 3.5% CAGR |
| Market Share of Top 3 Countries in the Year 2022 | 53.8% |
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The global demand for industrial oil has witnessed a CAGR growth of 1.1% between 2018 and 2022, as per Future Market Insights (FMI). Significant consumption of industrial oil in the power generation sector to improve power plant productivity and efficiency may bolster consumption.
In addition, the growing consumption of industrial oil in chemical industries to increase the life of equipment in the cooling tower, heat transfer equipment, reactor, and other equipment increased the market's growth.
The sales of industrial oil are estimated to witness a growth rate of 3.5% between 2023 and 2033. This is owing to the rapid industrialization and consumption of industrial oil in the automotive sector to improve the efficiency and performance of automotive parts and engines.
On the back of these aforementioned factors, the demand in the market is expected to top USD 65,757.6 million in 2023 and surpass USD 92,757.6 million by the end of 2033.
Growing Demand from Power Generation Sector Augmenting the Demand
In the power generation sector, industrial oil helps reduce the machinery's wear and tear and benefits the smooth running of the engines and equipment. Further, it also helps to extend machine life, lower operating costs, and increase productivity while achieving environmental care and safety. Industrial oil is used in various power generation plants, such as coal power plants, natural gas engines, and gas turbine power plants.
The power generation sector is expected to grow in recent years owing to the high demand for electricity all over the globe. Further, increasing electricity consumption in industrial, commercial, and residential sectors is a significant factor in increasing the power demand, indirectly bolstering the demand for industrial oil.
In addition to this, the advent of new technologies in the energy sector, including de-carbonization technologies, is improving the development of the power generation sector. Substantial investments and rising electrical energy consumption are expected to propel the growth of industrial oil sales.
Need for Bio-based Oil to Cater to Growing Sustainability Concerns Push Sales
The industrial oil manufacturing process is shifting from petroleum to bio-based products owing to a sustainability focus to decrease the carbon footprint. Owing to the stringency in the environmental regulations, especially in Europe, key players are opting for bio-based sources to reduce their carbon footprint.
Hence, numerous researchers are working on shifting bio-based oil from biodegradable feedstock. However, bio-based oil cannot replace the more standard petroleum-based oil due to its lack of physical properties such as oxidative stability, thermal stability, and viscosity range. However, bio-based oil performance can be enhanced by adding additives, fueling the sales of industrial oil in the market.
Industrial oil, which is manufactured from a petrochemical source, is hazardous to the environment. It is also responsible for water pollution when it disposes of in the water. Owing to its harmful impact on the environment government imposed a ban and applied regulations on using synthetic oil to reduce its harmful effect on the environment.
In addition to this, bio-based oil, which has been sourced from forest plants, supplies the growing global demand for bio-based oil, as palm oil has sources in tropical forest regions. Owing to these reasons, several governments have imposed compliance regulations for petrochemical source industrial oil and bio-based oil. This might hamper the demand in the market.
Increasing Production of Automotive in China to Facilitate the Demand
The power generation sector in China is poised to expand with the rising consumption of electricity from the industrial sector. The Chinese government is focusing on increasing electricity production to meet the industrial and residential demand for electrical energy. Further, China also plans to increase the coal supply to fuel the demand for coal-fired power plants that may generate more electricity.
Further, the automotive sector is expected to create significant market opportunities for industrial oil consumption with rising sales and production of vehicles. Owing to the increase in power plants and presentations of automotive parts in China, the country is expected to remain a prominent consumer of industrial oil. All these factors are expected to boost the market in China, accounting for about 26.5% of the overall market.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| United States | 20.4% |
| Germany | 6.8% |
| Japan | 6.2% |
| Australia | 0.5% |
The Expansion of Chemical Manufacturing Industries may Push Industrial Oil Demand.
The expansion of chemical manufacturing industries in Germany is expected to be the primary factor boosting the demand in the market. Many chemical manufacturers are eyeing the German market owing to the excellent research landscape, state-of-the-art logistics, and world-class infrastructure. As per the study, Germany is considered one of the leading exporters of chemical products.
In addition, several leading companies in Germany, such as BASF, Bayer, Fresenius, Henke, Boehringer Ingelheim, and others. The chemical industry in Germany also produces chemicals and supplies raw materials to other countries. Further, the innovation of new chemical products and manufacturing processes in Germany may drive the demand for the upcoming decade.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 2.6% |
| China | 4.1% |
| India | 4.8% |
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Sales of Mineral-based Industrial Oil to Gain Traction through 2033
Mineral industrial oil is acquired from petroleum products from oil wells. All mineral oils comprise hydrocarbons and organic compounds that consist of hydrogen and carbon.
Mineral-based oil has the advantages of better solubility with additives, lower cost, and enhanced compatibility with seals. It also has lubricating properties typically used for mechanical components such as bearings, gears, chains, slides, and threaded connections.
It gives a broad operating temperature range from -17°C to 150°C. Mineral oil is compatible with many additives that can be beneficial for custom lubrication solutions. It is also compatible with many grease thickener systems.
Mineral-based oil is used in many industries, such as automotive, industrial machinery, textile, food and beverages, plastic, and chemicals. In terms of type, mineral oil is estimated to witness a growth rate of 2.1% CAGR over the coming decade.
| Category | By Oil Type |
|---|---|
| Top Segment | Process Oil |
| Market Share in Percentage | 31.2% |
| Category | By Source |
|---|---|
| Top Segment | Crude Oil |
| Market Share in Percentage | 67.6% |
Energy Generation Sector to Contribute Maximum Revenue of Industrial Oil
Mineral-based oil is the highest consumed in the power generation sector for various plants such as gas turbine power plants, coal power plants, and others. Mineral-based trial oil extends machine life in power plants, lowers operating costs, and boosts equipment reliability.
Expansion of the power generation sector owing to the increasing consumption of electrical energy may further propel the sales in the market. In addition, the power generation sector is witnessing growth due to high demand in the transportation sector and surging electrical vehicle sales.
With the burgeoning growth in the power generation sector, consumption of industrial oil is predicted to surge due to the optimization of equipment efficiency of a power plant.
Key players in the global industrial oil market are working on plant-based oil and looking out for ways to product formulation and develop more sustainable industrial oil solutions. They are also investing in safer and sustainable additives.
Further, they also innovated new formulations to shift from petroleum-based to bio-based oil owing to the regulatory pressure for safer additives and working on custom solutions for end users.
For Instance:
Exxon Mobil collaborated with GE Power and launched advanced Co-Branded Turbine Oil. A new technology that improves turbine bearing efficiency by up to 15 percent compared to conventional turbine oil.
In March 2023, Shell announced a collaboration with the University of Manchester to create fresh methods for making environmentally friendly industrial oils. The partnership's main goal is to manufacture oils that are compatible with current industrial machinery by using renewable feedstock.
To create new bio-based industrial lubricants, Bharat Petroleum stated in April 2023 to invest USD 50 million in its one new facility. Likewise, in Teesside, England, the Company plans to utilize used vegetable oil to create lubricants that are compatible with current industrial machinery.
| Attribute | Details |
|---|---|
| Market Estimated Size (2023E) | USD 65,757.6 million |
| Projected Market Value (2033F) | USD 92,757.6 million |
| Value CAGR (2023 to 2033) | 3.5% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million or USD billion for Value and Kilo Tons for Volume |
| Key Countries Covered | The United States, Canada, Brazil, Mexico, Germany, Italy, France, The United Kingdom, Spain, BENELUX, Russia, China, Japan, South Korea, India, ASEAN, Australia and New Zealand, GCC Countries, Northern Africa, South Africa |
| Key Segments Covered | Type, Oil Type, Source, End Use, and Region |
| Key Companies Profiled | ExxonMobil; Shell; PHILLIPS 66; TotalEnergies; Chevron; bp; Gazprom; Rosneft; Quacker Houghton Chemical Corp.; Lukoil; Petronas; Bharat Petroleum; FUCHS PETROLUB SE; Sinopec; Idemitsu Kosan Co., Ltd; Tide Water Oil Co (I) Ltd; Castrol; Panama Petrochem Ltd.; Gulf Oil Lubricants India Ltd; Gandhar Oil; Savita Oil Technologies Ltd; Apar Industries Ltd.; Grauer & Weil (India) Limited; Gold Oil Corporation; Vinayak Oil |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The net worth of the market is expected to be USD 92,575.6 million by 2033.
The market is calculated to expand at a CAGR of 3.5% through 2033.
The market expanded at a CAGR of 1.1% from 2018 to 2022.
Expanding power generation sector and growing demand for bio-based oil enriched with industrial oil are shaping market’s growth.
Process oil enjoys immense popularity.
| Market Size (2024E) | USD 74.94 billion |
|---|---|
| Market Valuation (2034F) | USD 158.19 billion |
| Value-based CAGR (2024 to 2034) | 7.80% |
| Market Valuation (2023) | USD 32.2 billion |
|---|---|
| Market Valuation (2033) | USD 56.1 billion |
| Market CAGR (2023 to 2033) | 5.7% |
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