The global specialty oils market size was valued at USD 125.4 billion in 2022 and is likely to touch a valuation of USD 129.2 billion in 2023. Furthermore, with rising consumption of specialty oils across automotive and manufacturing industries, the overall demand for specialty oils is projected to rise at 3.3% CAGR between 2023 and 2033, totaling a valuation of USD 178.8 billion by 2033.
Over the years, demand for specialty oils has risen at a significant pace due to the notable growth of end-use industries and the necessity of a continuous power supply for working of the machinery.
Demand is especially high for specialty oils like white oil and transformer oil due to increasing usage in pharmaceuticals & personal care products and power transformers. Thus, rising demand in the personal care, automotive, and power transmission sectors is expected to provide a strong impetus to the growth of the specialty oils market during the forecast period.
Growing concerns about CO2 emissions and changing preferences for renewable raw materials are forcing key market players to invest in research and development to bring environment-friendly products to market. Further, using biodegradable and vegetable oil-based fluids avoids spillage and disposal problems associated with traditional fluids. Demand for specialty oils might also increase with fast regulatory approvals for wastewater treatment and disposal.
| Attributes | Details |
|---|---|
| Global Specialty Oils Market Valuation in 2022 | USD 125.4 billion |
| Estimated Global Market Share in 2023 | USD 129.2 billion |
| Forecasted Global Market Size by 2033 | USD 178.8 billion |
| Projected Global Market Growth Rate from 2023 to 2033 | 3.3% CAGR |
| Market Share of Top 3 Countries in the Year 2022 | 48.2% |
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The global market is anticipated to expand at a steady CAGR of 3.3% between 2023 and 2033 in comparison to the 1.1% CAGR registered during the historical period of 2018 to 2022.
Rising usage of specialty oils across diverse industries including automotive, power generation, pharmaceutical, personal care & cosmetics, manufacturing, heavy engineering equipment, and transmission & distribution is a key factor driving growth in the global market.
Several multinational companies have well-established and integrated value chains involved in the manufacture of raw materials and the supply of motor oils as finished products. These companies can integrate across multiple stages of the value chain, maintain a continuous supply of raw materials, and keep manufacturing costs low.
Rising Demand for Uninterrupted Power Supply-Vital Across End-Use Industries to Bolster Sales of Specialty Oils
The power generation sector is projected to expand in response to the growing demand for a stable electricity supply. Also, in an industry that relies hugely on electricity, even a short power outage can damage equipment, reduce productivity, and result in lost customers and revenue. Power outages can be caused by inefficient operation of heavy equipment or unexpected equipment downtime.
Reducing unplanned downtime is therefore a key concern for maximizing production and profitability in the power generation business. Proper lubrication ensures the efficient operation of many machines in the power generation industry, resulting in highly reliable equipment.
As industrial oils are required for smooth operation, the demand for these specialty oils is going to increase with the expansion of the power generation industry during the assessment period. Similarly, the significant growth of power distribution infrastructure due to increasing government investments is expected to push the demand for specialty oils like transformer oil during the forecast period.
Rapid Transition toward Bio-based Oils to Steer Growth in the Global Specialty Oils Market
In recent years, a shift toward bio-based oils or renewable sources has been observed. This change is expected to remain in the market for a long time. These bio-based oils use biodegradable raw materials that are harmless to the environment and find many opportunities in the food and beverage industry.
Key market players are also focusing on developing sustainable products and using biodegradable raw materials to reduce dependence on petroleum and non-renewable raw material resources.
Also, the growth of these bio-based oils is expected to be supported by strict government regulations and laws imposed on conventional oils. All these factors are expected to create opportunities for bio-based specialty oils during the forecast period.
Principal Consultant
India is expected to remain one of the significantly growing markets for the production and consumption of specialty oils during the forecast period. Expansion & development of electric grids in India and the upgrading of electric grids as a result of increasing industrialization and urbanization are the key factors propelling the growth of the global specialty oil market during the forecast period.
Increasing investments by the government in the grid network and transmission and distribution system expansion is going to hasten the projected rise in power consumption caused by quick industrialization and urbanization. Further, the installation of new transformers and switchgear might boost the market for transformer oil throughout the forecast period which is expected to play a crucial role in bolstering the sales of specialty oils in the coming period.
Transformer oil demand is directly correlated with growth in the power industry in India. Thus, significant industrial growth and the government's commitment to increase rural electrification are expected to plug the demand for specialty oils like transformer oil in the market. Furthermore, the easy availability of raw materials at low costs and growth in industries like pharmaceutical, personal care & cosmetics, and food & beverages are likely to expand India’s specialty oils market over the next decade.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| The United States | 19.6% |
| Germany | 5.3% |
| Japan | 6.2% |
| Australia | 0.6% |
As per FMI, demand for specialty oils in China is poised to expand at a steady CAGR of 4.1% during the forecast period, owing to a notable growth of the end-use industries.
China’s automotive industry as a whole has adopted a significant amount of technical innovation. The market for high-performance engine oils is always expanding and is expected to drive sales of specialty oils in the future due to the tactical vehicle mechanics and operational plans that automotive manufacturers are using.
Thanks to the presence of a large number of vehicle manufacturers and increasing industrialization and commercialization, China has recently become the center of the world's automobile industry. The government of China has taken steps to reduce emissions, such as increasing the number of electric and hybrid cars on the road. These hybrid and electric automobiles are further anticipated to raise demand for automotive engine oil. This might also support the growth of the specialty oils market in China over the next ten years.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| The United Kingdom | 2.1% |
| China | 4.1% |
| India | 4.6% |
By product type, the transformer oils segment is anticipated to expand at a significant CAGR of 8.0% by value over the forecast period. This can be attributed to the notable expansion of energy infrastructure across the world.
In 2021, global energy consumption increased by 5.5%, which is 4.8% more than it was in 2019, according to the World Energy and Climate Statistics - Yearbook 2022. China, the world's large electricity consumer, saw an increase in power consumption of nearly 10%, exceeding both its 2019 level and its trend of 7.3% annual growth between 2010 and 2019. This increase was brought on by the economic recovery.
China accounts for 31% of global electricity consumption. Additionally, it is projected that over the forecast period, the rapid building of energy transmission and distribution infrastructure in developing nations might boost transformer oil sales. Furthermore, the preference for producing electricity from renewable sources is fostering the expansion of electric power.
All these aforementioned factors are estimated to continue to boost the growth of the transformer oil segment during the forecast period.
| Category | By Product Type |
|---|---|
| Top Segment | Industrial Oil |
| Market Share in Percentage | 51% |
| Category | By End Users |
|---|---|
| Top Segment | Automotive Industry |
| Market Share in Percentage | 34.8% |
Automobile sales have a direct effect on the automotive oil sector. Despite recent economic volatility, the global automotive industry has typically experienced respectable growth. Further, the rising car production and sales are estimated to be some of the key factors fueling the automotive oil industry over the forecasted timeframe.
In comparison to industrialized nations, emerging economies are predicted to have high levels of automotive production. This is due to the rising urbanization and steady economic conditions in these regions. The on-road fleet is also anticipated to expand during the projected period at a significant CAGR, offering a small window of opportunity for the expansion of the automotive oil market. Thus, increasing usage of automotive oil is expected to create favorable market conditions for specialty oils.
FMI predicts the automotive segment is to register a CAGR of 1.8% during the forecast period.
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Key manufacturers are buying up other small-scale market players to increase their annual turnover and fortify their market position globally. Similarly, they are utilizing strategies such as new product launches, collaborations, mergers, and expansion activities to increase their revenue share. For instance:
| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | USD 129.2 billion |
| Projected Market Value (2033) | USD 178.8 billion |
| Anticipated Growth Rate (2023 to 2033) | 3.3% CAGR |
| 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, Nordics, Russia, China, Japan, South Korea, India, ASEAN, ANZ, GCC Countries, Turkey, Northern Africa, South Africa |
| Key Segments Covered | By Product Type, By End-Use Industry, and By Region |
| Key Companies Profiled | Calumet Specialty Products Partners, L.P.; CASTROL LIMITED; Chevron Corporation; Exxon Mobil Corporation; H&R GmbH & Co. KGaA; Eni SpA; Ergon, Inc.; GOC Petrochemicals Private Limited; Grauer & Weil (India) Limited; Gulf Oil Lubricants India Ltd; Idemitsu Kosan Co., Ltd.; BP Plc.; Gandhar Oil Refinery (India) Limited; Quaker Houghton Inc; China Petroleum & Chemical Corp (Sinopec Corporation); TOTAL Energies; Shell plc.; Nynas AB; Savita Oil Technologies Ltd; Panama Petrochem Ltd.; Petroliam Nasional Berhad (PETRONAS) |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The market is estimated to secure a valuation of USD 129.2 billion in 2023.
The market is forecast to register a CAGR of 3.3% through 2033.
The market expanded at a CAGR of 1.1% from 2018 to 2022.
A rapid transition toward bio-based oils steers growth.
The global market size is estimated to reach USD 178.8 billion by 2033.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. White Oil 5.2. Automotive Oil 5.3. Transformer Oil 5.4. Industrial Oil 5.5. Liquid Paraffin 5.6. Rubber Process Oil 5.7. Petroleum Jelly 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End-Use Industry 6.1. Automotive 6.2. Power Generation 6.3. Pharmaceutical 6.4. Personal Care & Cosmetics 6.5. Food & Beverages 6.6. Manufacturing 6.7. Heavy Engineering Equipment 6.8. Transmission & Distribution 6.9. Others 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Western Europe 7.4. Eastern Europe 7.5. South Asia and Pacific 7.6. East Asia 7.7. Middle East and Africa 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Eastern Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Calumet Specialty Products Partners, L.P. 17.2. CASTROL LIMITED 17.3. Chevron Corporation 17.4. Exxon Mobil Corporation 17.5. H&R GmbH & Co. KGaA 17.6. Eni SpA 17.7. Ergon, Inc 17.8. Fuchs Petrolub SE 17.9. GOC Petrochemicals Private Limited 17.10. Grauer & Weil (India) Limited 17.11. Gulf Oil Lubricants India Ltd 17.12. Idemitsu Kosan Co.,Ltd. 17.13. BP Plc 17.14. Gandhar Oil Refinery (India) Limited 17.15. Quaker Houghton Inc 17.16. China Petroleum & Chemical Corp (Sinopec Corporation) 17.17. TOTALEnergies 17.18. Shell plc. 17.19. Nynas AB 17.20. Savita Oil Technologies Ltd 18. Assumptions & Acronyms Used 19. Research Methodology
Chemicals & Materials
November 2022
REP-GB-352
250 pages
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Specialty Oils Market
