Industrial Oils Market to Exceed USD 166.14 Bn By 2032

Published Date : 18 Apr 2024

The global industrial oils market size was evaluated at USD 104.38 billion in 2023 and is expected to attain around USD 166.14 billion by 2032, growing at a CAGR of 5.30% from 2023 to 2032. The increasing demand for turbine oils contributes to the market's growth.

Industrial Oils Market Size and Growth Rate From 2023 to 2032

Market Overview

The industrial oils market extracts, purifies, and transports industrial oils, which are used in machines that produce and process animal feed, tobacco products, cosmetics, pharmaceutical products, food-related commodities, and foodstuffs for corrosion protection, power transmission, and lubrication. Industrial oils are used to provide protection and extend the life duration of equipment and machinery.

They are available in several grades, including refrigerator oils, automotive engine oils, transmission fluids, cylinder oils, and compressor oils. The rising demand for industrial oils and increasing manufacturing output from diverse end-use industries are expected to boost the growth and demand for the market. Oil maintenance and replacement of old appliances and machinery are also expected to create a lucrative demand for the market. In addition, favorable government initiatives to develop industrialization and growing investments made in the industrial sector are further expected to drive the growth of the industrial oil market.

Increasing demand from the transportation and logistics sector to fuel the industrial oils market growth

The logistics and transportation sectors are crucial customers of industrial oils due to their large supply chain operations and diverse vehicle fleet. With the development of trade and the extension of the supply chain, industrial oils play an important role in commodities and the transportation of goods across various regions. Commercial vehicles, such as public transportation, freight carriers, and trucks, depend on industrial oil solutions.

Moreover, industrial oils are necessary in the maritime industries and aerospace, where they can avoid critical conditions encountered during the flights. Industrial oils are important for supporting the smooth operations of vehicles as they protect against corrosion, dissipate heat, and decrease friction. Overall, the logistics and transportation sectors will develop the regulatory landscape, and growth will be attributed to the sustainable demand and growth for high-quality industrial oils that may drive the growth of the industrial oil market.

However, the adoption of electric vehicles can restrain the growth of the industrial oils market. Customers in developing countries are increasing their interest in electric vehicles. Due to advanced technology, the advantages of electric vehicles have become more distinct. Electric car adoption is anticipated to hinder the growth of the automobile industry.

Industrial Oils Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 104.38 Billion
Projected Forecast Revenue by 2032 USD 166.14 Billion
Growth Rate from 2023 to 2032 CAGR of 5.30%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Industrial Oils Market Top Companies

  • AMALIE Oil Co.
  • Huawei
  • Shield Lubricants Industry LLC
  • The FUCHS Group
  • ENEOS Corporation
  • Valvoline LLC
  • BP plc
  • Total Group
  • Royal Dutch Shell Plc
  • ExxonMobil Corporations
  • Chevron Corporation
  • PetroChina Company Limited

Recent Development by Valvoline LLC

  • In August 2023, for marine and power sports, Valvoline launched a new portfolio of Valvoline 4 stroke Full Synthetic Motor Oil. Valvoline is the automotive leader in improving the future of mobility through fluid products and innovative lubricants.

Recent Development by Huawei

  • In September 2023, for the development of the oil and gas industry, Huawei launched intelligent E&P solutions. These Huawei E&P solutions offered new technologies such as high-performance computing platforms, storage, AI, and cloud to help industrial oils refine E&P research.

Regional Insights

Asia Pacific dominated the industrial oils market in 2023. Increasing population, increased industrialization, and rising demand for vehicles are anticipated to drive the demand and growth of the market. India and China are the emerging countries in the Asia Pacific region.

China is seventh in the world for oil production and crude oil consumption due to the increasing impact of the petroleum industry. China imported industrial oils in millions of barrels a day. In China, the government has improved economic growth strategies to improve the value of the market and focused on domestic consumption through modernization in the industrial segment. China has established an occurrence and become a major investor in upstream oil trading and refining. Due to China's increasing international reach, the industrial oil sector is dominated by the Chinese state. China has various industrial oil plants, all the possessions of state-owned China Offshore of Oils, PetroChina, and Oil giants Sinopes. Analysts said that China is utilizing at significantly less than capability.

  • For instance, in February 2023., CLG launched the white oil hydroprocessing unit in China. This new plant uses isofinishing and isodewaxing technologies, which include 5000,000 metric tons per year of capacity to make industrial white oil.

North America has the second-largest market in industrial oils. The increasing demand for oilfield chemicals due to exploration and drilling activities is anticipated to drive the industrial oils market growth in North America. The U.S. and Canada are the developing countries in North America.

The United States has the largest automobile sector, so the country is the major one, and it has increased the market growth in industrial oils. Large major companies such as Chevron Corporation, Royal Dutch Shell, and ExxonMobil Corporation are present in the United States. In addition, TMC Industries, TRInternational, American Industries, Daily Manufacturing, and MBK Tape Solutions are the major suppliers of industrial oils in the United States.

Market Potential and Growth Opportunity

Technological advancements

Artificial intelligence can play an important role in the automotive industry. AI helps industrial oils improve efficiency, reduce risks, and add more value to their resources by using modern technology. The crucial section of the industry aims at crude oil production, which is the most energy-intensive segment within the oil industry. Automation in industrial oils creates safer work environments by accelerating operations and reducing manual work processes. Automation also plays a crucial part in safety by observing oil pipelines using crewless vehicles to avoid theft and attacks. These advanced trends will prevent malicious attacks and improve worker safety in oil industries.

The industrial Internet of Things also plays an important role in the automotive industry. The oil industry has depended on human efforts to enhance and track industrial activities. The IoT will help industrial oils maintain their quality and prevent excessive corrosion. Machine learning and data analytics will help the oil industry navigate customer behavior and market fluctuations to better strategize their drilling operations. These advanced opportunities will drive the growth and demand for the industrial oils market.

Industrial Oils Market News

  • In April 2024, for the safety and cleanliness of oils, Colorado Democrats launched an all-out assault on the oil industry.
  • In February 2024, to reduce risks and corrosion, the American Petroleum Institute launched the new Standards Subscription Service. The advanced service offered technical documents for their organization and 24/7 access to API’s comprehensive suite of safety.
  • In June 2023, for the Ducati Panigale, Ducati and Shell launched the design and production of advanced high-performance oil with a dry clutch. To reduce friction, this product was developed to protect Ducati engines and avoid wear and tear.

Market Segmentation

By Source

  • Soybean
  • Corn
  • Sunflower
  • Cottonseed
  • Rapeseed
  • Palm
  • Others 

By Type

  • Grade I (Light)
  • Grade II (Medium)
  • Grade III (Heavy)

By Product

  • Turbine Oil
  • Refrigeration Oil
  • Compressor Oil
  • Electrical Oil
  • Heat Transfer Oil 

By End User

  • Biofuel
  • Paints & Coatings
  • Cosmetics & Personal Care
  • Pharmaceuticals
  • Power Generation
  • Heavy Equipment
  • Others

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