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.
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.
| 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 |
Recent Development by Valvoline LLC
Recent Development by Huawei
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.
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.
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.
Market Segmentation
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