Compressor Oil Market Overview
The Global Compressor Oil Market reached USD 12.12 billion in 2022 and is expected to reach USD 17.7 billion by 2030 growing with a CAGR of 4.86% during the forecast period 2024-2031. The global compressor oil market demand increases from various sectors such as manufacturing, construction, power generation, oil, and gas. Due to growth in compressor technology, there is development of high-temperature and high-pressure compressors, which leads the demand for compressor oil in extreme conditions.
Advancement in compressor oil formulation that improves performance and provides high-quality oils, this factor increases the growth of the compressor oil market.
Furthermore, Advancement in technology is witnessed in the compressor oil market. Asia-Pacific witnessed the highest growth in the compressor oil market. Significant growth in industrial sectors and in the development of infrastructure countries like China, Japan, and India witness major growth, as consumption of compressor oil increased in these countries.
For instance, on 10 February 2023, a Malaysian oil and gas company developed the Kasawari gas development project which was located in the South China Sea offshore Sarawak. The field is estimated to hold 3.2 trillion cubic feet of natural gas resources and is expected to produce 900 million standard cubic feet per day of gas and 3.5 million barrels of condensate per day. The development of the Kasawari gas field involves the usage of advanced technologies to address the challenge of high carbon dioxide (CO₂) levels during production.
Market Scope
| Metrics | Details |
| CAGR | 4.86% |
| Size Available for Years | 2021-2030 |
| Forecast Period | 2023-2030 |
| Data Availability | Value (US$) |
| Segments Covered | Compressor Type, Base Oil, Application, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
For more details on this report – Download Sample
Market Dynamics
Advancements in Synthetic Compressor Oils Enhance Durability and Productivity of Compressed Air Systems
The synthetic compressor provides excellent performance in various conditions. It also offers lubrication and friction on compressor components. These factors lead the performance efficiency and work well in high temperatures without breaking down. Synthetic oil has the advantage that oil can even flow in cold temperatures.
For instance, on 28 October 2022, ENEOS Motor Oil, Japan's leading oil company, launched its range of lubricants for both cars and motorcycles in the Philippine market. The company unveiled its products at the 2022 Inside Racing Performance and Lifestyle Expo held at the World Trade Center in Pasay City. The product lineup includes ultra-modern and environmentally-friendly synthetic motor oils for gasoline and diesel-powered cars, high-performance synthetic motor oils and highly-refined mineral-based oils for gasoline and diesel engines.
Increased Demand for Petrochemical Products Drives Growth of Compressor Oil in the Industry
The increased demand of petrochemical products that includes polymers, plastics and resins led to increased production capacity. As this production requires efficient compressor systems, which increases the demand for compressor oils. Petrochemical plants in which compressor is a critical component that include various processes such as air supply, and gas compressor. Petrochemicals are highly dependent upon compressor oil quality as they provide excellent lubrications from corrosion and overheating.
For instance, on 11 May 2023, Burckhardt Compression, a global leader in compressor systems completed a project for a petrochemical company that involve an LDPE compressor. This project provides support to lubrication units and gas pipes and they also collaborated with the motor OEM for assessment and sourcing of spare parts, this factor leads to the growth of compressor oil in the petrochemical industry.
Contamination and Compatibility Issues Impacting Compressor Oil
Different types of compressors and applications require specific types of compressor oil. Using the wrong type of oil can lead to compatibility issues with certain materials used in the compressor's construction. For example, some compressor oils may not be compatible with certain seal materials, resulting in seal degradation over time. This can lead to leaks and reduced efficiency in the compressor.
Compressor oil can become contaminated with dirt, moisture, and other particles during its operation. Contaminated oil can impact the performance and growth of the compressor. Dirt particles in the oil can cause abrasive wear on components, leading to increased friction and potential damage to critical parts such as bearings, cylinder walls and pistons.
Segmentation Analysis
The global compressor oil is segmented based on compressor type, base oil, applications, end-user and region.
Increasing Demand for Gas Compressors Driven by Rising Energy Consumption and Shift Towards Cleaner Energy Sources
The compressor oil market holds a major share of the global compressor oil market and countries like China India and Japan have shown the highest growth in the market as consumption of energy increases day by day, which leads to increased demand for natural gas. The gas compressor works efficiently and maintains a pressure flow rate. Gas compressors are used in various industries such as petrochemicals, oil and gas, and power generation. As consumers are shifting their demand towards natural gas and cleaner energy resources, this factor increases the demand for gas compressors in the compressor oil market.
For instance, on 30 Jun 2023, Petrofac oilfield service firm won the award that include $700 million contract by Abu Dhabi National Oil Company that undertake work at Habshan Complex for the construction of a new gas compressor plant. The project aims to enhance the quality and capacity of gas compression in order to meet the demand for gas in UAE.
Market Geographical Penetration
Advancements in Technology and Innovations Drives Growth in Compressor Oil Market in Asia-Pacific
The massive growth witnessed in the compressor oil market is in Asia-Pacific. Advancements in technology and innovations rapidly growing in these countries such as China, India and Japan. The government in this region has investment policies in various sectors such as manufacturing, mining, energy and construction. Due to this factor, there is growth in the compressor oil market.
For instance, on 28 March 2023, Kixx provides dependable engine oils and industrial lubricants. Leveraging advanced technical expertise and infrastructure, including one of the world's largest oil refineries, Kixx delivers 200 types of quality products that meet industry performance standards. The company offers a wide range of high-performance industrial lubricants in the Indian market, including hydraulic oils, gear oils, transmission oils and grease, each designed to cater to specific needs.
Major Key Players
The major global players in the market include Shell plc, ExxonMobil Corporation, British Petroleum Plc, Chevron Corporation,Total SA, Fuchs Group, Lukoil, Indian Oil Corporation Ltd. , Sinopec Limited, and Idemitsu Kosan Co. Ltd.
COVID-19 Impact Analysis On Compressor Oil Market
COVID Impact
Restrictions in manufacturing and trade industry of the compressor oil market got affected. Due to delay in outsourcing of raw materials and labor shortages which led to delay the production of compressor oil market. Due to the rise in COVID which directly impacted the global supply chain management system.
During COVID there is a shift in demand as consumer focuses more on clean energy resources. This shift decrease in the demand of compressor oil, as many sectors still use fossil fuels. Due to delay in a products which leads to reduced orders that affects the demand of compressor oil. Due to the downfall in this market, investors are not investing in any of the manufacturing plant projects that impacted the growth of the market.
Russia-Ukraine War Impact
Both Russia and Ukraine plays important role in the production of critical components used in the production and development of compressor oil but due to conflict between two countries lead to a decrease the growth of compressor oil. Due to the decrease in production the quality of compressor oil degrade.
Government strict policies and trade policies affected the growth of the compressor oil market. Economic instability and cost fluctuation affected the overall demand of the compressor oil market. Due to conflict, there is a limitation and trade restriction that limits the supply chain management of compressor oil between countries.
Key Developments
- On 1 Dec 2021, Atlas Copco launches a new oil cooling system that is a good alternative solution for traditional oil cooling systems. The new GA VSD Compressor oil cooling system has smart temperature control systems which in developed by R and D team that also ensures optimal oil temperature.
- On 2 Nov 2022, Valvoline a leading original engine oil maker company launches its valcomp compressor oil synth 68 which is for the RIG application where the compressor works in a dusty environment. The product includes Asless Zinc free additives that can work upto 8000 hours for the electric-powered compressor.
- On 16 Feb 2023, ELGi compressor present their energy-efficient compressed air solution at Hannover messe exgibition which is from 17 april to 21 april. This air compressor include air purity and eco-friendly which doent effect environmnet.
Why Purchase the Report?
- To visualize the global compressor oil market segmented based on compressor type, base oil, application, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of compressor oil market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key product of all the major players.
The global compressor oil market report would provide approximately 69 tables, 73 figures, and 195 Pages
