Industrial Oils Market Research, 2031
The global industrial oils market size was valued at $62.4 billion in 2021, and industrial oils industry is projected to reach $85.9 billion by 2031, growing at a CAGR of 3.3% from 2022 to 2031.
Industrial oil is utilized in homes and industries for lubrication of machines and instruments. It is used in the turbines, electric transmission equipment, and also as heat transfer oil. Industrial oils market is expected to grow due to demand for production of electricity in Asia-Pacific, specifically in countries such as India, Japan, and China. They are also used to enhance the productivity of coal and gas power plants. Furthermore, they are used to boost the maximum efficiency of the machines in the manufacturing industries.
Industrial oils are used in the manufacturing of food and beverages. The growing demand for electricity the market for industrial oil in many emerging nations is expected to grow. The increase in population and the presence of high income in the middle class families in the developing countries such as China and India have led to surge in the infrastructure activities which led to increased demand for paints and coatings products. The presence of the demand for paints and coatings products has positive impact on the industrial oils market. The increase in awareness among the people regarding the personal care and health related issues have led to the surge in the personal care and pharmaceutical industries, hence driving the demand for industrial oils market.
The industrial and the residential sectors are the major consumers of electricity in the Asia-Pacific. Governments of various nations are working on improving and setting new businesses that led to the demand for better lubricants in the manufacturing industries as the use of industrial oils in the equipment helps in reducing pollution and greenhouse gas emissions. The presence of stringent environmental regulations in developed as well as developing nations is anticipated to drive the demand for industrial oils. The manufacturing industries across the globe are expected to increase the utilization of industrial oils which are extremely beneficial for the environment; hence driving the market growth.
The source of industrial oils being food materials is one of the factors restraining the market growth, owing to the increased population. Furthermore, the surge in demand for electric vehicles and increased investment in the innovations for various alternative power source for biodiesel are anticipated to hamper the industrial oils market growth.
The government of the U.S has taken the initiative to modernize, upgrade, and refurbish aging electrical infrastructure. Similar efforts are made in Europe, China, Australia, and Canada. Such actions are expected to boost demand for industrial oils market, as industrial oils are used in the electric transmission equipment. Electrification in developing countries of South America, Asia-Pacific, Middle-East, and Africa is projected boost the demand for industrial oils. Furthermore, the emergence of renewable power generation projects in the above mentioned developing countries has increased the need for industrial oils.
The industrial oils market forecast is segmented on the basis of source, type, end use, and region. On the basis of source, the market is segmented into soybean, corn, sunflower, cottonseed, rapeseed, palm, and others. On the basis of type, the market is classified into grade 1 (light), grade 2 (medium), and grade 3 (heavy). On the basis of end use, it is classified into biofuel, paints & coatings, cosmetics & personal care, pharmaceuticals, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. Presently, Asia-Pacific accounts for the largest industrial oils market share, followed by Europe and North America.
The major companies profiled in this report include Cargill, Archer Daniels Midland, Kratan Corporation, Exxon Mobil Corporation, Chevron USA Inc., Royal Dutch Shell Plc, Castrol Limited, China Petroleum & Chemical Corporation (Sinopec), Wilmar International, Soya Mills SA, Gemtek Products, AAK Kamani, Buhler Group, Bunge Limited, Fujian Qian Trading Co. Ltd., Malplast Industries Limited, Matole Ltd, and LLC PK "XimProm".
The soybean segment dominates the global industrial oils market. Soybean oil is extensively utilized for cooking and frying purposes in countries such as China and India. The increasing use of soy oil in European countries and North America for manufacturing shortenings of food products, margarine and salad dressing have fueled the demand for soybean oil in food related industries. The rapidly growing demand for products produced form food processing plants is another factor that is expected to drive the demand in the market. The increased purchasing power of Chinese and Indian consumers has contributed to sharp increase in demand for soybean oil. Furthermore, the evolving food service industry in the developing countries is expected to drive market growth during the forecast period.
The grade I (light) segment dominates the global industrial oils market. Grade I industrial oils are light or low viscosity oils that are used in pharmaceuticals and cosmetic industry. The surge in various product launches from different world class cosmetic brands is anticipated to have great impact on the demand for industrial oils. Increase in the investments of the governments and private individuals toward the development in the pharmaceutical industry after the outbreak of pandemic is a major driving factor fuelling the market growth. The presence of the growth in the personal care industry and cosmetic industry across the globe; especially in developing countries such as India and China with huge population base is anticipated to have positive impact on the market growth. This is expected to increase its adoption and thus, drives the market growth during the forecast period.
The biofuel segment dominates the global industrial oils market. Bio diesel is a type of biofuel that is manufactured using various industrial oils. Biodiesel is used as an alternative for diesel engines. It is driven mostly due to the attention of user due to its renewability, purity, and low exhaust pollutions. It is produced from variety of oilseeds. Biodiesel has significant impact on the emission levels in comparison to petroleum based diesel when it is utilized. It is blended with petroleum diesel to reduce the environmental impact of fossil fuels. In developing countries, the demand for biodiesel is increasing due to the higher availability of land, favorable climatic conditions for agriculture, and lower labor costs. Furthermore, there is a growing trend in the adoption of modern technology and investment in the development of efficient bioenergy conversion using a range of bio fuels. The presence of above mentioned applications of biodiesel in power generation and transportation industries is expected to provide ample opportunities for the market.
Asia-Pacific dominated the industrial oils market during the forecast period. Asia-Pacific is made up of many developing and under-developed countries, and it is the most populated region across the globe. It is home to a significant number of megacities and with ever-increasing population. China and India are the major revenue contributors in the region. Growth of population increases the demand for food processing industries. The rise in demand for food manufacturing industries in the developing countries has driven the market growth. The increase in the investment of the governments in the development of various infrastructures has led to demand for paints & coatings industries. Furthermore, the upsurge in the investment of the government in the renewable energy such as wind and hydro power is expected to lead to surge in the demand for turbines. The presence of utilization of turbines in the power generation sector is anticipated to have positive impact on the industrial oils market.
The increase in the investment of the Indian government to improve the hospital infrastructure across all its states is projected to drive the growth of the pharmaceutical industries. This surges the investment of the key players such as Dr Reddy’s, SunPharma, Cipla and other pharmaceutical companies to expand the production capacities. The increase in the production capacities led to the demand for lubricants which are produced from industrial oils; thus, driving the market growth. Furthermore, the Indian government has taken initiatives to blend fuel with biobased fuels to reduce the greenhouse gas pollution in transportation sector. The presence of above mentioned investments and policies is expected to provide opportunities for the development of the market. The above mentioned initiatives are major factors anticipated to drive the growth of the market in this region during the forecast period.
Impact of Covid-19 on Industrial Oils Market
COVID-19 has severely impacted the global economy with devastating effects on global trade, which has simultaneously affected households, business, financial institution, industrial establishments, and infrastructure companies. The shutdown of industrial manufacturing has led to decline in the demand for industrial oils in most of the countries across the world. The decrease in utilization of power in the industrial facilities across the globe during the outbreak has a negative impact on the development of the market. However, surge in the demand for personal care and pharmaceutical products during the pandemic outbreak due to increased awareness among the people have shown positive trend in the market growth.
The gradual surge in the infrastructure activities after the pandemic is expected to have positive impact on the industrial oils market, as paints & coatings are used in the construction sector. Increase in the demand for biodiesel as an alternative fuel for diesel engines due to its various advantages such as renewability, purity, and low exhaust pollution have created positive impact on the market.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the industrial oils market analysis from 2021 to 2031 to identify the prevailing industrial oils market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the industrial oils market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global industrial oils market trends, key players, market segments, application areas, and market growth strategies.
Industrial Oils Market Report Highlights
By End Use
Key Market Players
Bunge Limited, Archer Daniels Midland, Matole Ltd, Royal Dutch Shell Plc, Buhler Group, Gemtek Products, Wilmar International, Chevron USA Inc., Kratan Corporation, Cargill Incorporated, LLC PK "XimProm", Soya Mills SA, Exxon Mobil Corporation, Fujian Qian Trading Co. Ltd., Malplast Industries Limited, Castrol Limited, AAK Kamani, China Petroleum & Chemical Corporation (Sinopec)
According to CXO Perspective, the global industrial oils market is expected to witness increased demand during the forecast period, due to rapidly growing demand for food & beverages, personal care products, and pharmaceutical products.
Industrial oils are used in machines that manufacture or process foodstuffs, food-related commodities, pharmaceutical products, cosmetics, tobacco products, animal feed, power transmission, and corrosion protection.
Rapid urbanization in developing economies has led to the development of new buildings, which has helped fuel the demand for industrial oils and propels the overall industrial oils market. Rise in demand for refurbishment of dilapidated buildings, particularly in developing economies, and increasing surge in the demand for food & beverage products across the globe are the key growth drivers for the overall industrial oils market. The surge in demand for industrial machinery in other diverse industry verticals such as automotive, energy & power, and others is expected to offer ample growth opportunities for market players.