Industrial Oils Market - By Oil Type (Process Oil, Hydraulic Oils, Industry Engine Oils, Gear Oils, Metal Working Fluids, Turbine and Circulating Oils, Refrigerating Oils), By Source (Mineral and Synthetic Oils, Bio-based Oils) By Application & Forecast, 2024 – 2032

Industrial Oils Market Size

Industrial Oils Market size was valued at around USD 64.3 billion in 2023 and is anticipated to register a CAGR of over 3.4% between 2024 and 2032. The market is experiencing significant growth driven by several key factors, including advancements in technology, increased industrial activity, and a growing emphasis on sustainability.
 

Innovations in oil formulations, such as the development of high-performance and bio-based lubricants, are enhancing product efficiency and reducing environmental impact. The rapid expansion of manufacturing, automotive, and construction sectors, particularly in emerging economies, is fueling demand for industrial oils. Additionally, stringent environmental regulations and corporate sustainability goals are accelerating the shift towards eco-friendly lubricants. As industries seek to improve operational efficiency while adhering to environmental standards, the market is expanding, supported by technological advancements and rising global demand for high-quality, sustainable solutions. Thus, the market growth is expected to attain a market value of over USD 86.7 billion by 2032.
 

A major growth aspect in the industrial oils market is the production of advanced biofuels, such as cellulosic ethanol and renewable hydrocarbon fuels. This process typically involves a multistep approach to break down the complex, rigid structure of plant cell walls, which includes cellulose, hemicellulose, and lignin. The breakdown can be achieved through high-temperature or low-temperature deconstruction methods. As industries and governments increasingly focus on sustainability, the demand for biofuels is rising, driven by their potential to reduce carbon emissions and reliance on fossil fuels. This shift towards renewable energy sources is significantly contributing to the growth of the market, as companies invest in advanced biofuel technologies to meet environmental regulations and market demands.
 

Two major pitfalls for the industrial oils market in China are stringent environmental regulations and compliance issues, and volatility in raw material prices. Companies must navigate increased costs and operational disruptions to meet international standards, potentially hindering market growth. Additionally, fluctuations in raw material prices affect profitability and market stability, as reliance on global supply chains for key inputs makes the market vulnerable to international price volatility, impacting production costs and pricing strategies.
 

Industrial Oils Market Trends

An emergent trend in the market is the increasing adoption of sustainable and bio-based lubricants, driven by a combination of regulatory, environmental, and market forces. Stringent environmental regulations are compelling industries to seek alternatives to traditional petroleum-based lubricants, which are often associated with higher carbon footprints and environmental risks. Governments worldwide are implementing stricter environmental standards, pushing companies towards greener solutions to ensure compliance and avoid penalties. This regulatory pressure is coupled with a growing corporate emphasis on sustainability.
 

Many companies are integrating sustainable practices into their core strategies to enhance their environmental credentials and appeal to increasingly eco-conscious consumers and stakeholders. Advances in technology are playing a critical role in this trend. Innovations in the formulation of bio-based lubricants have significantly improved their performance and cost-effectiveness, making them a competitive alternative to conventional oils. These lubricants, derived from renewable sources, offer comparable or even superior performance in various industrial applications, thus encouraging their wider adoption. Furthermore, the enhanced biodegradability and lower toxicity of bio-based lubricants reduce environmental impact, aligning with global efforts to mitigate climate change and environmental degradation.
 

Market demand is also shifting towards more environmentally responsible products. As awareness about the environmental impact of industrial activities increases, consumers and industries alike are prioritizing sustainability. This shift in demand is driving companies to adopt bio-based lubricants, which not only meet performance standards but also support corporate social responsibility goals. Economic incentives provided by governments and international bodies are further accelerating this trend. Subsidies, tax benefits, and funding for research and development in sustainable products are encouraging companies to invest in bio-based lubricants. These incentives make it financially viable for companies to transition to greener alternatives, fostering innovation and growth in the market.
 

Industrial Oils Market Analysis

Based on source, the market is divided into mineral and synthetic oils {crude oil polyalphaolefins (pao) polyalkylene glycols (pag) diesters phosphate esters polyol esters silicones fluorinated fluids} bio-based oils {soybean rapeseed sunflower palm sunflower corn others (olive, safflower, copra, groundnut, linseed/flaxseed, and grape seed}.Mineral and synthetic oils held the dominant market share of USD 46.5 billion in 2023 and the market expected to attain a market value of over USD 63.3 billion by 2032. Among the various source segments of the market, Mineral and Synthetic Oils are experiencing the fastest growth due to their extensive application range and superior performance characteristics.
 

Mineral oils, derived from crude oil, and synthetic oils, such as polyalphaolefins (PAO), polyalkylene glycols (PAG), and esters, offer exceptional lubrication, thermal stability, and oxidation resistance, making them indispensable in high-demand industrial applications. The rapid industrialization and technological advancements in manufacturing and machinery have increased the demand for these oils, driven by their ability to enhance equipment efficiency and longevity. Additionally, ongoing innovations in synthetic oil formulations, aimed at providing more environmentally friendly and higher-performance solutions, further bolster their growth. The versatility, reliability, and evolving nature of mineral and synthetic oils position them as critical drivers of expansion within the market.
 

Based on oil type, the industrial oils market is categorized process oil, hydraulic oils, industry engine oils, gear oils, metal working fluids, turbine and circulating oils, refrigerating oils, compressor oils, heat transfer fluids, electrical insulating oils, synthetic lubricants for specialized applications, biodegradable lubricants, biofuel. Process oil accounted for 15 % of the market share in 2023 and is projected to grow through 2032. Among the various segments of the market, process oils are the fastest-growing due to their critical role in enhancing manufacturing efficiency and product quality across diverse industries.

The increasing demand for high-performance and versatile process oils stems from their ability to optimize processes in rubber, plastics, and chemical industries. Innovations in formulation, such as the development of more refined and eco-friendly process oils, contribute to their rapid growth. Additionally, the expansion of industrial activities and advancements in production technologies drive the need for process oils that can deliver superior performance, durability, and compatibility with modern machinery. This growth is further supported by the industry's push towards sustainability, with advancements aimed at reducing environmental impact while maintaining high operational efficiency.
 

By application, the automotive industry is the fastest-growing application segment in the industrial oils market due to the increasing global demand for vehicles and the rapid advancements in automotive technology. As the automotive sector evolves, there is a heightened need for high-performance lubricants and oils that can enhance engine efficiency, reduce emissions, and meet stringent environmental regulations. The push towards electric and hybrid vehicles also drives the demand for specialized lubricants that cater to new technologies. Additionally, the growth of the automotive aftermarket, with its extensive need for maintenance and repair services, further fuels the demand for industrial oils. Innovations in oil formulations that improve fuel efficiency and extend vehicle lifespan contribute to this growth. As consumers and industries seek more reliable and efficient automotive solutions, the automotive industry's demand for industrial oils continues to expand, making it a pivotal driver in the market's growth.
 

Asia Pacific dominated the industrial oils market in 2023. It generated a revenue of USD 24 billion in 2023 and the growth forecast for 2032 is 32.9 billion. Asia Pacific has established dominance in the market, driven by rapid industrialization, urbanization, and the growing automotive and manufacturing sectors. The region's economic expansion, coupled with increased investments in infrastructure and technological advancements, has significantly contributed to market growth. Additionally, rising demand for machinery and equipment maintenance, along with the expansion of the construction and mining industries, has further propelled the market. Key players in the industry are focusing on the Asia Pacific region to capitalize on these growth opportunities, enhancing production capacities and distribution networks to meet the surging demand.
 

In the Asia Pacific region, China holds a dominant role in the industrial oils market. China's dominance is attributed to its extensive manufacturing base, rapid industrialization, and significant investments in infrastructure. The country's robust automotive industry, along with substantial growth in the construction and mining sectors, drives the demand for industrial oils. Furthermore, China's focus on technological advancements and sustainable practices strengthens its leading position in the market. Other countries like India and Japan also contribute to the market's growth, but China's expansive industrial activities and economic scale give it a leading edge.
 

Industrial Oils Market Share

ExxonMobil, Shell, Phillips 66, Total Energies, Chevron, and BP are prominent players in the industrial oils market, each contributing significantly to its growth through innovation, extensive product portfolios, and global reach. ExxonMobil and Shell lead in developing advanced, high-performance lubricants, enhancing operational efficiency across various industries. Phillips 66’s focus on specialty oils and technological advancements bolsters its market influence. Total Energies and Chevron drive growth with their commitment to sustainable practices and cutting-edge technologies, while BP’s global presence and emphasis on high-quality, environmentally responsible products further support market expansion. Collectively, these companies shape industry standards, drive technological progress, and meet diverse industrial needs, fueling overall market growth.
 

Industrial Oils Market Companies

Major players operating in the Industrial oils industry include:

• Bharat Petroleum
• Bp
• Chevron
• ExxonMobil
• FUCHS PETROLUB SE
• Gazprom
• Lukoil
• Petronas
• PHILLIPS 66
• Quacker Houghton Chemical Corp.
• Rosneft
• Shell
• Sinopec
• Total Energies
   

Industrial Oils Industry News

• In February 2024, Saneg announced the acquisition of oil and lubricants producer CGC Lubricants Italy. This strategic move, aimed at expanding Saneg's market presence and product portfolio, was finalized after a series of negotiations and due diligence.
   
• In April 2024, Repsol's Cartagena refinery started up Spain's first industrial-scale biofuels plant. This milestone marks a significant step towards sustainable energy production in the country. The new facility, designed to produce advanced biofuels, reflects Repsol's commitment to reducing carbon emissions and advancing green technology.
   

The industrial oils market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Million) (Kilo Tons) from 2021 to 2032, for the following segments:

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Market, By Oil Type

• Process oil
• Hydraulic oils
• Industry engine oils
• Gear oils
• Metal working fluids
• Turbine and circulating oils
• Refrigerating oils
• Compressor oils
• Heat transfer fluids
• Electrical insulating oils
• Synthetic lubricants for specialized applications
• Biodegradable lubricants
• Biofuel

Market, By Source

• Mineral and synthetic oils
  • Crude oil
  • Polyalphaolefins (PAO)
  • Polyalkylene glycols (PAG)
  • Diesters
  • Phosphate esters
  • Polyol esters
  • Silicones
  • Fluorinated fluids
• Bio-based oils
  • Soybean
  • Rapeseed
  • Sunflower
  • Palm
  • Sunflower
  • Corn
  • Others (olive, safflower, copra, groundnut, linseed/flaxseed, and grape seed)

Market, Application

• Automotive industry
• Oil & gas industry
• Heavy machinery and equipment
• Manufacturing and industrial machinery
• Aerospace and aviation
• Mining and mineral processing
• Construction and infrastructure
• Power generation and utilities
• Chemical processing
• Paints & coating
• Cosmetics & personal care
• Pharmaceuticals
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • Saudi Arabia
  • UAE
  • South Africa
  • Rest of MEA