PAG Compressor Oil Market - By Type (Reciprocating, Rotary, Centrifugal, Others), By End-user (Automotive, Mining, General Manufacturing, Construction, Food & Beverage), & Global Forecast, 2023 - 2032

PAG Compressor Oil Market Size

PAG Compressor Oil Market size was worth over USD 1.3 billion in 2022 and is slated to depict more than 8.5% CAGR from 2023 to 2032. The increasing demand for air compressors across the industrial sector will propel the demand for PAG compressor oil.
 

Industrial production has witnessed a massive boom over recent years owing to the supportive policy framework, technological breakthroughs, and improving economic landscape across both developed and developing nations such as China, Japan, India, Germany, and the US. For instance, according to the Indian Ministry of Finance, the Index of Industrial Production (IIP) reached an average of 130.2 in Quarter 2 from 121.3 in Quarter 1 during FY 2021-22.
 

PAG compressor oil is extensively utilized as metalworking fluids, quenchants, food-grade lubricants, and lubricants in compressor and hydraulic equipment across several industrial verticals, such as food & beverages, semiconductors & electronics, general manufacturing, chemical, agriculture, and many more. The broad application spectrum associated with the product will help the PAG compressor oil industry gain significant momentum.
 

PAG Compressor Oil Market Trends

Air compressors emit loud noises and significantly increase pollution. Several countries have formulated stringent policies pertaining to regulating sound and pollution levels, fostering the demand to incorporate soundproofing materials in these systems. This will result in an increased manufacturing cost and may hamper the PAG compressor oil sales. Moreover, the fluctuating prices of raw materials such as base oils, crude oil, and additives make it difficult for manufacturers to maintain affordability in production cycles and garner decent profit margins, which will further impact the market dynamics.

PAG Compressor Oil Market Analysis

Based on type, the PAG compressor oil market segregates into rotary, reciprocating, centrifugal, and others. The rotary segment is expected to be worth over USD 1.8 billion by 2032, witnessing more than 8.5% CAGR through the projection period. The rotary compression process involves constant movement and generates a significant amount of heat, which makes lubrication of utmost importance, thus driving the demand for PAG lubricants. Besides, PAG oil helps avoid potential leakage in the compression chamber and lubricates rotors and other moving parts, increasing the segment share.
 

With respect to the end-user, the general manufacturing segment is projected to showcase more than 8% CAGR over 2023-2032. Across the manufacturing sector, proper lubrication of equipment is critical to ensure continuous operation and prevent costly repairs and downtime. PAG lubricants help the compressor element to cool down while enabling the system to consume less energy. These attributes have encouraged an increasing number of manufacturing firms to make use of compressed air in their equipment, production, and factory processes, which will boost segment expansion.
 

Asia Pacific PAG compressor oil market is set to exhibit over 8.5% CAGR and exceed a valuation of USD 1.6 billion by 2032. The Asia Pacific is recognized for its massive population base and the skyrocketing demand for consumer-based products, offering an anticipated boost to industrial production in the region. Besides, the growing prominence of major manufacturing firms and the positive outlook of the general manufacturing sector in the region will propel the demand for PAG compressor oil in the approaching years.
 

PAG Compressor Oil Market Share

Prominent enterprises in the PAG compressor oil market are

• Idemitsu Lubricants America (ILA)
• BOSS Lubricants
• Castrol
• Philip 66 Lubricants
• Total Lubricants USA, Inc.
• Sudheimer Car Technik Vertriebs (SCT) (MANNOL)
• AMSOIL Inc.
• Exxon Mobil Corporation

Players in the market are strengthening their associations to design and develop new and innovative products and gain a competitive edge over their counterparts.
 

Impact of COVID-19 Pandemic

The PAG compressor oil industry suffered a significant setback due to the COVID-19 virus outbreak due to halted oil exports and the structural decline in the fossil fuel industry on the back of stringent containment measures imposed by the government. In addition, the temporarily suspended operations across the industrial sector resulted in a steep reduction in demand for oil and energy across the globe, further hampering the industry revenue. However, with the eased-down lockdown measures across numerous economies and the flourishing industrial landscape, the industry has recouped its path to recovery and is expected to witness lucrative growth through 2032.
 

PAG compressor oil market research report includes in-depth coverage of the industry with estimates & forecast in terms of volume in tons and revenue in USD thousand from 2018 to 2032 for the following segments:

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By Compressor Type

• Reciprocating
• Rotary
• Centrifugal

By End-User

• Automotive
• Mining
• General manufacturing
• Construction
• Food & beverage
• Others

By Region

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Russia
  • Poland
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Indonesia
• Latin America
  • Brazil
  • Mexico
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE