Global Industrial Oils Market, By Source (Soybean, Palm, Rapeseed, Sunflower, Corn, Cottonseed, Others), Type (Grade I (Light), Grade II (Medium), Grade III (Heavy)), End-Use (Biofuel, Paints and Coating, Cosmetics and Personal Care, Pharmaceuticals, and Others) - Industry Trends and Forecast to 2023 to 2031.
Industrial Oils Market Analysis and Size
In manufacturing, industrial oils play a crucial role in lubricating and maintaining the efficiency of a wide range of machinery and equipment. These oils are used in gears, bearings, hydraulic systems, and other mechanical components to reduce friction, heat, and wear during operations. By ensuring smooth movement and minimal friction between moving parts, industrial oils help extend the lifespan of equipment and prevent costly breakdowns. They also contribute to improving productivity by enabling machines to operate at optimal performance levels with reduced energy consumption.
The global industrial oils market size was valued at USD 100.89 billion in 2023 and is projected to reach USD 157.19 billion by 2031, with a CAGR of 5.70% during the forecast period of 2024 to 2031.
In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.
Report Scope and Market Segmentation
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Report Metric
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Details
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Forecast Period
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2024 to 2031
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Base Year
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2023
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Historic Years
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2022 (Customizable to 2016-2021)
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Quantitative Units
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Revenue in USD Billion, Volumes in Units, Pricing in USD
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Segments Covered
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Source (Soybean, Palm, Rapeseed, Sunflower, Corn, Cottonseed, Others), Type (Grade I (Light), Grade II (Medium), Grade III (Heavy)), End-Use (Biofuel, Paints and Coating, Cosmetics and Personal Care, Pharmaceuticals, and Others)
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Countries Covered
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U.S., Canada, Mexico, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC), Brazil, Argentina, Rest of South America, U.A.E., Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA)
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Market Players Covered
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ExxonMobil (U.S.), Shell (Netherlands), PHILLIPS 66 (U.S.), TotalEnergies (France), Chevron (U.S.), Gazprom (Russia), Rosneft (Russia), Quaker Houghton Chemical Corp. (U.S.), Lukoil (Russia), Petronas (Malaysia), Bharat Petroleum (India), FUCHS PETROLUB SE (Germany), Sinopec (China), Idemitsu Kosan Co., Ltd (Japan), Tide Water Oil Co (I) Ltd (India), Castrol (U.K.), Panama Petrochem Ltd. (India), Gulf Oil Lubricants India Ltd (India), Gandhar Oil (India), Savita Oil Technologies Ltd (India), Apar Industries Ltd. (India), Grauer & Weil (India) Limited (India), Gold Oil Corporation (India), Vinayak Oil (India)
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Market Opportunities
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Market Definition
Industrial oils refer to a broad category of lubricants and fluids used in various industrial applications. These oils are designed to reduce friction, wear, and heat generation in machinery and equipment, thereby improving efficiency and extending operational lifespan. They serve critical functions such as lubrication, cooling, sealing, and corrosion protection in industries ranging from manufacturing and automotive to aerospace and heavy machinery.
Industrial Oils Market Dynamics
Drivers
- Growing Technological Advancements
Innovations in lubricant formulations, manufacturing processes, and additive technologies continually enhance the performance, efficiency, and durability of industrial oils. For instance, the development of synthetic oils with superior thermal stability and resistance to oxidation has revolutionized high-temperature applications in industries such as automotive and aerospace. Advancements in nanotechnology have enabled the creation of nano-lubricants, which offer enhanced lubrication properties and reduced friction coefficients, further boosting efficiency and prolonging machinery lifespan. These technological strides cater to evolving industry demands for higher performance and reliability and contribute to reducing environmental impact through improved energy efficiency and sustainability in lubricant production and application.
- Increasing Industrialization
As countries industrialize, there is a corresponding rise in manufacturing activities across various sectors such as automotive, machinery, electronics, and construction. These industries rely heavily on lubricants and industrial oils to ensure smooth operation, reduce friction, and prolong equipment lifespan. The expanding industrial base necessitates larger quantities of oils for diverse applications including lubrication of gears, bearings, hydraulic systems, and other critical components. Moreover, industrialization often leads to larger and more complex machinery and equipment, which require specialized oils to maintain optimal performance and efficiency. Therefore, the growth in industrialization acts as a significant driver fueling the demand for industrial oils globally.
Opportunities
- High Stringent Environmental Regulations
Stringent environmental regulations often mandate lower emissions, reduced toxicity, and stricter disposal requirements for industrial fluids. As a result, there is a growing demand for eco-friendly lubricants that offer biodegradability, non-toxicity, and lower environmental persistence. Companies are increasingly investing in research and development to formulate lubricants that meet these regulatory standards while maintaining high performance and reliability in industrial applications. This shift towards environmentally friendly oils ensures compliance with regulations and enhances corporate sustainability profiles and addresses growing consumer and stakeholder expectations for responsible environmental stewardship in industrial operations.
- Increasing Awareness of Sustainability
As industries and consumers prioritize environmental responsibility, there is a growing demand for lubricants and oils that minimize environmental impact. Bio-based oils, derived from renewable sources such as vegetable oils and animal fats, are gaining traction due to their lower carbon footprint and reduced dependency on fossil fuels. Manufacturers are innovating to develop eco-friendly formulations that meet stringent regulatory requirements and sustainability goals. Additionally, the push towards sustainability encourages industries to adopt lubricants that enhance energy efficiency, prolong equipment life, and reduce emissions, aligning with global efforts to mitigate climate change and promote sustainable development practices.
Restraints/Challenges
- Volatility in Raw Material Prices
Many industrial oils, especially bio-based and synthetic variants, rely on raw materials such as vegetable oils, animal fats, and chemical compounds derived from petroleum or natural gas. Fluctuations in the prices of these raw materials can significantly impact production costs for manufacturers. Sudden price increases can squeeze profit margins or force companies to raise prices, potentially making their products less competitive. Moreover, uncertain raw material costs make long-term planning and budgeting challenging, affecting investment decisions and supply chain stability.
- Geopolitical Instability
Political tensions, trade disputes, sanctions, and regional conflicts can lead to fluctuations in oil availability, impacting the supply of raw materials used in lubricant production. Uncertainty in geopolitical situations can also deter investments and disrupt business operations, affecting production capacities and distribution networks. Moreover, geopolitical instability may introduce regulatory uncertainties and trade barriers, complicating international trade relationships and market access for industrial oils manufacturers.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Recent Development
- In April 2023, Bharat Petroleum announced a $50 million investment in a new facility dedicated to producing bio-based industrial lubricants. Located in Teesside, England, the facility will convert used vegetable oil into lubricants compatible with existing industrial machinery, aiming to enhance sustainability in lubricant manufacturing
- In March 2023, Shell revealed a collaboration with the University of Manchester focused on developing new methods to produce environmentally friendly industrial oils. Their goal is to utilize renewable feedstocks to create oils that maintain compatibility with current industrial machinery, advancing sustainability efforts in lubricant production
- In October 2020, FUCHS Lubritech GmbH expanded its lubricant specialty business by acquiring Welponer SRL in Italy. This acquisition was integrated into its subsidiary, FUCHS Lubrificanti S.P.A., strengthening its market presence and enhancing its capabilities in specialized lubricant solutions
Industrial Oils Market Scope
The market is segmented on the basis of source, type and end users. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Source
- Soybean
- Palm
- Rapeseed
- Sunflower
- Corn
- Cottonseed
- Others
Type
- Grade I (Light)
- Grade II (Medium)
- Grade III (Heavy)
End Users
- Biofuel
- Paints and Coating
- Cosmetics and Personal Care
- Pharmaceuticals
- Others
Industrial Oils Market Analysis/Insights
The market is analyzed and market size insights and trends are provided by country, source, type and end users as referenced above.
The countries covered in the market report are U.S., Canada, Mexico, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC), Brazil, Argentina, Rest of South America, U.A.E., Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa (MEA).
North America dominates the market due to increasing demand for biodiesel feedstock. The region's robust agricultural sector provides a substantial supply of oilseed crops such as soybeans and canola, which are key sources for biodiesel production. Growing environmental concerns and regulatory support for renewable fuels further bolster this demand. Additionally, technological advancements in extraction and processing methods enhance the efficiency and yield of industrial oils from these feedstocks, contributing to North America's leadership in the market. As a result, the region plays a pivotal role in shaping the global landscape of industrial oils, particularly in sectors aiming to reduce carbon footprints and promote sustainability.
Asia-Pacific is expected to experience significant growth due to rising adoption of biodiesel. Biodiesel is favored for its purity, renewability, and low pollution characteristics, aligning with global efforts towards sustainable energy sources. As countries in the region prioritize reducing carbon emissions and enhancing energy security, biodiesel emerges as a key component in their renewable energy strategies. This trend is expected to bolster economic development, promote energy independence, and mitigate environmental impacts across Asia-Pacific nations during the forecast period.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Competitive Landscape and Industrial Oils Market Share Analysis
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Some of the major players operating in the market are:
- ExxonMobil (U.S.)
- Shell (Netherlands)
- PHILLIPS 66 (U.S.)
- TotalEnergies (France)
- Chevron (U.S.)
- Gazprom (Russia)
- Rosneft (Russia)
- Quaker Houghton Chemical Corp. (U.S.)
- Lukoil (Russia)
- Petronas (Malaysia)
- Bharat Petroleum (India)
- FUCHS PETROLUB SE (Germany)
- Sinopec (China)
- Idemitsu Kosan Co., Ltd (Japan)
- Tide Water Oil Co (I) Ltd (India)
- Castrol (U.K.)
- Panama Petrochem Ltd. (India)
- Gulf Oil Lubricants India Ltd (India)
- Gandhar Oil (India)
- Savita Oil Technologies Ltd (India)
- Apar Industries Ltd. (India)
- Grauer & Weil (India) Limited (India)
- Gold Oil Corporation (India)
- Vinayak Oil (India)
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