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Industrial Oils Market (By Source: Soybean, Corn, Sunflower, Cottonseed, Rapeseed, Palm, Others; By Type: Grade I (Light), Grade II (Medium), Grade III (Heavy); By Product: Turbine Oil, Refrigeration Oil, Compressor Oil, Electrical Oil, Heat Transfer Oil; By End User: Biofuel, Paints & Coatings, Cosmetics & Personal Care, Pharmaceuticals, Power Generation, Heavy Equipment, Others) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033
The global industrial oil market size was valued at USD 105.08 billion in 2023 and it is expected to reach USD 179.49 billion by 2033, growing at a compound annual growth rate (CAGR) of 5.5% during the forecast period 2024 to 2033.
The Asia Pacific industrial oil market size was estimated at USD 44.28 billion in 2023 and is predicted to be worth around USD 78.08 billion by 2033, at a CAGR of 5.8% from 2024 to 2033.
The Asia Pacific region is expected to dominate the market for industrial oils in the coming years. Increased industrialization and increasing population will drive the growth of the market the government in the Asia Pacific region is increasing the amount of investment for setting up different industrial plans in order to get a row the demand of the market. Rapid industrialization we will drive the market growth. Growing demand for vehicles will also create a great demand for industrial oils in the Asia Pacific region. The demand for automobiles has grown in this region. The major countries which are leading to the growth of the market are India China and Japan. Increase in the demand for automobiles in this region is due to an increase in the disposable income of the people in this region. Major market players are finding the Asia Pacific region as a good market for investment period manufacturers are setting up new plants in the Asia Pacific region in order to cater to the needs of the growing demand.
The opportunities provided in this market are great due to the availability of low cost raw material and low cost labor. There has been no severe competition in the North American region which aims at having environment friendly industries. These manufacturers are focusing in having innovative ways of producing industry alloys to reduce the amount of pollution. Technological advanced machines are developed in the European region which creates great demand for industrial oils. Increasing usage of heavy vehicles for the roadway transport will also drive the growth of the market in this region.
As there is rapid industrialization in the developing economies the market for industrial oils is expected to grow in the developing nations across the Asia Pacific region and other region. These manufacturing industries have a great demand for automation in their processes which is also expected to drive the market of industrial oils in the coming years. Industrial oils are used in order to prevent corrosion of the equipments and machinery's used in various manufacturing plants. Industrial oils provide lubrication to the various parts of the equipments used in the production and process of food products or other products.
Industrial oils are used in industries related to pharmaceuticals foodstuffs, tobacco and also cosmetics. The food and beverages industry is seeing a major growth and demand for industrial oil in countries like India and China. When it comes to food processing the countries like Germany and United States make use of industrial oils to a large extent. There's a great demand for food grade industrial oil across many food production and processing industries. Industrial oils are used as lubricants as they help in reducing the friction between any two parts that are closely connected to one another. Industrial oils are of great importance in the manufacturing industries and the automobile industry. Apart from preventing corrosion of the parts it also helps in providing thermal stability by reducing the temperature of the surface on which it is applied. Do to the entry of many new market players the major manufacturers are seeking to expand their business by entering international territories for growth. The growing demand for electric vehicles across the globe is expected to be a challenge for the growth of the industrial oils market. It will slow down the growth of the industry. There's a great demand for electric vehicles in China. Apart from China Japan Europe and the US are also expected to adopt electric vehicles to a great extent.
During the pandemic the restrictions and the lockdowns that were imposed across the globe in order to reduce the spread of virus affected the manufacturing industries. Disrupted supply chains led to a delay in supply of raw materials which led to a slow market growth. These reasons were also responsible for the increase in the price of raw materials during the pandemic which hamper the growth of the market. There was a halt in the manufacturing of industrial oils and the usage of industrial oils during the pandemic as there was extensive lockdown across the globe. As there were stringent policies that prohibited the people from commuting there was a drop in the consumption of industrial oils as the usage of cars and other vehicles had reduced to a great extent. Apart from the manufacturing industries the consumption of lubrication oils is more in the vehicles segment. As the industrial sector resumed, the market is expected to reach its full capacity in the coming years. Increasing demand for automobiles will drive the growth of the market in the coming years.
| Report Coverage | Details |
| Market Size in 2023 | USD 105.08 Billion |
| Market Size by 2033 | USD 179.49 Billion |
| Growth Rate from 2024 to 2033 | CAGR of 5.5% |
| Largest Market | Asia Pacific |
| Fastest Growing Region | North America |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Product, By Source, By Type, and By End User |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The industrial oils market is expected to grow in the Asia Pacific region due to the large patch of land available for agriculture which is leading to a growth in the production of biodiesel. Increased use of industrial oils in food and beverages industry and the cosmetics industry will drive the growth of the market.
Industrial oils are used in the production of shampoos soaps and other products. The use of vegetable oil in the production of various food products will also provide a boost to the growth of the market. Due to a good demand for the production of electricity the market for industrial oils is expected to grow in the Asia Pacific region specifically for countries like India Japan and China. Industrial oils are also used in order to enhance the productivity of coal and gas power plants. The use of industrial oils helps in gaining maximum efficiency through these industries. The productivity of the equipments and the efficiency of the equipments is enhanced with the use of industrial oils. The running cycles of varied industrial equipment are enhanced with the use of industrial oils. Industrial oils are also used in the manufacturing of food and beverages. As there's a growing demand for electricity the market for industrial oil in many developing nations is expected to grow.
The industrial and the domestic sectors are the major consumers of electricity in the Asia Pacific region. Gorman's of various nations are working on improving and setting new businesses. There's an increasing demand for better lubrication in the manufacturing industries as the use of industrial oils in the equipments helps in reducing the pollution and emission. It is mainly caused due to the friction between two surfaces. The efficiency of the machine achieved due to the use of lubricants periodically will also enhance the productivity of these machines. Do the presence of stringent environmental restrictions in the developed as well as the developing nations the manufacturing industries are expected to increase the use of lubrication oils which are extremely beneficial for the environment.
Depending upon the source, the palm segment is expected to have a dominating position in the market and it is expected to grow in the coming years. Apart from the palm oil there are different sources like sunflower, soybean, rapeseed, cotton seed. There's a maximum demand for palm oil in the Asia Pacific region and this is expected to grow in the coming years. Asia Pacific region is though largest exporter of palm oil which helps in meeting the demands of 85% of the requirement across the globe. This provides maximum growth opportunity for the segment in this region. Indonesia and Malaysia are the major manufacturers of palm oil. Auto the entire production of palm oil in this region maximum portion is exported to other countries. Palm oil is also used for manufacturing biofuels.
On the basis of the type, the grade I or light segment is expected to dominate the market in the coming years. This type of industrial oil is utilized majorly in the personal care and the cosmetics industry. There's a growing demand for light industrial oil in the pharmaceutical industries. Due to the use of the light industrial oil across many different industries it will provide an opportunity for the growth. Brazil and China make maximum use of light industrial oil for the production of soap shampoo and other personal care products. There's a good demand for light industrial oils in the European region due to its usage in cosmetics industry. The demand for light oil is expected to grow in both developed as well as developing nations across the globe.
On the basis of end user does an increasing demand for the use of industrial oils in the biodiesel sector. The biodiesel segment will drive the market growth in the coming years. Biodiesel is pure and renewable hence it is used as an alternative fuel in diesel engines. The amount of pollution caused by the use of wire diesel is less as compared to the other fuels available. Rapeseed oil is used for the manufacturing of biodiesel in the European region. The use of biodiesel by these developed as well as developing nations will help in reducing the carbon emissions and reducing the greenhouse effects. Developing nations are investing in finding innovative technologies which will be helpful in having we don't have bioenergy by the use of biofuels that are available.
Key market segments covered in the report
By Source
By Type
By Product
By End User
By Geography
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