Compressor Lubricants Market - Forecast(2023 - 2028)

Compressor Lubricants Market size is forecast to reach $14.83 billion by 2025 after growing at a CAGR of 6% during 2020-2025. Compressors are very sensitive components that must be properly lubricated in order for them to achieve a long service life. Compressor lubricants are specially formulated fluids that provide lubrication to the moving metal parts of the air compressor. The growth of the market of compressor lubricants is expected to be driven by the high demand from the automotive industry. 

The report: “Compressor Lubricants Market-Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of compressor lubricants Industry.

  

By Base Oil: Synthetic Oil, Semi-Synthetic Oil, Bio Based Oil, Mineral Oil, and Others.

By Compressor Type: Positive Displacement Compressor (Rotary Screw Compressor, Reciprocating Compressor, Scroll Compressor, and Rotary Vane Compressor, Others), Dynamic Compressor (Centrifugal Compressor, Axial Compressor).

By Application: Manufacturing, Electric Motor Lubrication, Gearbox Lubrication, Hydraulic Lubrication, Refrigerators, Air Conditioner, and Others. 

By End Use: Oil and Gas, Energy, Automotive, Electrical and Electronics, Mining, Chemical, Aerospace, Construction and Others. 

By Geography: North America, South America, Europe, APAC, and RoW. 

Synthetic Oil segment held the largest share in the Compressor Lubricants Market in 2019. Synthetic oils are cleaner, lasts longer, and less prone to contamination than conventional ones. Owing to this, these lubricants are gaining popularity among industry participants. Soaring need to minimize downtime and maintenance requirements is estimated to drive the growth of the synthetic oil segment during the forecast period. Semi-Synthetic Oil segment is the second largest segment in the Compressor Lubricants Market. Semi-synthetic oils are blends of synthetic and mineral oils. The demand for this oil type depends upon compressor type and its application. However, its demand is projected to experience upswing on account of factors such as lower prices of semi-synthetic oil compared to synthetic type and shifting preference of end-use industries from mineral oil to synthetic and semi-synthetic oil.

Positive Displacement Compressor held the largest share in the Compressor Lubricants Market in 2019. Positive displacement compressors are used in different manufacturing sectors including chemical, petrochemical and mining equipment. The positive-displacement air compressor has a specific quantity of air or gas trapped in a compression chamber. When the volume the gas or air occupies drops (mechanically reduced), it causes a corresponding rise in pressure prior to the discharge. The air flows from the compressor at a constant speed, which remains consistent with the changes in the discharge. Rotary Screw Compressor and Reciprocating Compressor are the types of positive displacement compressor. The demand for positive displacement compressors is driven by the factors such as its high performance and efficiency. The emerging countries, such as India, Vietnam, and Malaysia are encouraging the foreign investments in the manufacturing industry through several government programs. This in turn, is expected to drive the manufacturing sector which in turn will augment the demand for positive displacement compressors during the forecast period. Dynamic Compressor is the second largest segment in the Compressor Lubricants Market in terms of Compressor type. Dynamic compressors are widely used in petroleum refining, mining, and automotive industries. 

Manufacturing sector held the largest share in the Compressor Lubricants Market in terms of application. The growth of the sector can be attributed to rising maintenance activities and lubrication applications. Rapid industrialization along with booming automotive industry is poised to boost the sales of compressors, this factor will drive the growth of the market in the forecast period. According to the data release by Chinese ministry of commerce, the rate of growth in manufacturing industries will be doubled in next two years. Whereas, the Indian Ministry of Commerce and industries released a similar data which depicts the four percent in next two years in India, which will directly benefits the Compressor Lubricants Market.  The demand for the compressor lubricants in the oil & gas industry is likely to increase on account of growing compressor installations. Rising consumption of natural gas is one of the key factors contributing to the growth of the segment. Infrastructure development in this oil & gas industry is capital-intensive owing to which it is necessary to improve the efficiency of compressor to avoid cutting down profits. Rising planned shutdowns for maintenance is expected to drive compressor lubricants demand in the oil & gas industry over the forecast period.      

Automotive sector is the primary market of compressor lubricants in 2019 growing at CAGR of 7%. The growth of the Compressor Lubricants Market can be attributed to the rise in production of automobiles. It is expected that the amount of compressor lubricants used in the production of automobiles will double in the next 15 years. According to International Organization of Motor Vehicle Manufacturers the total production of automobile (commercial as well as Personal) globally in the year 2019 was 91,786,861 units compare to 96,869,020 units in 2018. Whereas, the total production of automobile (commercial as well as Personal) in Asia-Pacific in the year 2018 was 52,449,078 units compare to 53,395,211 units in 2017. The increase in the global automobile production is a major factor leading to the growth of Compressor Lubricants Market in terms of volume across the globe. The coronavirus pandemic has had far-reaching consequences beyond the spread of the disease and efforts to quarantine it. As the pandemic has spread around the globe, concerns have shifted from supply-side manufacturing issues to decreased business. The current epidemic outbreak has deeply influenced consumers' daily life and in addition to the impact on automotive sector.  South Korea, Italy and Japan are the most affected among the major industrialized economies. Consequently, 80 percent of automotive and related companies report that Coronavirus will have a direct impact on their 2020 revenues. 78 percent of companies do not have enough staff to run a full production line. More than 80 percent of the world’s auto supply chain is connected to China. In January 2020 China’s car sales plunged by 18 percent. The China Passenger Car Association (CPCA) considers that the first two-month sales could decline by 40 percent or more compared to the same period in 2019. 

APAC dominates the Compressor Lubricants Market with a share of 41% followed by North America and Europe. The economy of APAC is mainly influenced by the economic dynamics of countries such as China and India, but with growing foreign direct investment for economic development of South East Asia, the current scenario is changing. Countries in South East Asia are witnessing high growth in the construction sector. By 2020, construction output is estimated to grow by 70% to $12.7 trillion and will account for 14.6% of the world output with some of the larger emerging markets such as China, India, Russia, Brazil and Poland driving growth, along with U.S. Global GDP growth of 3.5% and 3.6% is expected in 2017 and 2018 respectively. However the meteoric growth that outpaces global GDP will be concentrated in countries like China, India and the U.S. India will overtake Japan as the third-largest construction market with annual growth averaging 7.4% annually in construction. This factor will drive the growth of the market in the forecast period.

Modern compressors are expected to operate in the most severe conditions, carrying greater loads and offering higher performance. Owing to the extended durability and shelf life and improved performance of the machinery & equipment, consumers demand high-quality lubricants that can sustain under extreme temperature and pressure. This has led several manufacturers to produce single compressor oil that offers anti-foaming, anti-oxidant, waterproofing, and rust preventive properties. In Europe and North America, the demand for high-quality compressor oil is very high due to strong consumer awareness and increased purchasing power. Moreover, the extended drain interval of high-quality compressor oils in various equipment enables cost saving, and hence the demand for high-quality compressor oil is increasing not only in the developed regions but also in developing regions. This factor will drive the growth of market in the forecast period.

Zinc is one of the key additives used as an anti-wear agent in compressor lubricants. However, it is harmful to the environment as it is toxic and non-biodegradable. The Environmental Protection Agency (EPA) in Australia, New Zealand, the UK, and the US enforces regulations to ensure that industries pre-treat used lubricants before releasing it into the environment, which is an expensive process. The development of zinc-free compressor oil in the various industries will help reduce the cost involved in pre-treatment of wastes. This factor will drive the growth of market in the forecast period.

There are several industries such as pharmaceutical, healthcare, food and beverages, textile, and electronics where manufacturers cannot afford the risk of contamination. High quality and extremely clean air are required in such industries. A single drop of oil can cause product spoilage. The pharmaceutical industry requires clean and oil-free compressed air for drug manufacturing, culture vessels, aeration tanks, and packaging. Manufacturers prefer to use the oil-free compressor for that particular operation. Oil-free compressors operate with less compressor oil and are lightweight and economical as compared to the conventional one. With the use of oil-free compressors, the risk of contamination is eliminated. Moreover, the oil-free compressor does not require extra space for oil storage and are more economical than lubricated one as it involves less complex design and function. Hence, the increasing popularity of oil-free compressor is restraining the growth of the Compressor Lubricants Market.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Compressor Lubricants Market. In 2019 the market of Compressor Lubricants Market has been consolidated by the top five players accounting for xx% of the share. Major players in the Compressor Lubricants Market are Royal Dutch Shell PLC, ExxonMobil Corporation, British Petroleum Plc, Chevron Corporation, Total SA and others.