The COVID-19 pandemic has changed the order of the supply chain of products. COVID-19 created change in the global market due to the temporary closure of manufacturing plants. As well industries chemical & petrochemical had closed their manufacturing plants. According to the American Chemistry Council (ACC), total chemical production volume excluding pharmaceuticals fell by 3% and basic chemical production fell by 1.3% in 2020. According to the US Energy Information Administration (EIA), crude oil production fell by 8% in 2020 and is expected to fall by 230,000 barrels per day (bpd) in 2021. Thus, the decline in production in these industry hindered the consumption of compressor oil.
Compressor Oil Market Segment Analysis By Base Oil Type
The synthetic oil segment is projected to witness the highest share of 53% in the compressor oil market in 2020 as it comes with excellent properties such as anti-oxidation and thermal stability. Polyalphaolefins synthetic oil can contribute to an extended service life of machine parts at a low cost. Synthetic oil provides outstanding viscosity index, high flash point, low pour point, and excellent hydrolytic stability, thus it is widely required in air compressors especially vane and screw compressors. Furthermore, synthetic lubricant improves the fuel efficiency of machine parts and reduced operating costs. Hence, the consumption of synthetic base oil is estimated to influence the market for compressor oil.
Request for Sample Report @ https://www.industryarc.com/pdfdownload.php?id=15562
Report Price: $ 4500 (Single User License)
Compressor Oil Market Segment Analysis By Compressor Type
Positive displacement compressor type segment held the largest share of 56% in the compressor oil market in 2020 as they have excellent operational efficiency. Positive displacement compressors capture the volume of air in a chamber. They help to reduce the volume of the chamber to compress the air. This type of compressor uses vanes instead of helical blades on a rotor to compress air that enters the cavity. Positive displacement compressor uses a piston for air compression that moves backward and forward. A rotary compressor is a very required positive displacement air compressor type. It sucks air into the cylinder, then closes the valve, and compresses the air with two rotors. These rotors rotate regularly and run through the chamber. Compressor oils lower the temperature of the operation during the mixture of air and oil. The maximum output of a rotary compressor is mostly 600 horsepower and 1000 horsepower of the reciprocating compressor. Hence, the growing demand for positive displacement compressors is estimated to grow the consumption of compressor oil.
Compressor Oil Market Segment Analysis By End-Use Industry
Chemical & petrochemical sector held the largest share in the compressor oil market in 2020 and is growing at a CAGR of 3.6% during this forecast period of 2021-2026, as compressor oil increases the service of machine, reduces operational cost & power consumption during operation. Thus, the increasing chemical & petrochemical industry is estimated to grow the consumption of compressor oil. According to the American Chemistry Council (ACC), total chemical production volume excluding pharmaceuticals is expected to grow by 3.9% in 2021 and 2.7% in 2022. The basic chemicals production is projected to reach 5.05% in 2021 and 3.2% in 2022. Furthermore, according to the ACC, the total chemicals trade is projected to grow by US$240 billion in 2021. Apart from this, according to the U.S. Energy Information Administration, the total natural gas production is projected to contribute 30% and more than 75% in Canada & Mexico, respectively by 2040. Hence, all factors are estimated to grow the consumption of compressor oil.
Compressor Oil Market Segment Analysis By Geography
Asia Pacific dominated the compressor oil market in 2020 with a share of more than 41%. China and India are expected to witness high demand for compressor oil during the forecast period, with the growing need from the oil & gas industry, automotive industry, chemical & petrochemical industry, and others. Compressor oils provide different advantages such as reduces energy consumption, reduces operational cost, longer life, corrosion resistance, synthetic solvency, and others. Thus, these lubricants are widely consumed by end-use sectors. According to the U.S. Energy Information Administration, the total natural gas production is projected to contribute more than 40% in China by 2040. As compressor oils are used in power transmission to machines and engines, so the increasing automotive industry is also estimated to grow the consumption of compressor oil. Additionally, according to the Association of Automobile Manufacturers, China has become a world leader in the electric bus segment which grows in production of electric buses at 34% by 2025. Furthermore, according to the American Chemistry Council, industrial chemical production is expected to boost 3.7% in 2021 and 3.5% in 2022. Hence, such factors are estimated to grow the demand for compressor oil in the region.
Inquiry Before Buying @ https://www.industryarc.com/reports/request-quote?id=15562
Compressor Oil Market Drivers
Increasing Consumption of Compressor Oil from Automotive Industry
Compressor oil lubricants are used for inflating vehicles, cars, and motorcycle tires. These air compressor oil used to transfer power to the machine and engines. Compressor oil is used in the production cycle of the automotive industry due to its ease of maintenance and reduction in operative costs. Thus, increasing automotive production is estimated to grow the consumption of compressor oil. According to the Australian Bureau of Statistics, the Australian market sold 1.2 million new passenger cars, SUVs, and commercial vehicles in 2017, an increase of 0.9 % from 2016. According to the International Organization of Motor Vehicle Manufacturers (OICA), the production of light commercial vehicles has increased in the APAC region by 10.2 % in 2018. Light commercial vehicle production has increased from 2,249,348 in 2018 to 2,254,153 in 2019, an increase of 0.2% in Europe. Furthermore, according to Automotive Aftermarket Suppliers Association (AASA) and the Auto Care Association, in China, light-duty aftermarket sales will grow from US$281 billion in 2020 to US$314 billion in 2021. Hence, such factors are expected to grow the compressor oil market size.
Growing Demand for Positive Displacement Air Compressor
Positive air compressors such as rotary compressors and reciprocating compressors are widely used as they require a low cost of production. The positive air compressor has a high-pressure ratio, thus it is widely used in refrigerators, chemical plants, automotive cylinders, and hydraulic cylinders. Reciprocating positive displacement air compressors are designed for the double or single chamber, as they use the piston for the constant movement of air in the chamber. Apart from this, rotary compressor such as screw compressor has safety devices that are fully packaged and pre-installed. Hence, as it reduce the production cost, the demand for positive displacement air compressor is estimated to boost from the chemical industry which, in turn, is expected to grow the compressor oil market size.
Compressor Oil Market Challenges
Volatility in Raw Material Prices
Synthetic oils are typically created from chemically modified materials such as petroleum components but the base material is always distilled crude oil. Although polyalphaolefin is produced through a synthetic chemical process that originated from ethylene. Ethylene is produced by cracking crude oil. Hence, fluctuation in crude oil prices may hamper market growth. According to BP static, Oil prices declined US$ 64.21/bbl in 2019 as compared with US$71.31/bbl in 2018. According to the U.S. Energy Information Administration (EIA), crude oil prices were decreased by US$ 41.69 per barrel in 2020 compared to US$ 64.34 per barrel in 2019. Thus, volatility in raw material prices may hamper the compressor oil market growth.
Compressor Oil Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Compressor Oil Market. Major players in the Compressor Oil Market are BASF, Dow Chemicals, Clariant, AkzoNobel, Hunstman Corporation, ExxonMobil, Fuchs Lubricants, Royal Dutch Shell, Chevron, Total S.A. and among others.
On 19 November 2020, Mobil Pegasus launched Compressor Oil 264 and 460 to provide improvements in low-temperature performance, oxidation stability, and deposit control. Compressor Oil 264 and 460 should be used rather than an engine oil-type lubricant.
Asia-Pacific region dominated the compressor oil market, due to the high consumption of compressor oil in emerging and developing Asian countries such as India, China, Japan, Malaysia, South Korea, and others.
Growing demand for compressor oil as they help to reduce production cost in various end-use industries such as chemical & petrochemical, oil & gas, and others. According to the American Chemistry Council (ACC), in the United States, chemical exports are expected to grow by US$ 134.5 billion in 2021.
Increasing demand for synthetic lubricants as they have various properties such as anti-oxidation, excellent thermal stability, excellent viscosity index, and others is estimated to growing the compressor oil market size.
A. Compressor Lubricants Market
B. Polyalkylene Glycol Market
For more Chemicals and Materials Market reports, please click here
About IndustryARC: IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to firstname.lastname@example.org to discuss more about our consulting services.
Discussion about this post