Market Reports

Demand for PAG compressor oil is impacted by urbanisation and population growth | Future Market Insights Inc.

Published: March 30, 2023
Author: DIGITAL MEDIA EXECUTIVE

The global PAG compressor oil market is currently valued at US$ 1.4 Billion in 2023 and is anticipated to expand at a CAGR of 8.7%. Owing to the increasing application in the end-use industry the market is likely to propel to US$ 3.22 billion by 2033.

Rapid industrialization and increased application in end-use industries are likely to drive the growth of the Silicone surfactant market in the forecast period.

What Market Trends Are Influencing the PAG Compressor Oil Market?

The growing automotive industry provides an opportunity for the market growth

The rise in population and urbanization are key factors that are expected to boost vehicle production volumes across the globe. This, in turn, is expected to increase the demand for PAG compressor oil during the forecast period.

Increasing demand from the automotive industry for high-performance lubricants that can withstand high temperatures and extreme pressure is expected to drive the growth of the PAG compressor oil market.

Asia Pacific has become the hub of the automotive industry in the last few years. The surge in demand for automobiles in expanding economies, such as China and India, is driving the global automobile industry, which in turn is boosting the need for the PAG compressor oil market.

The rise in the number of investments in the automotive sector, typically in the Middle East & Africa, is expected to be a key factor that propels the PAG compressor oil market in the region.

Increasing Application in End-Use Industry to Drive the Market Growth

Increasing demand in mining, automotive, and other industries has resulted due to a number of factors such as increasing consumer power, focus on sustainability, urbanization, consolidation, and a growing middle-class population. These changes are propelling the demand for investments and economies of scale, which is creating significant opportunities for PAG compressor oil.

Rising awareness about the benefits offered by polyalkene glycol PAG-based lubricants among consumers is also expected to boost the PAG compressor oil market sales over the next few years.

Compressor oils ensure smoother operation and help in reducing the downtime and repair of the machine. Moreover, heat generated by compressors during operations results in more power consumption and wear & tear on the machine Thus, the sales of compressor oil are anticipated to rise significantly in the near future which will boost the demand for PAG compressor oil. Hence, the rising demand for consumer appliances and increasing industrial infrastructure across the globe are creating significant opportunities for PAG compressor oil manufacturers.

What are the Key Barriers to PAG Compressor Oil Market?

Fluctuating Prices May Impede the Market Growth

Although multiple application of PAG compressor oil is driving market demand there exist market restraining factors as well. Increasing fluctuations in raw material prices would impede industry growth. The constant changes in crude oil, additives, and base oils prices make it difficult for product manufacturers to maintain cost-effectiveness in production cycles while adding to higher costs and reduced profit margins.

Region-Wise Analysis

How will North America Perform in the PAG Compressor Oil Industry Landscape?

Rapid Industrialization in North America to Boost the Market Growth

North America dominates the market with a CAGR of 8.6% in 2023. Changes in regulatory norms regarding the control of harmful gas emissions are expected to drive the market in the region during the forecast period. Nearly 80% of harmful emissions come from manufacturing units, mines, and thermal power plants.

An increase in pressure by the government to maintain air quality and equipment is boosting the demand for PAG compressor oil in the industrial sector in North America. Latin America and the Middle East & Africa are relatively less attractive regions of the global PAG compressor oil market.

Demand in North America is also largely driven by rapid industrialization in Mexico, which has emerged as a major automobile manufacturing hub over the past decade. Low tariffs and production costs on account of the country’s extensive free trade agreements are strengthening the potential for Mexico to become a prime global export base.

The regional market presents numerous opportunities for innovators to introduce new products with advantageous product characteristics to tap into niche applications.

Competitive Landscape

Idemitsu Lubricants America, Boss Lubricant, Castrol, Phillip 66 Lubricant, Total Lubricant USA Inc., Mannol, AMSOIL, Exxon Mobil Corporation, Technical Lubricants International B.V., Shandong Shing Chemical Co., Ltd. are some of the key players in the PAG Compressor Oil industry.

The manufacturers are involved in the production of PAG Compressor Oil in a larger capacity. The global PAG Compressor Oil Market is consolidated with the presence of major international players. However, the presence of small- and medium-sized domestic players makes the market highly competitive.

ExxonMobil, Shell, CNOOC, and Guangdong Provincial Development & Reform Commission have signed a Memorandum of Understanding to evaluate the potential for a world-scale carbon capture and storage project to reduce greenhouse gas emissions at the Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province, China.

May 2020 – Idemitsu Lubricants America provides incredible new levels of engine protection with its line of fully synthetic motor oils that meet and exceed the new SP/GF-6A industry standards for more protection, performance, and power. Also, Idemitsu has introduced a new 0W-16 SP/GF-6B Ultra-Low Viscosity Motor Oil with robust additive technology that exceeds forward-looking lubrication standards.

In March 2021 – Independent Truck Repair Group (iTRG) announced that they have teamed up with Phillips 66 Lubricants to offer a national oil program for their members. Through this new program, iTRG members will have access to special pricing, promotional materials, rebates, and enhanced education and technical support on Phillips 66 (NYSE: PSX) premium diesel products.

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