An increasing demand for compressors triggered by strong industrial and infrastructural development activities across the globe is expected to induce a lucrative growth spurt in the global compressor oil market over the forthcoming years. Increasing population and sustainable climate change are the other factors accelerating industry trends.
Compressors, especially air compressors play an integral role in every aspect of modern lifestyle. The equipment can be seen everywhere from gas stations; to inflate vehicle tires, to vehicle servicing shops; to remove tires, from desktops; to clean keyboards, to construction sites; powering concrete compactors and jackhammers. Surging use of compressors in day-to-day use products such as air conditioners, refrigerators, and HVAC is slated to enhance compressor oil industry.
U.S. Compressor Oil Market Revenue, By End-use (USD Million)
Compressor oil is specifically used to enable a long service life in majority of compressor applications. The oxidation resistance and thermal stability facilitated by compressor oil are integral in maintaining cleanliness of a container, thereby ensuring far longer operating periods between oil changes and scheduled maintenance activities.
In fact, the outstanding corrosion and anti-wear protection it offer significantly enhanced equipment life cycle and lower the frequency of required maintenance activities, promoting elevated sales and propelling industry growth.
Between the forecast study period, developing countries are expected to take over the charge of leading compressor oil industry growth. A big indicator of this happening is the rapid incline in air conditioner sales throughout these regions, especially countries that lie in tropical as well as temperate climate zones.
In 2016, the Berkeley report projected that the world is gearing up to witness installations of an unprecedented 700 million air conditioners by 2030. The growing level of global warming and greenhouse gases emission has been driving the use of air conditioners, which will propel the demand for compressor oil over the coming years.
Earlier, high prices, unaffordable operational costs, and limited outreach of electricity kept this amenity out of the reach for a sizable demographic. However, improving economic conditions, the subsequent rise in household income levels, growing access to reliable electricity, and climate changes are projected to pave the way for increased unit sales in coming years, presenting a substantial boost to the global compressor oil industry in the process.
Rise in construction activities and significant expansion of construction industry across Asia Pacific region are poised to fuel compressor oil market growth in upcoming years. While prominent countries like China and India are expected to provide momentous growth through their construction and infrastructure initiatives. With increasing government spending, investment, and urbanization, ASEAN countries are also expected to play key role in delivering additional revenues to the compressor oil industry outlook.
A sizable portion of growth is slated to come from the several forward-planning infrastructure activities that would be taking place in the region over the coming years. These activities incorporate intense use of compressor-dependent equipment, such as concrete compactors and jackhammers, further facilitating compressor oil industry expansion.
Moreover, as these equipment are primarily used in high stress situations that can be extremely taxing on their mechanical integrity, they are highly susceptible to witness rupture or failures. Frequent failures and ruptures would further promote maintenance as well as repair activities and introduce a steady revenue stream to the compressor oil industry share.
Overall, considering the widescale penetration of compressors, and by extension compressor oil, in several different industries and the projected economic growth of a number of developing nations, particularly in APAC, compressor oil is slated to witness increasing adoption rated in coming years. Proliferating infrastructural, industrial, and residential projects across the globe will further drive industry trends. As per Global Markets Insights, Inc., research report, the global compressor oil market valuation would be surpassing the $6.5 billion mark by 2025.