Industrial Oil Market

Industrial Oil Market Analysis and Forecast by Type, Oil Type, Source, End-Use, Region, and Country, 2023-2033

Industrial Oil Gains Momentum as a Sustainable Solution in Manufacturing, Unlocking New Revenue Streams from Major Markets

Category: Chemicals & Materials Published Date : Oct-23 ID: CVC0188 Format: PDF Pages: 300

The industrial oil market is undergoing a transformative phase, driven by technological advancements and sustainability initiatives. As a cornerstone in various manufacturing processes, industrial oil is gaining traction as a sustainable solution, opening up new avenues for growth. The market outlook is optimistic, fueled by increasing demand and emerging opportunities in key regions. Companies at the forefront of innovation are setting market trends, and offering eco-friendly alternatives that are both efficient and cost-effective. As we look ahead, the focus is on understanding the market forecast and identifying opportunities that will shape the future industry landscape.

Key findings

  • The market value is projected to increase from $ 2 million in 2023 to $83223.9 million in 2033.
  • The Compound Annual Growth Rate (CAGR) for this period is estimated at 3.4%.
  • The largest segment in this market is biofuel with a share of 47.9%.
  • East Asia is the largest market for industrial oil globally.

Drivers Influencing Industrial Oil Market Trends

One of the primary drivers of the industrial oil industry is the growing emphasis on sustainability and eco-friendly solutions. As industries worldwide are under pressure to reduce their carbon footprint, the demand for sustainable industrial oils is surging. These oils are often derived from renewable resources and offer a lower environmental impact compared to traditional petroleum-based products. This shift towards greener alternatives is not just a trend but a long-term market outlook, influencing both consumer choices and manufacturing practices.

Opportunities in the Industrial Oil Industry

The sector is ripe with opportunities, especially in emerging economies where industrialization is on the rise. As these countries invest in infrastructure and manufacturing, the demand for industrial oil is expected to grow exponentially. This presents a golden opportunity for both local and international companies to establish a foothold in these rapidly expanding markets. The focus is not just on meeting the current demand but also on future market outlook, as companies strategize to capitalize on the forecasted growth in the industrial oil market.

Key Challenge in the Industrial Oil Business

One of the main challenges faced by the market for industrial oil is regulatory compliance, especially concerning environmental standards. As governments tighten regulations on emissions and waste disposal, companies in the industrial oil sector are compelled to invest in cleaner technologies. This adds to operational costs and could potentially slow down market growth, affecting the overall market outlook and forecast for industrial oil.

Emerging Opportunities Shaping the Industrial Oil Market

The market overview is teeming with opportunities, particularly in the realm of digital transformation and automation. As industries adopt smart technologies, the need for specialized industrial oils that can withstand high-performance conditions is growing. This not only amplifies the demand for industrial oil but also opens up new avenues for innovation. Companies that can leverage these technological trends are well-positioned to capitalize on the optimistic market forecast, thereby influencing future trends and demand in the industrial oil sector.

Segment-wise Analysis

Palm Segment Leads the Industrial Oil Industry

The market for industrial oil is segmented based on various sources such as soybean, corn, sunflower, cottonseed, rapeseed, and palm, among others. Dominating this diverse market is the palm segment, which accounted for the largest market share globally in 2019. The Asia Pacific region, particularly Indonesia and Malaysia, is a significant contributor, supplying over 85% of the world’s palm oil. This dominance offers lucrative growth opportunities for palm oil manufacturers in these countries, as they can cater to both export and domestic demands, especially in industries like biofuels.

Grade I (Light) Industrial Oil: The Preferred Choice

In terms of grades, the industrial oil market is categorized into various segments, with Grade I (light) industrial oil taking the lead. This grade is particularly popular in the cosmetics & personal care and pharmaceutical industries. The cosmetics and personal care sector is experiencing substantial growth in countries like Brazil and China, creating promising opportunities for industrial oil manufacturers. In Europe, key players such as Louis Dreyfus Company, AandA Fratelli Parodi Spa, Soya Mills SA, and Henry Lamotte Oils GmbH are offering industrial oils for applications in cosmetics and personal care products like shampoos, soaps, and sunscreens. This makes Europe a significant revenue-generating region for industrial oil manufacturers in the foreseeable future.

Region-Wise Analysis

North America Industrial Oil Market Outlook

North America remains a significant player in the industry, driven by technological advancements and stringent environmental regulations. The region is home to some of the key companies in the sector, contributing to both market trends and the overall market outlook. The focus on sustainable solutions and the adoption of smart manufacturing technologies are further propelling the market in this region.

Europe Industrial Oil Industry Forecast

Europe is another dominant region in the industrial oil business scenario, characterized by its focus on sustainability and high-quality standards. The region’s commitment to reducing carbon emissions has led to increased demand for eco-friendly industrial oils, shaping the market trends and forecasts in Europe.

Asia Pacific Excluding Japan Industrial Oil Market Overview

The Asia Pacific region, excluding Japan, is witnessing rapid industrialization, making it a hotspot for the market for industrial oil. The growing manufacturing sector and infrastructure development are key factors driving the demand for industrial oil, influencing the market outlook for the region.

Japan Industrial Oil Business Outlook

Japan, known for its technological innovation, is a significant market for specialized industrial oils. The country’s advanced manufacturing sector relies heavily on high-performance industrial oils, contributing to the market trends and overall forecast for industrial oil in Japan.

Latin America Industrial Oil Market Landscape

Latin America is an emerging market for industrial oil, driven by its growing industrial sector. The focus on modernizing manufacturing capabilities and infrastructure is expected to boost the demand for industrial oil, affecting the market outlook in this region.

Middle East and Africa Industrial Oil Industry Overview

The Middle East and Africa region is gradually gaining traction in the industrial oil market. The growing focus on diversifying economies and reducing dependency on oil exports is leading to industrial growth, thereby increasing the demand for industrial oils and influencing the market forecast.

Leading Players in the Industrial Oil Market

The key players that have established a significant presence include Cargill from the United States, Bunge Limited from the Netherlands, Wilmar International from Singapore, Louis Dreyfus Company B.V. also from the Netherlands, and Archer Daniels Midland (ADM) from the United States. Other noteworthy companies are Buhler Group from Switzerland, CHS Inc. from the United States, Ag Processing Inc. also from the United States, AandA Fratelli Parodi Spa from Italy, Gemtek Products from the United States, AAK Kamani from India, and Soya Mills SA from Greece. These industry leaders have strategically focused on expansions as a primary approach to enhance their market presence.

Cargill (US): Known for its commitment to sustainability, Cargill has recently been focusing on expanding its line of eco-friendly industrial oils. This aligns with the company’s broader sustainability goals and is expected to influence market trends.

Wilmar International (Singapore): Wilmar has been making headlines for its strategic expansions into emerging markets. The company aims to capitalize on the growing demand for industrial oils in these regions, thereby contributing to a positive market outlook.

Archer Daniels Midland (ADM) (US): ADM has been investing heavily in RandD, particularly in the development of high-performance, sustainable industrial oils. Their innovations are setting new market trends and are expected to have a long-term impact on the market forecast.


The industrial oil market is experiencing transformative growth, driven by sustainability trends and technological advancements. Segmented by source and grade, the market is led by palm oils and Grade I (light) oils. The palm segment is particularly dominant in the Asia Pacific region, notably in Indonesia and Malaysia, offering growth avenues in both export and domestic sectors. Grade I (light) oils find applications in the cosmetics and personal care industries, with emerging markets like Brazil and China showing significant growth. Key players such as Cargill, Wilmar International, and Archer Daniels Midland are strategically focusing on expansions and RandD to strengthen their market presence. These companies are also making headlines for their sustainable initiatives and strategic expansions into emerging markets. Overall, the market is ripe with opportunities and is influenced by a variety of factors including sustainability initiatives, technological advancements, and strategic business moves by key players.

1.1. Global Market Outlook

1.2. Technology Roadmap

1.3. Supply and Demand Side Trends

1.4. Strategic Success Factors

1.5. Analysis and Recommendation

2.1. Market Taxonomy

2.2. Market Definitions

2.3. Inclusions and Limitations

3.1. Supply Side Overview

3.2. Demand Side Overview

4.1. Macroeconomic Factors

4.2. Forecast Factors

4.3. PEST Analysis

4.4. Porter’s Five Forces

4.5. Value Chain Analysis

4.6. Market Dynamics

4.6.1. Drivers

4.6.2. Restraints

4.6.3. Opportunities

4.7. Patent Analysis

4.8. Trade Analysis

4.9. Investment Feasibility Matrix

4.10. Challenges for New Entrants

4.11. Regulations Overview

4.12. Covid-19 Impact Assessment

4.12.1. Economy/Cluster Projections

4.12.2. Covid-19 Economic Assessment

4.12.3. Potential Impact on Target Market

4.12.4. Recovery Scenario

5.1. Historical Value ($ Mn) and Future Market Value ($ Mn) Projection Analysis

5.2. Demand Y-o-Y Growth Rate Analysis

5.3. Total $ Opportunity Analysis

5.4. Historical Volume (Tons) and Future Market Volume (Tons) Projection Analysis

6.1. Regional Pricing Analysis by Source

6.2. Regional Price Forecast

6.3. Profit Margin Analysis

6.4. Future Price Impact Factors

7.1. Introduction

7.2. Market Trends

7.3. Historical Market Analysis and Market Forecast Analysis

7.3.1. Mineral

7.3.2. Biobased

7.3.3. Synthetic and Semi-Synthetic

7.4. Market Attractiveness Analysis

8.1. Introduction

8.2. Market Trends

8.3. Historical Market Analysis and Market Forecast Analysis

8.3.1. Process Oil

8.3.2. Hydraulic Oil

8.3.3. Gear Oil

8.3.4. Industry Engine Oil

8.3.5. Metal Working Fluids

8.3.6. Refrigerating Oils

8.3.7. Compressor Oils

8.3.8. Turbine and Circulating Oils

8.4. Market Attractiveness Analysis

9.1. Introduction

9.2. Market Trends

9.3. Historical Market Analysis and Market Forecast Analysis

9.3.1. Crude Oil

9.3.2. Soybean

9.3.3. Sunflower

9.3.4. Rapeseeds

9.3.5. Palm

9.3.6. Others

9.4. Market Attractiveness Analysis

10.1. Introduction

10.2. Market Trends

10.3. Historical Market Analysis and Market Forecast Analysis

10.3.1. Energy Generation

10.3.2. Manufacturing

10.3.3. Automotive

10.3.4. Oil and Gas

10.3.5. Heavy Engineering Equipment

10.4. Market Attractiveness Analysis


11.1. Introduction

11.2. Market Trends

11.3. Historical Market Analysis and Market Forecast Analysis

11.3.1. North America

11.3.2. Latin America

11.3.3. Western Europe

11.3.4. Eastern Europe

11.3.5. East Asia

11.3.6. South Asia Pacific

11.3.7. Middle East and Africa

11.4. Market Attractiveness Analysis by Region

12.1. Introduction

12.2. Key Market Trends

12.3. Pricing Analysis

12.4. Historical Market Analysis and Market Forecast Analysis

12.4.1. By Country The U.S. Canada

12.4.2. By End-Use

12.4.3. By Source

12.4.4. By Type

12.4.5. By Oil Type

12.5. Market Attractiveness Analysis

12.5.1. By Country

12.5.2. By End-Use

12.5.3. By Source

12.5.4. By Type

12.5.5. By Oil Type

12.6. Market Participants Presence Mapping

13.1. Introduction

13.2. Key Market Trends

13.3. Pricing Analysis

13.4. Historical Market Analysis and Market Forecast Analysis

13.4.1. By Country Brazil Mexico Rest of L.A.

13.4.2. By End-Use

13.4.3. By Source

13.4.4. By Type

13.4.5. By Oil Type

13.5. Market Attractiveness Analysis

13.5.1. By Country

13.5.2. By End-Use

13.5.3. By Source

13.5.4. By Type

13.5.5. By Oil Type

13.6. Market Participants Presence Mapping

14.1. Introduction

14.2. Key Market Trends

14.3. Pricing Analysis

14.4. Historical Market Analysis and Market Forecast Analysis

14.4.1. By Country Germany Italy France U.K. Spain BENELUX Nordics Rest of Western Europe

14.5. By End-Use

14.6. By Source

14.7. By Type

14.8. By Oil Type

14.9. Market Attractiveness Analysis

14.9.1. By Country

14.9.2. By End-Use

14.9.3. By Source

14.9.4. By Type

14.9.5. By Oil Type

14.10. Market Participants Presence Mapping

15.1. Introduction

15.2. Key Market Trends

15.3. Pricing Analysis

15.4. Historical Market Analysis and Market Forecast Analysis

15.4.1. By Country Poland Russia Baltics Balkans Rest of Eastern Europe

15.4.2. By End-Use

15.4.3. By Source

15.4.4. By Type

15.4.5. By Oil Type

15.5. Market Attractiveness Analysis

15.5.1. By Country

15.5.2. By Production Method

15.5.3. By Application

15.5.4. By Resin Type

15.5.5. By Fiber Type

15.6. Market Participants Presence Mapping

16.1. Introduction

16.2. Key Market Trends

16.3. Pricing Analysis

16.4. Historical Market Analysis and Market Forecast Analysis

16.4.1. By Country China Japan South Korea

16.4.2. By End=Use

16.4.3. By Source

16.4.4. By Type

16.4.5. By Oil Type

16.5. Market Attractiveness Analysis

16.5.1. By Country

16.5.2. By End-Use

16.5.3. By Source

16.5.4. By Type

16.5.5. By Oil Type

16.6. Market Participants Presence Mapping

17.1. Introduction

17.2. Key Market Trends

17.3. Pricing Analysis

17.4. Historical Market Analysis and Market Forecast Analysis

17.4.1. By Country India ASEAN ANZ Rest of SAP

17.4.2. By End-Use

17.4.3. By Source

17.4.4. By Type

17.4.5. By Oil Type

17.5. Market Attractiveness Analysis

17.5.1. By Country

17.5.2. By End-Use

17.5.3. By Source

17.5.4. By Type

17.5.5. By Oil Type

17.6. Market Participants Presence Mapping

18.1. Introduction

18.2. Key Market Trends

18.3. Pricing Analysis

18.4. Historical Market Analysis and Market Forecast Analysis

18.4.1. By Country GCC Countries Turkey South Africa Rest of MEA

18.4.2. By End-Use

18.4.3. By Source

18.4.4. By Type

18.4.5. By Oil Type

18.5. Market Attractiveness Analysis

18.5.1. By Country

18.5.2. By End-Use

18.5.3. By Source

18.5.4. By Type

18.5.5. By Oil Type

18.6. Market Participants Presence Mapping

19.1. Market Concentration Analysis

19.2. Tier Structure Breakdown

19.3. Market Share Analysis

19.4. Production Capacity Analysis

19.5. Key Strategies Adopted by Top Players

19.6. Start-up Ecosystem

19.6.1. New Player Entry

19.6.2. Strategies Adopted by New Players

19.7. Company Footprint Analysis

19.8. Competitive Dashboard

20.1. Gemtek Products

20.2. AandA Fratelli Parodi Spa

20.3. Ag Processing Inc.

20.4. CHS Inc.

20.5. Buhler Group

20.6. Archer Daniels Midland(ADM)

20.7. Louis Dreyfus Company B.V

20.8. Wilmar International

20.9. Bunge Limited

20.10. Cargill

20.11. AAK Kamani

20.12. Soya Mills SA

20.13. Shell

20.14. Gazprom

20.15. Rosneft

20.16. Petronas

20.17. Bharat Petroleum

20.18. Sinopec