Industrial Oil Market

Market Definition

The market includes the production, distribution, and application of oils, including mineral, synthetic, and bio-based, designed to lubricate, cool, and protect industrial machinery. These oil include hydraulic, compressor, turbine, heat transfer, and other specialized formulations, selected based on performance and environmental needs. The report highlights key market drivers, major trends, regulatory frameworks, and the competitive landscape shaping industry growth.

Industrial Oil Market Overview

The global industrial oil market size was valued at USD 75.46 billion in 2024 and is projected to grow from USD 78.46 billion in 2025 to USD 106.79 billion by 2032, exhibiting a CAGR of 4.50% during the forecast period.

Market growth is driven by rising industrialization, increasing demand from sectors such as oil & gas, automotive, and manufacturing, and the growing need for efficient machinery lubrication. Advances in full-synthetic and bio-based oils are boosting market expansion by offering better performance and longer service life.

Major companies operating in the industrial oil industry are PETRONAS Lubricants International, Calumet, Inc, FUCHS, Motul, Exxon Mobil Corporation, Petro‐Canada Lubricants Inc., Chevron, Eni SpA, BP p.l.c., The Lubrizol Corporation, Sinopec Lubricant Company, Shell, Idemitsu Kosan Co., Ltd., Valvoline Global Operations, and TotalEnergies.

The market is experiencing a notable shift toward a circular economy, with companies increasingly recycling and re-refining used industrial oils to minimize waste and environmental impact. This process extends the oil lifecycle and reduces raw material use. Supportive regulations on waste oil management and resource efficiency are boosting the adoption of these sustainable practices.

• In March 2025, Hitachi Construction Machinery Co., Ltd. introduced a technology to restore used hydraulic oil through a process that combines purification and additive treatment, aligning with its circular economy initiative. The restored oil meets company standards without requiring replacement.

Key Highlights:

1. The industrial oil industry size was recorded at USD 75.46 billion in 2024.
2. The market is projected to grow at a CAGR of 4.50% from 2025 to 2032.
3. North America held a market share of 36.55% in 2024, with a valuation of USD 27.58 billion.
4. The mineral oil segment garnered USD 35.12 billion in revenue in 2024.
5. The hydraulic oil segment is expected to reach USD 36.50 billion by 2032.
6. The oil & gas segment is estimated to generate a revenue of USD 15.05 billion by 2032.
7. Asia Pacific is anticipated to grow at a CAGR of 5.40% over the forecast period.

Market Driver

Rising Demand for Full-Synthetic Lubricants

The growth of the industrial oil market is fueled by the rising demand for full-synthetic lubricants. These advanced formulations provide superior performance compared to conventional mineral oils, particularly in high-load and high-temperature industrial environments.

These lubricants offer enhanced thermal stability, lower volatility, and improved oxidation resistance, resulting in extended oil change intervals and reduced equipment wear. As industries increasingly prioritize reliability and long-term performance, the adoption of full-synthetic lubricants is rising.

• In March 2025, Shell Lubricants launched its upgraded full-synthetic lubricant, Shell Advance Ultra with API SP, at the 2025 MotoGP in Thailand. Formulated with Shell’s PurePlus Technology, the product offers enhanced performance, fuel efficiency, and engine protection for motorcycles and scooters.

Market Challenge

Supply Chain Disruptions

A major challenge hampering the progress of the industrial oil market is the disruption of global supply chains, leading to delays in the delivery of raw materials and finished products. Issues such as port congestion, container shortages, and geopolitical tensions have increased lead times and caused inventory fluctuations. This results in operational delays for both manufacturers and end users.

To address this challenge, companies are establishing regional production units, increasing safety stock, and securing local sourcing agreements. They are also leveraging digital supply chain tools to improve visibility, track shipments, and respond quickly to changing logistics conditions.

 Market Trend

Growing Adoption of Environmentally Friendly Lubricants

The industrial oil market is witnessing a notable shift toward environmentally friendly lubricants. This trend is further supported by stricter environmental regulations, sustainability initiatives, and rising pressure to reduce their ecological impact. Manufacturers are focusing on bio-based and biodegradable oils that meet performance standards while minimizing environmental harm.

End users in sectors such as manufacturing, mining, and energy are adopting these lubricants to align with green certifications and corporate sustainability goals. This shift is accelerating advancements in additive technology to ensure eco-friendly oils match the performance of traditional alternatives.

• In June 2024, TotalEnergies Lubrifiants launched its first range of lubricants formulated with premium regenerated base oils. The new Quartz EV3R and Rubia EV3R lines, developed for passenger cars and trucks respectively, are approved by various vehicle manufacturers and promote sustainable performance.

Industrial Oil Market Report Snapshot

Segmentation	Details
By Type	Mineral Oil, Synthetic Oil, Bio-based Oil
By Product	Hydraulic Oil, Compressor Oil, Turbine Oil, Heat Transfer Oil, Others
By End Use Industry	Oil & Gas, Mining, Automotive, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

 Market Segmentation

• By Type (Mineral Oil, Synthetic Oil, and Bio-based Oil): The mineral oil segment earned USD 35.12 billion in 2024 due to cost-effectiveness and widespread use in standard industrial applications.
• By Product (Hydraulic Oil, Compressor Oil, Turbine Oil, Heat Transfer Oil, and Others): The hydraulic oil segment held a share of 32.21% in 2024, propelled by high demand in the construction, manufacturing, and heavy machinery sectors.
• By End Use Industry (Oil & Gas, Mining, Automotive, and Others): The oil & gas segment is projected to reach USD 15.05 billion by 2032, owing to the continuous need for lubrication in drilling and refining operations.

Industrial Oil Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America industrial oil market share stood at around 36.55% in 2024, valued at USD 27.58 billion. This dominance is reinforced by strong industrial infrastructure, high consumption in the oil & gas and automotive sectors, and the presence of key manufacturers and distributors.

The U.S. and Canada contribute significantly to this expansion, supported by supported by ongoing investments in energy, mining, and manufacturing operations that require reliable lubricant supply to ensure equipment efficiency.

• In January 2025, Coterra Energy Inc. and Halliburton Energy Services launched the first fully automated hydraulic fracturing program in North America using the Octiv Auto Frac service, part of Halliburton’s ZEUS platform. By improving operational efficiency and stage performance, this technology is expected to boost demand for high-performance industrial oils suitable for automated, high-pressure systems.

The Asia-Pacific industrial oil industry is poised to grow at a CAGR of 5.40% over the forecast period. The growth is propelled by rapid industrialization, expanding construction activities, and increased manufacturing output across countries such as China, India, and Southeast Asian nations. Rising demand from the automotive and mining sectors, along with a growing shift toward advanced machinery and energy production, is fueling the need for industrial oils.  

Regulatory Frameworks

• In the U.S., the market is regulated by the Environmental Protection Agency (EPA) under the Clean Water Act (CWA) and the Resource Conservation and Recovery Act (RCRA), which govern the handling, storage, and disposal of used oils to prevent environmental contamination.
• In Europe, industrial oils must comply with REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) regulations, managed by the European Chemicals Agency (ECHA), to ensure chemical safety and environmental protection throughout the product lifecycle.

Competitive Landscape

Key players in the industrial oil industry are focusing on expanding product portfolios with advanced formulations to enhance equipment efficiency and oil longevity. Strategic collaborations with distributors and OEMs support market penetration and service integration. Many players are investing in research and development to develop environmentally compliant, bio-based industrial oils in response to evolving regulatory standards.

Capacity expansions and localized blending facilities strengthen supply chain efficiency and reduce delivery timelines. Additionally, the adoption of digital platforms for real-time oil monitoring and predictive maintenance services is helping deliver long-term value to industrial clients.

• In April 2024, Elgi Equipments Ltd. expanded its EG Series by launching the EG Super Premium (EG SP) range of oil-lubricated screw air compressors. The upgrade features advanced two-stage airends with η-V profiles, IE4 super premium motors, and Neuron 4 industrial controllers to deliver up to 15% energy savings and lower lifecycle costs.

List of Key Companies in Industrial Oil Market:

• PETRONAS Lubricants International
• Calumet, Inc
• FUCHS
• Motul
• Exxon Mobil Corporation
• Petro‐Canada Lubricants Inc.
• Chevron
• Eni SpA
• BP p.l.c.
• The Lubrizol Corporation
• Sinopec Lubricant Company
• Shell
• Idemitsu Kosan Co., Ltd.
• Valvoline Global Operations
• TotalEnergies

Recent Developments (Product Launch)

• In June 2025, Perstorp launched a new portfolio of saturated synthetic polyol esters, which include Synthetic-EF 5, Synthetic-EF 15, and Synthetic-EF 22, designed for high-performance lubricants. The portfolio offers verified environmental performance, REACH-registered biodegradability, and alignment with EU Ecolabel standards.