The global PAG compressor oil market is currently valued at USD 1.4 Billion in 2023 and is anticipated to expand at a CAGR of 8.7%. Owing to the increasing application in end–use industry the market is likely to propel to USD 3.22 billion by 2033.
PAG Compressor oil market is witnessing a significant growth, especially in East Asia and South Asia Pacific. Strong industrial infrastructure spending in regions such as Europe and North America has resulted in the significant growth in the market.
The demand is expected to rise consistently in industries such as generation, automotive, chemical industry, pharmaceuticals, food and beverages and others. 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 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.
The PAG (Polyalkylene Glycol) compressor oil market is experiencing several notable trends influenced by various factors. Here’s an overview of the key market trends shaping the PAG compressor oil sector:
1. Growing Demand for Energy-Efficient Solutions
The increasing emphasis on energy efficiency in industrial operations is driving the demand for PAG compressor oils. These oils are known for their superior lubricating properties, which contribute to reduced friction and energy consumption in compressors. As industries seek to optimize their processes and reduce operational costs, the adoption of PAG compressor oils is expected to rise.
2. Expansion of End-User Industries
PAG compressor oils are widely used across various end-user industries, including refrigeration, air conditioning, automotive, and manufacturing. The growth of these sectors, particularly in emerging economies, is contributing to the rising demand for PAG oils. As refrigeration and air conditioning systems become more prevalent due to urbanization and increasing living standards, the need for high-performance compressor oils like PAG is expected to grow.
3. Environmental Regulations and Sustainability
The push for environmentally friendly products is becoming increasingly important. PAG compressor oils are often favored due to their biodegradable nature and lower toxicity compared to conventional mineral oils. Stricter environmental regulations and the growing emphasis on sustainable practices are prompting manufacturers to shift toward more eco-friendly lubrication solutions, further bolstering the demand for PAG compressor oils.
4. Technological Advancements in Formulations
Continuous advancements in PAG formulations are enhancing the performance characteristics of these oils. Innovations aimed at improving thermal stability, viscosity index, and oxidation resistance are making PAG oils more attractive for use in various applications. The development of specialized PAG formulations tailored for specific compressor types is also gaining traction, allowing for optimized performance in diverse operational conditions.
Key Takeaways from the Market Study
- As of 2023, the PAG compressor oil market was valued at US$ 1.4 Billion
- From 2023 to 2033, the PAG compressor oil industry is poised to grow at an 8.7% CAGR
- By 2033, the PAG compressor oil market is slated to reach a valuation of US$ 3.44 Billion
- By end-user, the general manufacturing segment accounted for the highest CAGR of 8.1% and is expected to continue this trend over the forecast period.
- China is poised to yield a CAGR of 8.5% with respect to PAG compressor oil in 2033
“Increasing usage of PAG Compressor oil in the Automotive, general manufacturing, mining, and construction industries are expected to radically transform the PAG compressor oil market in the coming years,” comments an analyst at FMI.
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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Key Segments Covered in the PAG Compressor Oil Industry Survey
PAG Compressor Oil Market by Compressor Type:
- Reciprocating Compressor
- Rotary Compressor
- Centrifugal Compressor
PAG Compressor Oil Market by End-user:
- PAG Compressor Oil in Automotive
- PAG Compressor Oil in Mining
- PAG Compressor Oil in Construction
- PAG Compressor Oil in General Manufacturing
- PAG Compressor Oil in Food & beverages
- PAG Compressor Oil in other
PAG compressor oil Market by Region:
- North American PAG compressor oil Market
- Latin American PAG compressor oil Market
- European PAG compressor oil Market
- Asia Pacific PAG compressor oil Market
- Middle East and Africa(MEA) PAG compressor oil Market
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries. Join us as we commemorate 10 years of delivering trusted market insights. Reflecting on a decade of achievements, we continue to lead with integrity, innovation, and expertise.
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