Turbine Oils Market: Size, Dynamics, Regional Insights and Market Segment Analysis

Turbine Oils Market was valued at USD 1.40 Bn. in 2021, and it is expected to reach USD 1.90 Bn. by 2029, exhibiting a CAGR of 3.9% during the forecast period (2022-2029)
Turbine Oils Market Overview:
Turbine oils are premium lubricants with exceptional water separation qualities. These oils are mostly utilised as lubricants in turbine applications as steam, hydro, and gas turbines. Turbine oils are in high demand in aerospace thanks to their increased use as lubricants in gas turbine engines and other applications, drivers the demand of turbine oils.

Furthermore, the growing popularity of renewable energy sources like wind and hydroelectricity is increasing the development possibilities for the wind turbine gear oil industry. Furthermore, the interruptions caused by the COVID-19 pandemic, as well as disruptions in aerospace, automotive, and other industries, supply chain disruption have reduced the demand for turbine oils, which further restrained the turbine oils market growth.

However, a considerable recovery in the key application industry is driving up demand for turbine oil, which has a wide range of applications and uses in automotive, energy generating, and aviation industry. As a result, the demand for turbine oils is expected to grow significantly and contribute to the growth of turbine oils market during the forecast period.

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Turbine Oils Market Dynamics
The increased need for new gas, steam, and hydroelectric power turbines has resulted from a rise in global electricity demand. This is the primary driver of the turbine oil market. Rising energy consumption in many parts of the world has necessitated the building of new gas, steam, and hydroelectric power turbines. Turbine oils offer a wide range of lubrication uses. Turbine oil makers have been advocating the use of turbine oils for a wide range of applications, including air compressors, vacuum pumps, bearings, and other lubrication applications.

Surging Use in the Aerospace Sector:

Turbine oil, which contains base oil, oxidation inhibitors, corrosion inhibitors, defoamants, demulsifiers, and other additives, is widely used in the aerospace industry for aircraft gas turbine engines as a lubricant, propulsion systems, bearings, and other components. The aerospace sector is quickly growing as a result of growth drivers such as increased air traffic, increased demand for fuel-efficient and lightweight aircraft, and growing income levels.

The airline industry will require more than 44,000 new commercial aeroplanes valued at $6.8 trillion by 2038. According to the Aerospace and Defence Industries Association of Europe, the military aeronautics business in Europe raised its turnover from US$45 billion in 2019 to US$47.4 billion in 2020. The aerospace industry was worth $9 trillion in 2021, up from $8.5 trillion in 2020. With the increasing aerospace production and growing scope, the use of turbine oil in aviation gas turbine engines, gear, bearings, and other components is increasing, which is further driving the demand of turbine oils.
Trends and Opportunities:
Turbine Oil has important uses in the automobile industry for engines, bearings, gears, and other components due to good properties such as viscosity, anti-corrosion and anti-rust, stability against oxidation, and filterability. The automobile industry is seeing profitable development as a result of growth drivers such as increased public transit, increased demand for fuel-efficient vehicles and vehicle electrification, and growing income levels.

According to the European Automobile Manufacturer Association, South American automobile production increased by 11% in 2021, while US car production increased by 3.1%. According to the China Association of Automotive Manufacturers (CAAM), new energy vehicle production and sales reached 1.29 million and 1.25 million units, respectively, in the first quarter of 2022, representing a 140% growth year on year. The International Organization of Motor Vehicle Manufacturers (OICA) reports that worldwide passenger vehicle production climbed from 55,834,456 units in 2020 to 57,054,295 units in 2021. With increased motor vehicle production, the application of turbine oil as a lubricant is increasing, which in turn is increasing its demand, driving the turbine oil market.

Market Restraints:

Costs of operation and maintenance have increased:

The growing prices of hardware and software have an influence on the growth of the turbine oils market. The wind turbine needs extensive maintenance, regular inspection, and significant operating expenses. Furthermore, a lack of capacity in the VR solution deployment and a lack of technologies limit the turbine oils market growth. Expensive heat temperature causes hazards and changes in formulation, resulting in high operating and maintenance costs. Furthermore, the construction of wind turbines necessitates high-cost capital and direct-drive technology, resulting in rising expenditures and costly hardware and software utilities; as a result, the turbine oil business expected a significant growth problem and slowdown.
Turbine Oils Market Segment Analysis
By Type, Mineral oil-based lubricants held the largest market share and dominated the market in 2021, and it is expected to grow and dominate the turbine oil market by 2029. Mineral oil lubricants are derived from crude oil and are the most easily accessible and cheapest lubricant type when compared to synthetic oils. Although the production of mineral oil-based lubricants is expected to decline due to machinery complexity and stringent regulations, the mineral oil-based lubricants segment is expected to grow due to the initial price difference between synthetic oil-based lubricants and mineral oil-based lubricants. The market for mineral oil-based lubricants will grow at a slower rate than the market for synthetic oil-based lubricants.

By Turbine Type, Wind turbines had a significant Turbine Oil Market share in 2021 and is expected to grow at a CAGR of 4.3% from 2022 to 2029. Turbine oil, which contains base oil, oxidation inhibitors, corrosion inhibitors, defoamants, demulsifiers, and other additives, is widely used as a lubricant in the wind turbine oil market. Wind turbines have a higher development potential than hydro turbines and other types of turbines due to increased investment and legislation that encourage wind power generation.

According to the International Energy Agency (IEA), onshore wind power output grew by 144 TWh in 2020, representing an 11% increase over 2019. Wind power's contribution of worldwide energy generation is expected to grow from to, according to the Energy Information Administration (EIA).

According to the International Energy Agency (IEA), onshore wind power output grew by 144 TWh in 2020, representing an 11% increase over 2019. Wind power's contribution of worldwide energy generation is expected to increase from 11% in 2012 to 19% in 2020 and 23% in 2040, according to the Energy Information Administration (EIA). With the robust growth potential for wind energy sources, the need for turbine oil for use as lubricant, generator oil, and other applications is increasing, which is expected to increase its growth prospects in the wind turbine segment over the forecast period.
Turbine Oils Market Regional Insights
The Asia-Pacific region dominated the global Turbine Oils market share

In 2021, Asia-Pacific held a 41% share of the Turbine Oil Market. The established base for energy and power generation, rising urbanisation, and growth in the wind turbine gear oil and turbine drip oil markets all contribute to the increasing demand for turbine oil in this region. Energy generation in APAC is increasing considerably as a result of growth drivers such as renewable energy programmes, growing demand for wind and hydro energy generation, and urbanisation.

According to the International Energy Agency (IEA), Southeast Asia's energy consumption is expected to increase by 60% by 2040. Furthermore, net annual wind capacity additions in China climbed from 26.1 GW in 2019 to 71.7 GW in 2020. China and India are the key markets for turbine oil in APAC. Market growth in this region will be faster than the growth of the market in other regions. Power output from renewable energy sources grew from 17.87 billion units in May 2021 to 19.31 billion units in May 2022, according to the India Brand Equity Foundation (IBEF). With the increased use of turbine oil in wind turbines, steam turbines, and other applications, the Asia-Pacific region's growth prospects for turbine oil are expected to grow throughout the forecast period.
Report Scope:
This research evaluates current activities and developments in each sub-sector, as well as revenue growth at the global, regional, and global levels (2021-2029). For this analysis, MMR divided the Turbine Oils market into type, vehicle type, and geographic locations. The market analysis also contains expected market estimates and trends for 17 countries spread throughout the world's primary geographic zones. The value for the aforementioned categories is provided in the report (in USD million).

The research also aids in understanding the Turbine Oils Market trends, structure, and size estimations by evaluating market segments. The research serves as an investor's guide by providing a clear depiction of competition analysis of major competitors in the Turbine Oils Market by financial situation, product portfolio, growth plans, and geographical presence.
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Turbine Oils Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 1.40 Bn.


Forecast Period 2022 to 2029 CAGR:
3.9%
Market Size in 2029:
US $ 1.90 Bn.


 Segments Covered:
by Type
1. Mineral Oils
2. Synthetic Oils
3. Bio Based Oils
4. Others


by Application
1. Steam Turbines
2. Gas Turbines
3. Wind Turbines
4. Hydroelectric Turbines


by End Use
1. Transportation
2. Construction



Turbine Oils Market, Key Players are
1. Lukoil Lubricants Company (Austria)
2. Chevron USA Inc. (US)
3. Valvoline Inc. (US)
4. Alexis Oil Co. (US)
5. Kluber Lubrication NA LP (US)
6. Exxon Mobil Corporation (US)
7. Phillips 66 Company (US)
8. Lubrication Engineers (US)
9. TotalEnergies (US)
10. Quaker Chemical (US)
11. Afton Chemical (US)
12. Shell plc. (UK)
13. Castrol Limited (UK)
14. FUCHS Lubritech GmbH (Germany)
15. Evonik Industries AG (Germany)
16. OKS Spezialschmierstoffe GmbH (Germany)
17. Indian Oil Corp. Ltd. (India)
18. Eastern Petroleum Pvt. Ltd. (India)
19. Penrite Oil Company (Australia)
20. BP Arabia Lubricants (UAE)
21. Shield Lubricants (Kuwait)
22. Idemitsu Kosan Co. Ltd. (Japan)
23. LUBRITA EUROPE B.V. (Netherlands)
24. PetroChina Company Limited (China)
25. Petroliam Nasional Berhad (PETRONAS) (Malaysia)
26. Repsol S.A. (Spain)

Frequently Asked Questions:

1] What segments are covered in the Global Turbine Oils Market report?
Ans. The segments covered in the Turbine Oils Market report are based on Type, Application, End Use and Region.

2] Which region is expected to hold the highest share in the Global Turbine Oils Market?
Ans. The Asia Pacific region is expected to hold the highest share in the Turbine Oils Market.

3] What is the market size of the Global Turbine Oils Market by 2029?
Ans. The market size of the Turbine Oils Market by 2029 is expected to reach USD 1.90 Bn.

4] What is the forecast period for the Global Turbine Oils Market?
Ans. The forecast period for the Turbine Oils Market is 2021-2029.

5] What was the market size of the Global Turbine Oils Market in 2021?
Ans. The market size of the Turbine Oils Market in 2021 was valued at USD 1.40 Bn.