Compressor Oil Market Report 2026

The compressor oil market size has grown strongly in recent years. It will grow from $10.13 billion in 2025 to $10.87 billion in 2026 at a compound annual growth rate (CAGR) of 7.3%. The growth in the historic period can be attributed to expansion of industrial manufacturing activity, increasing deployment of rotary screw compressors, growth of oil and gas processing facilities, rising demand for reliable compressor maintenance, availability of advanced lubricant formulations.

The compressor oil market size is expected to see strong growth in the next few years. It will grow to $14.04 billion in 2030 at a compound annual growth rate (CAGR) of 6.6%. The growth in the forecast period can be attributed to increasing focus on energy-efficient industrial systems, rising adoption of synthetic and semi-synthetic oils, expansion of predictive maintenance practices, growing demand from power generation facilities, increasing investments in industrial automation. Major trends in the forecast period include increasing adoption of high-performance synthetic compressor oils, rising demand for extended oil drain intervals, growing focus on oxidation and thermal stability, expansion of energy-efficient compressor operations, enhanced monitoring of lubrication performance.

The rising demand from the petroleum and natural gas industry is expected to drive the growth of the compressor oil market. Petroleum and natural gas are nonrenewable energy sources, with petroleum being a liquid mixture used for fuels such as gasoline and diesel, and natural gas serving as a fossil fuel energy source. Compressor oil is employed in the petrochemical industry to prevent premature wear in air compressors, which are essential for increasing gas pressure during transportation through pipelines. For instance, in April 2024, the U.S. Energy Information Administration (EIA) reported that U.S. natural gas exports averaged 20.9 billion cubic feet per day (Bcf/d) in 2023, a roughly 10% increase over 2022. Liquefied natural gas (LNG) shipments rose by approximately 12%, or 1.3 Bcf/d, compared to the previous year. Therefore, growing demand from the petroleum and natural gas industry is propelling the compressor oil market.

Product innovation is a significant trend in the compressor oil market. Leading companies in this sector are concentrating on developing innovative products to enhance their market position. For example, in October 2024, Idemitsu Lubricants America, a lubricant manufacturer based in the U.S., introduced a new line of Polyalkylene Glycol (PAG) compressor oils. These oils are engineered for high energy efficiency and reduced friction, while also offering improved biodegradability to comply with environmental regulations. The company highlighted that these products exhibit superior thermal stability, which contributes to extending the lifespan of compressors and reducing maintenance requirements. This innovation illustrates the increasing focus on high-performance lubricants in industrial applications, driven by rising regulatory standards and the market demand for sustainable solutions.

In May 2023, AMSOL Inc., a prominent US-based fuel company, completed the acquisition of Benz Oil for an undisclosed amount. This strategic move is aimed at expanding AMSOIL's industrial business unit, providing a substantial boost to its capabilities and expertise in the domain of industrial fluids. The acquired entity, Benz Oil, is recognized for its specialization in the development, manufacturing, and supply of industrial and metalworking fluids. This strategic acquisition aligns with AMSOIL's broader objective of strengthening its position in the industrial fluids market, leveraging the unique capabilities and offerings of Benz Oil to enhance its portfolio and cater to a wider range of customer needs.

Major companies operating in the compressor oil market are Shell plc, Chevron Corporation, Exxon Mobil Corporation, Fuchs Group, TotalEnergies SE, British Petroleum Public Limited Company, ENEOS Corporation, BASF SE, Valvoline Cummins Inc., CASTROL Limited, Sasol Limited, HP Lubricants, Morris Lubricants, Idemitsu Kosan Co. Ltd., Repsol S.A., Lubrizol Corporation, Lukoil, Quaker Houghton, Petro-Canada, Gulf Oil Corporation Limited, Kluber Lubrication, Indian Oil Corporation Limited, Sinopec Group, Cosmo Oil Marketing Co. Ltd., National Petroleum Limited- Petronas.

Asia-Pacific was the largest region in the compressor oil market in 2025 and is expected to be the fastest-growing region in the forecast period. The regions covered in the compressor oil market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the compressor oil market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The compressor oil market consists of sales of lubrication base oils, aromatic amine, alkylphenol, and tri-ester of dithiophosphoric acid. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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