Oil Condition Monitoring Market, by Sampling Type (On-site Sampling and Off-site Sampling), Product Type (Turbines, Compressors, Engines, Gear Systems, and Hydraulic Systems), and End User (Transportation, Industrial, Oil & Gas, Power Generation, and Mining): Global Opportunity Analysis and Industry Forecast, 2022-2031

Global Oil Condition Monitoring Market Analysis

The Global Oil Condition Monitoring Market Size was $689.7 million in 2021 and is predicted to expand at a CAGR of 7.5%, generating a revenue of $1,387.5 million by 2031.

Global Oil Condition Monitoring Market Synopsis

The massive growth in the oil condition monitoring market is mainly attributed to the increase in awareness of extending the operational life of machines and equipment. The machines and equipment in various industries often undergo heavy wear and tear. These critical assets are prone to frequent breakdowns. Therefore, predictive maintenance is a crucial aspect of avoiding sudden wear and tear of these expensive pieces of equipment. Predictive maintenance is one of the important aspects of maintenance that helps in assessing the health of the assets and predicting when a particular machine or equipment is likely to fail and therefore, requires repair or replacement.

Even though predictive maintenance technologies such as oil condition monitoring require financial investment, it helps in saving the alternative cost of purchasing new equipment. Companies often find it difficult to maintain expensive machines and equipment, thus costing themselves unwarranted maintenance expenses.  Oil condition monitoring technology helps in reducing unexpected downtime and extends the life of costly assets. Thus, an increase in awareness about extending the operational life of critical assets coupled with a rise in the prevalence of predictive maintenance is expected to boost the oil condition monitoring market size during the forecast period.

However, factors such as a shortage of skilled technical personnel can hinder market growth. Skilled technicians have specialized training and experience in extracting oil condition samples as well as doing a precise analysis of extracted samples. These expertise levels are attained through vigorous training and rich technical experience.

The rise in big data analytics and data storage mechanisms is expected to offer lucrative the oil condition monitoring market opportunity. The processing of large volumes of data can be performed efficiently with the use of big data analytics. This helps in the effective analysis of the data received by oil quality sensors.

On the basis of regional analysis, North America is projected to lead the market during the forecast period at a CAGR of and is projected to reach high revenue by 2031.

Oil Condition Monitoring Overview

Oil condition monitoring is a type of predictive maintenance technique that identifies any problems with machinery and equipment. Precise oil condition monitoring helps in the analysis of the equipment's health and status. Regular oil condition monitoring helps in the detection of mechanical issues before they become catastrophic failures that can cause costly repairs or replacement of the machine.

COVID-19 Impact on Global Oil Condition Monitoring Market

The COVID-19 pandemic caused strict lockdown periods and social isolation across the globe. The Asia-Pacific region consists of the world’s most manufacturing hubs and the world's two most populated countries, China and India. During the COVID-19 pandemic, both China and India imposed stringent lockdowns and social isolation, which disturbed manufacturing operations for several weeks, resulting in the shrinking of the country's economy. The strict lockdown and disruption of numerous industrial equipment and machinery across both India and China negatively affected the market development across the Asia Pacific region.

However, the lack of skilled personnel, global supply chain disruption, and unprecedented demand for various goods during the COVID-19 pandemic prompted companies to take extra care of their equipment and machinery to increase the operational life of machines. Many companies are adopting big data analytics, smart sensors, and Industry Internet of Things (IIoT) solutions to keep watch on the health and efficiency of critically important machinery to avoid costly production downtimes. These advanced techniques are mostly used in developed countries, including the U.S., European nations, and some developed economies in the Asia Pacific and the Middle East. For example, in August 2021, Shell partnered with Baker Hughes and introduced state-of-the-art analytics-based oil condition monitoring platform and machinery health service for the marine industry, named VitalyX.

Increase in Use of Predictive Maintenance to Boost Global Oil Condition Monitoring Market Growth

In recent times, the use of predictive maintenance practices has increased significantly in various industries owing to the need for maximizing asset availability, reducing maintenance costs, and avoiding unexpected machine downtimes. Oil condition monitoring is a type of maintenance strategy that employs data management solutions to avoid any critical maintenance events. Oil condition monitoring helps to determine trends in wear and tear and also identifies any changes in the physical properties of lubricants, fuels, and coolants. Contaminations in lubricants, fuels, acid, or coolants can lead to oil losing its lubrication properties and can cause subsequent equipment damage. Hence, companies are increasingly employing oil condition monitoring to maintain the good health of critical equipment.

To know more about the global oil condition monitoring market drivers, get in touch with our analysts here.

Lack of Skilled Personnel to Restrain the Market Growth

Oil condition monitoring cannot deliver the best results due to various factors such as poor analysis strategies, poor sampling techniques, flawed interpretation of the tests, etc. Taking the correct oil samples is vital in the oil analysis chain, so it requires skilled personnel to make sure that the oil samples being extracted are correct and are analyzed efficiently to get the best results. However, the required skills of oil analysis can easily be developed with a minimal investment in training and certification of personnel responsible for oil condition monitoring.

Utilization of Big Data Analytics Expected to Create Lucrative Opportunities for the Oil Condition Monitoring Market

Oil condition monitoring results in the generation of a large volume of datasets and managing these datasets effectively is pivotal for successful oil analysis. Data can present a perfect analysis of oil if it is processed efficiently. Big data analytics helps in processing large volumes of datasets extracted from oil condition monitoring. The utilization of big data is becoming prominent owing to the increasing amount of data generated and recorded in various industries. Big data-enabled oil quality monitoring helps companies manage their critical assets much more efficiently. The utilization of big data is becoming prominent owing to the increasing amount of data generated and recorded in various industries.

To know more about the global oil condition monitoring market opportunities, get in touch with our analysts here.

Global Oil Condition Monitoring Market, by Sampling Type

On the basis of sampling type, the market is divided into on-site sampling and off-site sampling. Among these, the off-site sampling segment accounted for the highest market share in 2021 and is projected to dominate the market during the forecast period.

Global Oil Condition Monitoring Market Share, by Sampling Type, 2021

Source: Research Dive Analysis

The off-site sampling segment is anticipated to have a dominant market share and is projected to generate a revenue in 2021. Off-site oil condition monitoring is carried out at service centers, which are equipped with state-of-the-art analytical equipment. The samples of oil or lubricant are gathered from the machinery and undergo off-site analysis by a team of highly skilled personnel to analyze the health of the machine. Off-site oil condition monitoring involves various techniques such as FTIR spectroscopy, Karl Fischer titration, and gas chromatography. Off-site oil condition monitoring is used extensively across various sectors such as transportation, industrial, oil & gas, power generation, and mining. In addition to this, sectors that operate in extreme climatic conditions such as Arctic natural gas processing plants and humid mine sites are utilizing off-site sampling methods for oil condition analysis.

Global Oil Condition Monitoring Market, by Product Type

On the basis of product type, the market is divided into turbines, compressor, engines, gear systems, and hydraulic systems. Among these, the engine segment accounted for highest revenue share in 2021, whereas the hydraulic segment is estimated to show the fastest growth during forecast period.

Global Oil Condition Monitoring Market Analysis, by Product Type, 2021

Source: Research Dive Analysis

The engine segment is anticipated to have a dominant market share in 2021. One of the major areas of R&D in the automobile sector is the oil and lubricant condition monitoring of engines. The massive growth in engine oil condition monitoring systems is occurring to analyze the engine oil and lubricant degradation level to reduce unwanted breakdowns. There is an urgent need to determine oil quality and provide complementary oil condition information.

The hydraulic segment is anticipated to show the fastest growth in 2031. Hydraulic systems are widely incorporated in automation and heavy industry sectors. Oil condition monitoring of hydraulic systems is essential in ensuring reliable equipment operation and optimum performance levels. Close observation of the oil condition provides an understanding of the exact operating condition of the hydraulic equipment. Knowing the accurate condition of oil in real-time allows immediate and precise analysis of the overall equipment condition.

Global Oil Condition Monitoring Market, by End Use

On the basis of end use, the market is segmented into transportation, industrial, oil & gas, power generation, and mining. Among these, the oil & gas segment accounted for the highest revenue share in 2021.

Global Oil Condition Monitoring Market Statistics, by End Use, 2021

Source: Research Dive Analysis

The oil & gas segment is projected to have a dominant market share and generate a substantial revenue in 2021. The oil & gas sector plays a pivotal role in the global economy as it is the world's primary fuel source. Monitoring the health of machines and equipment has become very crucial to avoid unnecessary breakdowns as oil and gas refineries work 24/7. Hence, companies are increasingly investing in machinery and equipment oil condition monitoring to increase productivity and efficiency.

Oil Condition Monitoring Market, Regional Insights

The oil condition monitoring market was investigated across North America, Europe, Asia-Pacific, and LAMEA.

Oil Condition Monitoring Market Size & Forecast, by Region, 2021-2031 ($ Million)

Source: Research Dive Analysis

Market for Oil Condition Monitoring in North America to be the Most Dominant

The North America oil condition monitoring market share accounted for highest market share in 2021. Some of the factors attributed to the substantial growth of the oil condition monitoring market across North America are the presence of major players and a rise in the adoption of predictive maintenance in the U.S. The market in the Middle East region is also witnessing significant growth owing to rapid industrialization and urbanization. In addition to that, the increase in usage of oil condition monitoring services for industrial applications drives the market in the region.

Competitive Scenario in the Global Oil Condition Monitoring Market

Investment, agreement, product launches and developments, and partnerships are some of the common strategies followed by major market players. For example, in December 2019, Shell, one of the major oil and gas companies in the world, introduced an IT platform for its oil analysis program, known as Shell Lube Analyst. This platform is a simpler sample management process than the manual method, which in turn minimizes the chances of human errors.

Source: Research Dive Analysis

Some of the leading oil condition monitoring market players are Celanese Corporation, Chevron Corporation., PARKER HANNIFIN CORP, General Electric, BP p.l.c., Shell, Eaton, Intertek Group plc, SGS SA, and Bureau Veritas.