Oil Condition Monitoring Market Forecasts to 2028 – Global Analysis By Product (Compressor, Engine, Gear Systems, Hydraulic System), Sampling Type (Off-site, On-site), End User (Energy and Power, Industrial, Mining), and By Geography
According to Stratistics MRC, the Global Oil Condition Monitoring Market is accounted for $0.99 billion in 2021 and is expected to reach $1.61 billion by 2028 growing at a CAGR of 7.2% during the forecast period. Oil condition monitoring is utilized to measure equipment parameters like the temperature or the condition of the oil to be able to detect future failures. Its ability to prevent unplanned downtimes helps companies save losses. Many industries are opting for predictive maintenance to avoid unplanned downtimes to prevent losses. Oil condition monitoring, being a crucial part of predictive maintenance, is hence, growing.
Market Dynamics:
Driver:
Rising adoption of IIoT and big data analytics
Big data analytics, with the capability of processing large volumes of data, has accelerated the analysis process of the data generated by oil quality sensors. Big data analytics offers features such as easier benchmarking of oil quality, better transparency in data, and efficient collaboration of various testing results on oil quality. Big data-enabled oil quality monitoring helps companies lower the overall cost of ownership for assets and run their business efficiently. The advent of big data analytics, coupled with efficient data storage mechanisms and parallel processing, is transforming the oil condition monitoring market.
Restraint:
Oil sampling issues
Sampling consistently refers to the practice of meticulously following a prescribed procedure without regard to the accuracy or precision of the procedure. This is the way most oil samples, perhaps 80 percent, are taken today. Sampling errors could arise when the area where a sample is drawn is different or away from the area where it is tested. Unlike a blood test where the results are homogenous irrespective of where the blood sample is collected, many oil analysis parameters are very sensitive to where and how the sample is taken.
Opportunity:
Growing importance of lean manufacturing
The increasing importance of lean manufacturing and just-in-time inventory practices and the rising focus on product quality, particularly in process industries, are expected to fuel the demand for oil condition monitoring. The oil & gas, power generation, aerospace & defense, chemicals, petrochemicals, and manufacturing are the key industries that use vibration monitoring to track the health of their machinery. This is anticipated to lead to the growth of the oil condition monitoring market globally and create ample opportunities for the market.
Threat:
Lack of skilled technical resources
Expertise is necessary to verify the key parameters of monitoring systems, such as data transmission, system optimization, software updates, and networking. Many companies are heavily investing in on-site oil condition monitoring systems, including portable kits, sensors, and on-site laboratories, to achieve operational excellence in their manufacturing processes. A certain level of expertise is required to use these systems correctly. As a few systems are deployed at remote or hard-to-reach locations, the limited availability of skilled personnel in these locations is a major concern which is restraining the market growth.
The power generation segment is expected to be the largest during the forecast period
The power generation segment is estimated to have a lucrative growth. Power generation is one of the emerging industries witnessing a rapid adoption of oil condition monitoring. Several components, equipment, and machines are used in the power generation industry. Equipment such as compressors, engines, turbines, and gearboxes operate at high temperature and pressure, thus, degrading the quality of oil used in this equipment.
The turbine segment is expected to have the highest CAGR during the forecast period
The turbine segment is anticipated to witness the fastest CAGR growth during the forecast period. Turbine oil analysis is one of the most commonly used predictive maintenance technologies. Turbines are used for various applications, which need scheduled checkups for efficient operation. The turbines used in industries such as power generation and transportation operate under very high pressures. Companies use high quality oil as a lubricating oil in the turbines to prevent machine failure, thus reducing friction induced by heavy pressure.
Region with highest share:
Asia Pacific is projected to hold the largest market share during the forecast period due to the rising adaptation of advanced technology coupled with the boost in the automobile sector in nations such as China and India. Moreover, the growth is also majorly attributed to the growing number of transportations rising in this region is expected to drive the market growth in the near future.
Region with highest CAGR:
North America is projected to have the highest CAGR over the forecast period due to the factors such as an increased focus on optimum asset utilization, stringent quality control in the oil and gas, transportation, and manufacturing industries, and stringent government regulations for workplace and personnel safety. The North America market is also increasing due to the growing adoption of predictive maintenance in the U.S. and Canada. Moreover, the rapid growth of the market is due to the presence of most of the industries requiring the oil condition monitoring system, like automobile, oil and gas, mining, are situated in the region.
Key players in the market
Some of the key players profiled in the Oil Condition Monitoring Market include BP plc, Bureau Veritas, Castrol Limited, Chevron Corporation, Eaton Corporation, General Electric, Honeywell, Intertek Group plc, Micromem Applied Sensor Technologies Inc, NI (National Instruments), Parker-Hannifin Corporation, Poseidon Systems, LLC, Rockwell Automation, SGS SA, Shell plc, Tan Delta System, TotalEnergies, and UNIMARINE.
Key Developments:
In February 2020, Tan Delta System announced the launch of OQSx-G2, next-generation real-time oil condition monitoring sensor that provides a new level of equipment health sign and operating cost reduced utilizes Tan Delt's enhanced FSH core technology. The sensor is claimed to have a detection sensitivity of 10ppm and works with any oil type.
In September 2019, Baker Huges subsidiary of GE Company, announced that its Bently Nevada business launched Orbit 60 Series Platform. This platform collects and processes the data with analytics to determine the health of the machines, It is a cyber-secure machinery monitory system that is SIL 2 and 3 certified making it suitable for an industry standard for safety and performance.
Products Covered:
• Compressor
• Engine
• Gear Systems
• Hydraulic System
• Industrial Tooling Systems
• Insulating Systems
• Transformers
• Turbine
Sampling Types Covered:
• Off-site
• On-site
End Users Covered:
• Energy and Power
• Industrial
• Mining
• Oil & Gas
• Transportation
Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
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- Market share assessments for the regional and country-level segments
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