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Oil Condition Monitoring Market

Oil Condition Monitoring Market

Global Industry Analysis (2018 - 2021), Growth Trends, and Market Forecast (2022 - 2029)

Published Date: Upcoming | Format:

Industry: Energy & Natural Resources | Author Name: Harshad

Oil Condition Monitoring Market: Overview

The market size for oil condition monitoring was USD 925.2 million in 2021, and it is projected to grow at a CAGR of 8.2 percent during the forecast period. This market is growing due to a surge in demand for cost-effective solutions for maintaining machinery health, increasing awareness of the importance of monitoring oil conditions among industries, and a growing focus on reducing maintenance costs. The increasing demand for energy and the increase in big data analytics and IoT create a strong need for oil condition monitoring for efficient industrial operations during COVID-19.

Using online oil condition monitoring (OCM), oil's physical and chemical parameters are continuously monitored. These parameters include pressure, density, viscosity, and more. In order to prevent engine, gearbox, power train, and costly machinery failures, it provides real-time information about oil parameters and lubricant quality. This makes online oil condition monitoring imperative for the proper function of machines in various industries. It enables early detection of upcoming problems caused by oil and reduces the costs associated with downtime. For instance, The security of upstream and downstream processes is important in the oil and gas industry. Thus, oil drilling rigs and other oil and gas-related machinery are monitored online for oil conditions. Online oil condition monitoring is also becoming increasingly popular in power generation as awareness about power and energy management grows. There is a decrease in the quality of oil used in power generation appliances due to high temperatures and pressures involved in the operation of compressors, turbines, engines, and others. Furthermore, online oil condition monitoring is used in other industries to avoid the failure of machines and equipment that rely on oil.

In February 2019, with the collaboration of Microsoft Corporation, a U.S.-based technology company, Exxon Mobil Corporation, a natural gas company, will use Microsoft's data analytics tools and Azure cloud computing platform at Permian shale assets in the U.S. and New Mexico and will use predictive maintenance technologies. For predictive maintenance in the oil and gas industry, online oil condition monitoring (OCM) is rapidly increasing. A predictive maintenance system determines the condition of in-service equipment to estimate the amount of time needed to be replaced, thereby reducing maintenance costs. For instance, in August 2021, Powered by Shell Remote Sense, Shell, a British multinational oil and gas company, launched VitalyX, an advanced analytics-based oil condition monitoring system for the marine sector. As part of VitalyX, early warnings are provided about oil conditions, which helps increase machine uptime. Shell expects this upgrade to revolutionize the marine sector, enabling it to strengthen its position as an industry leader in the future.

Oil Condition Monitoring Market: COVID-19 Impact

As a result of COVID-19, almost all industries have been significantly disrupted, including automotive, healthcare, consumer electronics, clothing & textiles, food & beverage, automation, manufacturing, aerospace & defense, oil & gas, construction, semiconductors, agriculture, and others. The Covid 19 pandemic slowed various sectors' growth because of liquidity shortages, cash crunch, etc. The global online oil condition monitoring market was affected, as many key players temporarily had to close down to safeguard their employees' health. In contrast, due to the complete lockdown, a major restraint on the market's growth is the unavailability of raw materials for making components. Manufacturing companies could not deliver products to the market because raw materials and components were unavailable. Since governments are gradually opening up to new citizens in many countries due to the pandemic, the global online oil condition monitoring market is affected. Though production has resumed, companies continue working with partial employees on the shop floor and working from home. Revenues for several global online oil condition monitoring market players have decreased.

Oil Condition Monitoring Market: Drivers

Predictive Maintenance is Becoming More Prevalent to Drive Market Growth

Industry operators and asset managers have rapidly gained interest in predictive maintenance since it emerged in the last few years. Analyzing the health of assets and predicting when a particular component or system is likely to fail and, thus, needs to be replaced or repaired can help industries assess the health of assets. In addition to targeted solutions for single machine parts, several organizations are using predictive maintenance analytics to increase Overall Equipment Effectiveness (OEE) across the entire production line. Furthermore, oil condition monitoring companies help identify equipment before it is severely damaged, reducing downtime, extending equipment life, and safely extending oil change intervals that can be costly. As a result, demand for oil condition monitoring is estimated to rise during the forecast period due to the prevalence of predictive maintenance. Different applications require scheduled inspections of the turbines to ensure efficient operation. Turbines used in factories operate at very high pressure. These high pressures result in a greater risk of damage due to friction, which reduces the life of the machines. Oil of high quality is used to lubricate turbines to reduce friction induced by heavy pressure, thus preventing machine failure.

Critical Asset Operational Life Extending is Getting More Important in Driving Market Growth

A system asset's lifecycle includes its design, installation, operation, and decommissioning, as well as its function during its lifetime. Assets should perform their intended function as efficiently as possible. Various factors influence the performance of assets and, ultimately, the health of assets. For example, lubricants in machinery are constantly exposed to high pressures and have to work under critical conditions. Further, high pressures, temperatures, corrosion, water contamination, fuel ingested, and air ingested particles adversely impact the performance of lubricants. Therefore, the spare parts of the machinery are at risk of mechanical damage. It is crucial to monitor the condition of the assets to avoid unexpected breakdowns that would impede the entire industry's operations. This can be accomplished by implementing monitoring solutions that keep a close eye on the asset's condition and predict maintenance needs well in advance. Enabling smooth and efficient machine operation by giving critical 'early notice' of imminent problems. Detecting deterioration and tracking the oil condition are aimed at determining whether the oils are no longer performing their intended functions due to deterioration.

Oil Condition Monitoring Market: Restraints

Skills Shortage in Oil Condition Monitoring to Hamper Market Growth

Due to a lack of skilled labor and the high cost of training for analyzing oil condition monitoring tools, the market growth is expected to be hindered in the near future by these factors and the high installation of oil condition monitoring devices. This is another key factor hampering the oil condition monitoring market. To achieve operational excellence in their manufacturing processes, many companies invest heavily in on-site oil condition monitoring systems, including sensors, portable kits, and on-site laboratories. For these systems to be used correctly, certain skills must be acquired. The availability of skilled personnel in remote or hard-to-reach locations is a concern because several systems are deployed at remote or hard-to-reach locations. It is also necessary to have expertise in verifying the key parameters of monitoring systems, such as optimization, updates, networking, and data transmission.

Oil Condition Monitoring Market: Segment Overview

Turbine Segment to Dominate Market due to its Different Application

Within the global online oil condition monitoring (OCM) market, the turbine segment is expected to dominate throughout the forecast period. Turbine oil analysis is among the predictive-maintenance technologies most frequently used. Online oil condition monitoring is rapidly becoming a necessity for predictive maintenance in the oil and gas industry. Predictive maintenance estimates the time needed to maintain in-service equipment based on its condition. By doing so, maintenance costs are reduced. Various applications have required scheduled inspections for the turbines to operate efficiently. High pressure is applied to turbines used in factories. At these high pressures, turbines are much more susceptible to friction damage, reducing their life expectancy. Turbines are lubricated with high-quality oil to prevent machine failure, thereby reducing the friction caused by heavy pressure.

With the Sensor to Prevent Serious Engine Failure, Transportation Category Dominated Market

Heavy-duty vehicles, motorcycles, aircraft, marine, and engines for locomotives are all part of the transport industry. Due to car manufacturers' growing emphasis on installing real-time oil monitoring sensors in automobiles, the demand for controlling oil conditions will increase in the marine and aerospace industries. An oil condition monitoring check prevents engine failures and expensive equipment failures. Using oil condition monitoring, repairs of engines, equipment, and other devices can be efficiently completed. It also reduces the expenses associated with downtime. By monitoring oil conditions, we can determine the correct diagnosis and prognosis for those factory machines that cannot produce a successful product. The quality and characteristics of the oil are critical to asset health and efficiency, making oil a priority for customers. Any issues can be identified and resolved by monitoring the oil's quality and characteristics.

Oil Condition Monitoring Market: Regional Landscape

North America to Dominate Market due to Presence of Key Players and a Rise in Adoption of Predictive Maintenance in the U.S.

Over the forecast period, it is anticipated that the North American market will account for the largest revenue share. The demand for oil condition monitoring systems and solutions in North America is driven by increased focus on optimum asset utilization, stringent government regulations for workplace and personnel safety, and stringent quality control standards. As a result of the presence of key players and the adoption of predictive maintenance in the U.S., the region holds the largest market share for oil condition monitoring services. Oil condition monitoring systems can be implemented industry-wide in the region due to advances in predictive maintenance technology in industries like automotive, oil & gas, power generation, and mining. To improve their manufacturing processes, companies in this region heavily invest in advanced technologies such as machine learning, artificial intelligence, and others. Further, such technologies have accelerated due to the COVID-19 pandemic. Due to the changing work culture, many key players in the market are launching remote monitoring products. For example, SGS SA signed a Smartlab Technology agreement with Logilube, a U.S.-based technology company, in May 2018. As a result of this agreement, SGS Oil Condition Monitoring (OCM) customers can. Among the established markets in North America, including logistics and transportation, oil & gas, and others, North America holds a major market share for oil condition monitoring. As major players share significant revenue shares from regions such as General Electric, Parker-Hannifin Corporation, and Chevron Corporation, the market is expected to grow. General Electric, for instance, reported 39% of the total revenue share in the US alone.

The Asia Pacific market is anticipated to experience rapid growth throughout the forecast period due to the region's rapid industrialization and urbanization. Moreover, industrial applications are driving the market in the region due to an increase in oil condition monitoring services. The market growth is primarily attributed to the growing number of transportations operating in the region.

Global Oil Condition Monitoring Market: Competitive Landscape

In February 2020, In its latest release, Tan Delta System introduced the OQSx-G2, a real-time oil condition monitoring sensor, which provides a new level of equipment health and reduced operating costs. The sensor is said to have a detection sensitivity of 10ppm and can work with any oil type. Tan Delt's enhanced FSH core technology is the basis for the sensor. Moreover, in September 2019, An Orbit 60 Series Platform was launched by Baker Huges, a subsidiary of GE Company, in Bently, Nevada. This platform collects, processes, and analyzes data to determine the health of the machines. As a cyber-secure machinery monitoring system, it meets industry standards for safety and performance as it is SIL 2 and 3.

Few of the players in the oil condition monitoring market include Parker-Hannifin Corporation (US), General Electric (US), Shell plc (Netherlands), BP plc (UK), Bureau Veritas (France), Chevron Corporation (Switzerland), Intertek Group plc (UK), SGS SA (France), Eaton Corporation (Ireland), and TotalEnergies (France).

Global Oil Condition Monitoring Market is Segmented as Below:

By SamplingType

  • On-site
  • Off-site

By Product Type

  • Turbine
  • Compressor
  • Engine
  • Hydraulic System
  • Others (Gear Systems, Insulating Systems, Industrial Tooling Systems, and Transformers)

By Vertical

  • Transportation
  • Industrial
  • Oil & Gas
  • Power Generation
  • Mining

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • UK
    • France
    • Germany
    • Russia
    • Rest of Europe
  • Asia Pacific
    • Japan
    • South Korea
    • India
    • China
    • Rest of Asia-Pacific
  • LAMEA
    • Latin America
    • Middle East
    • Africa

Key Elements Included In The Study: Global Oil Condition Monitoring Market

  • Oil Condition Monitoring Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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