Spindle Oil Market
Global Industry Analysis (2017-2020) – Growth Trends and Market Forecast (2021-2025)
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Spindle oil is a low-viscosity oil used to lubricate high-speed machine spindles. As these machines rotate at high speeds, wear and tear is frequent, necessitating spindle oil. Spindle oil offers several advantages such as reducing OPEX and increasing service life of the equipment. Spindle oil is particularly useful in aerosol and pressure lubrication of clutches as it is free from gumming. Spindle oils are resistant to oxidation and stable at high temperatures enabling them to reduce deposit formations. Spindle oils allow the separation of water reducing emulsion and provide strong resistance to the buildup of unwanted foam. The non-staining properties of spindle oil makes it ideal for the textile manufacturing industry. Spindle oil reduces varnish, sludge and deposits improving operating performance and reducing regular wear-and-tear.
Large Range of Substitute Oils Could Slow Growth Rates in the Spindle Oil Market
The global spindle oil market has witnessed a revolution in recent times with high-speed machining becoming the norm across geographies. Companies have invested in closed loop systems for the delivery and recovery of spindle oil since they are inherently superior to previous spindle oil mist lubrication techniques. Furthermore, manufacturers are launching newer products such as performance spindle oils specifically designed for high-performance tasks in circulation, hydraulic and airline systems where an appropriate viscosity grade can be chosen. These high-performance, low-viscosity spindle oils deliver robust protection from corrosion. rust and oxidation. Companies are focusing their attention on product development of close-tolerance bearings that function effectively as coolants for machine tools in the spindle oil market.
Technological innovations notwithstanding, certain constraints must be overcome in the spindle oil market. It is a challenge for manufacturers to collect and dispose of spindle oil after lubrication. In addition, the availability of substitute oils and quality inconsistencies can restrain growth prospects in the spindle oil market. Another concern that looms large is COVID -19 that has impacted the textile industry particularly hard in APAC. A 2020 International Labor Organization report stated that garment imports from major buyers collapsed by up to 70% in the first half of 2020. Even though governments have stepped in to avert a job crisis, thousands of factories have been shuttered or have suspended production indefinitely. This will undoubtedly negatively impact the spindle oil market as its growth is directly linked to that of the textile market and companies are advised to tweak their strategies accordingly.
Unabated Demand for Textiles Make it Largest Application Segment in Spindle Oil Market
In terms of application, the spindle oil market can be subdivided into automotive, textiles, agriculture, machine tools operation, and others. The textile segment is the largest end-user in the spindle oil market due to widespread adoption of high-speed machines. Nonetheless, the machine tool operation segment is predicted to grow faster over the forecast period as a result of spinning operations coming into the limelight. Spindle oil is used in the agriculture industry for the proper maintenance of farm equipment such as tractors, combine harvesters, silage harvesters, self-propelled sprayers etc. Moreover, spindle oils are recommended in the lubrication of spindle bearings, centrifugal separators, timing gears, and positive displacement blowers of high precision tools.
Textile Plants Being Built in APAC Region to Take Advantage of Cheap Labor
Companies are seeking to take advantage of cheap labor and easy availability of raw materials in APAC and shifting their textile and automotive manufacturing units there from a previous western-centric focus. China is already the world’s largest automotive market and textile exporter with India and Bangladesh gaining ground making it essential for stakeholders to target this dynamic continent in the spindle oil market. Spindle oils play a critical role in ensuring that textile operations guarantee the highest level of production with minimal downtime. Textile manufacturing equipment is used in fabric formation, warping, dyeing, printing, and finishing and spindle oils are specifically designed to optimize production capacity.
In Africa, Kenya’s Ministry of Industrialization and Enterprise Development aims to boost textile exports by investing US$300 Mn and acquiring 50,000 sewing machines to replace outdated and inefficient ones. The Ministry plans to build 450 new production lines that will generate high demand for spindle oils in the region.
Lack of Understanding in Spindle Oil Market About Digitization is Problematic in Long-run
Prominent players actively involved in the spindle oil market are Exxon Mobil Corporation, HP Lubricants, Chevron Corporation, Royal Dutch Shell plc, Castrol Limited, Total S.A., Phillips 66 Lubricants, Eni S.p.A., Fuchs, Schaeffer Oil, Valvoline Inc., and Blue Star Lubrication Technology. Even though the spindle oil market is characterized by cutthroat competition, O&G supermajors are working together to address the opportunities and threats that could arise as digitization looms large.
It seems that the spindle oil market has a long way to go before it utilizes emergent technologies to keep employees and the environment safe. The primary reason is that the O&G industry as a whole is resistant to change and does not fully grasp the transformation currently underway. Nevertheless, the intent to change remains strong as spindle oil companies strive to minimize risk through the incorporation of artificial intelligence, machine learning, and advanced analytics.