When the system requirement is high speed, medium pressure (usually 6 to 8 bar) and less accuracy of position, then pneumatic system is preferred.
If the system requirement is high pressure and high precision, a fluid system with oilis good.
When the power requirement is high like in forging presses, sheet metal press, it is impossible to use air system. Oil hydraulics is the only choice .
Air is used where quick response of actuator is required.
If temperate variation range in the system is large, then use of air system may run into condensation problems and oil is preferred.
Air is non-explosive, it is preferred where fire/electric hazard are expected. Oil systems are more prone to fire and electrical hazards and are not recommended in such applications. Because air contains oxygen (about 20%) and is not sufficient alone to provide
Adequate lubrication of moving parts and seals, oil is usually introduced into the air stream near the actuator to provide this lubrication preventing excessive wear and oxidation. If the application requires only a medium pressure.