In 2020, the global aviation lubricants market was at USD 2.0 billion and is predicted to grow at a 7.2% CAGR to reach USD 2.9 billion by 2025.
Aerospace lubricants reduce the friction between aerospace components that are in direct contact to prevent wear and tear. Other aerospace lubricants' purposes include cooling parts, providing anti-corrosion and rust-free properties, and sealing in the gaps. Lubricants aid in smoothening parts and components' movement, which further results in better fuel economy and engine efficiency.
Air travel is becoming accessible to people due to low-cost flights and increased flights and airports' connectivity in recent years. Airlines are extending their commercial fleets, primarily in developing countries like India and China, and are increasing aircraft operating hours to boost profitability. These large and growing fleets are driving the growth of the aviation lubricants market worldwide.
In August 2020, Idemitsu Kosan Co. Ltd., a Japanese petroleum corporation, transferred ownership of Shell Lubricants Japan and entered into a share purchase contract with Shell Overseas Holdings Limited.
In January 2020, Eastman Chemical Company struck a deal with Gulf Coast Ammonia (GCA) and Air Products, Inc., where GCA can control a part of Eastman's Texas City site on lease, and Air Products will build, own, and operate at Eastman's Texas City site, it's steam methane reformer. The company will profit from raw material offtake agreement for its specialty products.
In August 2019, Total Lubrifiants, a prominent player in the global lubricants market, acquired from Houghton International its Aluminum Hot Rolling Oil (AHRO), Steel Cold Rolling Oil (SCRO), and Tinplate Rolling Oil (TPRO) activities in the North American and European Economic Area markets.
In June 2019, NYCO's Turbonycoil 600 was selected by SkyUp Airlines, one of Ukraine's leading airlines, for use in its fleet of Boeing 737 NG.
In June 2019, The Dubai-based subsidiary of LUKOIL, Lukoil Marine Lubricants, signed a renewal agreement with the subsidiary of Kuwait Petroleum Corporation (KPC), Kuwait Oil Tanker Company (KOTC).
The global aviation lubricants market is propelled by the increasing global air passenger traffic and expenditure by militaries of several nations and growing aircraft usage for private and adventure sports purposes. It requires lubricants to increase efficiency and consumes less oil. These are the factors that are accountable for boosting the worldwide aviation lubricant market.
Intense competition in the aviation industry, growing demand for better performance, and aerospace lubricants with value-added characteristics are the primary factors hampering the global aviation lubrication market's growth. Hence, aerospace lubricants manufacturers must face certain challenges to provide better-quality products with reduced cost to receive higher fuel economy and increased efficiency.
Based on product type, the market is divided into engine oils, hydraulic fluids, greases, and special lubricants & additives. Engine oil is predicted to account for the largest share in the global market. The piston and turbine engine oils are built to improve aircraft engines' performance at very high temperatures. The development of engine oil can be associated with its high consumption during flight hours and increased commercial and military aircraft fleets globally.
Based on the platform, the global aviation lubricants market is divided into military aviation, commercial aviation, and business & general aviation. The commercial aviation segment is valued for the most significant market share in 2020. The increasing air passenger traffic and an expansion in the commercial aircraft fleet, primarily in developing economies, are propelling the commercial aviation segment of the aviation lubricants market globally.
Based on end-user, the aviation lubricants market is categorized into OEM and Aftermarket. The aftermarket segment is anticipated to control the largest share of the global market in 2020. Lubricants are refilled frequently, depending on the running hours of the aircraft. The aftermarket segment comprises various maintenance stages, such as base maintenance, line maintenance, and different-level checks that an aircraft encounters during its lifetime. The segment's high growth is credited to the increasing aircraft deliveries in the region and growing passenger traffic.
Depending the technology type, the market is bifurcated as mineral-based and synthetic. The synthetic segment is likely to record higher growth over the outlook period. This growth can be ascribed to the growing demand for advanced lubricants to improve an aircraft's performance.
Based on the application type, the market is separated as hydraulic systems, engines, landing gears, airframes, and others. The engine segment was estimated to impose the aviation lubricant market in 2018. This segment's growth can be credited to the increase in the use of specialized and advanced lubricants.
The Asia Pacific market is estimated to grow at the fastest CAGR during the forecast timeframe. The growth is primarily credited to the increase in the fleet size of the nations in the region. The airlines functioning in this area are focused on improving passenger experience and improving aftermarket sales. The increasing disposable income of China and India's middle-class population has led to significant international tourism growth, air passenger traffic, and immigration activities. These factors are anticipated to impact the development of the aviation industry of Asia Pacific positively. Significant economies of Asia Pacific, such as Russia, China, and India, have increased their military spending in the past years. It has led to expanding its military aircraft fleets, thereby supporting the aviation lubricants market's growth.
North America is another significant market for aviation lubricants driven by the presence of major aircraft manufacturers such as Boeing (US), Embraer (US), and Bombardier (Canada), and prominent airlines such as Virgin America and Delta Air Lines. The region is supposed to witness steady growth in the aviation lubricants market during the outlook period due to the established aviation industry. Moreover, drivers such as low oil prices and demand for enhanced aircraft efficiency are propelling the growth of the aviation lubricants market in the region.
Central & South America and the Middle East & Africa together accounted for about 20% of the total volume in 2018. These regions are witnessing an increased disposable income coupled with increased trade activities to and from the areas. Recovery in Ebola is expected to complement demand in a phased manner. Tourism and the increased growth of the service industry in UAE, Oman, Qatar, and Saudi Arabia are the primary factors driving the region's market growth.
Some of the prominent corporations operating in the global aviation lubricants market are Royal Dutch Shell (Netherlands), ExxonMobil (US), Total (France), BP (UK), Lukoil (Russia), Phillips 66 (US), among others. These key players offer various aviation lubricant types, including electro-mechanical, hydraulic, and pneumatic, via well-equipped manufacturing facilities and strong distribution networks worldwide.
Impact of COVID-19 on Aviation Lubricants Market
The coronavirus outbreak has idled much of the aviation business. Fleet readiness and maintenance are crucial to tackling the hurdles posed by the pandemic. Minimal maintenance and inspection checks owing to a drop in air passenger traffic and reduced flying hours of various aircraft have reduced aviation lubricants' demand. The imbalance of supply and demand due to the available inventory stocks in OEM and MRO sectors and production units has negatively affected the lubricants market's growth. Besides, aircraft deliveries have been postponed in the first and second quarter of 2020 because of government-imposed lockdowns in several countries, which has further fueled the decay in manufacturers' revenue. The manufacturers are expected to cope with airlines and travelers' challenging requirements for health safety and social distancing norms. Aircraft manufacturers, aftermarket, and MRO services need to strive hard to gain passenger confidence to come back to normal conditions.
1.1 Market Definition
1.2 Scope of the report
1.3 Study Assumptions
1.4 Base Currency, Base Year and Forecast Periods
2. Research Methodology
2.1 Analysis Design
2.2 Research Phases
2.2.1 Secondary Research
2.2.2 Primary Research
2.2.3 Data Modelling
2.2.4 Expert Validation
2.3 Study Timeline
3. Report Overview
3.1 Executive Summary
3.2 Key Inferencees
4. Market Dynamics
4.1 Impact Analysis
4.2 Regulatory Environment
4.3 Technology Timeline & Recent Trends
5. Competitor Benchmarking Analysis
5.1 Key Player Benchmarking
5.1.1 Market share analysis
5.1.3 Regional Presence
5.2 Mergers & Acquistion Landscape
5.3 Joint Ventures & Collaborations
6. Market Segmentation
6.1 Aviation Lubricants Market, By Product Type Engine Oils
6.1.2 Hydraulic Fluids
6.1.4 Special Lubricants & Additives
6.1.5 Market Size Estimations & Forecasts (2021-2026)
6.1.6 Y-o-Y Growth Rate Analysis
6.1.7 Market Attractiveness Index
6.2 Aviation Lubricants Market, By Platform
6.2.1 Commercial Aviation
6.2.2 Military Aviation
6.2.3 Business & General Aviation
6.2.4 Market Size Estimations & Forecasts (2021-2026)
6.2.5 Y-o-Y Growth Rate Analysis
6.2.6 Market Attractiveness Index
6.3 Aviation Lubricants Market, By End-User
6.3.3 Market Size Estimations & Forecasts (2021-2026)
6.3.4 Y-o-Y Growth Rate Analysis
6.3.5 Market Attractiveness Index
6.4 Aviation Lubricants Market, By Technology
6.4.3 Market Size Estimations & Forecasts (2021-2026)
6.4.4 Y-o-Y Growth Rate Analysis
6.4.5 Market Attractiveness Index
6.5 Aviation Lubricants Market, By Application
6.5.1 Hydraulic Systems
6.5.3 Landing Gears
6.5.5 Market Size Estimations & Forecasts (2021-2026)
6.5.6 Y-o-Y Growth Rate Analysis
6.5.7 Market Attractiveness Index
7. Geographical Landscape
7.1 Global Identity Governance and Administration Market, by Region
7.2 North America - Market Analysis (2018 - 2024)
7.2.1 By Country
7.2.2 By Product Type
7.2.3 By Platform
7.2.4 By End-User
7.2.5 By Technology
7.2.6 By Application
7.3.1 By Country
22.214.171.124 Rest of Europe
7.3.2 By Product Type
7.3.3 By Platform
7.3.4 By End-User
7.3.5 By Technology
7.3.6 By Application
7.4 Asia Pacific
7.4.1 By Country
126.96.36.199 South Korea
188.8.131.52 South East Asia
184.108.40.206 Australia & NZ
220.127.116.11 Rest of Asia-Pacific
7.4.2 By Product Type
7.4.3 By Platform
7.4.4 By End-User
7.4.5 By Technology
7.4.6 By Application
7.5 Latin America
7.5.1 By Country
18.104.22.168 Rest of Latin America
7.5.2 By Product Type
7.5.3 By Platform
7.5.4 By End-User
7.5.5 By Technology
7.5.6 By Application
7.6 Middle East and Africa
7.6.1 By Country
22.214.171.124 Middle East
7.6.2 By Product Type
7.6.3 By Platform
7.6.4 By End-User
7.6.5 By Technology
7.6.6 By Application
8. Key Player Analysis
8.1 Royal Dutch Shell
8.1.1 Business Description
8.1.4 SWOT Analysis
8.1.5 Recent Developments
8.1.6 Analyst Overview
8.3 Total SA
8.4 BP Plc
8.6 Phillips 66
9. Market Outlook & Investment Opportunities
List of Tables
List of Figures