Lubricants Market

Lubricants Market-Trends 2023-2028:

The worldwide lubricants industry is predicted to reach a value of USD 182.2 billion by the end of the year 2028, from USD 157.1 billion in 2022, with a current CAGR of 3.5%.

The expansion of industrialization in the Asia Pacific and the Middle East and Africa after COVID-19, together with the increase in process automation in most industries and the gradual increase in the number of road vehicles are key factors that are predicted to boost the worldwide lubricants industry during the foreseen period. Industrialists in the manufacturing sector are constantly looking to increase their production efficiency by improving productivity and minimizing downtime, which supports the source of income for market players.

Lubricants are fluids, oils, or greases that reduce friction between two surfaces when they are in contact with each other. They are also employed to prevent corrosion, thermal stability, and oxidation of machine parts. Lubricants are employed to reduce friction between surfaces, which in turn helps reduce the heat generated. Some of the main properties of lubricants are lubricity, demulsibility, high boiling point, corrosion prevention, and thermal stability. The acceleration of economic expansion mainly increases the number of road vehicles. The call for vehicle maintenance increases the call for lubricants.

LUBRICANTS MARKET REPORT COVERAGE:

Recent Developments in the Lubricants Market:

• Bharat Petroleum Corporation Ltd (BPCL), which controls around 12% of the lubricant market with its Mak brand lubricants, will launch two high-quality synthetic lubricants for premium cars and motorcycles next week.

• Honda Motorcycle and Scooter India Pvt. Limited. and Shell Lubricants India have entered into a strategic partnership to launch a new range of motor oils.

Lubricants Market Drivers:

Since Ford developed the first commercial automobile in the early 1900s, the design of internal combustion engines has evolved considerably. The internal parts of the engine are now exposed to much more stress and heat due to the improved engine. It has also resulted in very high-revving engines that require better-quality motor oil. Apart from this, the transmission system within a vehicle has also improved, with the vehicle reaching up to 150 miles per hour. All these improvements and developments require better lubricants. This has led to lubricants evolving and developing.

Lubricants Market Restraints:

Hybrid vehicles contain a small internal combustion engine (ICE) and an electric motor for optimal use of power and reduced vehicle emissions. The ICE inside a vehicle needs lubricants, mainly motor oil and transmission fluid. The growing number of hybrid vehicles will cut the call for lubricant per vehicle by almost half, according to industry experts. This factor, together with the increased parity of batteries, will reduce the volume of the worldwide lubricants market. Batteries for electric vehicles are very expensive; however, with improved technology, cost decreases, and execution time per charge increases. These factors have a great impact on lubricant consumption.

Opportunities in the Lubricants Market:

Lubricants are employed in various operations. The renewable energy industry is a potential sub-segment of the power generation industry. Currently, wind power generation is only a very small part of the overall energy mix, but the sector is growing at a rate of 10% and reached a capacity of 596,556 megawatts in 2018, according to the World Wind Energy Association. Wind turbines require lubricants for optimal operability. Escalating environmental concerns regarding the aqueous toxicity of conventional products and biodegradability have increased the importance of bio-based lubricants that will drive the market share of lubricants in the future.

Challenges in the Lubricants Market:

Refining companies have backward integration to ensure the supply of raw materials for the petrochemical manufacturing industries. Strict environmental regulations, along with declining crude oil production, are predicted to negatively affect the supply for refining and refining operations. Challenges for the worldwide lubricants market include growing call for high-performance lubricants and investment delays related to new factories. Industry expansion can be accompanied by the automotive sector and economic recovery.

Lubricants Market Segmentation:

Lubricants Market By Base Oil:                                                                                         

• Mineral oil
• Synthetic oil
• Bio-based oil

Mineral oil is the biggest sector of the lubricant industry owing to its easy availability and less price.

Lubricants Market By Product Type:

• Engine oil

• Hydraulic fluid

• Metalworking fluid

Engine oil is predicted to dominate the worldwide lubricants market during the foreseen period, followed by hydraulic oil.

Lubricants Market By Application:

• Transportation

• industrial lubricants

The call for lubricants is high in the transportation segment due to the increase in the number of vehicles on the roads in China and the escalating call for transportation in India and ASEAN.

Lubricants Market Regional Analysis:

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa 

APAC is predicted to account for the majority of the worldwide lubricants industry during the foreseen period, in terms of volume and value. The region's growing population, coupled with increased spending in the industrial sector and infrastructure development in the developing markets of China, India, and Indonesia, should make this region an ideal destination. for the lubricant industry. Europe is predicted to account for the second-largest share of the worldwide lubricants industry during the foreseen period, both in volume and value. The main factor is the expansion of various industrial sectors, along with the escalating number of automobiles in the countries. However, Russia is predicted to record the highest expansion rate among European countries due to political differences. Russia is not part of the EU and therefore does not comply with strict automotive regulations and standards. The escalating call for machinery maintenance in the manufacturing sector to minimize operating costs will drive the expansion of the company in the future.

Asia-Pacific is predicted to see expansion during the foreseen period, subject to escalating calls from the machining, mining, plastics, and metal-forming industries, mainly in China and India. leading to an expansion of capacity. The lubricants market in India is predicted to grow more than 11%, in terms of revenue during the foreseen period, due to strong domestic consumer calls for lubricants in the automotive and manufacturing industries. APAC faces rapid expansion in the industrialization, construction, and automotive industries, which are driving the overall call for lubricants. Significant investments are made by the main players in the region, which opens up expansion prospects in the lubricants market. China dominates APAC with several industrial activities underway in the country. Furthermore, the escalating call in the Indian market for industrial lubricants is also evident.

Lubricants Market Key Players:

1. Royal Dutch Shell Plc. (Netherlands)
2. ExxonMobil Corporation (U.S.),
3. Chevron Corporation (U.S.)
4.  BP p.l.c. (U.K.)
5. Total S.A. (France)
6. Petrochina Company Limited (China)
7. Sinopec Limited (China)
8. LUKOIL (Russia)
9. Fuchs Petrolub AG (Germany)
10. Idemitsu Kosan Co. Ltd (Japan)