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The lubricants market size is forecast to increase by USD 23.8 billion, at a CAGR of 3.22% between 2023 and 2028. The market's growth is fueled by several primary factors. Foremost is the rising demand from end-user industries, indicating robust economic activity and expansion across various sectors. Concurrently, there's a heightened emphasis on reliable machinery and its effective maintenance, underscoring the importance of operational efficiency and productivity enhancements. Moreover, the burgeoning global marine industry plays a pivotal role, driving demand for specialized equipment and services tailored to maritime operations. These factors converge to create a dynamic landscape ripe for market growth, where the interplay between industrial demand, maintenance requirements, and sector-specific trends propels the advancement of machinery and related industries. It also includes an in-depth analysis of drivers, trends, and challenges. Our market growth and trends report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
Lubricants are substances that are used to control or reduce friction between two surfaces or components in equipment and machinery. These high-performance substances are used in various end-user industries as anti-wear additives, corrosion inhibitors, viscosity index improvers, friction modifiers, and extreme pressure additives. High-performance lubricants possess excellent thermal stability and lubricity, a high boiling point, specific gravity, and viscosity index, and a low freezing point.
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The lubricants market is experiencing a surge in demand driven by diverse applications, ranging from high-performance engines in automotive sectors to marine applications in seaborne trade and the tourism sector, particularly in cruise ships. Additionally, the construction sector relies on lubricants for heavy-duty construction equipment, ensuring efficient lubrication for enhanced longevity and performance. Various formulations, including solid, semi-solid, and liquid viscous hydrocarbon compounds, cater to specific requirements. From traditional mineral oil lubricants to advanced semi-synthetic lubricants, the market offers a wide range of options for engine oil and transmission and hydraulic fluid needs. Different viscosity grades, such as Group I, accommodate diverse operating conditions, ensuring optimal performance and reliability across industries. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand from end-user industries is a key factor driving the growth of the market. Lubricants play a crucial role in various industries, including automotive, construction, steel and cement, wind energy, agriculture, mining, oil drilling, marine, and aerospace. In construction, they are essential for their anti-wear properties and resistance to corrosion, benefiting equipment like excavators and loaders.
Additionally, the steel and cement industry relies on lubricants to improve equipment lifespan, efficiency, and wear resistance. Mining, oil drilling, and agriculture sectors also heavily utilize them in various applications, such as engine oils, gear lubricants, and greases, to enhance performance and reduce maintenance costs. Overall, the increasing utilization of lubricants in these industries will drive market growth in the future.
The adoption of bio-based lubricants in the global market is one of the latest trends followed by end-users and manufacturers. Companies manufacture biodegradable lubricants. Compared with petroleum-based lubricants, bio-based lubricants produce a cleaner, less toxic work environment for the engine and hydraulic system workers. They also cost less over the product lifecycle owing to less maintenance, storage, and disposal requirements. These environment-friendly lubricants offer better safety due to higher flashpoints, constant viscosity, and less oil mist and vapor emissions. Many companies are focusing on bioaccumulation and eco-toxicity to reduce adverse impacts on the environment. The use of bio-based lubricants can reduce pollution in stormwater from the engine, hydraulic systems, and brake line leaks.
Further, many European countries now require bio-based lubricants in certain environmentally sensitive applications. RSC Bio Solutions, the US-based lubricant manufacturer, offers bio-based lubricant under the trade name FUTERRA, a plant-based lubricant. In addition, Castrol and FUCHS are also manufacturing environment-friendly lubricants tailored for specific applications. These bio-based lubricants degrade gradually and leave minimal traces in the environment, aligning with sustainability goals. Thus, these advantages will increase their adoption in the Germany automotive engine oil market and, in turn, drive market focus during the forecast period. As regulations and consumer preferences in Germany increasingly favor eco-friendly products, the demand for bio-based lubricants from manufacturers like RSC Bio Solutions, Castrol, and FUCHS is expected to grow, supporting the expansion of the automotive engine oil market in the region.
Fluctuations in crude oil prices are a major challenge that may hinder the growth of the market. The production of lubricants primarily relies on the fractioning process of crude oil. Mineral oil-based lubricants hold a significant portion of the global market and depend on raw materials supplied by the oil and gas industry. Fluctuations in crude oil prices have a detrimental effect on the cost of marine lubricants.
Likewise, in 2021, global crude oil prices rose due to increased vaccination rates, easing pandemic restrictions, and global economic recovery, resulting in higher petroleum demand than supply. This heightened demand and decreased supply led to increased crude oil prices. Additionally, price volatility and the availability of raw materials, such as crude oil for lubricant manufacturing, directly impact the revenue and profit margins of lubricant manufacturers.
The automotive oils segment is anticipated to experience substantial market share growth. The increased production and demand for automobiles, particularly in developing nations, have fueled their need in the automotive industry. The rising demand for passenger cars, especially in countries like China, India, Brazil, and Indonesia, is expected to drive the expansion of the automobile sector, consequently boosting its demand.
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The automotive oils segment has witnessed a steady increase in market share, growing from USD 70.10 billion in 2018. Automotive lubricants play a crucial role in various applications such as engine oils, hydraulic oils, and shock absorber fluids. They effectively reduce friction and wear, leading to improved fuel efficiency and a longer lifespan for automotive components. Lubrication also prevents component seizures and serious damage. Additionally, they demonstrate high resistance to oil degradation and minimize evaporation, resulting in enhanced fuel efficiency. Their demand is further driven by their use in new applications, including battery cooling and noise reduction.
APAC is estimated to contribute 40% to the growth of the global market during the projection period.
Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The market in the Asia-Pacific region is driven by high consumption in industries such as automotive, construction, and refining. Key countries like China, India, Japan, and South Korea contribute significantly to the demand. The market is diverse due to rapid industrialization, business sector expansion, and the presence of local companies. The automotive industry, along with sectors like heavy engineering, steel manufacturing, mining and refining, and plastics and polymers, fuels their demand within the UAE lubricants market. Manufacturers in this sector focus on branding and strategic collaborations, while investments in manufacturing industries further drive demand for lubricants. However, companies in the UAE lubricants market face challenges stemming from disparities in crude oil prices and domestic market prices of petroleum products. These disparities are influenced by factors such as fluctuating exchange rates, political situations impacting oil production, and global fluctuations in oil demand. Managing these challenges is crucial for maintaining stable pricing and ensuring supply chain reliability in the competitive landscape of the UAE lubricants market.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Arabian Petroleum Ltd., BP Plc, Chevron Corp., CONDAT, ENEOS Holdings Inc., Exxon Mobil Corp., FUCHS PETROLUB SE, Gazpromneft Lubricants Ltd., GP Global, Idemitsu Kosan Co. Ltd., Indian Oil Corp. Ltd., Novvi LLC, Oil and Natural Gas Corp. Ltd., PETRONAS Chemicals Group Berhad, Phillips 66, PJSC LUKOIL, PT Pertamina Persero, Sinopec Shanghai Petrochemical Co. Ltd., and TotalEnergies SE
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing robust growth across various sectors, driven by the demand for specialty lubricants tailored for specific applications. From high performance engines in automotive and marine application to heavy-duty trucks, bulldozers, and tractors, lubricants play a crucial role in ensuring optimal performance and longevity of moving parts. In the transportation sector, including vehicles like ambulances, shuttle buses, and school buses, hydraulic fluids are essential for power transmission and hydraulic machinery. The market offers a diverse range of lubricant products, including industrial lubricants for commercial machinery, metalworking fluids for cutting and grinding operations, and automotive lubricating oils for engine components. Additionally, marine lubricants, essential for the maintenance and performance of marine vessels, also contribute significantly to the market, catering to the specific needs of marine engines and systems. With a focus on corrosion reduction and rust protection, lubricants also contribute to enhancing service life and reducing maintenance costs. Advanced formulations, such as polyalphaolefins and Group II to V base oils, cater to the evolving electric vehicles needs of industries, ensuring compliance with environmental regulations and improving the performance-to-efficiency ratio of equipment and vehicles.
Market Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.22% |
Market growth 2024-2028 |
USD 23.8 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.1 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 40% |
Key countries |
China, US, India, Japan, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arabian Petroleum Ltd., BP Plc, Chevron Corp., CONDAT, ENEOS Holdings Inc., Exxon Mobil Corp., FUCHS PETROLUB SE, Gazpromneft Lubricants Ltd., GP Global, Hinduja Group Ltd., Idemitsu Kosan Co. Ltd., Indian Oil Corp. Ltd., Novvi LLC, Oil and Natural Gas Corp. Ltd., PETRONAS Chemicals Group Berhad, Phillips 66, PJSC LUKOIL, PT Pertamina Persero, Sinopec Shanghai Petrochemical Co. Ltd., and TotalEnergies SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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