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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 is witnessing significant growth due to the increasing demand from power generation, heavy equipment, chemical manufacturing, and the global automotive industry. The emergence of bio-based lubricants is a notable trend in the market, driven by environmental concerns and the need for sustainable solutions. Fluctuations in crude oil prices continue to impact the market, with price volatility leading to both opportunities and challenges for lubricant suppliers. In the power generation sector, the focus is on extending service life and reducing downtime through advanced lubricant technologies. In heavy equipment, wear and rusting remain key challenges, necessitating the use of high-performance lubricants. In the automotive industry, the shift towards electric vehicles (EVs) and changing engine designs pose new challenges, such as addressing flammability and gear wear, while maintaining optimal drain intervals. Additionally, the market serves various other industries, including oil and gas, aircraft, and marine, each with unique requirements and challenges.
The market is witnessing significant growth due to the increasing demand from various industries such as high-performance engines, marine applications, electric vehicles, seaborne trade, the tourism sector, and cruises. In the high-performance engines segment, the need for efficient lubrication to ensure longevity and reduce friction is driving market growth. In the marine application sector, the use of hydraulic fluids, mineral oil lubricants, synthetic lubricants, and semi-synthetic lubricants is essential for the smooth functioning of ships and boats. The construction sector is another major consumer of lubricants, particularly for heavy-duty construction equipment. Bio-based lubricants are gaining popularity due to their eco-friendly nature and superior performance.
Moreover, solid and semi-solid lubricants are used in applications where colliding parts require protection, such as in heavy machinery. The market is expected to grow further with the increasing demand for lubricants in electric vehicles and the development of new types of lubricants, such as Group I engine oils, synthetic lubricants, and semi-synthetic lubricants.
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 automotive oils segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth, particularly in sectors such as transportation and construction, due to the increasing use of hydraulic machinery and heavy-duty equipment. In the transportation sector, the escalating vehicle ownership rates in developing countries like China, India, Brazil, and Indonesia are fueling the demand for lubricants. These countries' construction sectors are also experiencing a boom, leading to an increased usage of heavy-duty construction equipment, which requires efficient lubrication for optimal performance and longevity. Lubricants serve a crucial role in reducing friction and wear and tear, thereby enhancing the efficiency and lifespan of various machinery components.
Moreover, hydraulic fluids, which are a type of lubricant, are extensively used in hydraulic machinery to ensure smooth operation and protect against corrosion. Moreover, the manufacturing, energy, and aerospace industries also rely heavily on lubricants in the form of oils, including bio-based lubricants, solid lubricants, and semi-solid lubricants. The use of protective materials as lubricants in colliding parts further ensures their longevity and reduces the risk of damage. Overall, the demand for lubricants is expected to remain strong in various industries due to their essential role in maintaining machinery efficiency and longevity.
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The automotive oils segment was valued at USD 70.10 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in the Asia Pacific (APAC) region is experiencing significant growth due to the increased utilization of hydraulic machinery in industries such as transportation, construction, and manufacturing. With rising vehicle ownership rates and the expansion of the heavy-duty construction equipment sector, the demand for efficient lubrication solutions, including hydraulic fluids and oils, is on the rise. The region's construction sector is a major contributor to the market's growth, as colliding parts in heavy machinery require protective materials to ensure longevity and reduce friction. The market is well-diversified, with offerings ranging from solid and semi-solid lubricants to bio-based options. In October 2023, HPCL and Chevron announced a collaboration to introduce Caltex lubricants, including Havoline and Delo, to the Indian market, further boosting the regional market's growth. The energy, aerospace, and other industries also contribute to the market's expansion in the APAC region.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for lubricants from end-user industries is the key driver of the market. The market extends beyond the automotive sector, catering to various industries such as construction, steel and cement, wind energy, agriculture, mining and oil drilling, marine, and aerospace. In the construction industry, lubricants are essential for construction equipment due to their anti-wear properties, resistance to corrosion, superior lubricity, water tolerance, and filterability. Hydraulic oils, derived from lubricants, are extensively used in heavy machinery like crawler excavators, mini excavators, wheeled excavators, wheeled dozers, and skid-steer loaders due to their excellent energy transmission capacity. In the steel and cement industry, lubricants are employed to prolong equipment drain/re-greasing intervals, enhance lubrication efficiency, improve wear resistance of friction pairs, and extend equipment lifespan.
Additionally, lubricants find extensive applications in marine applications, electric vehicles, seaborne trade, tourism sector, and the transportation sector for power transmission and lubricating moving parts in machinery, heavy-duty trucks, excavators, bulldozers, tractors, harvesters, and specialty and synthetic lubricants for specific applications.
Emergence of bio-based lubricants is the upcoming trend in the market. The market is witnessing a significant trend towards the adoption of bio-based lubricants. These eco-friendly lubricants are gaining popularity among end-users and manufacturers due to their numerous advantages. Bio-based lubricants are derived from renewable resources and are biodegradable, making them a more sustainable alternative to petroleum-based lubricants. They offer a cleaner and less toxic work environment for engineers and technicians working on high performance engines, marine applications, electric vehicles, and heavy machinery such as excavators, bulldozers, tractors, harvesters, and in the transportation sector for power transmission and moving parts. Bio-lubricants have a higher flashpoint, ensuring better safety and reducing oil mist and vapor emissions.
Moreover, their constant viscosity ensures consistent performance, and their biodegradable nature reduces pollution in stormwater from the engine, hydraulic systems, and brake line leaks. Leading lubricant manufacturers are focusing on reducing the adverse impacts on the environment by addressing bioaccumulation and eco-toxicity concerns. This shift towards bio-based lubricants is expected to gain momentum in industries such as marine applications, tourism sector, particularly in cruise ships, and heavy-duty trucks.
Fluctuations in crude oil prices is a key challenge affecting the market growth. The market caters to various industries, including high performance engines, marine applications, electric vehicles, and the transportation sector. Key consumers of lubricants are the oil and gas industry, marine applications, and the manufacturing sector, which includes machinery used in heavy-duty trucks, excavators, bulldozers, tractors, and harvesters. Specialty lubricants and synthetic lubricants, such as hydraulic oil, play a crucial role in power transmission and the lubrication of moving parts. Mineral oil-based lubricants, derived from crude oil through fractioning, dominate the market. The oil and gas industry is a significant supplier of these raw materials, making it a critical market influencer.
However, fluctuations in global crude oil prices impact the cost of these raw materials and, subsequently, the prices of marine lubricants. For instance, the global demand for petroleum rose faster than its supply in 2021 due to the recovery of the global economy and the easing of pandemic-related restrictions, leading to an increase in crude oil prices. This trend positively affected the demand for lubricants in the maritime sector, particularly in cruise ships and seaborne trade. Additionally, the electric vehicle market's growth is expected to increase the demand for specialty lubricants in the coming years.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Hinduja Group Ltd.- The company offers lubricants such as machine oil, metal working oils, and industrial oils.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 is witnessing significant growth due to the increasing demand from various sectors such as high performance engines, marine application, electric vehicles, seaborne trade, tourism sector, and cruises. Lubricants play a crucial role in reducing friction, protecting moving parts from wear and corrosion, and ensuring efficient lubrication in machinery and heavy-duty construction equipment. The transportation sector, including heavy-duty trucks, excavators, bulldozers, tractors, harvesters, and specialty lubricants, is a major consumer of lubricants. Synthetic lubricants, such as polyalphaolefins and hydraulic oil, are increasingly being used due to their superior performance and longevity. The construction sector also contributes significantly to the market, with the use of hydraulic fluids, oils, and lubricating surfaces in hydraulic machinery, equipment lifespan, and corrosion reduction.
Moreover, the demand for lubricants in the manufacturing industry, energy sector, aerospace, and automotive industry is also on the rise. Bio-based lubricants, solid and semi-solid lubricants, lubricant emulsions, cutting fluids, cooling lubricants, and lubrication products are some of the key types of lubricants used in various industries. The global automotive industry, including passenger cars and commercial vehicles, is a major consumer of automotive lubricating oils, such as engine oil, transmission fluid, and brake fluid. The market for high-performance lubricants is expected to grow due to the increasing demand for high-performance engines and the need to reduce wear, rusting, and flammability.
Similarly, the market for lubricants in the wind power industry is also expected to grow due to the increasing demand for renewable energy and the need for efficient power generation. Environmental emission regulations and the shift towards electric vehicles are some of the key challenges facing the market. The market for mineral oil lubricants, semi-synthetic lubricants, and metalworking fluid is expected to decline due to the increasing demand for synthetic lubricants and bio-based lubricants. In conclusion, the market is expected to grow significantly due to the increasing demand from various sectors, including transportation, construction, manufacturing, energy, and aerospace. The market for synthetic lubricants, bio-based lubricants, and high-performance lubricants is expected to grow at a faster rate due to their superior performance and environmental benefits. The market for mineral oil lubricants and semi-synthetic lubricants is expected to decline due to the increasing demand for synthetic lubricants and bio-based lubricants.
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Market Scope |
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Report Coverage |
Details |
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Page number |
189 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.22% |
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Market growth 2024-2028 |
USD 23.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.1 |
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Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 40% |
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Key countries |
China, US, India, Japan, and Russia |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market 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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