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The Global Lubricants Market Size is estimated to grow by USD 25.23 billion between 2022 and 2027 exhibiting a CAGR of 3.5%. Primary factors driving the market growth include increasing demand from end-user industries, increasing need for reliable machinery and its effective maintenance, and the growing global marine industry. This market research report contains key drivers, trends, and challenges shaping the industry’s growth.
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.
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, 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. 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. 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. These degrade gradually and, therefore, leave minimal traces in the environment. Thus, these advantages will increase its adoption and, in turn, drive the market to focus during the forecast period.
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.
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.
During the forecast period, 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 68.81 billion in 2017 and continued to grow until 2021. 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.
Based on product, the market is segmented into mineral oil-based, synthetic, and bio-based lubricants. The mineral oil-based lubricants segment holds the largest market share. The high demand for mineral oil-based lubricants can be attributed to their cost-effectiveness and widespread availability. These lubricants are derived from natural petroleum or crude oil through distillation, solvent extraction, and cracking processes. A key advantage of mineral oil-based lubricants is their large-scale production during petroleum refining, resulting in significantly lower costs compared to synthetic and bio-based alternatives.
APAC is estimated to contribute 41% 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 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. Manufacturers focus on branding and collaborations, while investments in manufacturing industries further drive demand. Companies face challenges due to disparities in crude oil prices and domestic market prices of petroleum products, influenced by factors like exchange rates, political situations, and global oil demand.
Companies are implementing various 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.
Hindujagroup- The company offers lubricants such as machine oil, metal working oils, and industrial oils.
This market research 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., Sinopec Shanghai Petrochemical Co. Ltd., 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, 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 as forecasted in this market research and growth report.
The lubricants market is witnessing significant growth driven by various factors such as process automation in industries and the increasing demand for vehicles across the globe. Moreover, the rapid expansion of the e-commerce industry and the growing focus on renewable energy sources are further propelling the market forward. Fluctuations in crude oil prices and stringent environmental norms are creating stress within the market, but technological advancements are helping mitigate these challenges.
The rise of hybrid vehicles and the achievement of battery price parity are reshaping the landscape, alongside the ongoing dominance of internal combustion engines (ICE). As electric car batteries improve, offering extended driving range and quicker charge times, the opportunity for lubricant manufacturers to cater to the renewable energy sector grows, particularly in applications such as turbine oil for the wind power generation segment. This presents a promising outlook for the global market, especially with the increasing capacity of wind turbines and the ongoing evolution of synthetic oil offerings.
This market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market growth and trends opportunities from 2017 to 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.5% |
Market growth 2023-2027 |
USD 25.23 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.0 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, India, Japan, and Russia |
Competitive landscape |
Leading Companys, Market Positioning of Companys, Competitive Strategies, and Industry Risks |
Key companies profiled |
Arabian Petroleum Ltd., BP Plc, Chevron Corp., Sinopec Shanghai Petrochemical Co. Ltd., CONDAT, ENEOS Holdings Inc., Exxon Mobil Corp., FUCHS PETROLUB SE, 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, 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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