Lubricants Market Overview:
A report released by the U.S. Energy Information Administration estimates that the total US exports of lubricants reached to 36,215 thousand barrels in 2017. As per The European Automobile Manufacturers Association (ACEA), 98.9 million motor vehicles were produced globally in 2017. Increasing sales of vehicles and rising demand for lightweight as well as heavy-duty vehicles is majorly enhancing the demand for the automotive lubricants. The demand for lubricants from the different sector is creating numerous opportunities in the lubricants market which had a market size of around $123 billion as of 2018. Furthermore, the demand for lubricants will observe a compound annual growth rate (CAGR) of around 2.8% during the forecast period of 2019 to 2025.
APAC is facing a rapid expansion of the industrialization, construction, and automotive industries that are driving the overall demand for the lubricants. A considerable amount of investments are done by the major players in the region that is leading to growth prospects in the lubricants market. China dominates APAC with several industrial activities on-going in the country. Moreover, the demand upsurge in the Indian industrial lubricants market is also evident. Owing to the fact that the lubricants market in both the segments – types and application is booming in APAC countries, the region held the maximum market share that was assessed around 42% in 2018.
Lubricants Market Outlook:
Lubricants are used to reduce the friction among the surfaces, which in turn, helps to reduce the heat generated. Some of the major properties of lubricants are lubricity, demulsibility, high boiling point, corrosive prevention, and thermal stability. Acceleration in economic growth is primarily increasing the number of on-road vehicles. The demand for vehicle maintenance is boosting lubricant demand. The usage of lubricants in automotive is the key application segment which is estimated to grow with a CAGR of around 5.2% through to 2025.
Lubricants Market Growth Drivers:
- Rise in the Disposable Personal Income
Majorly, growing middle-class incomes and the subsequent increasing demands of two-wheelers and four-wheelers is increasing the production and sales of new vehicles, which is the major reason driving the lubricants market. Increasing demand for vehicle oils is also resulting in higher prices of the fuel in the market, however, with lubricants, the efficiency and longevity of the vehicles can be improved, and therefore, the customers are leveraging it for greater return on investment.
- The Progress of the Marine Lubricants Market
The Growth in global seaborne trade along with the increasing tourism activities with the tangible surge in recreational sports will drive the growth in the demand for marine lubricants in the market. Furthermore, the development in the offshore drilling activities to meet increased demand for crude and petroleum-based products from the chemical and refining industry will aid to the demand for marine lubricants.
- The Demand from the Growing Wind Energy Sector –
The installation of wind turbines is increasing continuously every year. Gear oils are used for lubrication of the gear motor, gearbox, and other components. The process of power generation with wind turbines is stringent and involves load weights, corrosion and oxidation, high temperature, and bearing wear. The enhanced properties of gear oils are required to improve the efficiency of the wind turbine, hence there is an increasing demand for synthetic gear oils in wind turbines. Power generation from wind energy is rising at a swift speed that is also demanding the installation of wind turbines. Wind turbines are fueling the demand for gear oils that are driving the lubricants market.
- The Power Generation Sector Helping the Market Demand to Grow –
The power generation sector is the major contributor to the growth of the economy. Advancements in manufacturing technologies and setting up of different power plants require lubricants for the smooth working of the engine. The different sources of power generation including wind, solar, thermal, and hydro turbines are now widely used, which in turn, is increasing the demand for lubricants that is driving the lubricants market.
Lubricants Market Trends:
- ExxonMobil has recently opened the Port Allen lubricant plant with $200 million investment. It is estimated that the demand for aviation fuels and lubricants will increase by 55% by 2040. The advanced manufacturing techniques such as a high-speed quart line, in-line blending, and flow-through racking are now in demand. This technology helps to increase the electrical energy efficiency which is leading to growing demand in the lubricants market.
- Improved technologies along with environmental concerns are causing recovery of bio-based and synthetic lubricants. The improved version of bio-based grease demands for more compatible additives to sustain with oxygen-containing esters in the oils. Oils from algae or exotic plants with a mixture of minerals synthetic oils or plant-based oils increasing demand for new feedstocks in the lubricants market.
Lubricants Market Challenges:
Under strict rules and laws by the government to improve the fuel economy and emission outputs, various OEMs are working to bring down the emissions by using efficient filters and advanced engine management systems. The drive to reduce CO2 level is leading to thinner oils. Thinner oils are impacting the friction level, especially in heavy vehicles. The idea of improvements of lubricants can be done using viscosity modifiers and dispersant technologies that is helping the engineers and OEMs to overcome the challenge without affecting the lubricants market growth.
Lubricants Market Key Players Perspective:
Some of the major players in the lubricants market are Royal Dutch Shell PLC (The Netherlands), ExxonMobil Corporation (US), British Petroleum Plc ((UK), Chevron Corporation (US), Total SA (France), Petrochina Company Limited (China), Sinopec Limited (China), Lukoil (Russia), Fuchs Petrolub AG (Germany), and Idemitsu Kosan Co. Ltd. (Japan).
Lubricants Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the lubricants Market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of lubricants market, and its segmentation on the basis of type that includes engine oil, gear oil, hydraulic fluid, metalworking fluids, greases, turbine oil, and compressor oil.
Lubricants Market Report: Industry Coverage
The report analyses the product demands by the Lubricants Market on the basis of base oil that includes mineral, synthetic, and bio-based and on the basis of an application that include automotive and industrial.
The lubricants market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
Key Questions Addressed in the Lubricants Market Report
Is the market demand for lubricants growing? How long will it continue to grow and at what rate?
Which type of lubricants presents the major growth opportunities?
Is there a possibility for change in the market structure over time?
Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?
Do the key vendors look for partnerships to expand their businesses with respect to geography or product?
What are the short-term, long-term, and medium-term growth drivers for the market?
What are the short-term, medium-term, and long-term challenges for the market?
What are the short-term, medium-term, and long-term opportunities for the market
Who are the top players/companies of the market?
What are the recent innovations in the market?
How many patents have been filed by the leading players?
What are the types of patents filed by the leading players?
What is our Vision 2030 for lubricants market?
A Few Focus Points Of This Research Are Given Below:
- Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies
- Provide an overview of the product portfolio, including product planning, development, and positioning
- Discuss the role of technology companies in partnerships
- Explore the regional sales activities
- Analyze the market size and giving the forecast for current and future global lubricants market during the forecast 2019–2025
- Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures