"Innovative Market Solutions to Help Businesses Make Informed Decisions"
The global industrial lubricants market size was USD 66.01 billion in 2020. The market is projected to grow from USD 67.55 billion in 2021 to USD 85.00 billion in 2028 at a CAGR of 3.3% in the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with industrial lubricants witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline of 2.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Lubricants that are used for industrial applications are considered industrial lubricants. The product is used to increase efficiency and boost performance of industrial machinery and equipment. A large variety of industrial fluids are formulated for preventing any damage caused by degradation while prolonging service intervals and increasing the work life of machinery. This performance boost in mechanics enhances productivity and provides high operational reliability. The product poses great use for turbine machines, power generation, metal & mining, and food & beverage applications. Rise in demand for products due to the aforementioned applications is further supporting the adoption of advanced machinery to improve & optimize productivity thereby augmenting the industrial lubricants market growth.
Market Decline is Owed to Severe Impact of COVID-19 on Textile Industry
The coronavirus outbreak has harshly impacted the lubricants market as a result of temporary shutdown of manufacturing facilities. This caused a lowering demand for the product for industrial applications as machineries and equipment were not being used. Moreover, the product is also used in automotive and marine applications as fuel and machine oils to keep the system working. The implementation of quarantine and ban over import and export has resulted in automobiles and marine vessels not being used, thus lowering product demand. Moreover, restriction of goods transportation to and from the country further disrupted the supply chain of raw material and finished goods. However, the pandemic has risen the demand for food & beverages, which is supporting the companies in revenue generation and leading to gradual normalization of the market.
Request a Free sample to learn more about this report.
Rising Shift Toward Bio-Based Oils is Creating Opportunities
There has been a recent shift toward improving and increasing the use of bio-based lubricants that use biodegradable feedstock-based base oils. Biodegradable raw materials include use of vegetable oils for making bio-based industrial lubricants. Companies are increasingly focusing towards creating an environmentally friendly base oil to reduce dependence on petroleum and other non-renewable raw material sources. This is further supported by the rise in regulations over use of traditional lubricants. Moreover, bio-based lubricants find application in the food processing industry and rise in environmental guidelines in the food & beverage industry is creating opportunities for bio-based products. The recent development in the healthcare industry has also led to the demand for products that have low toxicity and high biodegradability. All the factors together have provided growth opportunities for this market.
Growing Adoption of Automation in Manufacturing to Augment Market Growth
The rise in demand for automation in the manufacturing sector is driving the market during the forecast period. In manufacturing, the equipment is used from automated systems for production processes. Automation provides greater efficiency by growing production capacity, predictable maintenance, and reduced costs. These benefits also help the company in creating a wide variety of product types to attract consumers by having low investment and yielding a positive return on investment. The increasing use of automation has led to higher dependence on equipment and machineries which require proper maintenance and lubrication to function. These machineries include centrifuges, compressors, industrial engines, hydraulics, and bearings. This rise in demand for industrial equipment supported by automation is propelling the market growth.
Volatility of Raw Material Prices to Restrict Market Growth
The factor restraining the market is the volatile price of raw materials used for manufacturing industrial lubricants. Mineral & synthetic based base oils are primarily produced from crude oil, and continuous fluctuation in crude oil prices acts as a restraint for market growth. Moreover, stringent environmental regulations to reduce pollution and global warming are affecting the market. This includes restricting mining activities, control over Co2 emissions from factories and production facilities. These factors restrain the growth of this market.
Mineral Oil Segment is Dominant Share in Market
Based on base oil, the market is segmented into mineral oil, synthetic oil, and bio-based oil.
Mineral oil segment dominated the market due to easy availability and low manufacturing cost of the product. The rise of investment in the R&D activities in end-use industries such as chemical, power generation, and mining is driving the segment growth. Synthetic oil is expected to have fastest growth during the forecast period which can be attributed to the rising industrial activities that require high metal machinery demand for applications in steam and turbine power plants, compression plants, and wind turbines. The increasing demand for product for the above mentioned application is resulting in the segment growth.
Bio-based oil is derived from vegetable oils such as canola, sunflower, palm, coconut, and soya bean, and are biodegradable in nature. The segment growth can be attributed to the rise in shift towards eco-friendlier products due to governmental restrictions. These base oils are used in hydraulic fluids and engine oils, and increasing demand for these equipment is driving the product consumption.
To know how our report can help streamline your business, Speak to Analyst
Hydraulic Fluid Segment had Largest Share in Market
Based on application, the market is categorized into hydraulic fluid, metal working fluid, gear oil, grease, and others.
Hydraulic fluid segment accounted for largest industrial lubricants market share owing to the high usage in the variety of finished goods. This has led to the expansion of production capabilities and has caused manufacturers to depend on automated machinery for high production activity. Metal working fluids segments are used for functioning of metal parts in machinery during production operations. These fluids help in extending the tool life while also improving the machine performance. The increasing demand for metal based machinery for manufacturing activities is anticipated to drive the segment growth.
Gear oil is made from two components that are base oil and additives. The additives provide benefitting properties such as improved performance and protection. The product is primarily used in gearboxes where it provides thermal stability, oxidation and sludge formation reduction. Grease is used for keeping machines, vessels, vehicles, and components properly functioning. Moreover, other segments include use of lubricants in various end-use industries that includes marine, manufacturing, automotive, steel, construction, and mining.
Asia Pacific Industrial Lubricants Market Size, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
The market in Asia Pacific stood at USD 27.88 billion in 2020. The region has the largest share in the global market, which can be associated with rising economy and increasing industrialization. China, Japan, and India are specialized in manufacturing a wide variety of products for several end-use industries. Moreover, rise in middle class spending in developing nations of Southeast Asia, where consumers are becoming more affluent and use consumer goods products, is supporting the market growth.
In North America, the product demand can be attributed to rise in renovation activities and commercial sector development. Construction of these structures require high-end construction equipment, thus creating lubricant demand.
Europe has witnessed rapid automobiles production, where the product is used in machineries during manufacturing and assembling automotive parts. The growing automobile demand is driving the consumption of industrial lubricants.
To know how our report can help streamline your business, Speak to Analyst
Latin America and the Middle East & Africa are expected to have significant growth, which can be associated with the rising mining and oilfield drilling activities. Rise in industrial activities supported by automation technology is affecting the market positively in countries that include Brazil and South Africa. Whereas, Iran and Saudi Arabia are among the major countries using industrial lubricants due to high demand from construction, chemical, automotive, and mining industries.
Expansion Strategies by Global Leaders in Market to Strengthen Positions
The key industry players in the market are FUCHS, Repsol, Exxon Mobil, BP plc, Shell, Petrobras, and Hindustan Petroleum Corporation Limited. The key players have adopted growth strategies that include improving global presence by merger & acquisition, new product launch, capacity improvement, and investment to gain competitive advantage in the market. For example, in September 2021, RelaDyne, one of the United States leading providers of lubricants, fuel, diesel exhaust fluid, and industrial reliability services acquired PPC Lubricants, a prominent lubricant distributor in the Mid-Atlantic region.
An Infographic Representation of Industrial Lubricants Market
To get information on various segments, share your queries with us
The report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, and types. Also, the report offers insights into industrial lubricants market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.
Value (USD Billion), Volume (Million Ton)
By Base Oil, Product Type, and Geography
By Base Oil
By Product Type
Fortune Business Insights says that the global market worth was USD 66.01 billion in 2020 and is projected to reach USD 85.00 billion by 2028.
In 2020, the market size stood at USD 66.01 billion.
Growing at a CAGR of 3.3%, the market will exhibit steady growth during the forecast period (2021-2028).
The hydraulic fluid segment is expected to be the leading material.
The growing adoption of automation in manufacturing is one of the major drivers of the market.
FUCHS, Repsol, Exxon Mobil, BP plc, Shell, Petrobras, and Hindustan Petroleum Corporation Limited are the top players in market.
Asia Pacific dominated the global market in 2020.
The robust growth of environment-friendly base oil will drive the product adoption.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry