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The global lubricants market size was valued at USD 124.14 billion in 2019 and it is projected to reach USD 126.29 billion by 2027, exhibiting a CAGR of 3.92% during the forecast period.
Lubricants are fluids, oils, or greases that reduce the friction between two surfaces when they are in mutual contact with each other. These fluids play an important role in automotive and industrial applications, as they help to reduce friction between the operating parts. They are also used to prevent the machinery parts from corrosion, thermal stability, and oxidation.
The global market is segmented on the basis of type into automotive, industrial oil, marine oil, and process oils. The automotive and industrial segments hold a major share in the global market. Moreover, the industrial segment is further sub-divided into hydraulic oils, industrial gear oils, metalworking fluids, greases, and others. In terms of grade, the market is segmented into mineral, synthetic, and semi-synthetic. The mineral segment holds the largest share in the global market, owing to the ease of availability and low cost as compared to the synthetic ones. The major applications include automotive, industrial, and others. They are mostly consumed in the automotive industry due to their possession of numerous properties, such as heat resistance and high density.
Manufacturers are Inclined towards Production of Polypropylene to Give Helping Hands for COVID-19
The prolonged effect of COVID-19 is expected to showcase in 2020 and 2021. As per the new government regulations, such as less CO2 emission and the eco-friendly fluids, this industry was already facing numerous problems since 2019, and the global pandemic crisis has worsened the situation. The sale of lubricants in this situation is expected to decline by 15-30% in 2020 and its long effect is expected to reflect in 2021 also. To compensate the loss and to help in the global cirisis, major players such as 3M and ExxonMobil diverted their production to polypropylene. For instance, ExxonMobil increased its manufacturing facility for poplyproplene, which is useful for the production of masks, medical shields, gowns, and hand sanitizers. The company helped to produce 200 million masks, 20 million gowns, and 50 million bottles of hand sanitizers.
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The emergence of OEM genuine lubricants oils is a key trend in the global market
The major OEMs have strong brand image and have already established themselves in the market. The companies are considering it as an advantage and are coming up with their own lubricant products. The success of major OEMs lies in the growing service network of the major players. The brands are also sold in the local retail market, and the strong brand names often helps them to sell the products. Most of the players have launched innovative products to expand their product portfolio revenues and to strengthen their position in the market.
Growing Demand from End-use Industries is Likely to Drive this Market
The governments of various nations are encouraging the OEMs for the usage. The objective behind this is to develop more environment friendly products and to create energy saving engines. The engine parts that lack lubrication are more prone to frictions and thus, they utilize more fuel, leading to emission and pollution. In order to support the government initiatives, many OEMs have entered into agreements with the lubricant manufacturers, which, in turn, is driving the market globally.
Additionally, an increase in industrialization with new innovations and technologies are expected to have a positive impact on the growth of the market. Many industries have great demand as they increase the efficiency of their equipment and machineries.
Demand for EV May Restrain Market Growth
The market is facing new challenges due to the ever-increasing demand for electric vehicles (EVs). EVs do not have engines and thus, there is no such use of lubricants. Thus, the market has been declining since 2019 and this is expected to take a heavy toll. The percentage of EV in the vehicles market is epected to rise from 15% to 25% till 2025 and thus, this can cause a reduction in the usage.
Automotive Segment to Generate Highest Revenue Backed by High Demand from Developing Nations
The automotive segment is expected to hold the largest lubricants market share owing to the escalating demand from the automotive sector. Economic growth in the developing countries is further increasing the ownership of vehicles, which will spur the demand. However, the overall lubricant segment is expected to showcase a steady in developed countries such as the U.S. and Japan.
The industrial segment holds a significant share in the global market due to rapid industrialization in the developing countries. Industrial lubricants are used in a variety of equipment to improve the performance level of the components. They are mostly used in gear, compressors, turbines, and other processing equipment. The marine oils and process oils segments hold smaller shares as compared to the automotive and industrial segments due to their less number of applications.
Mineral Grade Segment Holds Significant Share Owing to Their Usage in Several Industries
Mineral grade is the most commonly used product as it is cost-effective, as compared to the synthetic and semi-synthetic. Moreover, they are derived from crude oil and are produced in large quantities to be used in various industries such as metal & mining, oils, and others. Mineral grade are available in light grade, as well as heavy grade, and the usage is completely dependent on the end-use requirements.
Synthetic ones are composed of base oil, thickeners, and also additives. They provide various advantages over the mineral based products. They provide extra weather protection, improve fuel economy, reduce oxidation, and provide considerable high growth in engine power. Owing to these growing advantages, the segment is expected to grow exponentially over the forecast period.
Semi-synthetis, which are also known as synthetic blend oils, contain small amounts of synthetic oil and are blended with mineral oils to boost their properties without increasing the cost. Semi-synthetic oil offers better performance at lower temperatures, which is set to fuel its demand in the automotive applications.
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Automotive Segment to Exhibit High CAGR Stoked by Rising Possession of Vehicles
The automotive segment held the largest share in the global market. They are anticipated to showcase ascendant demand over the coming years due to the rising possession of commercial vehicles by customers. Automotive lubricants are used to reduce the friction between two components of the vehicle and they also help in controlling the temperature by absorbing the heat generated by the moving parts.
Rising industrialization is expected to increase the demand for industrial lubricants in the global market. They are designed to keep the equipment running at high speed with maximum efficiency. They are extensively used in numerous industries such as manufacturing, oil & gas, food processing, and others.
The other applications include marine, aviation, military and others. Marine lubricants are designed for high, medium, and slow speed marine engines. These are also used in the aviation industry in a wide range of applications such as gears, bearings, piston rings, and others.
Asia Pacific Lubricants Market Size, 2019 (USD Billion)
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Asia Pacific is anticipated to remain a key region in the market during the forecast period owing to the rising demand from the industrial and automotive applications. The market in this region is mainly driven by factors such as rising population and increasing expenditure in several industrial sectors. The rising population is creating a high demand for vehicles or passenger cars, which, in turn, will create a subsequent demand.
Asia Pacific is the largest consumer, with China holding the largest share. Asia Pacific is expected to exhibit the highest growth in the market across the globe. China, Japan, and India are the key countries contributing to the market growth in the region owing to the increasing demand from the automotive sector.
On the other hand, Europe is projected to showcase significant growth in the market. The increasing development for high-end machineries and equipment for industrial applications is expected to drive the market in this region. Also, an increasing demand for equipment flexibility and the necessity to surge the efficiency of vehicles are expected to drive the key market.
The demand for lubricants in Latin America was negatively affected by the economic downturn, but it still has above average demand mainly due its requirement from the automotive industry. Iran accounted for the largest market share in the Middle East, with Egypt accounting to be the largest market in Africa, owing to the higher consumption in transportation industry in this region.
Market Players to Strengthen Their Positions by Offering Various Lubricant Solutions
The major producers are located in Europe, but the demand is high from Asia Pacific. It is leading to the creation of a consolidated market. The producers in North America and Europe are continuously engaged in mergers & acquisitions in order to strengthen their market position and to drive the business growth. As a result, the key players in the market have developed strong regional presence, distribution channels, and product offerings.
A growing trend is observed in the penetration of the market across the industries.
The lubricants market research report provides qualitative and quantitative insights on the market and a detailed analysis of the market size & growth rate for all possible segments that exist in the market. The market is segmented by type, grade, application, and geography.
An Infographic Representation of Lubricants Market
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Lubricants market by Based on type, the market is classified into automotive, industrial, marine oil, process oil. By grade, the market is segmented into mineral, synthetic and semi-synthetic. By application, the market is divided into automotive, industrial and others. Geographically, the market has been analyzed across five major regions, which are North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. These regions are further categorized into countries.
Along with this, the report provides an elaborative analysis of this market dynamics and competitive landscape. Various key insights presented in the report are the price trend analysis, recent industry developments in this market, the regulatory scenario in crucial countries, macro, and microeconomic factors, SWOT analysis, and key lubricants industry trends, competitive landscape and company profiles.
Value (USD Billion/USD Million) and Volume (Million Ton/Kilo Ton)
Fortune Business Insights says that the lubricants market was valued at USD 124.14 billion in 2019 and is projected to reach USD 126.29 billion by 2027.
The market will exhibit a steady growth at a CAGR of 3.92% in the forecast period (2020-2027).
The automotive segment is expected to be the leading segment in the market.
The increasing demand for smooth and effective functioning of machines is driving the market growth.
Asia Pacific is expected to hold the highest share in the market.
Automotive is expected to drive the adoption.
The rising demand for smooth working engine parts is the market trend.
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