LUBRICANTS MARKET ANALYSIS

Market Size and Trends

Global lubricants market is estimated to be valued at USD 144.60 Bn in 2024 and is expected to reach USD 186.47 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 3.7% from 2024 to 2031.

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The demand for automotive lubricants is likely to increase due to rising production and sales of vehicles. Growing manufacturing activity along with increasing consumption of machinery and equipment across industries is expected to boost demand for industrial lubricants. Rapid industrialization and urbanization in emerging economies are further expected to create new opportunities for lubricant manufacturers over the coming years. However, stringent environmental regulations regarding carbon emissions may negatively impact the growth of the market. Innovative product development and use of bio-based and synthetic lubricants are expected to provide opportunities for sustainable growth in the global lubricants market.

Rising Automotive Industry

Global automotive industry has witnessed robust growth in the recent years with rising vehicle production and sales worldwide. According to various estimates, there were around 60 million passenger cars and commercial vehicles manufactured across major markets in 2017 alone. As vehicle fleet increases globally with higher automobile ownership, it directly leads to higher demand for various automotive lubricants. Lubricants such as engine oil, gear oil, brake fluid, grease, and others are critical components for smooth functioning as well as increasing the lifespan of different vehicle parts that are subjected to friction and wear during operations. Most vehicles require oil change and fluid check or refill at regular intervals as per manufacturer's guidelines. This recurring demand from aftermarket sustains consistent sales of lubricant products even after the sale of new vehicles. With developing countries increasingly adopting personal motorization, their vehicle parc is expected to rise exponentially in coming years.

Market Concentration and Competitive Landscape

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Majority of lubricants consumed worldwide are utilized for various industrial machinery and equipment deployed across wide-ranging sectors. Whenever there is new infrastructural construction or capacity expansion taking place in any industry, it leads to higher installation of new plants, assembly lines, mining equipment, and energy plants. All of these machinery demand application of lubricants for smooth functioning of their mechanical parts as well as to reduce friction between moving components. As globalization accelerates manufacturing activities and various emerging economies vigorously pursue industrialization, their needs for industrial lubricants proliferate concurrently. For instance, rapid growth of sectors such as power generation, steel, cement and mining in Asia Pacific nations has substantially escalated regional lubricant consumption in industrial segment. Ongoing investments in infrastructure modernization of urban centers and smart city projects also create incremental demand for lubricating specialized construction equipment and machinery engaged in these large-scale developments. Therefore, continued industrial upgrading and infrastructure growth worldwide can drive the growth of global lubricants market.

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Synthetic lubricants are posing a serious threat due to their superior properties over conventional mineral oil lubricants. Stringent environmental regulations regarding emission standards and use of bio-based lubricants are further expected to negatively impact demand for mineral oil lubricants.

Opportunities: Growing demand from the transportation sector

Growing demand from the transportation sector due to increasing vehicle fleet is estimated to boost the sales of lubricants. Additionally, rapid industrialization and infrastructure growth in emerging nations of Asia and Africa will propel the demand for lubricants from various machinery and equipment employed. New product launches catering to evolving emission standards also allows companies to gain an edge over competitors.

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In terms of base oil, mineral segment is estimated to contribute the 40.8% share of the market in 2024, owing to its widespread industrial applications. Mineral oil is derived from crude oil through conventional refining and offers strong heat and oxidation resistance at relatively low costs. These attributes make it highly suitable for lubricating engines, turbines, compressors, and other moving parts in various industries. As industries across sectors continue to scale up operations amid rapid urbanization and economic growth worldwide, demand for heavy-duty machinery and equipment is rising exponentially. This directly boosts consumption of mineral oil-based lubricants used for hydraulic systems, bearings, gears, and other industrial machinery. Moreover, mineral oil formulations can withstand higher temperatures and pressures as compared to other base oils. This makes it the preferred lubricant base for industries involving metalworking, construction, mining, power generation, and oil & gas exploration activities. With industrialization continuing to gain pace globally, especially in developing nations, demand for mineral oil-based lubricants is expected to remain strong.

Insights, By Product Type: Engine optimization drives engine oil sales

In terms of product type, engine oil segment is estimated to contribute the 36.7% share of the market in 2024, owing to continuous efforts by automakers to enhance fuel efficiency. Engine oil forms the lifeblood of automobile engines and helps in critical functions like engine cooling, rust and corrosion protection. With governments across regions imposing stringent fuel efficiency and emission standards, automakers are focusing on engine downsizing and optimization techniques. Technologies like turbocharging and direct fuel injection enable remarkable improvements in engine performance but also place higher thermal and operational stresses on engine parts. This has prompted engine oil manufacturers to innovate formulations with advanced detergency and dispersancy properties to remove sludge, keep engines clean and facilitate optimal fuel combustion. Simultaneously, lower viscosity grades suitable for modern small-displacement turbocharged engines are also gaining demand. As automakers prioritize engine optimization, demand for high-performance engine oils offering better lubrication and protection will continue propelling the engine oil segment.

Insights, By End User: Growth in industrial sectors and infrastructure drives Heavy Equipment demand

In terms of end user, automotive and other transportation segment is estimated to contribute the 34.4% share of the market in 2024, driven by growing mobility needs worldwide. Countries are aggressively undertaking projects in sectors like construction, mining, power generation, manufacturing, and agriculture requiring heavy machinery. Lubricants form an integral part of heavy equipment and play crucial roles like dampening friction between moving parts, carrying away heat, protecting against rust and corrosion. Modern heavy equipment is engineered for maximum uptime and efficiency necessitating continuous lubrication. This stimulates sales of heavy duty lubricants customized for excavators, cranes, bulldozers, drilling machines and other tools. Further, maintenance of existing infrastructure and national development agendas involving roadworks, airports, ports, rail also involve heavy equipment. Sustained government focus on industrialization through policy reforms and funding is boosting procurement of heavy machinery. This boosts sales of lubricants tailored for construction and mining applications.

Regional Insights

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North America has established itself as the dominant regional market for lubricants globally with estimated 37.8% share in 2024. The region enjoys a strong presence of key lubricant manufacturers as well as an robust industrial sector that demands significant volumes of lubricants across various end-use verticals such as automotive, industrial machinery, and metalworking. Countries like the U.S. and Canada have very well-developed automotive and transportation industries that are among the largest consumers of automotive and industrial lubricants. With presence of automotive giants and a massive vehicle parc, the automotive lubricants segment alone contributes over 30% of the regional lubricants demand.  North America is also a prominent exporter of lubricant products. Several lubricant brands from the region have established themselves globally and have sizeable export volumes into markets across Asia Pacific and Latin America. Additionally, the pricing of lubricant products in North America is also relatively stable compared to volatility seen in other regions, allowing for steady margins.

The Asia Pacific region has emerged as the fastest growing market for lubricants globally in recent years. Countries like China, India and Indonesia have witnessed massive growth in their industrial and automotive sectors which has fueled the demand for lubricants. China, in particular, has become the largest automotive market as well as a global manufacturing hub. Both these factors have significantly boosted the consumption of automotive and industrial lubricants. In addition, the rapidly expanding populous middle-class in the region has increased demand for consumer goods and appliances, thus driving the volume growth of lubricants through the process of lubrication.  While domestic demand serves as the key growth driver, Asia Pacific has also turned into a prominent trade zone for lubricants worldwide. China has become a leading exporter of base oil - a key raw material - as well as finished lubricant products. Other small economies like Vietnam and Malaysia have developed into global manufacturing hubs attracting significant foreign investments, thereby, boosting in-country demand. This has made Asia Pacific emerge as the epicenter of highest growth rates in the global lubricants industry landscape.

Market Report Scope

Key Developments

• On April 2024, Savsol Lubricants, a leading player in automotive and industrial lubricants, has launched Savsol Ester 5, a biodegradable lubricant targeted at high-end applications, automotive and Railways.
• In January 2024, Shell U.K. Limited has completed the acquisition of MIDEL and MIVOLT, from Manchester-based M&I Materials Ltd.
• In 2023, TotalEnergies Lubrifiants is accelerating the incorporation of recycled plastics into its lubricant bottles with TotalEnergies Polymers
• In 2023, HPCL and Chevron collaborated to introduce Caltex lubricants, including Havoline and Delo, to the Indian market

*Definition: Global lubricants market consists of various types of lubricating oils and greases used to reduce friction between moving parts and components. Lubricants are essential for transportation vehicles as well as numerous industrial applications across sectors like construction, mining, food processing, and manufacturing. The global lubricants industry provides lubricating formulations for engines, transmission systems, hydraulic equipment, and other machining operations requiring lubrication to optimize efficiency and minimize equipment wear and tear.

Market Segmentation

• Base Oil Insights (Revenue, USD Bn, 2019 - 2031)
  • Bio-Based
  • Mineral
  • Synthetic
•  Product Type Insights (Revenue, USD Bn, 2019 - 2031)
  • Engine Oil
  • Transmission/Hydraulic Fluid
  • Metalworking fluid
  • General Industrial Oil
  • Gear Oil
  • Grease
  • Process Oil
  • Others
•  End User Insights (Revenue, USD Bn, 2019 - 2031)
  • Power Generation
  • Automotive and Other Transportation
  • Heavy Equipment
  • Food and Beverage
  • Metallurgy and Metalworking
  • Others (Chemical Manufacturing, etc.)
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Royal Dutch Shell Co.
  • ExxonMobil Corp.
  • BP PLC.
  • Fuchs
  • Blaser Swisslube Inc.
  • Total Energies
  • Chevron Corp.
  • Castrol India Ltd.
  • Amsoil Inc.
  • JX Nippon Oil & Gas Exploration Corp.
  • Philips 66 Company
  • Valvoline LLC
  • PetroChina Company Ltd.
  • Idemitsu Kosan Co. Ltd.
  • Petrobras
  • Petronas Lubricant International
  • Quaker Chemical Corp.
  • PetroFer Chemie
  • Buhmwoo Chemical Co. Ltd.
  • China Petrochemical Corp.