Global Lubricants Market is estimated to be valued at USD 144.60 Bn in 2024, exhibiting a CAGR of 3.7% over the forecast period 2024-2031. Furthermore, the demand for lubricants from growing automotive and transportation industries is also supporting the market growth.
Global lubricants market growth is driven by two key factors - increased vehicle sales and growing industrial activity. Rising disposable income levels in developing countries boosts automobile sales. As more people are able to afford personal vehicles, the demand for lubricants from the automotive industry is increasing steadily. Robust economic growth has resulted in higher manufacturing and industrial output across regions. The need for lubricants in various machinery, engines and other moving parts is directly associated with the pace of industrialization. Several industries like cement, metal processing, energy and construction rely heavily on lubricants for smooth functioning of their operations. Both increased vehicle usage as well as expanding industrial infrastructure will continue driving lubricant consumption over the forecast period.
Increasing Demand from Automotive Industry
The global automotive industry has been growing rapidly in the recent years with increased vehicle production and sales across major economies. Lubricants such as engine oil, gear oil, transmission fluid, and others are essential components in automobiles and their growing manufacture and use boosts demand for lubricants. As economic growth and purchasing power continue to rise in developing nations, automobile ownership is also projected to grow tremendously, ensuring steady consumption of lubricants by the automotive aftermarket in the coming years.
Growth of Industrial Machinery and Equipment Usage
With industrialization gaining pace worldwide, there is greater utilization of industrial machinery, heavy equipment, manufacturing units, and others. Proper lubrication is critical for smooth functioning and prolonged life of such assets. The expansion of industries such as manufacturing, mining, construction, energy, and others implies higher deployment of industrial machinery which will drive higher lubricant consumption for their maintenance and lubrication needs. Several countries are also undertaking major infrastructure development projects that involve heavy construction equipment and machinery requiring application of large quantities of lubricants.
Stringent Environmental Regulations
Growing environmental concerns have led to formulation of stringent regulations regarding the use and disposal of lubricants globally. Regulations pertaining to reduced emission of volatile organic compounds (VOCs) from lubricants along with bans on the use of certain toxic chemical additives are compelling lubricant manufacturers to develop environment-friendly bio-based and synthetic formulations. However, such ‘green lubricants’ are often more expensive than conventional petroleum-based varieties. The additional costs associated with developing and marketing environment-compliant lubricants can negatively impact the profits of companies.
Declining Demand from Manufacturing Sector
The manufacturing industry is facing challenges with rising labor costs, trade barriers and shifts towards automated production processes in developed markets. This has led several companies to move their manufacturing bases to other low-cost countries or relocate production closer to end-use markets, resulting in reduced local demand for industrial lubricants. Also, advanced robotics and additive manufacturing are replacing human-operated machinery to some extent. This trend of declining dependence on conventional machinery partially impacts the demand growth forecast for industrial lubricants.
Penetration into Developing Economies
Emerging economies in Asia Pacific, Latin America, Middle East and Africa offer massive untapped potential as their manufacturing and automotive sectors experience rapid development. Along with rising incomes, increased ownership of vehicles and other assets in developing markets will drive the consumption of lubricants that are currently under-penetrated in these regions compared to developed markets.
Demand for Specialty and Synthetic Lubricants
With technological advancements, newer applications are being developed which require specialty lubricants with enhanced or customized properties. There is growing demand for synthetic lubricants that provide better performance, extended equipment life and reduced operating costs compared to conventional lubricants. Developing grease lubricants for food processing, pharmaceutical, aerospace industries, and others also open up new revenue opportunities. Investment in R&D to widen the product portfolio beyond basic lubricants can help companies gain market share.
Link - https://www.coherentmarketinsights.com/market-insight/lubricants-market-5004
Key Developments
- In April 2024, Savsol Lubricants, a leading player in automotive and industrial lubricants, launched Savsol Ester 5, a biodegradable lubricant targeted at high-end applications in automotive and railways
- In January 2024, Shell U.K. Limited had completed the acquisition of MIDEL and MIVOLT, from U.K.-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
Key Players
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.