The global Industrial Lubricants Market market size is projected to reach USD 73.3 billion by 2024, at a CAGR of 3.1% from USD 62.8 billion in 2019.
Lubrication is an important process and it helps to reduce the friction between moving parts or surfaces to enhance the efficiency of machines. Industrial lubricants are manufactured using base oils, which are categorized as mineral oil, synthetic oil, and bio-based oil. Mineral oil and synthetic oil are sourced from petroleum crude, and bio-based oils are sourced from vegetable oil. The major driving factors of the industrial lubricants market are massive industrialization, the increasing disposable income, and rapid urbanization in emerging countries.
ExxonMobil (US) is focused on new product launches and expansions to meet the growing demand for industrial lubricants. In June 2019, the company completed the expansion of its Singapore refinery. The facility will strengthen the supply for group II EHC base oil, which is used for manufacturing premium-grade lubricants. In January 2019, it launched and commercialized EHC50 and EHC120 grade products from its Rotterdam Refinery. This will help the company to improve its industrial lubricants market position in the group II oil-based lubricants market, as the company manufactures base oil as well as finished products. In December 2018, ExxonMobil completed the expansion of its Rotterdam refinery, which will see an increase in production of Group II base oil for lubricants. All these strategies have helped the company to become the world’s largest producer of group I and group II base oils.
BP PLC (UK) focuses on expansions and new product launches to strengthen its position in the industrial lubricants market. In December 2019, it introduced its Castrol Edge Bio-synthetic into China. This is a synthetic-based engine oil containing 25% plant-based base oil. This will help BP to strengthen its market position in the premium synthetic lubricant market in the Asia Pacific. In January 2018, the company launched a new product called Castrol GTX ECO, which is manufactured from 50% re-refined base oil. This has helped the company to fulfil its sustainable development targets as well as diversified its portfolio. In December 2017, BP set up the largest new lubricant plant in China. It will be BP’s third lubricant blending plant in China, and with expected investment of around RMB1.5 billion (US$230 million), it will also represent BP’s single largest blending plant investment worldwide. The expansion will help the company to expand its product offerings.
Mineral oil is the largest segment in the overall industrial lubricants market in 2019.
Mineral oil is the largest segment in the industrial lubricants industry, in terms of both value and volume, in 2019. Mineral oil-based industrial lubricants are available in light and heavy grades, depending on the usage and requirement. They are produced via petroleum refineries in large quantities because of high usage in construction, metal & mining, cement production, and other applications.
The hydraulic fluid segment accounts for the largest share of the industrial lubricants industry in 2019.
The hydraulic fluid segment accounts for the largest share of the industrial lubricants market in 2019, in terms of both volume and value. Hydraulic fluid is mainly used to transmit power to hydraulic equipment. The primary functions of hydraulic fluid are energy transmission, lubrication, and heat removal. Hydraulic systems are mostly used in industries to lift heavy material; they are also used in the mining industry to excavate dirt and stones. These systems are more efficient than older pulley-based lifting systems. Hydraulic Fluid is the most common type of fluid used across industries.
The construction segment accounts for the largest industrial lubricants market share in 2019.
The construction segment accounts for the largest share of the industrial lubricants market in 2019, in terms of both volume and value. A construction site is full of harsh conditions, where the majority of construction equipment is exposed to extreme cold, heat, moisture, and dust, which can affect the performance of equipment. The use of appropriate industrial lubricants on a construction site helps to prevent equipment failure, eliminate downtime, and reduce operating costs. Industrial lubricants are used in various construction equipment, including bulldozers, dump trucks, draglines, scrapers & shovels, and other heavy equipment.