“Lubricants Market is projected to reach USD 182.6 billion by 2025, at a CAGR of 3.0% from USD 157.6 billion in 2020. Lubricants are defined as various compounds like fluids, oils, and greases. Lubrication is an essential process for industrial processes, which helps to reduce the friction between moving parts or surfaces to enhance the efficiency of machines. Lubricants are manufactured using base oil, which is 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 factor that is driving the lubricants market is massive industrialization, the increasing disposable income & rapid urbanization in emerging countries.
This report also provides a comprehensive analysis of the companies listed below: Royal Dutch Shell Plc. (Netherlands),ExxonMobil Corporation (U.S.), Chevron Corporation (U.S.),BP p.l.c. (U.K.),Total S.A. (France),Petrochina Company Limited (China),Sinopec Limited (China),LUKOIL (Russia),Fuchs Petrolub AG (Germany),Idemitsu Kosan Co. Ltd (Japan)
This report segments the market for lubricants based on base oil, product type, end-use industry, and region, and provides estimations for the overall market size across various regions. A detailed analysis of key industry players has been conducted to provide insights into their business overviews, products & services, key strategies associated with the market for lubricants.
Royal Dutch Shell PLC (Netherlands) is focused on expansions, new product launches, and agreements to meet the growing demand in the lubricants market. In May 2019, the company opened its first lubricant laboratory in India. The laboratory will serve as a service provider for the increasing demand for innovative lubricant products both in automotive and industrial segments. In May 2019, the company launched e-fluids for electric vehicles. The products include e-transmission fluids, e-thermal fluids, and e-greases, which will help improve the performance of EVs and other battery-operated vehicles. In May 2018, Shell Lubricants and Aggreko renewed their supply contract, which helped Shell become the largest lubricant supplier to Aggreko in Russia, APAC, and Americas. The expansion helped the company to meet the growing demand for lubricants.
ExxonMobil (US) is focused on new product launches and expansions to meet the growing demand for lubricants. In June 2019, the company completed the expansion plans 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, the company launched and commercialized EHC50 and EHC120 grade products from its Rotterdam Refinery. This will help the company to improve its market position in the group II oil-based lubricant market, as the company manufactures base oil as well as finished products. In December 2018, the company completed the expansion of its Rotterdam refinery, which saw an increase in the production of Group II base oil for lubricants. This has helped the company to become the world’s largest producer of group I and group II base oils. ExxonMobil is also focusing on renewable power generation to expand its lubricant offerings.
“Mineral oil was the largest segment of the lubricants market.”
Mineral oil was the largest segment in the global lubricants market in 2019. The easy availability and low cost of mineral oil-based lubricants are expected to drive the market in the transportation application. Moreover, this segment is expected to be driven by the increasing demand from Asia-Pacific and the Middle East & Africa. However, the mineral oil-based lubricants segment in North America and Europe will register low growth due to a change in demand patterns and government regulations.
“Engine oil to be the largest type segment in the global lubricants market.”
Engine oil was the largest segment in the global lubricants industry, by product type in 2019. Its wide usability coupled with the rising demand from the transportation industry, construction & mining industry, especially from construction & mining vehicles and equipment drives the growth of the segment. However, the metalworking fluid segment is projected to grow at the higher CAGR during the forecast period. This high growth is attributed majorly to the rising demand for the metal in various industrial sectors.
“Transportation was the largest end-use industry in the global lubricants market.”
The need for lubricants is high in the transportation sector. The rising number of on-road vehicles, especially in China, India, and ASEAN, are the major factors contributing to the growth of this segment. Another factor associated with this growth is the growing emphasis on logistics and supply chain requirements for various industrial units. Thus, the growth of the industrial sector will also drive the market for transportation lubricants, especially from the commercial vehicle segment.
“APAC is expected to be the fastest-growing market during the forecast period, in terms of both volume and value.”
APAC is the largest lubricant market. The high growth of the emerging economies and the increasing disposable income in the region make APAC an attractive market for lubricants. The tremendous growth of production and increased trade are primarily responsible for the high consumption of lubricants, thus, driving market growth.