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Lubricants Market
Lubricants Remain at the Core of Industrialisation, and Economic Progress
Lubricants, among the most vital elements in industrial operations, are extensively used to lessen the friction, abrasion, and to eliminate residual deposits in the mechanical components, thereby extending machine runtimes. In an era of sustainability, energy savings and emission control, lubricants continue to play an important role in long-term industry goals, i.e., resource management, and environmental sustainability. Consequently, lubricants support sustainability targets in production and manufacturing spaces. Lubricant market will continue to exhibit sustained performance as lubricants allow lesser mechanical friction, which means reduced power consumption, and fewer emissions.
Every year, more than 35 MT lubricants are consumed across various industries. Base oils, and chemical additives are the key components of lubricants. Mineral lubricants have long been the first choice among end users owing to their cost-competitiveness, and wider availability compared to their synthetic counterparts. However, demand trends have gradually started shifting toward better performance, and sustainable synthetic or semi-synthetic lubricants. Furthermore, in global lubricants market, synthetic lubricants have the advantage of longevity owing to their low volatility and improved thermal stability compared to mineral lubricants. Growing emphasis on utilising environmentally sustainable solutions in transportation sector to achieve improved fuel economy, and reduced carbon emissions will also significantly accelerate the growth of lubricants market in the near future.
Motorisation, and Industrialisation Drive Lubricants Market in in Asia Pacific
In 2018, Asia Pacific accounted for more than 45% of the total lubricants market value. Global lubricants market has seen a dramatic rebound post-2008-2009 economic recession. Asia Pacific is a driving region aiding this recovery, industrialisation, and motorisation undergo a massive evolution. However, the region still holds less per capita lubricants consumption compared to developed regions of North America, and Europe. Post-2008, North America, and Europe have shifted to high-quality lubricants with improved efficiency, and long-drain intervals. Furthermore, environmental regulations in these regions regarding disposal and usage of lubricants are expected to boost lubricants derived from eco-friendly, bio-based materials, or re-refined base oils. The Middle East & Africa is also expected to exhibit fastest growth owing to the changing landscape in infrastructure investments, and automotive industry. Robust investments in mining, and energy and transportation sectors has been a boon to the rise in demand for lubricants in the region.
Market to Thrive with Flourishing Manufacturing Sector in Emerging Economies
New government policies and initiatives are likely to encourage the manufacturing sector, especially in the Indian subcontinent, and southeast Asia. As newer production technologies and infrastructure develops in the region, the lubricants market will gear up to meet the customised needs. Per capita consumption of lubricants is around 3.7 Kg as compared to the world average of 5 Kg, creating an immense market potential for years to come. There is substantial growth in demand for metalworking fluids, hydraulic fluids, industrial grease, and marine oils due to advent of industrial sector.
As the world moves toward the electrification of roads, electric vehicles (EVs), and hybrid vehicles (HEVs) will keep on redefining the automotive industry. Demands for lubricants will also shape up with the ad cements in automotive industry. Currently, engine oil comprises the largest share in the segment. The automotive industry commands more than half of the consumption of lubricants across the globe. A new set of lubricants needs to be developed to meet the performance of electrical and gear components in next-generation cars. A lot of research and development is being carried out in the field of bio-lubricants, which can be integrated with EV and HEV fluids for an eco-friendlier solution.
Electric Vehicles Batteries, and Environmental Regulations to Pose Serious Threat
Evolution of battery technology, environmental regulations, and industry consolidation are considered among the major disruptive factors affecting the growth of lubricants. Demand for lubricants will undergo a drastic change in consumption trends, especially with the introduction of battery-operated electric vehicles. BEVs are expected to capture 5-10% of the total vehicle fleet by 2030 and expected to pose a larger challenge to the lubricants market as they do not use engine oils and consumes a minimal amount of grease. Tougher environmental policies will also give rise to the industrial revolution focusing on improved recycling technologies and circular economies, thus affecting the overall lubricants demand in industrial sectors.
Market Leaders Focus on 3Ps of Sustainability: Profit, Planet, and People
Global lubricants market is highly vibrant and intense, with plenty of global, regional, and independent lubricant manufacturers. Companies such as Shell, ExxonMobil, Total, BP, Chevron, and Sinopec have integrated business operations. Key companies continue to focus on strategic M&A, diversification, and business restructuring plans to gain sustainability, and resilience in lubricants market.
Recent Notable Developments in Lubricants Space
In 2019, Shell announced carbon-neutral wind turbine oil, Shell Omala S5 Wind 320. Shell has upped its efforts to create an environmentally sustainable portfolio. This new oil comes with a 10-year warranty aiding in reducing costly breakdowns and wear protection
The same year, Total launched a range of recycled hydraulic fluids for industrial applications. These new ranges of lubricants are made from regenerating oil reducing the environmental footprint of production thus contributing to the goals of a circular economy
The Global Lubricants Market Has Been Segmented As Below:
By Group
Group II
Group III
Group IV
Group V
By Base Stock
Mineral Oil Lubricant
Semi-synthetic Lubricant
Synthetic Lubricant
Bio-based Lubricant
Transmission and Hydraulic Fluid
Metalworking Fluid
General Industrial Oil
Process Oil
By End-use Industry
Metallurgy and Metalworking
Other End-use Industries (Packaging, and Oil and Gas)
Key Elements Included In The Study: Global Lubricants Market
Lubricants Market by Product/Technology/Grade, Application/End-user, and Region
Production Output Analysis (Major Producing Regions)
Key Trade Statistics (Import and Export)