Key Market Overview:
Finished lubricant market size was worth USD 155.9 Billion in 2022 and is expected to surpass USD 198.35 Billion by 2030, growing at a CAGR of 3.5% during the forecast period (2023-2030).
Finished lubricants are specialized liquids or greases that are specifically designed and formulated to minimize friction and wear between moving parts of machinery or equipment. The lubricants are used in a wide range of industrial, automotive, and other applications to prevent corrosion, reduce friction and maintain optimal operating conditions. Finished lubricants typically contain a petroleum-based or synthetic base oil and a variety of additives that improve the performance and properties. Such additives include viscosity index improvers, detergents, dispersants, anti-wear agents, corrosion inhibitors, and friction modifiers, and others. The specific composition and formulation of a finished lubricant depends on the intended application and the performance requirements of the equipment.
Further, a certain amount of cycloparaffins are desired in lubricating base oils and finished lubricants to provide additive solubility and elastomer compatibility. Thus, finished lubricants are available in different forms, including liquids, greases, and aerosols. Such lubricants find usage in a variety of applications such as automotive engines, transmissions, and differentials, hydraulic systems, industrial machinery, and others.
Moreover, growing rate of manufacturing activities in North American region is expected to support the growth of finished lubricant market growth in terms of improved heat transfer, lower wear, and reduced deposit formation on machinery equipment. For instance, according to the World Manufacturing Production statistics published by the United Nations Industrial Development Organization, Northern America\'s manufacturing output continued to grow at a controlled pace of 3.5 percent. However, a slight notable deceleration of 3.4 per cent growth was observed in the manufacturing production of the United States of America.
Finished Lubricant Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||198.35 Billion|
|CAGR (2023-2030)||3.5 %|
|By Type||Synthetic, Bio-Based, Oil-based|
|By Grade||Industrial Grade, Food Grade|
|By Product||Engine Oils, Fuel Additives, Coolants & Antifreezes, Greases, Hydraulic Oils, Industrial Oils, Transmission/Gear Oils, Metalworking Oils, Turbine Oils, Others|
|By End Use||Automotive, Marine, Industrial, Steel, Food Processing Industry, Construction, Petrochemical, Others|
- Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia]
- Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
- North America [United States, Canada, Mexico]
- Middle East & Africa [GCC, North Africa, South Africa]
- South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||Chevron U.S.A. Inc., Royal Dutch Shell, Castrol Limited (BP), Sinopec Corp., Universal Lubricants, HP Lubricants, Gulf Oil Corporation, FUCHS, TotalEnergies, Idemitsu Kosan Co.,Ltd, North Sea Lubricants |
The growing demand for finished lubricants in end-use industries such as automotive, construction, manufacturing, and power generation drives the growth of the finished lubricant market. Further, the growing industrialization of emerging markets such as China, India, and Brazil results in increased demand for finished lubricants in terms of large-scale usage in construction equipment. Moreover, growing awareness for proper maintenance and service of equipment among population as well as businesses boosts the usage of lubricants to ensure smooth operation, prevent equipment failure and reduce heavy maintenance costs accelerates the market growth.
The finished lubricants market is subject to environmental regulations that restrict the use of certain chemicals such as volatile organic compounds (VOCs) and phosphorus, sulfur, and ash (PSA) compounds. Such regulations limit the use of certain ingredients in lubricants, which limits the performance of the finished product and restrict the market growth. Further, the market is also affected by economic factors such as fluctuations in oil prices and changes in demand for finished lubricants in different regions due to production and distribution costs of finished lubricants, which hampers the market growth.
The scope of advancements in terms of formulations for finished lubricants in electric automobiles is anticipated to create lucrative opportunities for the market growth during the forecast period. Also, with growing concerns about the environment and sustainability, emerging demand for bio-based lubricants made from renewable resources that are biodegradable, non-toxic, and have lower carbon footprints as compared to conventional mineral-based lubricants is expected to create opportunities for the market growth.
Finished Lubricant Market Competitive Landscape:
The global market of finished lubricant is highly competitive and fragmented, with a large number of players operating in the industry. The companies are engaged in the manufacturing, distribution, and marketing of various types of finished lubricants, such as engine oil, transmission oil, hydraulic oil, gear oil, and others. Overall, the market is expected to remain highly competitive during the forecast period, driven by the growing demand for lubricants across various industries and the increasing focus on sustainable and eco-friendly lubricants. Following are market players that comprise latest market environment–
• Chevron U.S.A. Inc.
• Royal Dutch Shell
• Castrol Limited (BP)
• Sinopec Corp.
• Universal Lubricants
• HP Lubricants
• Gulf Oil Corporation
• Idemitsu Kosan Co.,Ltd
• North Sea Lubricants
• In February 2022, ExxonMobil declared the business expansion to improve its distribution network for finished lubricants in the Pacific Northwest region. The company intends to incorporate two new distributors, namely Tyree and Nelson Petroleum, while also broadening the territories of existing distributors, CityServiceValcon and Snider Energy.
• In August 2021, North Sea Lubricants announced an extension to their Wave Power Range, consisting of two new products, Wave Power Advantage LE 5W-30 and Wave Power Advantage LE 5W-40. These products are expected to be made available for purchase in a variety of sizes including 20L, 60L, 200L, IBC 1000L and bulk, which are specifically designed for 1st generation diesel vehicle fleet.
Finished Lubricant Market Segmentation:
The type segment is divided into synthetic, bio-based, oil-based. The synthetic segment contributed largest shares to the market growth in 2022. The large-scale usage of synthetic lubricants due to cost efficiency in terms of machine reliability, biodegradability, energy consumption, and safety supports the segmental growth. Such properties play a crucial role in various fire-resistant applications such as pressure casting machines, mining equipment, and steam turbine control systems. Moreover, bio-based segment is also anticipated to support the finished lubricant market growth in terms of value and volume. Typically, bio-based metal cutting coolants and oils are used by several companies for grinding, gear cutting, and general machining due to excellent lubricity and viscosity, biodegradability and high flash-fire points. Thus, such increased demand among manufacturers for bio-based finished lubricants is expected to propel the segmental growth.
The grade segment is separated into industrial grade and food grade. The industrial grade segment is expected to contribute significant shares to the market growth during the forecast period. Factors such as high demand for temperature control, corrosion prevention and engine optimization are anticipated to support the usage of industrial grade lubricants in industrial maintenance. Furthermore, food grade segment is also estimated to contribute substantial shares to the market growth during the forecast period. Lubricants that are suitable for food-and-beverage applications are recorded by an independent registration body called NSF International (NSF) as H1. Such registered lubricants comply with various food regulations due to physiologically inertness, odor and taste free properties. Thus, such lubricants are suitable for several applications that involve incidental and technically unavoidable contact with a food product till the range of 10 parts per million (ppm).
The product segment is categorized into engine oils, fuel additives, coolants & antifreezes, greases, hydraulic oils, industrial oils, transmission/gear oils, metalworking oils, turbine oils, others. The hydraulic oils segment is expected to account for largest share contributor to the finished lubricant market statistics during the forecast period. A major role of hydraulic oils is to carry out functions such as sealing, contamination removal, heat transfer, and lubrication. For implementation of such functions, the hydraulic oils are required to possess high bulk modulus (high resistance to sudden decrease in the volume under pressure) along with high viscosity index (reduced rate of change in viscosity with respect to temperature). Thus, such properties of hydraulic oils help such fluid find applications in hydraulic systems of several heavy as well as light machineries and equipment. The coolants & antifreezes segment is also anticipated to support the market growth in terms of volume for minimized heat generation in several heavy applications.
By End Use Industry
The end-use segment comprises automotive, marine, industrial, steel, food processing industry, construction, petrochemical, others. The automotive segment contributed highest shares to the market growth in 2022. Finished lubricants find usage in automobiles to control wear and friction in the engine by protection from corrosion, maintaining optimum temperature of the pistons, and protection of the engine oil stored in the compartment from certain combustion gases. Thus, finished lubricants market is mainly driven by increased demand for friction reduction and engine maintenance in automobile. Moreover, industrial segment is also estimated to support the market growth in terms of volume. Increased dependence on heavy machineries to support large volume of product manufacturing, packaging, dispatchments and other applications supports the demand for finished lubricants into mechanical systems of industrial equipment. Thus, such rising demand from industrial or manufacturing industry is expected to boost the usage of finished lubricants during the forecast period.
The regional segment includes Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. North America accounted for largest share contribution to the market growth in 2022. The increased expenditures on technology advancements in terms of new formulations of finished lubricant and additives to improve the performance and lifespan of lubricants boosts the finished lubricant market demand in North America.
Further, Europe is also projected to witness fastest CAGR during the forecast period. Regulations and standards that require the use of high-quality and environmentally friendly lubricants is expected to accelerate growth of the market in European region as manufacturers strive to comply with these regulations.