Key Market Overview:
Lubricants market size was worth over USD 118.8 Billion in 2022 and is projected to surpass USD 145.8 Billion by 2030, registering a CAGR of 2.6% during the forecast period (2023-2030).
Lubricants are used to reduce frictional resistance between two sliding/moving surfaces of machinery that helps in preventing overall wear and tear of machinery components. Selection of appropriate types and quantities of lubricants for the smooth functioning of rolling bearings is based on factors such as operating speed, temperature, and environmental conditions. Further, lubricants face contamination or deterioration due to foreign substances which renders them as ineffective over a period of time. As a result, such lubricants are required to be periodically changed or replenished to maintain the smooth working of any machinery.
Moreover, growing usage of sustainable lubricants which are derived from biomass and other renewable sources to meet favorable consumer preference for ICE-based vehicles is expected to witness sudden growth during the forecast period. For instance, according to The American Oil Chemist\'s Society, the global consumption of finished lubricants annually is over 42 million tons as compared to around 4,500 million tons of oil. Thus, increased focus on vehicle maintenance by the adoption of bio-based lubricants is expected to boost the market growth.
Furthermore, large-scale manufacturing of lubricants, especially in Asia Pacific countries such as India, China, and Japan due to increased availability of low-cost resources and the labor force is anticipated to create favorable circumstances for the lubricants market growth. For instance, according to the Energy Statistics Database published by United Nations Statistics Division reported that in 2020, over 1,069 metric tons of lubricants were produced in India. Thus, a rising focus on manufacturing lubricants by such countries to meet growing demand for lubricants for industrial and automotive applications is expected to boost the market growth during the forecast period.
Lubricants Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||145.8 Billion|
|CAGR (2022-2030)||2.6 %|
|By Type||Oil Based (Mineral Oil, Synthetic Oil, Bio-Based Oil), Grease, Penetrating Lubricants, Dry Lubricants|
|By Product||Engine Oil, Gear Oil, Hydraulic Fluid, Metalworking Fluid, Compressor Oil, Turbine Oil, Process Oil, and Others|
|By Application||On Hinges, Bearings, Tool Maintenance, Chain, Sharpening Blades, and Others|
|By End Use||Power Generation, Automotive & Transportation, Construction, Food and Beverage, Metallurgy and Metal Working, Chemical Manufacturing, Plastic Industry, Steel Industry, and Others|
|By Geography||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||Exxon Mobil Corporation, BP PLC., Chevron Corp., Total Energies, Shell Plc., Fuchs, Castrol Limited, Philips 66 Company, Valvoline LLC, China Petroleum & Chemical Corporation, Idemitsu Kosan Co., Ltd.|
Growing focus on machinery improvements to support increased manufacturing operations in production facilities of various industries such as metallurgy, chemical, and metalworking boosts the market demand for lubrication, removal of contaminants, and decreased thermal deformation. Furthermore, growing awareness among consumers and end-use industries accelerates the market demand in terms of extending the lifespan of various types of machinery. Moreover, the increased rate of growth in public infrastructure, especially in emerging countries such as India, Brazil, and Mexico also fuels the demand for lubricants in construction heavy equipment and machineries.
Imposition of strict environmental regulation on majorly used synthetic lubricants hampers the adoption of lubricants due to improper disposal and management of heavy metals or hazardous chemicals. Moreover, fluctuations in the cost of crude oil mainly hamper the market growth in terms of the volatile costs of lubricants.
The growing mergers and acquisitions by established market players to introduce product innovation is anticipated to offer lucrative opportunities for lubricants market growth during the forecast period. Further, the scope of improvements in the properties of lubricant additives is expected to create opportunities for market players to modify the viscosity, pressure resistance, and pour point of additives.
Lubricants Market Segmentation:
The type segment is divided into oil-based, grease, penetrating lubricants, and dry lubricants. The oil-based segment contributed largest shares to the market growth in 2022. The segment is further sub-segmented into (mineral oil, synthetic oil, and bio-based oil). Oil-based lubricants find major applications in various industrial machinery due to the high anti-oxidant properties of such base oils. Such properties help to increase the equipment uptime and bring optimizations in operational reliability that result in reduced maintenance costs. Also, synthetic oils are created using ester, polyalkylene glycol (PAG), or polyalphaolefin (PAO) base oils for several applications that require such types of lubricants in terms of excellent performance. Moreover, the grease segment is also estimated to support market growth in terms of volume. Rising usage of grease as a sealant to control contaminants and minimize risks of lubricant leakage is anticipated to boost the segment demand in vehicles, machines, and vessels.
The product type segment is separated into the engine oil, gear oil, hydraulic fluid, metalworking fluid, compressor oil, turbine oil, process oil, and others. In 2022, the engine oil segment accounted for the largest share contribution in terms of value. Increased focus on extending the lifespan of engines and decreased fuel consumption along with CO2 emissions supports the demand for engine oil to optimize engine performance and efficiency. Also, the compressor oil segment is anticipated to witness significant growth during the forecast period. The usage of such oil in industrial machinery for oxidation resistance and thermal stability is expected to support the segmental demand for the maintenance of clean compressors. Such usage of compressor oils helps to keep up with longer running periods between oil changes and scheduled maintenance.
The application segment is categorized into on-hinges, bearings, tool maintenance, chain, sharpening blades, and others. The bearings segment is estimated to contribute substantial shares to the lubricants market growth during the forecast period. Bearings are important in connecting parts of machinery to reduce friction between components. Thus, the addition of lubricants in bearings for heat dissipation and prevention of contamination is expected to boost segmental growth in terms of low maintenance of stabilized bearing structures. Furthermore, the sharpening blades segment is also anticipated to support the market growth in terms of volume. The usage of lubricants as blade washes for wet cutting for improved precision of cuts and bringing a remarkable improvement in cutting outcomes as compared to dry cutting methods is expected to propel the segmental growth.
By End Use
The end-user segment comprises power generation, automotive & transportation, construction, food and beverage, metallurgy and metal working, chemical manufacturing, plastic industry, steel industry, and others. The automotive & transportation segment contributed the largest shares to the market growth in 2022. Growing adoption of vehicles among the population along with increased awareness for vehicle maintenance supports the demand for lubricants for prolonging the lifespan of automobiles. Moreover, the power generation segment is also anticipated to witness the fastest CAGR growth during the forecast period. The presence of heavy equipment in power generation facilities, especially steam and gas turbines and ancillary equipment, is expected to protect against corrosive acids and deposits, extend drain intervals and reduce risks of fractures and cracks in gears and bearings.
The regional segment comprises North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Asia Pacific contributed largest shares to the market growth in 2022. The growing investments in improved manufacturing facilities, especially in terms of automotive manufacturing in countries such as India, Japan, and China boosts the demand for lubricants. Also, growing rate investments in R&D for the development of eco-labeled lubricants are anticipated to fuel the market growth.
Furthermore, Europe is estimated to witness the fastest CAGR growth during the forecast period in terms of value. The large-scale adoption of lubricants in major industries such as construction, manufacturing, and mining is estimated to result in accelerated demand for lubricants to extend the lifespan of machinery and reduce downtime.
Lubricants Market Competitive Landscape:
The market is characterized by the presence of several small as well as established large players, specifically in the regional and global market circumstances. Such manufacturers compete on the basis of price and product differentiation and typically focus on niche markets and specialty lubricants to gain a competitive edge. However, the market of lubricants is expected to remain highly competitive during the forecast period due to increased focus on product portfolio expansions, improvements in distribution networks, and strengthened brand image. Such factors help industry players to maintain their market position. Following are market players that comprise the latest market concentration –
• Exxon Mobil Corporation
• BP PLC.
• Chevron Corp.
• Total Energies
• Shell Plc
• Castrol Limited
• Philips 66 Company
• Valvoline LLC
• China Petroleum & Chemical Corporation.
Idemitsu Kosan Co., Ltd.
• In February 2021, ENI SpA and the OTK Kart Group entered into a partnership for the production of lubricants for Vortex engines, the official engine division of the OTK Group.
• In January 2023, Idemitsu Kosan Co., Ltd. and J-Oil Mills, Inc. signed a memorandum of understanding (MoU) to conduct a joint study on the possibility of establishing a biomass business that focuses on producing sustainable aviation fuel (SAF), recycling plastics, and usage of biochemicals.
• In December 2021, Shell New Energies US LLC, a subsidiary of Shell plc, announced the acquisition of Savion LLC, a leading developer of utility-scale solar and energy storage projects in the United States, from Macquaries Green Investment Group. The agreement is expected to help Shell significantly expand the global solar portfolio.