Global Lubricants Market by Application (Marine, Aerospace, Automotive, Industrial) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global lubricants market was valued at USD 125.1 billion in 2020. It is projected to grow at 3.7% compound annual growth rate (CAGR), between 2021 and 2028. Due to rising demand for bio-based oils, the industry is changing in terms of raw materials. Automotive oils and greases will be in demand due to the growing market for vehicles and spare parts. The market is likely to benefit from the major economic recovery in North America, Europe, and Asia. To make lubricants, most lubricant manufacturers use crude oil, and tight oil. Many major companies such as Total SA, British Petroleum, British Petroleum and Sinopec have integrated their global operations. It provides a stable supply of raw materials to manufacture minerals oils and any other additives required for production.

Many other manufacturers also have agreements with suppliers and raw material manufacturers. These companies can reduce price and time losses when procuring these materials. Majorly, lubricants are used in the diesel engine oils, transmissions, and gearboxes of passenger cars, trucks, and motorcycles. The industry's growth is expected to be boosted by increasing automobile sales over the forecast period. The rise in global automotive sales has been largely driven by countries like India, China and the U.S.

These markets have favorable foreign investment rules, a large pool skilled labor and technological know-how as growth drivers. The high growth of niche manufacturing sectors such as 3D printing and medical devices is expected to complement the industrial growth. Hence, the rapid industrialization of BRICS will drive demand for industrial fluids, which in turn is expected to support global lubricants sector growth.

The market's major companies are consumer-centric, which has resulted in a lot of innovation in terms of distribution timeline reductions, and increased accessibility of products. Many manufacturers have developed ground-level distribution channels with regional vendors that allow them to concentrate on other aspects of their business such as quality improvisation, product portfolio improvement, and more. This allows them to leave distribution handling to dedicated sources with a wider reach and greater market knowledge.

This industry is characterised by a high volume of market entrants who are looking to tap lucrative opportunities in global markets. Existing players are also entering strategic collaborations to expand their reach and increase capacity. Over the past decade, the number of joint ventures, mergers, and acquisitions in the industry has increased dramatically. For sustainable business operations, companies are always looking to create long-term contracts with trusted partners.

Application Insights

The market was dominated by the automotive segment in terms of volume with a more than 57% share in 2020. The increased sales of consumer automobile, including trucks, buses, and other forms, is responsible for this high share. The improvement of public transport in these emerging countries like Brazil, India, China and China has been a result of economic growth. This trend will likely boost commercial automotive oil demand and support segment growth over the next few years.

Over the forecast period, industrial oil product demand will be driven by rising industrial production in emerging markets like Asia Pacific and Latin America. The largest market for industrial lubricants is expected to be the mining, unconventional energy, and chemical industries. This will increase the demand for industrial oils in various applications such as compressors, hydraulics and bearings.

Marine lubes can be used in both high- and low-speed engines oils as well as slow-speed boats. This product protects engine components and prolongs their life at high temperatures. These products may include additive technology that provides protection against crankcases and camshaft areas as well as under-crowns and the ring belt. Slow-speed cylinders are also equipped with lubricants that provide high-performance lubrication and enhanced protection against mechanical wear. They also help to prevent cold corrosion.

Aerospace lubricants provide long-lasting, reliable lubrication to critical components that are required to work in extreme vacuum and temperatures. They are subject to regular inspection by increasing military standards and regulatory intervention. The key drivers of segment growth are expected to be increasing air passenger traffic and a significant increase in defense budgets around the world. The U.S., India, Brazil, and Germany have all seen a significant increase in their defense spending, which has led to a rapidly growing aerospace sector.

Regional Insights

Asia Pacific was the dominant market in the world with a volumetric percentage of more than 43% in 2020. It will continue to grow at the fastest CAGR between 2021 and 2028 in terms both of revenue as well as volume. This can be attributed to the rapid industrialization and urbanization of Asia Pacific, the growing base oil movement, the rising population and the high growth in major industries such as textiles and chemicals. Innovators who can tap into niche markets and create new products with attractive product characteristics have many lucrative opportunities in this market. Due to favorable government policies, low-cost labor and increasing demand, many industry leaders are shifting production to Asia Pacific.

Europe is home to a large number of chemical manufacturing plants that are rapidly expanding. This makes it a great place for industrial lube products. Many multinational chemical companies have influenced the growth of industrial lube products in Europe, including the U.K. and France. These industrial lubes can be used for many purposes, including the production of fertilizers and rotatory lubricants in manufacturing units. This allows for multiple-fold increases in the operating cycle and the performance of machines that are subject to severe stress.

Latin America is expected to develop a variety of trade strategies to attract Foreign Direct Investments (FDI), for infrastructure development. To address the needs of the region's port and transportation infrastructure, a variety of policies have been developed to encourage investment and to partner with the private sector. Brasil Terminal Portuario is one of the busiest Latin American container ports. It also plans multiple terminal development projects in Moin (Costa Rica, Mexico and Peru). These initiatives are expected to increase product demand in the region’s marine industry over the next few years.

Many MEA countries are heavily dependent on crude oil production and the revenue from this industry. Many countries in the region have made efforts to diversify their economies to decrease dependence on crude oil. This has led to industrial development and increased demand for machinery that supports market growth.

Market Share Insights & Key Companies

Globally, the market is very competitive due to a wide range of independent small- and big-scale suppliers and manufacturers. Small-scale businesses compete primarily on price, after-sales services and delivery times. Larger companies are more focused on product innovation and marketing strategies, while small-scale businesses focus on price. Companies are also changing their supply chains to decrease costs and reduce customer delays.

Due to future concerns about energy security for petroleum products, both key players and new entrants are focused on developing bio-lubricants. Bio-lubricants are still in their immature stage and have limitations such as temperature resistance or oxidative stability. Companies are therefore investing in R&D for these products.

Due to rising demand for automotive and industrial lubricants, prominent manufacturers are expanding their production facilities in developing countries in Asia, Africa and South America. Major players are not only increasing their lubricant production capacity, but they also seek to discover new oil wells in order to remain self-sustainable in terms of raw material for internal manufacturing and maintain their sales revenue. The following companies are key players in the global lubricants industry:

• ExxonMobil Corp.

• Pennzoil

• Quaker Chemical Corp.

• Royal Dutch Shell Co.

• JX Nippon Oil & Energy Corp.

• British Petroleum

• Lukoil

• Total S.A

• Chevron Corp.

• Philips 66 Company

• Sinopec Corp.

Up Market Research published a new report titled “Lubricants Market research report which is segmented by Application (Marine, Aerospace, Automotive, Industrial), By Players/Companies Valvoline LLC, Fuchs Group, Philips 66 Company, Sinopec Corp, Total SA, Pennzoil, PetroChina, Castrol, Idemitsu Kosan Co Ltd, Royal Dutch Shell Co, Amsoil Inc, Petronas Lubricant International, British Petroleum, Chevron Corporation, ExxonMobil Corp”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Lubricants Market Report Segments:

The market is segmented by Application (Marine, Aerospace, Automotive, Industrial).

Lubricants Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Lubricants Market

Overview of the regional outlook of the Lubricants Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Lubricants Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Lubricants Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Marine

                2. Aerospace

                3. Automotive

                4. Industrial

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Lubricants Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

How you may use our products:

• Correctly Positioning New Products
• Market Entry Strategies
• Business Expansion Strategies
• Consumer Insights
• Understanding Competition Scenario
• Product & Brand Management
• Channel & Customer Management
• Identifying Appropriate Advertising Appeals

Reasons to Purchase the Lubricants Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.