Global Synthetic Lubricants Market by Product (PAG, Ester, PAO), by Application (HTF, Engine Oil, Transmission Fluid, Metalworking Fluid) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

The global market for synthetic lubricants was valued at USD 4.40 Billion in 2018. It is projected to grow at a compound annual rate (CAGR of 5.1%) between 2019 and 2025. The market is expected to grow in the future due to increased demand from automobile manufacturers. This group of chemicals is used in a variety of automotive applications, including diesel engine oils, transmission oils for passenger, commercial, and motorcycles, as well as gearbox lubes and transmission oils. Synthetic lubricants offer superior performance over mineral counterparts in terms of high temperature operation range and low friction as well as higher load carrying capacities.

The demand for branded cars and automobiles in Asia Pacific is expected to rise due to increased production and new machine installations. Technological advancements such as NSF's food lubrication standard, which was established by major equipment manufacturers for synthetic lubricants used in the food industry, are expected to increase synthetic lubricants market growth. Europe was the market leader in global market sales in the past because of the high production from Germany, which is due to its automotive production base. Due to growing demand for premium, high-performance products that are environmentally sustainable and superior to others, the regional market will continue to dominate in the future.

Reduced viscosity in synthetic oils reduces engine friction which in turn increases fuel efficiency. The market will continue to grow due to increased demand for vehicles that have better fuel economy. Manufacturers are constantly developing new products that can be used in extreme pressures and temperatures. Market growth may be impeded by the preference for lower-cost substitute mineral oils because of their high price. The demand for lower maintenance costs in the manufacturing industry is expected to reduce the availability of synthetic lubricants. Market growth will be impeded by incompatibility between Polyalkylene Glycol-based oils and Polyalphaolefins, (PAOs), as well as conventional mineral oils.

Water reactivity is a significant factor in the performance of PAG-based oils and it is likely to have an adverse impact on their demand. Manufacturers have had to concentrate on new methods and new sources of raw material production due to fluctuating crude oil prices. The development of new technologies, such as Enhanced Oil Recovery or hydraulic fracturing technology, has led to an increase in oil & gas production. This is especially true for the U.S. and Canada's oil & gas reserves. This has led to tight oil and shale gas being used as alternatives for naphtha. These can then be converted into ethylene oxides.

The key to market growth has been the global increase in automobile spending. Automobile manufacturers are becoming more consumer-centric in their business approach, resulting in high-performance vehicles with lower maintenance costs and longer periods of productivity.

Product Insights

Esters will be the fastest-growing product category over the forecast period. The segment is driven by a growing demand for synthetic lubricants based on ester in reciprocating compressors. Ester-based synthetic lubricants are more stable than PAO at high temperatures and are being used in jet engines. They can also be used in gearboxes and reciprocating compressors.

Due to its increasing use in the production and processing of metal working fluids, polyalkylene glycol (PAG), is expected to be second fastest growing segment. PAG's biodegradability encourages its use in environmentally sensitive applications. PAG-based lubricants will see a rise in demand due to rising awareness of the need to reduce carbon footprint.

Application Insights

The global market for engine oil was led by the segment in 2018. It is expected to grow further over the forecast period. The highest CAGR is expected to be in Heating Transfer Fluids (HTFs), between 2019 and 2025. These fluids are essential in oil and gas processing, from the upstream to downstream sectors. This includes the processing of crude oil, natural gas, transport, and refining. A large number of HTFs are used by companies that reprocess or recycle used lubricating oil. Transmission fluids are highly valued in the automotive industry.

These liquids improve the performance of brake friction, valve operation and gear lubrication. These liquids are used in hydraulic fluids and lubricants for power steering and 4WD transfer case respectively. The HTF segment will be driven by rising automotive vehicle sales. The growth is expected to be slowed by the increased use of mineral counterparts in transmission fluids.

Regional Insights

The global market was led by Europe and this trend will continue in the future. The Europe market is driven by a focus on fuel economy, CO2 reduction, recovery of the manufacturing sector, regional base oil supplies, and quality improvement. The market growth may be impeded by various safety, environmental and health regulations set forth by the European Union. The market will be driven by the increasing sales of premium vehicles in Asia Pacific. Asia Pacific's market is capital-intensive and heavily dependent on product innovation and publicity. The market is dominated by few oil companies that produce synthetic lubes and have extensive distribution networks. Low crude oil prices have led to increased production of petrochemicals within Asia Pacific, particularly in India, China and Singapore.

Market Share Insights & Key Companies

Many companies are now focusing on expanding their market presence in Asia Pacific's potential and emerging markets by opening new plants and forming strategic partnerships with local partners. Companies like Shell, ExxonMobil and Total have formed strategic partnerships over the years with gearbox makers such as Bonfiglioli and Staublito. These companies have recommended the use of synthetic gear lubricants.

Multinationals dominate the industry, driving industry growth through product quality, product launches and other factors. Innovating new product lines to meet current market trends is a major strategy for companies looking to reach maximum consumers. The industry will continue to grow with the efforts of synthetic lubricant producers to increase vehicle performance and reduce recurring maintenance costs. The following are some of the major players in the market for synthetic lubricants:

• British Petroleum

• Chevron Corporation

• Lanxess AG

• Valvoline

• Fuchs

• Pennzoil

• Kendall

• Motul

• Amsoil

• Agip

Up Market Research published a new report titled “Synthetic Lubricants Market research report which is segmented by Product (PAG, Ester, PAO), by Application (HTF, Engine Oil, Transmission Fluid, Metalworking Fluid), By Players/Companies Motul, Pennzoil, Agip , Lanxess AG, Kendall, Valvoline, Fuchs, Amsoil, Chevron Corporation, British Petroleum”. 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 Synthetic Lubricants Market Report Segments:

The market is segmented by Product (PAG, Ester, PAO), by Application (HTF, Engine Oil, Transmission Fluid, Metalworking Fluid).

Synthetic 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 Synthetic Lubricants Market

Overview of the regional outlook of the Synthetic 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 Synthetic Lubricants Market Report:

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

                1. PAG

                2. Ester

                3. PAO

                1. HTF

                2. Engine Oil

                3. Transmission Fluid

                4. Metalworking Fluid

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

We have studied the Synthetic 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.

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• Correctly Positioning New Products
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Reasons to Purchase the Synthetic 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.