Lubricants Market to Grow by USD 23.8 Billion (2024-2028), Driven by Rising Demand from End-User Industries, AI-Powered Report Highlights Market Evolution - Technavio

NEW YORK, Nov. 12, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The global lubricants market size is estimated to grow by USD 23.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 3.22% during the forecast period. Increasing demand for lubricants from end-user industries is driving market growth, with a trend towards emergence of bio-based lubricants. However, fluctuations in crude oil prices poses a challenge.Key market players include Arabian Petroleum Ltd., BP Plc, Chevron Corp., CONDAT, ENEOS Holdings Inc., Exxon Mobil Corp., FUCHS PETROLUB SE, Gazpromneft Lubricants Ltd., GP Global, Hinduja Group Ltd., Idemitsu Kosan Co. Ltd., Indian Oil Corp. Ltd., Novvi LLC, Oil and Natural Gas Corp. Ltd., PETRONAS Chemicals Group Berhad, Phillips 66, PJSC LUKOIL, PT Pertamina Persero, Sinopec Shanghai Petrochemical Co. Ltd., and TotalEnergies SE.

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Market Driver

The lubricants market is witnessing significant growth due to the increasing demand for high-performance engines in various sectors. This includes marine applications, electric vehicles, and the transportation sector. Seaborne trade and the tourism sector, particularly cruise ships, are major consumers of lubricants. Lubricant manufacturers cater to the needs of machinery in heavy-duty trucks, excavators, bulldozers, tractors, and harvesters, among others. Specialty and synthetic lubricants, such as hydraulic oil, are essential for power transmission and moving parts in hydraulic machinery. The construction sector relies heavily on efficient lubrication for equipment longevity. Factors like vehicle ownership rates, transportation, and construction site conditions influence lubricant expenditure. Bio-based lubricants, solid and semi-solid, offer corrosion reduction and longer equipment lifespan. Manufacturing industries, energy, aerospace, and the automotive sector require various lubrication products to protect against wear, rust, and corrosion. Lubricant emulsions, cooling lubricants, and cutting fluids are crucial in manufacturing processes. Hydraulic fluids, oils, and greases are used in industrial machinery and construction equipment, including lift trucks, scrapers, and excavators. The global automotive industry's shift towards electric vehicles and stricter environmental emission regulations necessitate the development of high-performance lubricants. Lubricants play a vital role in enhancing the performance-to-efficiency ratio of engines in passenger cars and commercial vehicles. Lubricant manufacturers are focusing on producing Group I, II, III, IV, and V lubricants to cater to the diverse needs of various industries. 

The global lubricants market is witnessing a significant trend towards the adoption of bio-based lubricants. These eco-friendly alternatives to petroleum-based lubricants offer numerous benefits. They produce a cleaner work environment, as they are biodegradable and less toxic. Bio-based lubricants also have lower maintenance, storage, and disposal requirements, leading to cost savings over their lifecycle. Additionally, they provide better safety with higher flashpoints, constant viscosity, and reduced oil mist and vapor emissions. Vendors are focusing on reducing the environmental impact of these lubricants by addressing bioaccumulation and eco-toxicity concerns. The use of bio-based lubricants can help reduce pollution from engine, hydraulic systems, and brake line leaks. 

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 Market Challenges

• The lubricants market faces several challenges in various sectors. In the transportation sector, high-performance engines require advanced lubricants for efficient power transmission and longer equipment lifespan. The marine application sector deals with seaborne trade and cruise ships, where hydraulic oils and hydraulic fluids are crucial for the smooth functioning of hydraulic machinery. Lubricant manufacturers cater to the needs of heavy-duty trucks, excavators, bulldozers, tractors, and harvesters in the construction sector. Specialty and synthetic lubricants are essential for machinery in the manufacturing, energy, aerospace, and automotive industries to ensure efficient lubrication and reduce friction. Bio-based lubricants are gaining popularity due to their eco-friendly nature, while solid and semi-solid lubricants offer protection against wear and corrosion in colliding parts. The challenges of rust and corrosion are addressed through lubricant emulsions, cutting fluids, and cooling lubricants. The increasing use of electric vehicles (EVs) and renewable energy sources like wind power presents new opportunities and challenges for lubricant manufacturers. The global automotive industry's shift towards performance-to-efficiency ratio and environmental emission regulations necessitates the development of high-performance lubricants for light-duty vehicles, two-wheelers, and commercial vehicles. In the aftermarket, OEMs and aftermarket players offer various types of lubricants, including Group I, II, III, IV, and V mineral oil lubricants, semi-synthetic lubricants, metalworking fluids, general industrial oil, gear oil, grease, process oil, and power generation lubricants. The challenges of wear, engine components, and flammability are addressed through the use of advanced lubrication products. The construction sector's heavy equipment and industrial construction equipment require efficient lubrication for longevity, while the housing projects and commercial machinery sectors focus on corrosion reduction and running temperatures. The transportation sector's expenditure on lubricants is influenced by vehicle ownership rates and the need for hydraulic fluids, oils, and grease for various applications. In summary, the lubricants market faces challenges in various sectors, including transportation, marine, construction, manufacturing, energy, and aerospace. The development of advanced lubricants, bio-based lubricants, and the adoption of renewable energy sources are crucial to meet the evolving needs of these industries.
• The lubricants market primarily relies on the processing of crude oil into mineral-based lubricants, which hold a significant market share. The oil and gas sector serves as a primary supplier of these raw materials. Crude oil price fluctuations directly impact the cost of manufacturing lubricants, particularly marine lubricants. For instance, the global crude oil price increase in 2021 due to the accelerated COVID-19 vaccination rates, easing restrictions, and economic recovery led to a faster demand for petroleum than its supply, causing an upward trend in lubricant prices.

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Segment Overview 

This lubricants market report extensively covers market segmentation by

1. Application 
• 1.1 Automotive oils
• 1.2 Industrial oils
• 1.3 Process oils
• 1.4 Metalworking fluids
• 1.5 Greases
2. Product 
• 2.1 Mineral oil-based lubricants
• 2.2 Synthetic lubricants
• 2.3 Bio-based lubricants
3. Geography 
• 3.1 APAC
• 3.2 Europe
• 3.3 North America
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Automotive oils- The automotive lubricants market is experiencing significant growth due to the increasing production and demand for automobiles, particularly in developing countries like China, India, Brazil, and Indonesia. These countries have a high demand for passenger cars, leading to increased production and subsequently, a greater need for lubricants. Automotive lubricants, including engine oils, hydraulic oils, and shock absorber fluids, play a crucial role in reducing friction and wear and tear, enhancing fuel efficiency, and extending the life of automotive components. The average life of a vehicle in the US is between 13-17 years. Lubrication of automotive components not only reduces the power needed to overcome friction but also prevents seizures and serious damage to components. Additionally, high-performance lubricants are in high demand due to the shift towards fuel-efficient vehicles and motorbikes. New applications, such as battery cooling and noise reduction, are also driving the demand for automotive lubricants.

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Research Analysis

The lubricants market encompasses a wide range of products used to reduce friction and wear in various industries. High performance engines, such as those in the automotive and aviation sectors, require advanced lubricants for optimal efficiency and longevity. In the marine application, seaborne trade relies on lubricants for the smooth operation of ships' engines and hydraulic systems. The tourism sector, particularly cruise ships, also utilizes lubricants to ensure the reliable operation of their complex machinery. The construction sector, with its heavy-duty construction equipment, also demands efficient lubrication to minimize downtime and increase productivity. Lubricant manufacturers offer a range of products, including mineral oil lubricants, synthetic lubricants, and semi-synthetic lubricants, to cater to the diverse needs of these industries. Bio-based lubricants are gaining popularity due to their eco-friendliness, with solid and semi-solid varieties available for specific applications. The market for lubricants is vast and essential, with hydraulic fluids being a significant segment. Colliding parts generate heat, and lubricants help reduce the temperature and prevent damage. The use of Group I engine oil in the automotive industry is a key application of mineral oil lubricants.

Market Research Overview

The lubricants market encompasses a wide range of products used to reduce friction and wear in various industries. High-performance engines, marine applications, electric vehicles, and seaborne trade are significant markets for lubricants. In the transportation sector, heavy-duty trucks, excavators, bulldozers, tractors, harvesters, and construction equipment require efficient lubrication for longevity. Specialty and synthetic lubricants, such as hydraulic oil and hydraulic fluids, are essential for machinery and power transmission. The construction sector relies on industrial lubricants for machinery and equipment, including lift trucks, scrapers, and excavators, to ensure efficient operation and extend equipment lifespan. Bio-based lubricants, solid and semi-solid, offer benefits in terms of corrosion reduction and running temperatures. Manufacturing, energy, aerospace, and various industries use lubricants to protect against wear, rust, corrosion, and contamination. Lubricant emulsions, cutting fluids, and cooling lubricating surfaces are essential for cutting and grinding processes. Lubrication products are crucial in construction sites and manufacturing processes to maintain machinery and ensure smooth operation. Polyalphaolefins, industrial lubricants, and various types of oils are used in residential sites and commercial machinery. The global automotive industry, including passenger cars and commercial vehicles, requires automotive lubricating oils, such as engine oil, transmission fluid, and brake fluid, for optimal performance. The shift towards electric vehicles and environmental emission regulations necessitates the development of high-performance lubricants. The wind power industry also relies on lubricants for power generation and heavy equipment. Lubricants play a crucial role in reducing wear, improving efficiency, and extending the service life of machinery and equipment across various industries. Factors such as drain intervals, vehicle ownership rates, and running temperatures influence lubricant expenditure. The market for lubricants is diverse and continually evolving to meet the demands of various industries and applications.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Automotive Oils
• Industrial Oils
• Process Oils
• Metalworking Fluids
• Greases
• Product
• Mineral Oil-based Lubricants
• Synthetic Lubricants
• Bio-based Lubricants
• Geography
• APAC
• Europe
• North America
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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