France Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

France Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The France lubricants market is projected to register a CAGR of more than 2.5% during the forecast period. The Covid pandemic negatively affected the current studies market. However, post covid pandemic, the rising demand for lubricants from end-user industries like automotive and heavy equipment helped to revive the market for lubricants in the country.

• In the short term, major factor like the increasing usage of high-performance synthetic lubricants is expected to drive the lubricants demand in the country.
• On the flip side, the slowdown in the automotive sector is likely to hinder the market's growth.
• However, the growing prominence of bio-lubricants is likely to create new opportunities during the forecast period.
• The automotive end-user industry segment is expected to dominate the market in the country during the forecast period.

• The three typical engine oil types are full synthetic oil, semi-synthetic oil, and mineral oil. Full synthetic oil is the most refined type of engine oil that is commonly used in high-performance bikes. This oil includes a longer shelf life than the other two engine oil types. The only downside of this engine oil is the heavy price associated with synthetic oil.
• Semi-synthetic oil is a mixture of non-conventional and high-performance fluid additives combined with traditional engine oil. Semi-synthetic oil exhibits the properties of both synthetic oil in terms of their performance. Typically, this oil is used in low-capacity engines, like 125-180 cc bikes.
• Mineral oil is the most used type of engine oil in the country. It is extracted from petroleum products and is hence termed mineral oil. It is widely used in lower-capacity bikes, like mopeds, scooters, etc. Although the oil lasts for smaller distances, it is highly affordable, and hence, it includes high demand for its affordability and ability to protect engines.
• In France, the number of on-road vehicles reached 44.48 million in 2022, at a growth rate of 2.2% compared to 43.52 million on-road vehicles in 2021. Thus, the increase in the number of on-road vehicles is expected to drive the market for engine oil lubricants in the country.
• Engines used in the heavy equipment industries, such as construction and agriculture machinery, have witnessed technological changes in the form of lower soot levels, and the major challenge for engine oils used in such machinery is to handle the threat of oxidation. There is increased adoption of lower-viscosity engine oils in off-highway equipment to realize better fuel efficiencies and reduced warm-up times.
• With the increasing demand from various sectors in the country, engine oil consumption is expected to boost during the forecast period.

• The automotive segment is the largest end-user market for lubricants in France. Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are these automobiles' most widely used lubricants. Lubricants have a good share in both the OEM and the aftermarket.
• Typical medium-duty trucks include utility, courier, package delivery trucks, ambulances, shuttle buses, school buses, and recreational vehicles. However, straight trucks continue to be the predominant medium-duty chassis.
• France is one of the largest automotive vehicle production markets in Europe. In 2020, the country produced 1,316,371 cars and light commercial vehicles compared to 2,175,350 vehicles produced during 2019, recording a decline of 39.5%, as production came to a halt in 2020 due to the COVID-19 pandemic. The pandemic forced a temporary shutdown of manufacturing units across different parts of the country. Raw material supply added to the challenges faced by the automobile sector.​
• The automotive market remained flat in 2021 as the shortage of semiconductors impacted automotive production in the country. However, in 2022, the automotive production volume registered a growth rate of 7% as compared to the previous year.
• Furthermore, there have been significant investments in EV production in the country to meet this rising demand. Renault announced an investment of EUR 1 billion (~USD 1.09 billion) for three flagship EV sites (Flins, Cleon, and Maubeuge) and to introduce a new Alliance EV platform in Douai. This project aims to produce 400,000 electric vehicles annually by 2025. The implementation of the project is expected to increase the demand for lubricants in the country.
• Thus, the factors above are expected to impact the automotive industry, which, in turn, may affect the growth of the lubricant demand in the country.

The lubricants market in France is moderately consolidated in nature. The major players in this market (not in a particular order) include BP p.l.c., Exxon Mobil Corporation, Motul, Shell Plc, and TotalEnergies, among others.

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