Latin America Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Latin America Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for Latin America lubricants is expected to grow at a CAGR of about 2% during the forecast period. Increasing demand for high-performance lubricants and growing demand from Construction and Power Generation Industries are driving the market. On the flip side, the growing adoption of electrical & hybrid vehicles, an increase in the life-time of lubricants, and stringent environmental regulations coupled with unfavorable conditions arising due to the COVID-19 outbreak are hindering the market growth.

Key Highlights

• The lubricant market in Latin America is expected to grow during the forecast period owing to its wide range of applications in different end-user industries including construction and power generation industries.
• Brazil is expected to dominate the market across Latin America with the largest consumption of lubricants.

Key Market TrendsEngine Oil Segment to Dominate the Market

• Engine oils are crucial in the smooth running of engines, reducing fuel emissions and improving the engine's performance and they are generally composed of 75-90% base oils and 10-25% additives.
• Engine oils are mostly used in applications such as wear reduction, corrosion protection, and smooth operation of engine internals. They function by creating a thin film between the moving parts for enhancing the transfer of heat and reducing tension during the contact of parts.
• The light motor vehicle segment records the highest consumption rate of engine oils among all the segments. Owing to the technological improvements and government-mandated requirements for fuel economy, the automakers have been manufacturing lighter vehicles with tighter tolerances (which make the vehicles more durable).
• High-mileage engine oils are in demand lately, owing to the properties that help in the prevention of oil leaks and reduction of oil consumption.
• According to International Organization of Motor Vehicle Manufacturers OICA 5,61,77 units of light commercial vehicles are produced alone in Brazil and Argentina where the application of engine oils in reducing wear and tear of the engine has a prominent role.
• However, there is a decline in the manufacturing and sales of automobiles in major regions of Latin America due to the outbreak of COVID-19 and some other factors as well. This decline in the sale of vehicles during 2019 is further expected to affect the demand for engine oils.
• Hence, owing to the growing application of engine oils in vehicles to reduce wear and tire, the demand for is expected to increase over the forecast period.

Brazil to Dominate the Market

• Brazil is expected to dominate the market for lubricants in the Latin America region during the forecast period due to an increase in demand from the end-use industries such as construction, automotive, automotive, and others.
• Turbines play a key role in the energy sector, for generating electricity. A large amount of heat is emitted from the turbine, during the production of electricity. In general, other than turbines, the major components used in the power generation sector include pumps, bearings, fans, compressors, gears, and hydraulic systems which are subjected to severe wear and tire. Gear and turbine oils are widely used in this sector, for lubrication purposes.
• In 2019, Brazil added 7,246 gigawatts (GW) of installed electricity generation capacity, closing the year with a total 170,071 GW, of which more than 75% come from renewable energy (hydroelectric, wind power and solar) where the application of lubricants play a vital role.
• In the construction sector, lubricants prevent premature failure and decline in the performance of construction equipment, which are subjected to extremely harsh operating conditions that involve heat, dirt, and moisture.
• Lubricants perform various functions, in order to safeguard construction equipment from bearing failures, short life-span of engine oil, lower resistance of diesel fuel to water, rusting of cables, ropes, and draglines.
• The automotive industry is one of the largest consumers of lubricants in the region. In 2019. The total vehicle production of vehicles increased by 2.2% from 28,81,018 units in 2018 to 29,44,988 units in 2019.This increase in the production is increasing the usage of lubricants in vehicles thereby growing the market studied in the region.
• The aforementioned factors, coupled with government support, are contributing to the increasing demand for the lubricants market in the Brazil region during the forecast period.

Competitive Landscape

The Latin America lubricant market is fragmented with players accounting for a marginal share of the market. Few companies include Chevron Corporation, Exxon Mobil Corporation, BP p.l.c, Valvoline Inc., and Total.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
BP p.l.c
Chevron Corporation
Eni SpA
Exxon Mobil Corporation
FUCHS
Kluber Lubrication (FREUDENBERG)
Royal Dutch Shell PLC
Schlumberger Limited
Total
Valvoline Inc.

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