Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The lubricants market is projected to register a CAGR of less than 2% during the forecast period (2022-2027).

The global automotive supply industry is heavily impacted by the COVID-19 crisis, as both the production and sales of motor vehicles came to a sudden halt in most of regions. These work stoppages led to a loss in the production of millions of vehicles across the world. In the automobile industry lubricants are widely used to control friction and wear in the engine, to protect the engine from rusting & engine oil stored in the sump from combustion gases, and to cool the pistons.

Key Highlights

• In the short term, a major factor driving the market studied is the increasing demand for high-performance lubricants (owing to their better and improved properties, such as reduced flammability, reduced gear wear, and increased service life).
• Engine oil dominated the market, and it is expected to grow during the forecast period, as it is widely used to lubricate internal combustion engines.
• Growing prominence for bio-lubricants is likely to act as an opportunity in the future.
• Asia-Pacific dominated the market across the world, with the largest consumption coming from the countries such as China and India.

Key Market TrendsAutomotive and Other Transportation Segment to Dominate the Market

• Automotive and other transportation media, such as aircraft and marine, are the largest markets for lubricants.
• Engine designs have been continually improved to enhance performance, increase efficiency, and, at the same time, meet the environmental emission regulations.
• Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are the most widely used lubricants in these automobiles. Lubricants have a good share in both the OEM and the aftermarket.
• Typical medium-duty trucks include utility, courier and package delivery trucks, ambulances, shuttle buses, school buses, and recreational vehicles. However, straight trucks continue to be the predominant medium-duty chassis.
• Medium-duty and high-performance lubricants are used extensively in these vehicles, as the components, such as gears, transmission systems, and engines, are subjected to high loads and rapid rubbing, thereby producing ample heat.
• The global automotive manufacturing market was sized at about USD 2.7 trillion in 2021 and it is projected that the market will grow to some USD 2.8 trillion in 2022.
• According to International Organization of Motor Vehicle Manufacturers (OICA), the total vehicle units produced in 2021 was 82,684,788 as compared to 78,774,320 in 2020.
• All the above-mentioned factors are expected to significantly increase the market growth during the forecast period.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region dominated the global market share. With the increasing need for wind power and a large automotive production base in countries such as China, India, and Japan, the usage of lubricants is increasing in the region.
• China is the largest lubricant consumer in the region, and the world, followed by the United States. Apart from automotive and wind power, chemical manufacturing is another prominent end-user industry in China.
• The Chinese automotive manufacturing industry is the largest in the world. According to the China Association of Automobile Manufacturers (CAAM), in 2021 China has produced 26082220 units of vehicles, and is expected to increase at a constant pace during the forecasted period.
• According to India Brand Equity Foundation, in the fiscal year 2021, India’s automobile industry reached to a total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles of about 1,860,809 units. Also, India’s automobile exports reached 4.13 million vehicles in 2021, growing at a CAGR of 3.47%.
• Similarly, in February 2022, 20 carmakers from India, including Tata Motors Ltd, Suzuki Motor Gujarat, Mahindra and Mahindra, Hyundai and Kia India Pvt. Ltd, were selected to receive production-linked incentives (PLI) as part of the government's plan to increase local vehicle manufacturing and attract new investment.
• The aforementioned factors are, in turn, expected to increase the lubricant consumption in the region during the forecast period.

Competitive Landscape

The market studied is consolidated among the top 10 players. The top companies have been utilizing competitive strategies and investments to retain and expand their shares. The top five players in the market are (not in a particular order) Exxon Mobil Corporation, Chevron Corporation, BP p.l.c., Shell plc, and TotalEnergies.

Additional Benefits:

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

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