Lubricants Market Forecasts to 2028 – Global Analysis By Base Oil (Mineral Oil Lubricant, Synthetic Lubricant, Bio Based Lubricant, Semi Synthetic Lubricant), Type (Transmission and Hydraulic Fluid, Metalworking Fluid, Engine Oil, Gear Oil), End User (Pow

Lubricants Market Forecasts to 2028 – Global Analysis By Base Oil (Mineral Oil Lubricant, Synthetic Lubricant, Bio Based Lubricant, Semi Synthetic Lubricant), Type (Transmission and Hydraulic Fluid, Metalworking Fluid, Engine Oil, Gear Oil), End User (Power Generation, Heavy Equipment, Metallurgy & Metalworking, Automotive & Transportation, Food & Beverage, Chemical Manufacturing), and Geography

According to Stratistics MRC, the Global Lubricants Market is accounted for $137.44 billion in 2022 and is expected to reach $191.67 billion by 2028 growing at a CAGR of 5.7% during the forecast period. Lubricant acts as a coating between moving objects to lessen friction and the heat it generates. In addition to conveying forces and moving unwanted particles, lubricant both heats and cools surfaces. Depending on the type of lubricant, it may be used to transmit power, guard against damage, remove heat & wear debris, supply additives through into contact, and seal.

According to the European According Automobile Manufacturers’ Association, or ACEA, the EU commercial vehicle output grew by 2.6%, which reached 2.8 million units in 2018. In 2019, North America’s commercial vehicle production expanded by 3.6%.

Market Dynamics:

Driver:

Growing demand of lubricants in automotive sector

In automotive applications, lubricants are widely used in things like transmission and heavy-duty diesel engine oil. Additionally, lubricants are used in certain automotive processes including chain and piston motion. The increase and rise in demand for autos around the world is anticipated to be the main factor driving the need for lubricants. The market rate of growth is anticipated to be boosted by lubricants' strong heat resistance and effectiveness in high-temperature situations.

Restraint:

Increasing demand of electric vehicles

In traditional automobiles, a range of oils are utilised to preserve engine quality over time. However, consumers in wealthy and emerging nations are exhibiting an interest in electric vehicles due to mounting pressure on crude oil resources and rising environmental concerns. The advantages provided by electric vehicles are also getting better thanks to ongoing technical advancement.

Opportunity:

Increasing demand from end-user industries

Because of qualities like anti-wear and corrosion resistance, lubricants are employed in construction equipment. Due to their great energy transfer capability, hydraulic fluids derived from lubricants are employed in earthmoving machinery including crawler excavators and compact excavators. They are also utilized to extend equipment drain/regreasing intervals, improve lubrication effectiveness, boost friction pair wear resistance, and lengthen equipment lifespan. In the steel industry, they are utilised in a variety of applications as hydraulic fluids, compressor oils, and other substances. Lubricants are necessary for machinery including blast furnaces, continuous castings, and others to lower downtime and boost operational effectiveness. During the projection period, these factors will support sales growth.

Threat:

Fluctuations in crude oil prices

Changes in the price of crude oil impede the expansion of the lubricants sector in India. Manufacturers and end consumers have been negatively impacted by the rising cost of crude oil in India. Prices for raw materials fluctuate as a result of changes in crude oil prices. The main source of synthetic lubricants is hydrocarbons, which come from petroleum. Various significant sources of construction lubricants include manufactured esters, PAOs, phosphorus esters, glycols, as well as other silicate esters produced from petroleum. The supply & profit margins of producers can be negatively impacted by price volatility in raw materials.

Covid-19 Impact

The pandemic has had a substantial impact on all parties throughout the lubricants value chain, particularly suppliers of raw materials lubricant players, contract/toll producers, channel partners, and customers. The largest and most affected product category in the worldwide lubricants market is engine oil. The travel vehicle market experienced a negative influence on the market since demand was at an all-time low during the pandemic. Engine oil is not in high demand in the commercial sector. OEMs stopped producing during the epidemic, which further reduced the market for engine oil. The overwhelming majority of countries have experienced a decline in traffic and little to no vehicle movement as a result of statewide lockdowns.

The engine oil segment is expected to be the largest during the forecast period

The engine oil segment is estimated to have a lucrative growth; due to increase in demand in the automotive sector is to blame for this high percentage. Two-wheelers and other passenger vehicles are examples of light vehicles. The most popular lubricants in these kinds of cars are engine oils, greases, and compressor oils. Two-wheeler production is expanding steadily. The engine oil lubricant sector is one of the significant factors that directly influences the consumption and production of two-wheelers. One of the goods with a large market outside the two-wheeler industry is engine oil. The efficiency of the engine design is always being increased in order to meet environmental pollution laws.

The Automotive & Transportation segment is expected to have the highest CAGR during the forecast period

The Automotive & Transportation segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the variety of uses they have in cars and other vehicles, including brakes, engines, clutches, and gears. The use of lubricating oil, brake fluids, and gear oils is expanding because they prevent irritation between collision surfaces and shield automobile components from harm.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period, due to rising demand from the manufacturing and automotive sectors. Additionally, as the population grows, there is a greater need for cars, which raises the need for car oil. The main drivers of market expansion in this area are Japan, China, and India. In addition, major companies in the sector are moving their production bases to the Asia Pacific region because of the region's affordable labour, rising demand, and supportive governmental regulations.

Region with highest CAGR:

Middle East and Africa is projected to have the highest CAGR over the forecast period, owing to the region having a large number of oil wells and an increase in the use of lubricants across a variety of industries due to the cheap accessibility of crude oil and its by products. The number of production facilities in the area has significantly increased recently, and these facilities have been the main consumers of such goods. The growth of the manufacturing industry can be attributed to the MEA countries' increased focus on diversifying their economies and lessening their reliance on the oil industry.

Key players in the market

Some of the key players profiled in the Lubricants Market include Philips 66 CompanySK Innovation, PetroChina Company Ltd., ExxonMobil Corp., FUCHS Group, OTK Kart Group, Petronas Lubricant International, Shell India Markets Private Limited, Bharat Petroleum Corporation Limited, Tide Water Oil Co. (India) Ltd, Valvoline Inc. and Castrol Limited.

Key Developments:

In April 2021, SK Innovation has agreed to sell a 40% stake in SK Lubricants to domestic firm IMM Private Equity for 1.09 trillion South Korean won (983 million USD).

In February 2021, the FUCHS Group announced that it has acquired 70% of the lubricant business of the specialty distributor STD & S Co. Ltd based in Vietnam.

In February 2021, the OTK Kart Group and ENI SpA have entered a partnership for the development of lubricants on Vortex engines, the engine division of the OTK Group.

Base Oils Covered:
• Mineral Oil Lubricant
• Synthetic Lubricant
• Bio Based Lubricant
• Semi Synthetic Lubricant
• Other Base Oils

Types Covered:
• Transmission and Hydraulic Fluid
• Metalworking Fluid
• Engine Oil
• Gear Oil
• Other Types

End Users Covered:
• Power Generation
• Heavy Equipment
• Metallurgy & Metalworking
• Automotive & Transportation
• Food & Beverage
• Chemical Manufacturing
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements