Lubricants Market Forecasts to 2028 – Global Analysis By Base oil (Synthetic Oil, Bio-based Oil, Mineral Oil and Semi- Synthetic Oil), Product Type (Hydraulic Oil, Engine Oil and Other Product Types), Group (Group I, Group II, Group III, Group IV and Grou

Lubricants Market Forecasts to 2028 – Global Analysis By Base oil (Synthetic Oil, Bio-based Oil, Mineral Oil and Semi- Synthetic Oil), Product Type (Hydraulic Oil, Engine Oil and Other Product Types), Group (Group I, Group II, Group III, Group IV and Group V), End User and By 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. Lubricants are widely utilised in the processing industries and car parts, particularly brakes and engines, which require lubrication for ongoing smooth operation. The rising imports and exports of piston engine lubricants are fuelling the market's expansion. The increased customer focus on improving vehicle performance, combined with the introduction of innovative and premium product choices, is driving product demand.

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.

Market Dynamics:

Driver:

Increased demand for high performance engines

Ford constructed the first mass-produced car, internal combustion engine design has evolved dramatically. Interior engine components are now subjected to much increased stress and heat as a result of engine improvements. As a result, engines today have very high RPMs and require higher grade engine oil. Furthermore, the internal transmission system of a vehicle has improved, allowing for a top speed of 150 mph. The gear system and bearing technology have also progressed. As a result of all of these improvements and growth, better lubricants are necessary. Thus, lubricants have changed and developed.

Restraint:

Growth in demand of hybrid vehicles and increasing battery price parity

In hybrid vehicles, both an internal combustion engine (ICE) and an electric motor are employed to improve power efficiency and reduce emissions. The ICE in a car requires lubricants, most notably gearbox fluid and engine oil. According to industry experts, the growing number of hybrid vehicles will effectively cut lubricant demand in half. As a result of this and growing battery parity, the size of the global lubricants market will shrink. Electric car batteries are rather expensive; however as technology progresses, the cost are decreasing while the driving range per charge increases. These factors have a considerable impact on lubricant usage. According to industry experts, engine oil accounts for more than 40% of the lubricant business as a whole.

Opportunity:

Surging demand for bio-based lubricant

The introduction of novel lubricants, such as bio-based lubricants with superior properties, is expected to enhance the industry in the future years. Many novel lubricants have already been released by some of the world's biggest manufacturers. The rising demand for eco-friendly and bio-based lubricants will open up numerous new prospects for market expansion. The increased demand for lubricants made from non-toxic and renewable components with low sulphur levels is expected to drive the lubricant market forward in the future years.

Threat:

Environmental Concerns

Various OEMs are attempting to reduce emissions by employing efficient filters and innovative engine management systems under rigorous government rules and laws to enhance fuel efficiency and emission outputs. The attempt to minimise CO2 levels is resulting in thinner oils. Thinner oils have an effect on friction, especially in large vehicles. Lubricant enhancements can be made employing viscosity modifiers and dispersion technologies, which assist engineers and OEMs in overcoming the difficulty without harming the lubricants market growth.

Covid-19 Impact

During the COVID-19 pandemic, extensive lockdowns in vital production industries such as metalworking, fabrication, oil and gas, chemicals, and consumer items occurred throughout all regions, resulting in a short-term output standstill. As a result, industrial demand for lubricating oils fell precipitously. The industrial sector, on the other hand, could resume partial operations after the lockdown was progressively eased. The industrial sector will take longer to attain full capacity due to the ongoing epidemic. Furthermore, because most owners worked from home, they rarely used their vehicles or bikes, resulting in significant consumption reduction.

The synthetic oils segment is expected to be the largest during the forecast period

The synthetic oils segment is estimated to have a lucrative growth, due to fewer vehicular emissions, compatibility with automotive hardware, and lower cost. Polyalphaolefins are lubricants made from Group IV synthetic base oils that have a wide temperature tolerance, making them useful as a lubricant for automobile parts exposed to extreme hot or cold temperatures. Synthetic base oil lubricants also have improved shear stability and chemical stability, as well as a higher viscosity index, all of which are projected to drive up demand for synthetic base oils.

The industrial segment is expected to have the highest CAGR during the forecast period

The industrial segment is anticipated to witness the fastest CAGR growth during the forecast period, due to the growing number of processing industries, as well as the increased usage of automated machinery in existing industries and manufacturing plants are driving up demand for lubricants in the category. Oils, greases, fluids, and other lubricating substances are used in industrial unit moving parts and motors to extend device life, reduce friction, eliminate moisture, and maintain contact point temperature. Thus, rapid industrialization in countries with high incomes is predicted to drive up demand for industrial lubricants in the future years.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the expanding demand from the industrial and automotive sectors. The market is being driven by factors such as expanding population and increased investment in various industrial sectors. The increasing population drives up demand for automobiles, which drives up demand for automotive oils. China, Japan, and India are the key countries contributing to the region's market growth due to increased automobile demand.

Region with highest CAGR:

North America is projected to have the highest CAGR over the forecast period. The United States has a big vehicle industry, which has contributed to the market's enormous rise. In addition, the industrial sector has showed consistent growth and is expected to continue in the next years. Because of rigorous environmental protection legislation, North America consumes a lot of environmentally friendly products. The market has been marked by fierce competition, with all major industry participants focused on expanding their client base in order to acquire a competitive advantage over other companies in the ecosystem.

Key players in the market

Some of the key players profiled in the Lubricants Market include Royal Dutch Shell Co., JX Nippon Oil & Gas Exploration Corp., PetroChina Company Ltd., Valvoline LLC, Philips 66 Company, Petronas Lubricant International, ExxonMobil Corp., Quaker Chemical Corp., Zeller Gmelin Gmbh & Co. KG, Buhmwoo Chemical Co. Ltd., PetroFer Chemie, Idemitsu Kosan Co. Ltd., Blaser Swisslube Inc., Petrobras, Total Energies, China Petrochemical Corp., Lukoil, Amsoil Inc, Chevron Corp. and Castrol India Ltd.

Key Developments:

In October 2022, TotalEnergies and Valeo have announced an agreement to develop an innovative method for cooling electric vehicle batteries using a new high-performance dielectric liquid. This innovation not only improves the use of electric vehicles, but also reduces the carbon footprint.

In October 2021, TotalEnergies Specialties USA partnered with Hyperfuels to market the full range of TotalEnergies automotive lubricants nationwide.

In September 2021, TotalEnergies and Great Wall Motors (GWM) developed a custom fluid for GWM's latest ""L.E.M.O.N."", Quartz EV-DHTF2. Dedicated hybrid transmission (DHT). This highly integrated, highly efficient, multi-mode petrol-electric hybrid system uses dual-motor hybrid technology for the perfect balance of high efficiency and performance at all speeds and in all scenarios.

In April 2021, Valvoline launched ValvolineTM High Mileage 150k with MaxLifeTM plus Technology Synthetic Blend, the first engine oil specially designed to meet the unique needs of engines with over 150,000 miles. The product's innovative formula reduces oil consumption in older, high mileage engines, while its Moly Additive ProtectionTM provides superior wear protection – increasing both engine performance and power.

Base oils Covered:
• Synthetic Oil
• Bio-based Oil
• Mineral Oil
• Semi- Synthetic Oil

Product Types Covered:
• Hydraulic Oil
• Engine Oil
• Metalworking Fluid
• Gear Oil
• Compressor Oil
• Grease
• Turbine Oil
• Other Product Types

Groups Covered:
• Group I
• Group II
• Group III
• Group IV
• Group V

End Users Covered:
• Industrial
• Transportation
• 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