EMEA Grease Market Size, Share & Industry Analysis, By Base Oil (Mineral Oil, Synthetic Oil, and Bio-based Oil), By Application (Automotive, Food & Beverage, Power Generation, Construction, Agriculture, Mining, and Others), and Regional Forecast, 2024-2032

The EMEA grease market size was valued at USD 1.70 billion in 2023 and is projected to grow from USD 1.76 billion in 2024 to USD 2.47 billion by 2032 at a CAGR of 4.3% during the forecast period.

Grease is a semisolid lubricant that combines oil with thickeners to create a product used in various mechanical systems to reduce friction and wear. It is designed to be applied where liquids might not stay in place, offering consistent lubrication over time. The viscosity and composition of the product can be tailored to meet specific requirements, making it versatile for different applications. Its ability to stay in contact with moving surfaces under heavy loads and varying temperatures distinguishes grease from other lubricants. Grease also serves as a barrier, protecting components from contaminants, such as dust and water, which can cause damage and reduce the lifespan of machinery.

The COVID-19 pandemic significantly impacted the supply chain across various industries, including this market. One of the primary challenges was the disruption in raw material supply. The product manufacturing that relies heavily on base oils and additives faced shortages due to lockdowns and reduced refinery outputs. This situation led to increased raw material costs, putting pressure on manufacturers to manage their production costs while maintaining quality.

EMEA Grease Market Trends

Shift Toward Bio-Based Greases Amidst Rising Demand for EVs to Drive Market Growth

A shift toward bio-based greases is changing the market landscape. This transition is further propelled by the surging demand for Electric Vehicles (EVs), marking a significant turn in consumer preferences and manufacturing practices. As the automotive industry leans more into the production of EVs, the need for environmentally friendly lubricants becomes more pronounced. This trend reflects a growing consciousness toward reducing carbon footprints and also aligns with global efforts toward cleaner and more sustainable modes of transportation.

Consequently, these dynamics are playing a pivotal role in driving market growth, showcasing a promising trajectory toward eco-friendly innovations.

EMEA Grease Market Growth Factors

Increasing Use of Machinery and Equipment in Various Industries to Drive Market Growth

Increasing automation has surged machinery and equipment demand across various industries, and this is expected to drive the EMEA grease market growth. As industrial machinery and equipment become more sophisticated and widespread, the demand for high-quality lubricants to ensure their smooth operation and longevity is on the rise. Grease plays a crucial role in reducing friction and wear, protecting against rust and corrosion, and sealing out contaminants, which is essential for the efficient performance and maintenance of machinery.

Industries, such as automotive, manufacturing, construction, and mining, which heavily rely on machinery, are driving the product demand. Additionally, the development of specialized products to meet the unique requirements of different machinery and equipment further fuels market growth. The trend toward automation and continuous production processes also necessitates the use of reliable greasing solutions to minimize downtime and maintain productivity.

Furthermore, advancements in product formulation technology, aiming for environmentally friendly and high-performance products, are aligning with global sustainability trends, attracting even more interest in the market. Overall, the integral role of grease in machinery maintenance and the ongoing industrial expansion globally are the key factors propelling the market growth.

RESTRAINING FACTORS

Fluctuating Raw Material Prices to Hinder Market Growth

The volatility in the prices of raw materials essential for manufacturing grease significantly impacts the market. This instability often leads to unpredictable costs, making budgeting and pricing strategies a challenge for manufacturers. As the cost of production fluctuates, it directly affects the final price of products, potentially reducing their competitiveness in the market.

Suppliers of raw materials play a crucial role in this dynamic, as any changes in their pricing strategy or availability can have a ripple effect throughout the industry. Businesses within this sector are compelled to explore strategies for mitigating these risks, such as entering into long-term contracts with suppliers or investing in alternatives to traditional raw materials. Thus, it directly impacts the market growth.

However, these strategies may not always be viable or sufficient to offset the challenges posed by raw material price volatility. Ultimately, the ability of the market to grow and innovate is hindered by these fluctuating costs, highlighting the need for industry-wide solutions to stabilize the supply chain. Addressing this issue is essential for ensuring the sustainable development of the industry and for meeting the evolving needs of its customers.

EMEA Grease Market Segmentation Analysis

By Base Oil Analysis

Mineral Oil Dominates with its Cost-Effectiveness and Versatility in Industrial and Automotive Applications

Based on type, the market is segmented into mineral oil, synthetic oil, and bio-based oil.

The mineral oil segment dominated the EMEA grease market share in 2023, primarily due to its affordability and multifunctional capabilities. These lubricants are favored in both industrial machinery and automotive sectors for their exceptional performance. Their versatility makes them suitable for a wide range of applications, ensuring that the machinery operates smoothly and efficiently. The cost-effectiveness of mineral oil-based products makes them a preferred choice for budget-conscious businesses. This dominance is expected to continue as they maintain a balance between quality performance and economic viability.

Synthetic oil-based products are gaining traction in the market for their superior performance in extreme conditions. Their ability to maintain viscosity at both high and low temperatures makes them ideal for specialized industrial and automotive applications. Unlike mineral oil-based products, they offer enhanced durability and longer service life, reducing the need for frequent replacements. This makes them a cost-effective option in the long run, despite their higher initial price point. The shift toward synthetic products reflects the industry's focus on efficiency, reliability, and sustainability.

Bio-based oil products are emerging as sustainable alternatives in the market, favored for their environmental benefits and renewable nature. They exhibit excellent lubrication properties and biodegradability, making them suitable for applications where environmental safety is a priority. With advancements in technology, these products are improving in performance, matching, and sometimes surpassing synthetic options in various conditions. The growing emphasis on sustainability is driving the demand for bio-based greases, positioning them as key players in the future of lubricants.

By Application Analysis

Automotive Holds Leading Position Fueled by Growing Product Demand for Enhancing Vehicle Performance and Efficiency

Based on application, the market is segmented into automotive, food & beverage, power generation, construction, agriculture, mining, and others.

The surging demand for high-quality greases as a critical component in enhancing vehicle performance and efficiency is expected to drive product adoption in automotive applications. This trend is driven by the need for lubricants that reduce friction & wear in-vehicle components, extend their lifespan, and ensure smoother operation. As vehicles become more sophisticated, the requirement for products that can withstand extreme conditions and offer superior performance is growing. This demand is fostering innovation in the market, with manufacturers focusing on developing advanced formulations.

In the food and beverage segment, the product is crucial for ensuring the smooth operation of machinery without contaminating products. It is used in processing equipment, conveyors, and packaging machines that require food-grade lubricants that are safe for incidental contact with consumables. This highlights the adoption of non-toxic and high-performance products for maintaining efficiency and complying with the safety standards in the industry.

In the power generation industry, product plays a vital role in maintaining the reliability and efficiency of turbines, generators, and auxiliary equipment, ensuring operational stability and reducing maintenance needs. In the construction industry, the product is crucial for lubricating heavy machinery, such as cranes, bulldozers, and excavators, enhancing durability, reducing wear and tear, and ensuring smooth operations and longevity of equipment.

REGIONAL INSIGHTS

Regionally, the market is studied across Europe and the Middle East & Africa.

The market size of Europe stood at USD 1.05 billion in 2023 and the region’s growth is steadily driven by several key factors. Increased industrialization and infrastructure development are boosting the demand for high-performance lubricants across various sectors, including automotive, construction, and manufacturing. The region's stringent environmental regulations are also pushing for the adoption of eco-friendly and biodegradable products. Furthermore, technological advancements in product formulations and a growing emphasis on extending equipment life and reducing maintenance costs are contributing to market expansion.

Germany is experiencing steady growth, driven by the country's robust industrial sector, which includes automotive manufacturing, machinery, and power generation. Crucial factors propelling this growth include advancements in industrial automation and machinery, which require high-performance lubricants to maintain efficiency and reliability. The market in France and Italy is also witnessing growth, driven by the strong presence of the automotive, aerospace, and industrial machinery sectors in both countries. In France, the emphasis on high-speed rail systems and renewable energy projects, such as wind and solar will increase the demand for specialized lubricants that ensure reliability and efficiency.

In the Middle East & Africa, the market is witnessing robust growth, primarily driven by the region's expanding industrial and construction activities, along with significant investments in infrastructure and development projects. The booming oil & gas sector, coupled with the growth of mining and heavy industries, demands high-performance lubricants capable of withstanding extreme conditions. Additionally, the increasing adoption of advanced machinery and equipment necessitates the use of specialized lubricants to ensure operational efficiency and longevity. Hence, such factors are expected to fuel the market growth in the Middle East & Africa. The market in the GCC region is experiencing notable growth, driven by several key factors. The region's robust industrial sector, particularly oil & gas, petrochemicals, construction, and manufacturing, creates a steady product demand. Furthermore, the rapid growth of the mining industry in South Africa is fueling the market growth in the country. The mining industry requires high-performance products to ensure the smooth operation of heavy-duty equipment operating in harsh conditions.

KEY INDUSTRY PLAYERS

Companies to Focus on Innovative Product Launches to Gain Strong Competitive Edge

The EMEA grease market is fairly fragmented with a mix of both large manufacturers and specialized companies. The leading manufacturers are actively pursuing strategies, such as capacity expansion, product innovations, acquisitions, mergers, sustainability initiatives, expansion into emerging regions, strategic partnerships with construction firms, and digital transformation. These initiatives aim to meet growing demand, introduce advanced products, promote eco-friendly practices, penetrate new markets, and enhance operational efficiencies.

LIST OF KEY COMPANIES PROFILED:

• ExxonMobil Corporation (U.S.)


• Total Energies (France)


• Shell PLC (U.K.)


• Chevron Corporation (U.S.)


• FUCHS (Germany)


• B.P. PLC (U.K.)


• Sinopec Group (China)


• Petronas (Malaysia)


• CONDAT Group (France)


• Klüber Lubrication (Germany)

KEY INDUSTRY DEVELOPMENTS:

• March 2023 - ExxonMobil announced its plan to invest approximately USD 110 million in constructing a lubricant manufacturing facility in Maharashtra. This new plant will be able to produce 159,000 kiloliters of finished lubricants per year, serving the increasing demand from Indian industrial sectors, such as steel, manufacturing, mining, power, and construction. The plant is projected to commence operations by the end of 2025.


• November 2021 - FUCHS Group introduced new small packs for automotive lubricants, featuring new labels for better orientation and ergonomic design for better handling.


• February 2021 - The Fuchs Group purchased a 70% stake in the lubricant business of STD & S Co. Ltd, a distributor based in Vietnam. This acquisition enabled Fuchs to offer its clients a comprehensive range of industrial, automotive, mining, and specialty lubricants from a single source.


• July 2020 - Klüber Lubrication introduced its latest product, Klübersynth RG 86-121. This lubricant is specifically designed to provide exceptional wear protection on polyamide and glass fiber mating components. Lubricating these mating surfaces has been a significant challenge for years, mainly due to their high-wear properties and compatibility issues with commonly available lubricants.


• January 2019 - The TOTAL TEXTILE TEAM announced the launch of a new product, Long Life PFPE-based PTFE Grease STATERMIC X400. This white-colored product is made with Perfluoropolyether (PFPE) and Polytetrafluoroethylene (PTFE) and is specifically designed for textile applications where traditional mineral or synthetic greases don't provide satisfactory results. STATERMIC X400 is suitable for all dynamic textile applications.

REPORT COVERAGE

The research report provides a comprehensive market analysis and emphases crucial aspects, such as leading companies, base oils, and applications.  Also, it provides quantitative data regarding volume and value, market analysis, research methodology for market data, and insights into market trends and market drivers. Further, it highlights vital industry developments and the competitive landscape. In addition to the abovementioned factors, the report encompasses various factors contributing to the market's growth in recent years.

Report Scope & Segmentation