Industrial Lubricants Market Size, Share & Industry Analysis, By Base Oil (Mineral Oil, Synthetic Oil, and Bio-based Oil), By Product Type (Hydraulic Fluid, Metal Working Fluid, Gear Oil, Grease, and Others), and Regional Forecast, 2024-2032

The global industrial lubricants market was valued at USD 71.55 billion in 2023 and is projected to be worth USD 74.05 billion in 2024 and reach USD 96.93 billion by 2032, exhibiting a CAGR of 3.3% during the forecast period. Asia Pacific dominated the industrial lubricants market with a market share of 42.64% in 2023. Moreover, the industrial lubricants market in the U.S. is projected to grow significantly, reaching an estimated value of USD 14.25 billion by 2032, driven by the growing manufacturing activities in the country.

Lubricants that are used for industrial applications are considered industrial lubricants. The product is used to increase efficiency and boost performance of industrial machinery and equipment. A large variety of industrial fluids are formulated for preventing any damage caused by degradation while prolonging service intervals and increasing the work life of machinery. This performance boost in mechanics enhances productivity and provides high operational reliability. The product poses great use for turbine machines, power generation, metal & mining, and food & beverage applications. Rise in demand for products due to the aforementioned applications is further supporting the adoption of advanced machinery to improve & optimize productivity thereby augmenting the industrial lubricants market growth.

The COVID-19 outbreak severely impacted the market as a result of the temporary shutdown of manufacturing facilities. This caused a lowering demand for the product for industrial applications as machinery and equipment were not being used. The implementation of quarantine and ban on import and export had resulted in automobiles and marine vessels not being used, lowering product demand. Moreover, restrictions on goods transportation to and from the country further disrupted the supply chain of raw materials and finished goods. On the other hand, the pandemic led to a higher demand from sectors such as healthcare, pharmaceuticals, food & beverages, and e-commerce, which supported companies in revenue generation and led to the revival of the market.

Industrial Lubricants Market Trends

Rising Shift Toward Bio-Based Oils is Creating Opportunities

There has been a recent shift toward improving and increasing the use of bio-based lubricants that use biodegradable feedstock-based base oils. Biodegradable raw materials include use of vegetable oils for making bio-based industrial lubricants. Companies are increasingly focusing towards creating an environmentally friendly base oil to reduce dependence on petroleum and other non-renewable raw material sources. This is further supported by the rise in regulations over use of traditional lubricants. Moreover, bio-based lubricants find application in the food processing industry and rise in environmental guidelines in the food & beverage industry is creating opportunities for bio-based products. The recent development in the healthcare industry has also led to the demand for products that have low toxicity and high biodegradability. All the factors together have provided growth opportunities for this market.

Industrial Lubricants Market Growth Factors

Growing Adoption of Automation in Manufacturing to Augment Market Growth

The rise in demand for automation in the manufacturing sector is driving the market during the forecast period. In manufacturing, the equipment is used from automated systems for production processes. Automation provides greater efficiency by growing production capacity, predictable maintenance, and reduced costs. These benefits also help the company in creating a wide variety of product types to attract consumers by having low investment and yielding a positive return on investment. The increasing use of automation has led to higher dependence on equipment and machineries which require proper maintenance and lubrication to function. These machineries include centrifuges, compressors, industrial engines, hydraulics, and bearings. This rise in demand for industrial equipment supported by automation is propelling the market growth.

Globalization and Subsequent Industrialization of Developing Economies to Drive Market Growth

Globalization has significantly influenced manufacturing operations by encouraging companies to establish facilities across different regions to optimize costs, access new markets, and mitigate risks. The expansion of the manufacturing footprint globally has led to a significant increase in the demand for industrial lubricants. Industries ranging from automotive, aerospace, electronics, pharmaceuticals, and others rely on machinery and equipment that require lubrication for smooth operation. With the rapid growth of manufacturing activities worldwide, there is a corresponding rise in machinery usage, prompting higher demand for lubricants to reduce friction, prevent wear and tear, and maintain operational efficiency. In addition, different regions may present unique challenges in terms of operating conditions, temperature extremes or environmental regulations, driving the demand for customized lubrication solutions. As companies invest in preventive maintenance programs to ensure the reliability and durability of their equipment, the demand for industrial lubrication is anticipated to continue to rise, driving market growth during the forecast period.

RESTRAINING FACTOR

Volatility of Raw Material Prices to Restrict Market Growth

The factor restraining the market is the volatile price of raw materials used for manufacturing industrial lubricants. Mineral & synthetic based base oils are primarily produced from crude oil, and continuous fluctuation in crude oil prices acts as a restraint for market growth. Moreover, stringent environmental regulations to reduce pollution and global warming are affecting the market. This includes restricting mining activities, control over Co2 emissions from factories and production facilities. These factors restrain the growth of this market.  

Industrial Lubricants Market Segmentation Analysis

By Base Oil Analysis

Mineral Oil Segment is Dominant Share in Market

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

Mineral oil segment dominated the market due to easy availability and low manufacturing cost of the product. The rise of investment in the R&D activities in end-use industries such as chemical, power generation, and mining is driving the segment growth. Synthetic oil is expected to have fastest growth during the forecast period which can be attributed to the rising industrial activities that require high metal machinery demand for applications in steam and turbine power plants, compression plants, and wind turbines. The increasing demand for product for the above mentioned application is resulting in the segment growth.

Bio-based oil is derived from vegetable oils such as canola, sunflower, palm, coconut, and soya bean, and are biodegradable in nature. The segment growth can be attributed to the rise in shift towards eco-friendlier products due to governmental restrictions. These base oils are used in hydraulic fluids and engine oils, and increasing demand for these equipment is driving the product consumption.

By Product Type Analysis

Hydraulic Fluid Segment had Largest Share in Market

Based on application, the market is categorized into hydraulic fluid, metal working fluid, gear oil, grease, and others.

Hydraulic fluid segment accounted for largest industrial lubricants market share owing to the high usage in the variety of finished goods. This has led to the expansion of production capabilities and has caused manufacturers to depend on automated machinery for high production activity. Metal working fluids segments are used for functioning of metal parts in machinery during production operations. These fluids help in extending the tool life while also improving the machine performance. The increasing demand for metal based machinery for manufacturing activities is anticipated to drive the segment growth.

Gear oil is made from two components that are base oil and additives. The additives provide benefitting properties such as improved performance and protection. The product is primarily used in gearboxes where it provides thermal stability, oxidation and sludge formation reduction. Grease is used for keeping machines, vessels, vehicles, and components properly functioning. Moreover, other segments include use of lubricants in various end-use industries that includes marine, manufacturing, automotive, steel, construction, and mining.

REGIONAL INSIGHTS

The market in Asia Pacific stood at USD 30.51 billion in 2023. The region has the largest share in the global market, which can be associated with rising economy and increasing industrialization. China, Japan, and India are specialized in manufacturing a wide variety of products for several end-use industries. Moreover, rise in middle class spending in developing nations of Southeast Asia, where consumers are becoming more affluent and use consumer goods products, is supporting the market growth.

In North America, the product demand can be attributed to rise in renovation activities and commercial sector development. Construction of these structures require high-end construction equipment, thus creating lubricant demand.

Europe has witnessed rapid automobiles production, where the product is used in machineries during manufacturing and assembling automotive parts. The growing automobile demand is driving the consumption of industrial lubricants.

Latin America and the Middle East & Africa are expected to have significant growth, which can be associated with the rising mining and oilfield drilling activities. Rise in industrial activities supported by automation technology is affecting the market positively in countries that include Brazil and South Africa. Whereas, Iran and Saudi Arabia are among the major countries using industrial lubricants due to high demand from construction, chemical, automotive, and mining industries.

List of Key Companies in Industrial Lubricants Market

Expansion Strategies by Global Leaders in Market to Strengthen Positions

The key industry players in the market are FUCHS, Repsol, Exxon Mobil, BP plc, Shell, Petrobras, and Hindustan Petroleum Corporation Limited. The key players have adopted growth strategies that include improving global presence by merger & acquisition, new product launch, capacity improvement, and investment to gain competitive advantage in the market. For example, in September 2021, RelaDyne, one of the United States leading providers of lubricants, fuel, diesel exhaust fluid, and industrial reliability services acquired PPC Lubricants, a prominent lubricant distributor in the Mid-Atlantic region.

LIST OF KEY COMPANIES PROFILED:

• FUCHS (Germany)


• Repsol (Spain)


• Exxon Mobil (U.S.)


• BP plc (U.K.)


• Shell (Netherlands)


• Petrobras (Brazil)


• Hindustan Petroleum Corporation Limited (India)


• Indian Oil Corporation Ltd. (India)


• Gazprom Neft PJSC (Russia)


• PT Pertamina Lubricants (Indonesia)

KEY INDUSTRY DEVELOPMENTS:

• December 2023 – FUCHS invested USD 11.5 million to expand its production capacity in Isando, South Africa. The investment is expected to increase the plant’s capacity by 40%. This move is part of the company’s ongoing strategic plan to increase capacity to meet the growing market demand.


• October 2023 – Chevron Corporation announced it had collaborated with Hindustan Petroleum Corporation Ltd (HPCL) to launch its Caltex brand in India. As a part of this collaboration, these companies entered an agreement where HPLC would be able to license, produce, distribute, and market Chevron’s lubricant products in the Indian market. The move provided Chevron with an opportunity to re-enter the Indian lubricants market after a 12-year absence, particularly for providing lubrication solutions in the industrial and commercial vehicles segment.


• June 2021 – FUCHS strengthened the specialty business through the acquisition of lubricants business of Gleitmo Technik AB. The company integrated it into the subsidiary FUCHS LUBRICANTS SWEDEN AB and acquired 100% of shares in Gleitmo Technik AB, which includes the product portfolio, customer base, workforce, and a lease agreement.


• November 2020 – PT Pertamina (Persero) expanded business into various aspects and regions. The MoU and PT Pertamina Lubricants (PTPL) signed an agreement in Australia. This collaboration is a business strategy by PT Pertamina Lubricants into expanding overseas business portfolio through partnership to penetrate industrial lubricant products in the Australia market.

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on crucial aspects such as leading companies, applications, and types. Also, the report offers insights into industrial lubricants market trends and highlights vital industry developments. In addition to the factors mentioned above, the report encompasses various factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation