Lubricants Market Size, Share & Industry Analysis, By Type (Automotive Oils, Industrial Oils (Hydraulic Oils, Industrial Gear Oils, Metal Working Fluids, Greases, and Others), Marine Oil, and Process Oils), By Grade (Mineral, Synthetic, and Semi-Synthetic), By Application (Automotive, Industrial, and Others), and Regional Forecast, 2024-2032

The global lubricants market size was valued at USD 119.07 billion in 2023 and is projected to be worth USD 120.97 billion in 2024 and reach USD 140.54 billion by 2032, exhibiting a CAGR of 2.3% during the forecast period. Asia Pacific dominated the lubricants market with a market share of 45.26% in 2023. Moreover, the lubricants market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 18.82 billion by 2032, driven by the rising popularity of lower-viscosity oils and high performance lubes.

Lubricants are fluids, oils, or greases that reduce friction between two surfaces in close proximity. These fluids are crucial in automotive and industrial applications as they reduce friction between the moving elements. They are also utilized to prevent corrosion, oxidation, and thermal stability in industrial parts. The growing competition among prominent industry leaders has aided market expansion over time.

The COVID-19 pandemic had brought both challenges and opportunities to the lubricants industry. Declining demand from the automotive sector due to reduced travel and manufacturing slowdowns had affected the demand for motor and industrial oils. Industrial activity fluctuations had also influenced the demand for lubricants, with most of the sectors experiencing a slowdown, while others, such as healthcare witnessing an increased demand for this product.

Lubricants Market Trends

Rising Demand for Synthetic Lubricants to Aid Market Growth

The global market for synthetic lubricants for large-scale enterprises has grown due to greater awareness about alternatives for mineral oil-related items. The rising automotive sector and industrial growth are expected to surge synthetic oils demand during the forecast period. Synthetic varieties have grown in popularity due to their better efficiency than natural mineral oils. They have progressively begun to replace natural mineral oils as the preferred choice in various industries that demand high levels of consistency. Polyalphaolefin is the most prevalent synthetic base oil used in industrial and automotive applications. As a result of their intrinsic physical and chemical features, they have lower volatility, higher viscosity index, lower pour point, and enhanced oxidative/thermal stability.

Lubricants Industry Growth Factors

Increasing Demand for Better Lubrication from Industrial Sector to Drive Market Growth

With the increasing energy cost for powering industrial activities, the industrial sector is making efforts to cut energy consumption and operational costs. Engine parts that aren't lubricated are more prone to friction, which means they use more fuel, resulting in pollution and emissions. A good grade product helps achieve the same by reducing friction between parts and enhancing machine efficiency.

According to independent testing conducted by 'The National Lubricating Grease Institute’, gears lubricated with synthetic lubes have less friction due to their superior density, viscosity, and molecular weight. Also, attributed to lower churning losses at lower temperatures and less gear erosion, PAG & PAO-based gear lubricants help reduce maintenance costs in cylindrical gears.

Attributed to higher energy cost, even a little reduction in energy consumption can result in significant financial savings. The potential for energy savings varies depending on the type of machine in use. It can raise a company's overall earnings by significantly improving the lubrication. Rapid industrialization and stringent environmental restrictions on manufacturing businesses are expected to propel the global lubricants market growth.

Rising Demand from Transportation & Logistics Sector to Drive Market Growth

The transportation & logistics sector is a significant consumer of lubricants due to its diverse vehicle fleet and extensive supply chain operations. With the globalization of trade and expansion of supply chains, lubricants play a crucial role in supporting the movement of goods and commodities across different regions. Commercial fleets, including trucks, freight carriers, and public transportation vehicles, rely heavily on lubricant solutions customized for commercial vehicle applications. In addition, lubricants are essential in the aerospace and maritime industries, where they endure extreme conditions encountered during flight and maritime operations. Lubricants are essential for maintaining the smooth operation of these vehicles as they reduce friction, dissipate heat, and protect against wear and corrosion. Overall, the transportation & logistics sector’s continuous growth and evolving regulatory landscape will contribute to the sustained demand for high-quality lubricants, driving the market growth.

RESTRAINING FACTORS

Increasing Adoption of Electric Vehicles to Confine Market Growth 

The automotive industry contributes significantly to consumption and growth of the global lubricating products business. Various oils are used in traditional automobiles to maintain engine quality over time. However, as the demand for crude oil grows, so do environmental concerns. Consumers in developed and emerging countries are becoming more interested in electric vehicles. Furthermore, as technology advances, the benefits of electric vehicles become more apparent. Electric car adoption is expected to slow the growth of the automobile industry.

According to the International Energy Agency, China accounted for 3 million sales of electric vehicles in 2020, up by 40% from 2019. It is the world’s largest and fastest-growing electric car market and a global hub for electronic and electrical component manufacture. Leading electric vehicle manufacturers, such as Tesla, are investing in the Chinese market to take advantage of the sector's potential. Electric vehicles are also becoming increasingly popular in industrialized countries such as the U.S and Japan along with Western Europe.

Lubricants Market Segmentation Analysis

By Type Analysis

High demand from Automotive Segment to Generate Highest Revenue

On the basis of type, the market is categorized into automotive oils, industrial oils, marine oils, and process oils. The industrial oils segment is further sub-categorized into hydraulic fluid or oils, industrial gear oils, metal working fluids, greases, and others. The automotive segment is expected to hold the largest lubricants market share, owing to the escalating demand for engine oils, gear oils, transmission fluids, & coolants from the automotive sector. Economic growth in developing countries is further increasing the ownership of vehicles, which will spur the demand.

However, the overall type segment is expected to showcase a steady growth in developed countries such as the U.S. and Japan. Due to rapid industrialization in developing countries, the industrial oils segment holds a significant share in the global market. Industrial oils are used in various equipment to improve the performance level of components. They are primarily used in gear, compressors, turbines, and other processing equipment.

By Grade Analysis

Lower Cost of Mineral Grade Products to Exhibit Growth

Mineral grade is the most often used product since it is less expensive than synthetic and semi-synthetic alternatives. Furthermore, it is made from crude oil and manufactured in vast numbers for usage in various sectors, including metal and mining, oil, and others. Mineral grades come in light and heavy steps and their use is entirely based on the end-use requirements.

Base oil, thickeners, and additives are all used in synthetic ones. They have several benefits over mineral-based products. They give additional weather protection, enhance fuel-efficiency, prevent oxidation, and increase engine power significantly. The synthetic segment is predicted to develop rapidly throughout the forecast period due to these rising advantages. Semi-synthetic oils, also known as synthetic blend oils, include a tiny percentage of synthetic oil blended with mineral oils to improve their qualities without raising the price. Semi-synthetic oil performs better at lower temperatures, which is expected to increase its demand in automotive applications.

By Application Analysis

High Demand from Automotive Segment to Boost the Market Growth

The automotive segment held the largest share in the global market. The segment is anticipated to showcase rising demand over the coming years due to customers' rising possession of passenger cars. In the automotive sector, lubricating oils reduce the friction between two components of the vehicle. They also help control the temperature by absorbing the heat generated by the moving parts.

Global demand for general industrial oils is predicted to rise as the world becomes more industrialized. They are made to keep the machinery functioning optimally at high speeds. They are widely utilized in various sectors, including manufacturing, oil and gas, and food processing. The other applications include marine, military, and aviation. Marine lubricants are designed for high, medium, and slow-speed marine engines. These are also used in the aviation industry in various applications such as gears, piston rings, bearings, and others.

REGIONAL INSIGHTS

The global market outlook is predicted to remain strong in Asia Pacific during the forecast period, owing to the rising demand from the industrial and automotive sectors. The market size of Asia Pacific was valued at USD 53.89 billion in 2023. Factors, such as rising population and increased investment in various industrial sectors, are driving the market. The growing population is surging the demand for automobiles, which, in turn, is surging the demand for automotive oils. In the global market, Asia Pacific is predicted to develop the fastest. Due to rising demand from the automotive sector, China, Japan, and India are the primary countries contributing to the region's market growth. Owing to the region's economic diversity, progressive corporate attitude, rising household income levels, and perhaps most importantly, the region's latent potential to evolve into one of the world's top economies in the future, ASEAN is an exciting market for investment. The range of manufacturing sectors in different ASEAN countries and their varying growth trajectories provides a spectacular and ever-changing market, with potentially lucrative niche opportunities emerging for companies that can capitalize on the trend.

The automotive industry dominated the market in North America. The U.S. comparatively has a large automobile sector that led to the market's tremendous rise. Furthermore, the industrial sector has shown constant expansion and is likely to continue in the following years. North America consumes a lot of environment-friendly items as a result of strict environmental protection legislation. Large important firms, such as ExxonMobil Corporation, Royal Dutch Shell, and Chevron Corporation, are present in the U.S. The market has been characterized by severe competition as all major industry participants are focused on developing their customer base to gain a competitive advantage over other companies in the ecosystem.

Europe is expected to be the market's fastest-growing region. The market in this region is likely to be driven by the increasing development of high-end machinery and equipment for industrial applications. In addition, the market is expected to grow due to the rising demand for equipment flexibility and the need to improve vehicle efficiency.

Several European countries have strict regulations regarding the use and disposal of lubricating oils, which has significantly increased the demand for bio-based lubricants. During the forecast period, the need for technically advanced products will rise in the area due to continued advancements in the automobile industry.

The economic slump has impacted Latin American demand negatively, but it remains above average due to the automotive industry's requirements. Brazil and Mexico, the two largest vehicle markets in Latin America, make up the Latin American automotive sector. The two countries struck a free trade agreement on selling light commercial trucks and auto parts.

Heavy vehicles (trucks and buses) will be included in the agreement effective in 2022, resulting in lower quotas and fees on exports and imports.

The Middle East is rapidly developing, yet, the dynamics of the petroleum industry mainly determine the region's development. Despite socio-political turmoil, the region's vast oil and gas reserves make it a vital industry element. The drop in crude oil prices caused an economic slowdown, but countries have improved their economies, which bodes well for future demand for lubricants. In Africa, increased car usage and a shift in the middle-class population produce potential demand for automotive oils. In addition, government regulations and OEM requirements are pushing the industry forward.

List of Key Companies in Lubricants Market

Market Players to Strengthen their Positions by Offering Various Solutions

The major producers are located in Europe, but the demand is high in Asia Pacific. It is leading to the creation of a consolidated market. The producers in Europe and North America are continuously engaged in acquisitions and mergers to strengthen their market position and drive business growth. As a result, the key players in the market have developed strong distribution channels, regional presence, and product offerings. Manufacturers, such as Shell, ExxonMobil, and Total, focus on introducing products and strengthening distribution channels to serve the industrial consumers better.

LIST OF KEY COMPANIES PROFILED:

• PetroChina Company Limited (China)


• Chevron Corporation (U.S.)


• ExxonMobil Corporation (U.S.)


• Royal Dutch Shell Plc. (Netherlands)


• Total Group (France)


• BP plc (U.K.)


• Valvoline LLC (U.S.)


• ENEOS Corporation (Japan)


• The FUCHS Group (Germany)


• Global Lubricant Industry LLC (UAE)


• Shield Lubricants (India)


• AMALIE Oil Co. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• August 2023: Valvoline introduced a new portfolio of Valvoline 4-stroke Full Synthetic Premium Motor Oil for marine and powersports applications. The product range is designed to withstand the high torque and temperatures seen in four-stroke ATV/UTV and marine motors.


• June 2023: Shell and Ducati entered a collaboration to design and produce a new high-performance oil for Ducati Panigale with dry clutch. The product uses Shell’s proprietary PurePlus technology and has been developed to protect Ducati engines against wear and tear by reducing friction.


• March 2023: Aramco announced the completion of the acquisition of Valvoline Inc.’s global products business, Valvoline Global Operations. The deal was worth USD 2.65 billion and both the companies plan to work together to expand Valvoline’s brand across the globe.


• June 2023: FUCHS Lubricants Co. launched RENOLIT CSX AWE 0, a new grease for truck trailer axle hubs. The product is formulated using lithium-free grease technology and can reduce friction and temperature in heavy trucks. The product is in addition to the company's existing line of lubricant products.


• October 2021: Cummins Inc. and Valvoline Inc. renewed their long-term technology and marketing agreement for the next five years. Under this agreement, Cummins will sell and endorse Valvoline’s products through its global distribution channels.


• July 2021 – Valvoline All-Terrain is a new engine oil designed specifically for off-highway, heavy-duty diesel engines that operate in tough environments. All-Terrain, according to Valvoline, was created with an emphasis on wear protection in equipment operating in severe settings such as those found in mining, construction, and agriculture.


• June 2021 – TotalEnergies and Stellantis extended their partnership for Peugeot, Citroen, and DS Automobiles brands for another five years. This partnership will also focus on research and development work toward sustainable growth and innovation.


• March 2021 – Nissan Motor India signed an agreement with ExxonMobil to supply lubes for the passenger vehicle aftermarket. The firm will provide a wide range of engine oils suited not just for BS6-compliant vehicles but also for BS3 and BS4 models from the automaker.


• February 2021 – Shell introduced carbon-neutral lubes for passenger automobiles, heavy-duty diesel engines, and industrial uses. Shell has a multi-year plan to assist customers in managing their sustainability needs. The company aims to lower the carbon intensity of its products by preventing, reducing, and offsetting emissions.

REPORT COVERAGE

The global lubricants market report offers a thorough analysis of the lubricants industry, focusing on elements such as types, grades, and applications. Apart from that, the report provides information on key market trends and significant industrial developments. In addition to the variables above, the study includes several others contributing to the market's recent expansion. The competitive landscape section offers detailed profiles of the leading market players operating in the market.

Report Scope & Segmentation