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

The EMEA industrial lubricants market size was valued at USD 21.07 billion in 2023. The market is projected to grow from USD 21.55 billion in 2024 to USD 27.94 billion by 2032 at a CAGR of 3.3% during the 2024-2032 period.

Industrial lubricants are substances used to reduce friction and provide lubrication between moving parts in machinery and equipment. They are essential for ensuring smooth operation, longevity, and reliability in various industrial applications. There are different types of lubricants, including oils, greases, solid lubricants, and synthetic lubricants, each suitable for specific applications and operating environments. These lubricants are used in manufacturing, automotive, aerospace, food processing, and construction machinery. When selecting lubricants, factors such as operating temperatures, load conditions, environment, and compatibility with materials need to be considered. Proper maintenance and a focus on environmentally friendly lubricants are crucial for machinery efficiency and sustainability.

The COVID-19 pandemic significantly affected the EMEA industrial lubricants market, leading to a drop in demand due to reduced industrial activity. Supply chains were disrupted, affecting raw material procurement and product distribution. However, the pandemic accelerated trends in sustainability and digitalization, which could benefit the market in the long run. As the world recovers, the market is expected to rebound, driven by the resumption of industrial activities and transportation. Companies adapting to these changes are likely to emerge more robust in the post-pandemic world.

EMEA Industrial Lubricants Market Trends

Growing Adoption of Automation in Manufacturing to Augment Market Growth

The growing demand for automation in the manufacturing sector is boosting the EMEA market for industrial lubricants during the forecast period. In manufacturing, automated systems are used for production processes, leading to greater efficiency, increased production capacity, predictable maintenance, and reduced costs. These benefits enable companies to produce a wide variety of products with low investment and a positive return on investment, attracting consumers. The increased use of automation has resulted in a higher dependence on equipment and machinery, such as centrifuges, compressors, industrial engines, hydraulics, and bearings, which require proper maintenance and lubrication to function. This surge in demand for industrial equipment, supported by automation, is driving market growth.

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EMEA Industrial Lubricants Market Growth Factors

Stringent Regulations Regarding Emissions and Energy Efficiency to Boost Market Growth

Environmental regulations and standards regarding emissions, energy efficiency, and workplace safety play a significant role in shaping the industrial lubricants market. Manufacturers are compelled to develop lubricants that comply with these regulations, driving innovation in the industry.  Governments worldwide are setting ambitious emissions reduction targets to combat climate change and meet international commitments such as the Paris Agreement. These targets often include stringent regulations on emissions from industrial activities, including manufacturing, transportation, and energy production. Industrial lubricants play a crucial role in reducing emissions by optimizing the efficiency of machinery and equipment, thereby minimizing energy consumption and greenhouse gas emissions.

RESTRAINING FACTORS

Volatility of Raw Material Prices to Restrict Market Growth

The EMEA industrial lubricants market growth is constrained by the fluctuating prices of raw materials used in manufacturing. Base oils made from crude oil, whether mineral or synthetic, are subject to continuous price fluctuations, which hinder market growth. Global markets are consistently affected by the volatility of crude oil prices, impacting industries, economies, and geopolitics. The cost of crude oil is influenced by supply and demand dynamics. When demand exceeds supply, prices rise, and vice versa. However, various factors contribute to the complexity of this relationship, resulting in the observed volatility in oil markets. Geopolitical tensions also play a significant role in these fluctuations, further restraining market growth.

EMEA Industrial Lubricants Market Segmentation Analysis

By Base Oil Analysis

Mineral Oil Segment Dominates with their Cost-Effectiveness and Wide Application Range

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

The mineral oil segment holds the dominant share in the market as this oil is colorless, odorless, and transparent, and is derived from petroleum. It is composed mainly of alkanes and paraffin, with varying molecular weights and chain lengths. Mineral oil finds extensive use in various hydraulic fluid applications due to its cost effectiveness. Moreover it is also used as lubricant, coolant, and insulator. It is also commonly used in cosmetics, greases, and food processing as a base ingredient.

The synthetic oil segment is set to exhibit the fastest growth during the study period. Synthetic oil is a lubricant that is artificially engineered through chemical synthesis rather than being refined from crude oil, which is the source of conventional mineral oils. These oils are created by combining various synthesized chemical compounds to achieve specific performance characteristics. Thus, synthetic oil improved performance, longer oil change intervals, energy efficiency, & high performance application is boosting its demand in the EMEA industrial lubricants market. Moreover, these compounds can include Polyalphaolefins (PAO), esters, alkylated aromatics, and other specialized additives. As a result, there has been a growing interest in developing synthetic oils and their use in the manufacturing industries.

By Product Type Analysis

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Hydraulic Fluid Segment Holds Prominent Share Favored by Rising Product Adoption in Several High-Performance Machinery

Based on product type, the market is segmented into hydraulic fluid, metalworking fluid, grease, gear oil, and others.

Among these, the hydraulic fluid segment held the largest EMEA industrial lubricants market share in 2023. Hydraulic fluid is a crucial component in industrial lubricants, playing a critical role in the operation of hydraulic machinery and systems. It is designed to transfer power within hydraulic equipment while also providing lubrication to reduce friction and wear, cooling to dissipate heat, and protection against corrosion.

The metal working fluid segment is set to depict considerable growth during the forecast period. Metalworking Fluids (MWFs) are crucial in industrial lubrication, serving a variety of functions in the machining and metalworking industry. They are primarily used to cool and lubricate the cutting tool and the workpiece, reducing the heat and friction generated during the cutting process. This increases the life of the cutting tool and also improves the quality of the work piece by minimizing thermal deformation and providing a better surface finish.

REGIONAL INSIGHTS

Europe dominated the EMEA market for industrial lubricants in 2023 due to several high demand from key sectors, including the automotive sector, manufacturing, renewable energy, and food processing. Germany held the highest share of the European market in 2023. The manufacturing sector, encompassing machinery, aerospace, electronics, and chemicals, requires a wide range of lubricants for equipment maintenance and operation. Moreover, the renewable energy sector, particularly wind power, has led to an increased demand for specialized lubricants. These lubricants are essential for the operation of wind turbines and are used in gearboxes, hydraulic systems, and bearings. Furthermore, the demand for food-grade lubricants is driven by growth in the food processing industry and stringent EU regulations regarding product safety and consumer health.

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The Middle East & Africa has experienced considerable economic and industrial growth, particularly in Gulf Cooperation Council (GCC) countries and emerging markets such as South Africa. This growth has increased the demand for industrial machinery and, consequently, for high-performance lubricants. To reduce dependence on imports and improve supply chain resilience, there has been an increasing emphasis on expanding local lubricant manufacturing capabilities within the Middle East & Africa region. These developments are supported by government initiatives and partnerships with foreign companies, aiming to boost local industries, create jobs, and transfer technology.

KEY INDUSTRY PLAYERS

Leading Companies Focus on Deploying Technologically Advanced Products to Sustain Their Market Position

The market is fiercely competitive and is consolidated in nature. Regional players in the EMEA market for industrial lubricants have significantly injected capital invested in the R&D to develop cutting-edge products and technologies. Superior operational efficiency and novel technology development are the strategies used by market leaders for their growth. In addition, market players are focusing on acquisition and expansion activities to increase their share.

LIST OF TOP EMEA INDUSTRIAL LUBRICANTS COMPANIES:

• FUCHS SE (Germany)


• Repsol S.A. (Spain)


• BP p.l.c (U.K.)


• Shell plc (U.K.)


• Petronas (Malaysia)


• Chevron Corporation (U.S.)


• ExxonMobil Corporation (U.S.)


• United Lube Oil Company (Saudi Arabia)


• DANA Lubricants Factory LLC (UAE)


• Enzo Lubricant (UAE)

KEY INDUSTRY DEVELOPMENTS:

• April 2024 – Shell Lubricants launched three new products under the brand name Shell Helix Ultra passenger car motor oil to meet upgraded industry specifications and Original Automotive Manufacturer (OEM) requirements, enabling customers to release more engine power.


• March 2024 – Shell Indonesia announced the establishment of the first grease manufacturing plant (GMP) in Indonesia. The plant is a new addition that will complement Shell’s existing Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi, Indonesia.


• February 2024 – Chevron recently introduced a new product, Rykon, which is an overbased calcium sulfonate complex grease. This high-performance grease has been designed to enhance durability and increase uptime for the next power generation of equipment. Chevron has refreshed its line of products and Rykon is a valuable addition to it.


• November 2023 – B.Grimm Technologies and PETRONAS Lubricants International teamed up to work together and utilize their business expertise to enhance the lubricants market in Thailand. This partnership is the beginning of future collaborations between B.Grimm and the PETRONAS Group, which would explore new energy solutions in Thailand and the Southeast Asian market.


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

REPORT COVERAGE

The report provides a detailed analysis of the market and focuses on key aspects such as prominent companies, product types, and leading end-use industries. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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Report Scope & Segmentation