Lubricants Market Size, Share & Industry Analysis, By Base Oil (Mineral Oil, Synthetic Oil, and Biodegradable Oil), By Application (Automotive & Transportation, Industrial, Marine, and Aerospace), and Regional Forecast, 2024-2032

The global lubricants market size was valued at USD 172.13 billion in 2023 and is projected to be worth USD 175.52 billion in 2024 and reach USD 205.62 billion by 2032, exhibiting a CAGR of 2.0% during the forecast period. 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.

Lubricants are formulated to provide lubrication to highly stressed engines. The optimum performance of lubricants is necessary to improve the power output and fuel economy. Its ability to offer less wear and less friction makes it an ideal ingredient in various industrial and transport applications. These fluids are crucial in automotive and industrial applications as they reduce friction between moving elements while also helping prevent corrosion and oxidation and maintaining thermal stability in industrial parts. The growing competition among prominent industry leaders to develop high-performance lubricants has driven market expansion over time. In addition, growing demand for synthetic lubricants, which offer superior physical and chemical attributes over mineral oils, will drive the market growth during the forecast period.

The COVID-19 pandemic brought both challenges and opportunities to the lubricants market. Declining demand from the automotive sector due to reduced travel and manufacturing slowdowns affected the need for motor and industrial oils. Fluctuations in industrial activities also influenced the demand for lubricants, with most sectors experiencing a slowdown, while others, such as healthcare, witnessed an increased demand for these products.

Lubricants Market Trends

Momentum Toward Biodegradable Lubricants to Create Lucrative Opportunities in the Market

While conventional lubricants offer excellent performance at a cost-effective price, their negative environmental impact has been curbing their demand to some extent. Governments and environmental agencies are increasingly mandating the use of environmentally friendly products. Companies that invest in biodegradable lubricants can capitalize on these regulations to gain a competitive edge in markets with stringent environmental standards. Certain industries, such as marine, agriculture, and forestry, are particularly sensitive to environmental impact. By offering biodegradable lubricants tailored to these specific applications, companies can tap into niche markets that are growing rapidly due to environmental concerns. According to the Society of Tribologists and Lubrication Engineers (STLE), almost all bio-based lubricants are biodegradable. Making them a perfect solution to tackle the problem emerging from the usage of conventional lubricants. Biodegradable lubricants offer an environmentally friendly solution and offer equivalent or better performance than petroleum products. Therefore, the momentum toward biodegradable products and the commitment to sustainability by market players will drive demand for bio-based lubricants, creating lucrative opportunities.

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Lubricants Market Growth Factors

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

With increasing energy costs 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 reduces friction between parts, thereby 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. Additionally, 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 costs, even small reductions in energy consumption can result in significant financial savings. The potential for energy savings varies depending on the type of machine used, and improved lubrication can raise a company's overall earnings. Rapid industrialization and stringent environmental restrictions on manufacturing businesses are expected to propel the global 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 the 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 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. These lubricants are essential for maintaining the smooth operation of 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 market growth.

RESTRAINING FACTORS

Increasing Adoption of Electric Vehicles to Confine Market Growth 

The automotive industry contributes significantly to the consumption and growth of global lubricating products. Various oils are used in traditional automobiles to maintain engine quality over time. However, rising demand for crude oil has led to growing 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 conventional automobile industry, which is the largest consumer of lubricants.

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., Japan, and Western Europe.

Lubricants Market Segmentation Analysis

By Base Oil Analysis

Mineral Oil Segment to Generate Highest Revenue Owing to Cost-effectiveness

The market is categorized by base oil into mineral oil, synthetic oil, and biodegradable oil.

The mineral oil segment is further sub-categorized into Group I, Group II, and Group III, and synthetic oil is further sub-categorized into Group IV and Group V. The mineral oil segment is expected to hold the largest market share, owing to the escalating demand for automotive lubricants such as engine oils, gear oils, transmission fluids, and coolants from the automotive sector. Mineral grade is the most often used product since it is less expensive than synthetic and semi-synthetic alternatives. Economic growth in developing countries is also contributing to increased ownership of vehicles, which will further spur demand.

Biodegradable oil is identified as the fastest-growing segment in the market. The high growth is attributed to the increasing consumer preference for greener solutions and government initiatives to reduce carbon footprints.

However, the synthetic oil segment is expected to showcase steady growth in developed countries such as the U.S., Japan, Germany, the U.K., France, and others. Synthetic oils are proven to be the best choice in situations that require exceptional performance which will drive its demand in the foreseen period.

By Application Analysis

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High Demand from Automotive & Transportation Segment to Boost the Market Growth

Based on application, the market is divided into automotive & transportation, industrial, marine, and aerospace.

The automotive and transportation segment held the largest share in the global market. The segment is anticipated to showcase rising demand in the coming years due to customers' increasing possession of passenger cars. In the automotive sector, lube oils play an important role in reducing friction between moving vehicle components. They also help control temperature by absorbing the heat generated by these parts.

Global demand for industrial oils such as hydraulic oils, metalworking fluids, process oils, greases, and others is predicted to rise with continued industrialization globally. 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. In the aviation industry, lubricants are used in applications such as gears, piston rings, and bearings.

REGIONAL INSIGHTS

Based on geography, the market is studied across North America, Latin America, Asia Pacific, Europe, Middle East, and Africa. 

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Asia Pacific region held the largest market share in 2023 and is predicted to remain dominant 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 63.0 billion in 2023. Factors such as rising population and increased investment in various industrial sectors are driving the growth. 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 be the fastest-developing region, with China, Japan, and India as the primary countries contributing to the growth due to rising demand from the automotive sector. ASEAN is also an exciting market for investment owing to its economic diversity, progressive corporate attitude, rising household income levels, and the region's potential to become one of the world's top economies in the future. The range of manufacturing sectors in different ASEAN countries and their varying growth trajectories create an ever-changing market with potentially lucrative niche opportunities for companies that capitalize on emerging trends.

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The automotive industry dominated the market in North America. The U.S. comparatively has a large automobile sector, driven the substantial market growth. Furthermore, the industrial sector has shown constant expansion and is likely to continue in the following years. North America is also a significant consumer of environment-friendly items due to strict environmental protection legislation. Therefore, the demand for lubricants in North America is expected to grow in the coming years, driven by the automotive and industrial sectors.

Europe is expected to grow stagnantly during the forecast period, driven by the increasing development of high-end machinery and equipment for industrial applications. In addition, the rising demand for equipment flexibility and the need to improve vehicle efficiency is likely to support market expansion. 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 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 are key to its economy. 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 are creating demand for automotive oils. In addition, government regulations and OEM requirements are further pushing industry expansion.

Key Industry Players

Market Players to Strengthen their Positions by Offering Various Solutions

While major producers are based in Europe, demand is highest in the Asia Pacific, leading to a consolidated market structure. 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, key players in the market have developed strong distribution channels, regional presence, and product offerings. Manufacturers such as Shell, ExxonMobil, and Total are focused on introducing new products and enhancing their distribution channels to serve industrial consumers better.

List of Top Lubricants Companies:

• Shell (U.K.)


• ExxonMobil Corporation (U.S.)


• BP plc (U.K.)


• TotalEnergies (France)


• Sinopec (China)


• Chevron Corporation (U.S.)


• PetroChina Company Ltd. (China)


• FUCHS Group (Germany)


• Valvoline LLC (U.S.)


• ENEOS Corporation (Japan)

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 encountered in four-stroke ATV/UTV and marine motors.


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


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


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


• July 2021 – Valvoline introduced All-Terrain, 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 for equipment operating in severe settings such as 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 would 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 agreement provides a wide range of engine oils suited for BS6-compliant vehicles as well as 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 report offers a thorough analysis of the lubricants industry, focusing on elements such as base oil and application. It also 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.

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Report Scope & Segmentation