Lubricants Market

In terms of value, the lubricants market is estimated to grow from USD 173.5 billion in 2024 to USD 198.4 billion by 2029, at a CAGR of 2.7%. This anticipated growth reflects a dynamic and evolving industry influenced by several key factors, including rising industrial activities, advancements in lubrication technology, and changing consumer preferences. In addition to industrial applications, the automotive sector plays a crucial role in the expansion of the lubricant market. The global rise in vehicle ownership and production pushes the demand for automotive lubricants, including engine oils, transmission fluids, and greases. Moreover, innovations such as the development of synthetic and semi-synthetic lubricants offer improved performance characteristics, including better temperature stability, enhanced wear protection, and longer service life. As the industry continues to evolve, the increasing demand for high-quality and specialized lubricants will support the overall market expansion, leading to a substantial increase in its value.

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Market Dynamics

Driver: Increased demand for high-performance engines leading the lubricant industry to evolve and grow

The growth of request for engines with a high-performance is a key driver in the lubricants market that makes this industry develop and grow. Advanced vehicles, machinery and industrial equipment make it necessary to have lubricants matching the performance and efficiency of these technological engines. This change is not an answer to market trends, but it is rather necessary as modern engine designs are stretching traditional lubrication technology. Engines for high performance today are meant to operate at higher speeds, temperatures, and pressures than ever before. These engines found in state-of-the-art cars, industrial machines or even aircrafts require lubricant solutions which can withstand extreme conditions without breaking. In most cases traditional lubricants that could have been enough for older generation fewer demanding engines fall short of providing the necessary protection required by these much tougher environments. For this reason, the lubricant industry has had to come up with innovative ideas and produce better formulations capable of keeping up with changes in need for modern engines.

Restraints: Rising demand for electric vehicles and reducing price of battery

The oil market by its nature has been transformed since lithium battery prices are continuously decreasing and the demand for electric vehicles is increasing. Such factors thus reshape the dynamics of an industry, which is conventionally controlled by a majority of internal combustion engine (ICE) vehicles. The rise of EVs has led to a decrease in the demand for lubricants specifically developed for ICE vehicles, thereby posing challenges to makers and sellers in this sector. Electric cars utilize electricity instead of petroleum as their sole source of energy and consequently they have different lubricating needs from conventional cars. Unlike ICE cars that need several kinds of lubricants like engine oils, transmission fluids or coolants to function efficiently and last long, EVs require less of such fluids. The biggest segment in this market known as engine oil does not apply to electric vehicles because its power comes from an electric motor at the core. Thus, this factor is one major reason why increasing EV numbers acts as a restraint on lubricant markets since they no longer require significant amounts of oil products.

Opportunities: Growing demand for renewable energy to positively impact lubricant market

Demand for renewable energy is increasing continuously and its growth offers great potential for the lubricants market because expanded renewable energy infrastructure like wind turbines, solar farms and hydroelectric plants require advanced lubrication solutions to operate efficiently and reliably. The need to reduce reliance on fossil fuels to mitigate climate change and adopt sustainable sources of energy by the world, the lubricant industry stands a chance to gain from this era by delivering specialized products for renewable energy systems. Within the field of renewable energy, wind is one of the fastest expanding sectors, which opens an especially attractive window in terms of lubricants. With gears, bearings and hydraulic systems as their integral parts, wind turbines are intricate machines that are designed to convert kinetic power into electrical power. To guarantee optimal operation, all these components must be properly lubricated. High-performance lubricants capable of withstanding such challenges while minimizing wear to prolong vital elements’ lifespans should be used due to extremely harsh operating conditions including exposure to extreme temperatures, moisture as well as variable loads.

Challenges: Stringent environment norms and continues reforms by government

The lubricants market is faced with significant challenges emanating from stringent environmental regulations and continuous government reforms forcing companies to re-assess their product formulas, production approaches as well as overall business models in response to these regulatory pressures. There is a growing global trend toward sustainability and reducing the environmental impacts of lubricants which has changed greatly how the industry operates. One of the main issues is the need to meet increasingly strict regulations on the environmental impact of lubricants especially in relation to emissions, waste treatment and disposal and use of hazardous substances. Governments all over the world are imposing tougher measures that restrict release of such harmful materials into environment hence directly affecting formulation and composition of oils.

Lubricants Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of lubricants. These companies have been in business for a while and have a broad range of products, cutting-edge technologies, and robust international sales and marketing networks. Prominent companies in this market include Shell plc (UK), Exxon Mobil Corporation (US), BP p.l.c. (UK), Chevron Corporation (US), PetroChina Company Limited (China), TotalEnergies SE (France), ENEOS Holdings, Inc. (Japan), China Petroleum & Chemical Corporation (China), and among others.

Based on base oil type, synthetic lubricants are projected to fastest-growing in lubricants market, in terms of value, during forecast period.

Synthetic lubricants will be the fastest-growing type of base oil in the global lubricant market due to superior performance characteristics of the former, evolving industry standards, and a change in consumer preference. Stronger performance-based indicators, higher industry standards, and a shift in consumer preferences will drive the synthetic lubricants segment of base oils in the global lubricant market. The place of synthetic lubricants is part of a wider trend in technology and sustainability related to lubricants, whereby these products lead their traditional mineral oil counterparts with clear benefits to higher standards of performance and environmental responsibility. Synthetic lubricants are formulated from chemically modified compounds that can be tailor-made to have the right properties. The additional chemical engineering gives superior performance attributes to lubricants over conventional mineral oils, which are simply refined crude oil. Better thermal stability, lower volatility, and improved lubricating ability make characteristics of synthetic lubricants more and more attractive in a wide range of applications, such as automotive, industrial, and aerospace.

Based on product type, hydraulic oil was the fourth-largest segment of lubricants market, in terms of value, in 2023.

Hydraulic oil occupies a significant position in the global lubricants market as the fourth-largest type of lubricant, reflecting its critical role in various industrial and automotive applications. Hydraulic oils are essential fluids used to transmit power in hydraulic systems, which are pivotal in many mechanical processes and machinery. The prominence of hydraulic oil in the lubricants market is driven by its wide range of applications, technological advancements, and the growing demands of various industries. At its core, hydraulic oil serves a fundamental function in hydraulic systems, which rely on fluid pressure to perform mechanical tasks. These systems are found in a variety of applications, from industrial machinery and construction equipment to automotive and aerospace systems. Hydraulic oils are used to transmit force, power hydraulic actuators, and ensure the smooth operation of components within these systems. Their ability to effectively transfer power while providing lubrication and protection to system components makes them indispensable in many sectors.

Asia Pacific was the largest and projected to be the fastest-growing region, in terms of value, during the forecast period in the lubricants market.

The lubricants market in the Asia-Pacific is the largest and the fastest-growing. It combines economic, industrial, and demographic drivers that intertwine to make for dynamic and expanding lubricant demand. Much of this growth comes at the back of the region's robust economic development, rapid industrialization, and an increasing consumer base that adds to the rising requirements for advanced lubrication solutions across sectors. Since, economic growth in Asia-Pacific has been one of the major driving forces in the lubricants market. The region includes some of the fastest-growing economies in the world, like China and India, which are experiencing heavy growth in the output of industrial machinery, vehicle ownership, and other manufacturing activities. Demand for the products in question is surging in a range of applications—from automotive to industrial machinery—with these economies continuing to expand. Moreover, the rapid industrialization of developing economies within the region also fuels growth, as new infrastructure projects and manufacturing facilities demand quality lubricants to ensure efficient running and long equipment life.

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Key Market Players

Shell plc (UK), Exxon Mobil Corporation (US), BP p.l.c. (UK), Chevron Corporation (US), PetroChina Company Limited (China), TotalEnergies SE (France), ENEOS Holdings, Inc. (Japan), China Petroleum & Chemical Corporation (China), Idemitsu Kosan Co., Ltd. (Japan),  and among others, these are the key manufacturers that secured major market share in the last few years.

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Scope of the Report

This report categorizes the global Lubricants Market based on ingredient type, application, and region.

On the basis of base oil type, the Lubricants Market has been segmented as follows:

• Mineral Oil Lubricants
• Synthetic Lubricants
• Bio-based Lubricants

On the basis of product type, the Lubricants Market has been segmented as follows:

• Engine Oil
• Hydraulic Oil
• Compressor Oil
• Metalworking Fluid
• Gear Oil
• Turbine Oil
• Grease
• Other Product Types

On the basis of End-use Industry, the Lubricants Market has been segmented as follows:

• Transportation
• Commercial Vehicle
• Passenger Vehicle
• 4-Wheeler Vehicle (PCMO)
• 2-Wheeler Vehicle (MCO)
• Aviation
• Marine
• Railways
• Industrial
• Construction
• Metal & Mining Production
• Cement Production
• Power Generation
• Automotive (Vehicle Manufacturing)
• Chemical
• Oil & Gas
• Textile
• Food Processing
• Others

On the basis of region, the Lubricants Market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Arica
• South America

Recent Developments

• In January 2024, Shell plc has completed the acquisition of MIDEL and MIVOLT, from Manchester-based M&I Materials Ltd.
• In January 2021, BP p.l.c. had set up a digital hub in Pune, India. This expansion helped them grow their digital expertise and meet the changing demands by providing sustainable solutions.
• In February 2022, Chevron Corporation made an announcement that it has signed an agreement with Bunge North America, Inc. to create renewable feedstocks.

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