Grease Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The grease market was valued at 1,308.51 kiloton in 2020, and the market is projected to register a CAGR of over 1.5% during the forecast period (2021-2026).

The major grease-consuming industries, like automotive, industrial processing (majorly steel mills), aerospace, and food and beverages, were greatly impacted by the COVID-19. Especially, the steel industry was majorly affected by the pandemic. Steel production witnessed a decline in 2020 due to the production halts and decreased demand from various end-user industries because of the COVID-19 crisis. The steel demand is contracted by an estimated 6.4%, dropping to 1,654 million metric ton, according to the World Steel Association.

• In the short term, factors such as the growing manufacturing sector, the growing industrial sector in Asia-Pacific, and increasing adoption of higher performance greases in the wind power and electric vehicle industries are likely to drive the market growth.
• The automotive and the transportation segment is the dominating end-user industry for grease. At the same time, consumption of grease in chemical manufacturing is expected to register the highest CAGR through the forecast period.
• Asia-Pacific dominated the grease market, followed by North America and Europe across the world, with the largest consumption from countries, such as China, India, the United States, and Germany, among others.

Scope of the Report

The grease market is segmented based on thickener, end-user industry, and region. By thickener, the market is segmented into metal soap and other thickeners. By end-user industry, the market is segmented into power generation, automotive and other transportation, heavy equipment, food and beverage, metallurgy and metalworking, chemical manufacturing, and other end-user industries. The report also covers the market size and forecasts for the grease market in 32 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

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Key Market Trends

Automotive and Other Transportation to Dominate the Market

• The demand from the automotive sector contributes significantly to the global grease market. The growing OEM and RMO markets in the automotive industry are expected to have a direct impact on the demand for greases during the forecast period.
• According to the National Lubricating Grease Institute (NLGI), NLGI 2 grade grease is widely preferred for automotive applications.
• Automotive greases are used to lubricate the chassis, suspension, and steering. Additionally, automotive greases can be classified on the basis of their GC and LB ratings. GC rating can be employed for lubrication of axle and wheel, whereas LB can be used for lubrication of different types of joints, including U-joints and ball joints, tie-rod ends, and control arm-shafts.
• The automotive is the largest and fastest-growing end-use industry for grease. Passenger and commercial vehicles are driving the demand for high-performance grease in the automotive industry.
• In the automotive industry, grease is used in various auto parts, such as wheel bearings, universal joints, suspensions, gears, switches, and connectors, because of their properties (which include mechanical stability, temperature tolerance, water resistance, and anti-oxidants). The need for high-performance grease is increasing, with the manufacture of machines and equipment for end-user industries.
• The growing passenger volumes are expected to drive the need for 44,040 new jets (valued at USD 6.8 trillion) over the next two decades. The global commercial fleet is projected to reach 50,660 airplanes by 2038, with all the new airplanes and the jets that would remain in service taken into account.
• Owing to all teh above-mentioned factors, the market is expected to grow at a slow pace during the forecast period.

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