|Fastest Growing Market:||Asia Pacific|
|Largest Market:||Asia Pacific|
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The Global Industrial Lubricants Market was valued at 20,063.03 million liters in 2021 and is expected to grow with a CAGR of 2.84% during the forecast period (2022-2027).
The market is negatively impacted by COVID-19 in 2020. Considering the pandemic scenario, the activities in various end-user sectors, including, metallurgy and metalworking, chemical manufacturing, and others, were temporarily stopped during the pandemic, due to government-imposed lockdown, in order to curb the spread of new COVID-19 cases, thereby, had negatively impacted the industrial lubricants market for a short period of time. However, COVID-19 has affected the automation process in industrial activities on a large scale in a positive way. The limited availability of manpower due to the pandemic, need to keep a safe distance in working places, and use of various personal protective equipment have accelerated the adoption of automation throughout the industries. Moreover, the increase in productivity has also increased the run time of the machinery and the speed of the equipment, which has increased the importance of adequate lubrication on the load-bearing surfaces of the equipment, thus enhanced the demand for studied market. For instance, as per World Trade Organization (WTO), Chinese exports of products critical to combating COVID-19 surged from USD 38 billion in 2019 to USD 105 billion in 2020.
- Over the short term, increasing demand from the wind energy sector is expected to drive the market's growth.
- On the flipside, detrimental effects of lubricants on environment is likely to hinder the growth of the studied market.
- Growing prominence of bio-lubricants and development of low viscosity lubricants are likley to act as opportunities for the studied market.
Scope of the Report
The global industrial lubricants market is segmented by product type, end-user industry, and geography. By product type, the market is segmented into Engine Oil, Transmission and Hydraulic Fluid, Metalworking Fluid, General Industrial Oil, Gear Oil, Grease, Process Oil, and Other Product Types. By end-user industry, the market is segmented into Power Generation, Heavy Equipment, Food and Beverage, Metallurgy and Metal Working, Chemical Manufacturing, and Other End-user Industries. The report also covers the market size and forecasts for the industrial lubricants market in 33 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million liters).
|Transmission and Hydraulic Fluid|
|General Industrial Oil|
|Other Product Types|
|Food and Beverage|
|Metallurgy and Metalworking|
|Other End-user Industries|
Key Market Trends
Heavy Equipment Segment Dominated the Market
- Heavy equipment lubricants find their applications in sectors, such as construction, mining, and agriculture.
- In the construction sector, lubricants prevent premature failure and decline in the performance of construction equipment, which is subjected to extremely harsh operating conditions that involve heat, dirt, and moisture. Lubricants perform various functions, in order to safeguard construction equipment from bearing failures, the short lifespan of engine oil, lower resistance of diesel fuel to water, rusting of cables, ropes, and draglines.
- The construction sector has been witnessing robust growth in the Asia-Pacific and Middle Eastern countries over the past few years. The Asia-Pacific and the Middle East and African countries are receiving huge domestic, as well as foreign investments, for setting up industrial units, hospitals, malls, the hospitality industry, and the IT sector.
- Asia-Pacific is an attractive market for foreign companies, due to the healthy economic performance of the countries, like India, China, Indonesia, and others, and the efforts made by the Middle Eastern countries to develop their tourism and other non-oil sectors are driving commercial construction activities in these regions.
- China began a construction boom in October 2021, as fiscal stimulus increased and the issuance of special bonds increased, providing support for the country's fixed-asset investment, which has remained relatively flat, in order to buffer against rising headwinds in the fourth quarter and deliver stable and sound GDP growth for the entire year. Several Chinese provinces have recently announced large infrastructure projects towards the end of 2021. In November 2021 , the Guangxi Zhuang Autonomous Region in South China presented a series of large construction projects for a total of USD 29.15 billion. Meanwhile, Hubei Province in Central China recently held a launch ceremony for the fourth quarter, which included 805 projects worth 452 billion yuan.
- The Indian government has been actively boosting housing construction, as it aims to provide home to about 1.3 billion people. The country is likely to witness around USD 1.3 trillion of investment in housing over the next seven years and is likely to witness construction of 60 million new homes in the country.
- The construction industry in Europe is recovering faster than expected, with most of the losses from the pandemic expected to be recovered by 2021. As per the Euroconstruct, the European construction volume is expected to expand by 3.8 % in 2021, following a 5.1 % decline in 2020. The fall in 2020 was smaller than predicted in comparison to prior estimates, and the pre-crisis level will thus be reached by 2022 at the earliest. Construction, unlike in previous years, is expected to increase at a slower rate than the entire economy starting in 2022: growth rates of 3% and 2.1 % are expected in 2022 and 2023, respectively.
- The equipment used in mining activities are heavy-duty and operate under high pressure and temperature. So, components, such as ropes, bearings, bushes, pins, and gears, in mining equipment, are likely to be subjected to friction, wear, and corrosion. Regular lubrication of the equipment is required for continuous and efficient mining activity. Some of the commonly used lubricants in the mining industry include heavy-duty diesel engine oils, gear and transmission oils, and hydraulic fluids.
- About 70% of all the mining production, as well as consumption, is concentrated among the Asia-Pacific Economic Cooperation (APEC) member countries. Bauxite, copper, iron, nickel, silver, and zinc are some of the major ores that are mined. The APEC members account for around 75% of the global mining trade and investments. Despite the steady growth in the requirement for heavy equipment lubricants witnessed in the past few years, the demand for these lubricants has witnessed a decline in 2020. This can be attributed to the lockdowns set in place across the world to curb the pandemic outbreak, the decline in public and private spending, and project delays being witnessed in the heavy equipment sector.
- The Asia-Pacific region dominates the global agricultural sector, owing to the growing production from countries, like China and India. The growing investments in agriculture sector to reduce manual work and increase the use of various machinery to reduce time and improve efficiency are expected to drive the market studied.
- Hence, all such factors and trends in are expected to drive the demand for heavy equipment and technologies used, further driving the demand for lubricants, post the global economic recovery from the pandemic.
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China to Dominate the Demand in Asia-Pacific Region
- China is the largest consumer of lubricants and greases in the current scenario. The vast manufacturing activities pertaining to different sectors and the rapid growth in the industrial and automotive sectors have pushed the country to stand among the major lubricant consumers and producers in the global landscape.
- Transportation equipment production and steel processing are the major consumers of industrial lubricants in the country. The production of off-highway equipment has witnessed a downfall at the beginning of 2020, due to the COVID-19 pandemic and the brief shutdown of many factories in the country. Since the beginning of the year 2021, the business has been flourishing for Chinese excavator manufacturers, propelled by rising market demand and signs of economic recovery both at home and abroad. According to data from the China Construction Machinery Association, 26 of China's main excavator manufacturers sold a total of 126,941 digging machines in the first quarter of 2021, up by 85% year-on-year (Y-o-Y). In the next three quarters of 2021, the rapid pace of construction activities demonstrated strong demand for construction machines and macroeconomic vitality. Infrastructure expansion is likely to pick up in the coming years, bolstering the economy's healthy recovery.
- In the coming years, strong economic recovery of equipment and machinery production in both the international and domestic markets is expected to become an important driving force for lubricant products.
- The government’s focus toward enhancing the domestic manufacturing sector has been leading to an increase in the adoption of high-end equipment, primarily in the fields of infrastructure development, aerospace and marine engineering.
- China hosts a vast construction sector. The developments in the commercial and residential sectors in the past two years have supported the construction sector's growth at large.
- China has been majorly driven by the ample developments in the residential and commercial construction sectors supported by the growing economy. In China, the housing authorities of Hong Kong launched several measures to push-start the construction of low-cost housing. The officials aim to provide 301,000 public housing units in 10 years till 2030.
- In the first half of 2021, China's provincial governments approved the construction of 24 new coal power projects, adding a total capacity of 5.2 gigawatts (GW). Three large-scale coal-fired power plants were approved from key project lists, which provincial governments use to apply for financial support and priority status from the central government.
- Downtrends have been observed in the agriculture and automotive machinery sector, with negative effects being witnessed in terms of investment, and trade, primarily from small and medium scale sectors in 2020.
- China is the world's largest automotive producer. However, in 2019, the country witnessed a 7.5% decline in vehicles production, accounting for 25.72 million units of motor vehicles. The automotive industry's performance was affected by economic shifts, China's trade war with the United States and COVID-19 lockdown in later phase of 2019. This trend sustained during 2020 as well, as the domestic automotive production declined by 2%
- The China Association of Automobile Manufacturers (CAAM) reported cumulative motor vehicle production levels for 2021, which were 26.082 million units, up 3.4% Y-o-Y. CAAM predicts the motor vehicle market will continue to record steady growth in 2022 and beyond.
- China's crude steel output declined by 3% Y-o-Y to 1.03 billion tons in 2021, according to statistics issued by the National Bureau of Statistics (NBS), marking the first year-on-year decline since 2016. According to NBS data, the country's pig iron output declined 4.3% Y-o-Y to 868.57 million tons in 2021, the first Y-o-Y decline in six years. The primary reason for the decline was the slashing of production rates caused by power shortages in the country.
- Therefore, all the aforementioned factors are likley to significantly impact the demand for the studied market, in the country, through the years to come.
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The global industrial lubricants market is fragmented in nature. Some of the key players in the market include Royal Dutch Shell PLC, Exxon Mobil Corporation, China Petroleum & Chemical Corporation, China National Petroleum Corporation, and BP PLC (Castrol), among others.
- In January 2022, Chevron Lubricants Lanka PLC, a subsidiary of Chevron Corporation, announced a marketing deal with Rock Energy in Bangladesh for its lubricant products.
- In December 2021, the joint venture agreement between Castrol, BP, and Vietnam National Petroleum Group (Petrolimex) was extended for another 20 years, from 2022 to 2042. Castrol BP Petco Co. Ltd is the name of the joint venture company.
- In November 2021, Bharat Petroleum Corporation Limited, Indian Oil, and Hindustan Petroleum Corporation Limited announced the commencement of the Model Retail Outlet Scheme and the Darpan-petrol pump Digital Customer Feedback Program. Three oil PSUs collaborated to develop model retail outlets to improve service standards and facilities throughout their networks, which serve over six crore consumers daily.
- In October 2021, Valvoline and Cummins extended their long-standing marketing and technology collaboration agreement for another five years. Cummins will endorse and promote Valvoline's Premium Blue engine oil for its heavy-duty diesel engines and generators and will distribute Valvoline products through its global distribution networks.
- In September 2021, Chevron Brands International LLC (Chevron) and Tristar Group's AFAL Manufacturing Limited (AML) agreed to a long-term license agreement for the production, distribution, and marketing of Caltex lubricants in Burundi, Kenya, Tanzania, Uganda, Rwanda, and the Democratic Republic of the Congo (DRC).
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Increasing Demand from the Wind Energy Sector
4.1.2 Other Drivers
4.2.1 Detrimental Effects of Lubricants on the Environment
4.3 Industry Value-Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Engine Oil
5.1.2 Transmission and Hydraulic Fluid
5.1.3 Metalworking Fluid
5.1.4 General Industrial Oil
5.1.5 Gear Oil
5.1.7 Process Oil
5.1.8 Other Product Types
5.2 End-user Industry
5.2.1 Power Generation
5.2.2 Heavy Equipment
5.2.3 Food and Beverage
5.2.4 Metallurgy and Metalworking
5.2.5 Chemical Manufacturing
5.2.6 Other End-user Industries
126.96.36.199 South Korea
188.8.131.52 Rest of Asia-Pacific
5.3.2 North America
184.108.40.206 United States
220.127.116.11 Rest of North America
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
5.3.4 South America
126.96.36.199 Rest of South America
188.8.131.52 Saudi Arabia
184.108.40.206 United Arab Emirates
220.127.116.11 Rest of Middle-East
18.104.22.168 South Africa
22.214.171.124 Rest of Africa
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Amsoil Inc.
6.4.2 Bharat Petroleum Corporation Limited
6.4.3 Blaser Swisslube AG
6.4.4 BP PLC (Castrol)
6.4.5 Carl Bechem GmbH
6.4.6 Chevron Corporation
6.4.7 China National Petroleum Corporation (PetroChina)
6.4.8 China Petroleum & Chemical Corporation (SINOPEC Group)
6.4.9 Eni SpA
6.4.10 Exxon Mobil Corporation
6.4.12 Gazprom Neft PJSC
6.4.13 Gulf Oil International
6.4.15 Idemitsu Kosan Co. Ltd
6.4.16 Indian Oil Corporation Ltd
6.4.17 ITW (ROCOL)
6.4.19 Kluber Lubrication
6.4.20 Lukoil Lubricants Company
6.4.21 PT Pertamina
6.4.23 Petronas Lubricants International
6.4.24 Phillips 66 Lubricants
6.4.26 Royal Dutch Shell PLC
6.4.27 Tide Water Oil Co. (India) Ltd
6.4.29 Valvoline Inc.
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Prominence for Bio-Lubricants
7.2 Development of Low Viscosity Lubricants
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Frequently Asked Questions
What is the study period of this market?
The Industrial Lubricants Market market is studied from 2017 - 2027.
What is the growth rate of Industrial Lubricants Market?
The Industrial Lubricants Market is growing at a CAGR of 2.84% over the next 5 years.
Which region has highest growth rate in Industrial Lubricants Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Industrial Lubricants Market?
Asia Pacific holds highest share in 2021.
Who are the key players in Industrial Lubricants Market?
BP PLC (Castrol), Exxon Mobil Corporation, Royal Dutch Shell PLC, China National Petroleum Corporation, China Petroleum & Chemical Corporation are the major companies operating in Industrial Lubricants Market.