Latin America Lubricants Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 6.16 Billion liters |
| Market Volume (2029) | 7.19 Billion liters |
| CAGR (2024 - 2029) | 3.13 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Latin America Lubricants Market Analysis
The Latin America Lubricants Market size is estimated at 6.16 Billion liters in 2024, and is expected to reach 7.19 Billion liters by 2029, growing at a CAGR of 3.13% during the forecast period (2024-2029).
Increasing demand for high-performance lubricants and growing demand from Construction and Power Generation Industries are driving the market. On the flip side, the growing adoption of electrical & hybrid vehicles, an increase in the life-time of lubricants, and stringent environmental regulations coupled with unfavorable conditions arising due to the COVID-19 outbreak are hindering the market growth.
- The lubricant market in Latin America is expected to grow during the forecast period owing to its wide range of applications in different end-user industries including construction and power generation industries.
- Brazil is expected to dominate the market across Latin America with the largest consumption of lubricants.
Latin America Lubricants Market Trends
Automotive Segment May Witness Significant Market Growth
- Engine oils are crucial in the smooth running of engines, reducing fuel emissions and improving the engine's performance, and they are generally composed of 75-90% base oils and 10-25% additives.
- Engine oils are mostly used in applications such as wear reduction, corrosion protection, and smooth operation of engine internals. They function by creating a thin film between the moving parts to enhance heat transfer and reduce tension during the contact of parts.
- The light motor vehicle segment records the highest consumption rate of engine oils among all the segments. Owing to the technological improvements and government-mandated requirements for fuel economy, the automakers have been manufacturing lighter vehicles with tighter tolerances (which make the vehicles more durable).
- High-mileage engine oils are in demand lately, owing to the properties that help prevent oil leaks and reduce oil consumption.
- The automotive industry is one of Mexico's most important industries, accounting for 3.5 percent of the country's gross domestic product (GDP), 20 percent of manufacturing GDP, and employing over one million people nationwide. According to OICA, automobile production in Mexico witnessed an increase of 10% in 2022. The country produced 3,509,072 cars and passenger vehicles in 2022 compared to 3,145,653 units in the previous year.
- Also, in September 2022, the Argentine Congress passed Law 27.686 ('Ley de Promoción de Inversiones en la Industria Automotriz-Autopartista y su Cadena de Valor') promoting investment in the automotive industry and its value chain.
- According to Law 27.686, Argentina's automotive industry is now designated as a strategic sector. The new law encourages investment in the automotive identification industry and strengthens its supply chain. At the same time, it will increase the industry's export-oriented profile and encourage and facilitate the development of new clean engine technologies (hybrids, hydrogen, biofuels, etc.).
- Hence, owing to the growing application of engine oils in vehicles to reduce wear and tire, the demand is expected to increase over the forecast period.
Brazil to Dominate the Market
- During the forecast period, Brazil is expected to dominate the lubricant market in Latin America due to increased demand from end-use industries such as construction, automotive, and automotive.
- Turbines play a key role in the energy sector for generating electricity. A large amount of heat is emitted from the turbine during electricity production. Other than turbines, the major components used in the power generation sector include pumps, bearings, fans, compressors, gears, and hydraulic systems, which are subjected to severe wear and tire. Gear and turbine oils are widely used in this sector for lubrication purposes.
- According to the Brazilian Institute of Geography and Statistics (Portuguese: Instituto Brasileiro de Geografia e Estatística (IBGE), construction GDP in Brazil fell to USD 1501.75 million in the third quarter of 2022 from USD 1526.80 million in the second quarter. Moreover, Brazil's GDP from construction is expected to trend around USD 1426.66 million in 2023. Several construction projects were commenced in Brazil in 2022, which can create ample opportunities for the market studied in the country.
- In the construction sector, lubricants prevent premature failure and decline in construction equipment performance subjected to extremely harsh operating conditions involving heat, dirt, and moisture.
- Lubricants perform various functions to safeguard construction equipment from bearing failures, short life-span of engine oil, lower resistance of diesel fuel to water, and rusting of cables, ropes, and draglines.
- According to the Brazilian Association of Automobile Manufacturers (Portuguese: Associação Nacional dos Fabricantes de Veículos Automotores (ANFAVEA), October 2022 witnessed a steady increase in production, registration, and export indicators compared to the previous month.
- Notably, in the first ten months of 2022, Brazil experienced a 32.4% surge in passenger car exports, amounting to 406,000 units, surpassing the figures from 2021. Countries like Chile, Colombia, and Mexico were noteworthy export destinations for the Brazilian automotive industry.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for the lubricants market in the Brazil region during the forecast period.
Latin America Lubricants Industry Overview
The Latin America lubricant market is fragmented with players accounting for a marginal share of the market. Few companies include Chevron Corporation, Exxon Mobil Corporation, BP p.l.c, Valvoline Inc., and Total.
Latin America Lubricants Market Leaders
Chevron Corporation
Exxon Mobil Corporation
BP p.l.c
Total
Valvoline Inc.
*Disclaimer: Major Players sorted in no particular order
Latin America Lubricants Market News
- May 2022: Shell plc completed the sales of the lubricants division in Brazil to Raizen. This disinvestment will decrease Shell plc's market presence in Brazil's lubricants market.
- June 2021: Chevron acquired Puma Energy's fuels and lubricants businesses in Latin America, which included assets in eight countries. This strategic move expanded Chevron's market presence in the region and strengthened its lubricants portfolio.
Latin America Lubricants Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Demand for High Performance Lubricants
4.1.2 Growing Demand Form Construction and Power Generation Industries
4.1.3 Increasing Usage of Lubricants in Automotive and Transportation
4.2 Restraints
4.2.1 Difficulty in Distributing Finished Products to Customers
4.2.2 Increasing Life-Time of Lubricants and Stringent Environmental Regulations
4.3 Industry Value Chain Analysis
4.4 Porters 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 (Market Size in Volume)
5.1 Product Type
5.1.1 Engine Oil
5.1.2 Transmission and Gear Oils
5.1.3 Metalworking Fluid
5.1.4 Hydraulic Fluid
5.1.5 Greases
5.1.6 Other Product Types
5.2 End-User Industry
5.2.1 Power Generation
5.2.2 Automotive
5.2.3 Heavy Equipment
5.2.4 Metallurgy and Metalworking
5.2.5 Other End-User Industries
5.3 Geography
5.3.1 Mexico
5.3.2 Brazil
5.3.3 Argentina
5.3.4 Rest of Latin America
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share Analysis (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BP p.l.c
6.4.2 Chevron Corporation
6.4.3 Eni SpA
6.4.4 Exxon Mobil Corporation
6.4.5 FUCHS
6.4.6 Kluber Lubrication (FREUDENBERG)
6.4.7 Royal Dutch Shell PLC
6.4.8 Schlumberger Limited
6.4.9 Total
6.4.10 Valvoline Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Prominence for Bio-Lubricants
7.2 Development of Low Viscosity Lubricants
Latin America Lubricants Industry Segmentation
Lubricant products are made from a combination of base oils and additives. The composition of base oil in the formulation of lubricants is primarily between 75-90%. Base oils possess lubricating properties and make up to 90% of the final lubricant product.
The market is segmented by product type and end-user industry. By product type, the market is segmented into engine oil, transmission and gear oil, hydraulic fluid, greases, and other product types. By end-user industry, the market is segmented by power generation, automotive, heavy equipment, and other end-user industries. The report also covers the market sizes and forecasts for the lubricants market in three countries across the Latin America region.
For each segment, the market sizing and forecasts have been done on the basis of volume (million liters).
| Product Type | |
| Engine Oil | |
| Transmission and Gear Oils | |
| Metalworking Fluid | |
| Hydraulic Fluid | |
| Greases | |
| Other Product Types |
| End-User Industry | |
| Power Generation | |
| Automotive | |
| Heavy Equipment | |
| Metallurgy and Metalworking | |
| Other End-User Industries |
| Geography | |
| Mexico | |
| Brazil | |
| Argentina | |
| Rest of Latin America |
Latin America Lubricants Market Research FAQs
How big is the Latin America Lubricants Market?
The Latin America Lubricants Market size is expected to reach 6.16 billion liters in 2024 and grow at a CAGR of 3.13% to reach 7.19 billion liters by 2029.
What is the current Latin America Lubricants Market size?
In 2024, the Latin America Lubricants Market size is expected to reach 6.16 billion liters.
Who are the key players in Latin America Lubricants Market?
Chevron Corporation , Exxon Mobil Corporation , BP p.l.c, Total and Valvoline Inc. are the major companies operating in the Latin America Lubricants Market.
What years does this Latin America Lubricants Market cover, and what was the market size in 2023?
In 2023, the Latin America Lubricants Market size was estimated at 5.97 billion liters. The report covers the Latin America Lubricants Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Latin America Lubricants Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Latin America Lubricants Industry Report
Statistics for the 2024 Latin America Lubricants market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Latin America Lubricants analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
