Market Trends of Polyurea Grease Industry
Increasing Demand from Automotive End-User Industry
- The automotive segment dominated the market and is projected to be the fastest-growing segment during the forecast period. Polyurea grease is used extensively in various parts of automobiles due to its tendency to have high operating temperatures, inherent anti-oxidative properties, and electrically non-conductive nature.
- According to the International Organization of Motor Vehicle Manufacturers (OICA), in 2021, global vehicle production reached 80.1 million units, an increase of 4% from the previous year's production of 77.6 million units. The increasing production of vehicles owing to the growing need from consumers is the key factor driving the market's growth.
- Polyurea greases are always the preferred grease for e-motor bearings, whether tapered, ball, or needle roller bearings. According to PPMC-Transport, the automotive industry has been booming each year with a significant increase in vehicle production. In 2022, the total number of wheels worldwide was expected to reach 37 billion.
- Polyurea thickeners and grease play an essential role in electric vehicles. According to the IEA, the global sales of electric cars in 2022 were 2 million units in the first quarter, up 75% from the same period in 2021. It expected a further 22% increase, or around 1.8 million units, by the end of the same year.
- The demand for electric motors is expected to increase exponentially, owing to the rapid growth of electric vehicle sales across China, the United States, Japan, South Korea, and Europe.
- In 2021, 6.9 million electric cars were registered worldwide, an increase of 107% from the previous year. Electric vehicle sales are rising exponentially worldwide due to government incentives offered by various governments to promote electromobility, increasing environmental consciousness amongst general car buyers, and rising fuel prices.
- For instance, in June 2022, the United Arab Emirates' Ministry of Energy and Infrastructure (MoEI), Audi Middle East, and Siemens signed an agreement to cooperate to boost electric vehicle (EV) charging capacity on federal roads, increasing adoption of EVs across the country.
- Therefore, the growing automotive industry is expected to fuel the demand for polyurea grease globally in the future.
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Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region stands to be the fastest-growing market for polyurea grease. The consumption of this material in the automotive industry for various parts and purposes in automobiles drives the growth of the market.
- Polyurea grease provides outstanding protection from rust and corrosion and also exhibits thermal and oxidation stability. Due to all these properties, polyurea grease is used in the wheel bearings of automobiles.
- Polyurea grease is a non-soap-based thickener that is an alternative to the commonly known metal- and metal-complex soap thickeners. It provides load-supporting capability without degrading the thermal stability of the grease at high temperatures.
- According to the India Brand Equity Foundation, the Indian car market is expected to reach USD 54.84 billion by 2027, while registering a CAGR of over 9%. The Indian automotive industry is targeting to increase exports of vehicles by five times by the year 2026. In 2022, total automobile exports from India stood at 5,617,246.
- According to the Association of Southeast Asian Nations Automotive Federation, in 2021, Asia-Pacific produced 3,538,396 units of motor vehicles and 3,144,243 units of motorcycles and scooters. It sold over 2,791,307 and 3,550,848 units of motor vehicles and two-wheelers, respectively, in the same year.
- The Chinese automotive manufacturing industry is the largest in the world. However, the industry witnessed a slowdown in recent years, as both production and sales declined. According to the China Association of Automobile Manufacturers (CAAM), automotive sales in China fell by 8.4% y-o-y to 2.56 million units in December 2022, whereas they grew to 26.86 million units for the full year 2022.
- In 2022, approximately 294.1 megalitres of lubricating oils and greases were sold in Australia. Increasing production and sales of light commercial vehicles, primarily for trade transport, are expected to propel demand for automotive greases across the country in the coming years.
- In 2022, electric vehicles accounted for 3.8% of all new vehicle sales in Australia. The Australian Capital Territory region held the strongest market share, with almost 10% of all new cars bought in the country being electric, up from 5% in 2021. Among all the other electric vehicle companies, the Tesla Model 3 was the most popular electric vehicle (EV) model in 2022.
- The electric vehicle industry in South Korea is expected to grow at a rapid rate. In 2021, nearly 71,000 units of electric vehicles were sold in the country. South Korean sales of electric vehicles surged by 96% to 71,006 units in the first nine months of 2021, according to data collected by the Korea Automotive Technology Institute (KAII). The sales figure is expected to increase with the growing demand from the importing economies in Europe, Asia-Pacific, and the Americas.
- Therefore, the aforementioned factors are expected to boost the demand for polyurea grease in the Asia-Pacific region in the coming years.
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