Industrial Lubricants Market Size, Share & Trends Report

Industrial Lubricants Market Size, Share & Trends Analysis Report By Product (Process Oils, General Oils, Metalworking Fluids, Engine Oils), By Application (Textile, Energy, Hydraulic), And Segment Forecasts, 2018 - 2024

  • Published Date: Mar, 2018
  • Base Year for Estimate: 2015
  • Report ID: GVR-1-68038-180-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2015
  • Number of Pages: 101

Industry Insights

The global industrial lubricants market size was pegged at 15.01 million tons in 2015 and is expected to register a CAGR of 3.0% from 2016 to 2024. Recent trends of uptick in manufacturing activities across Asian markets should drive the demand for lubricating oils across a plethora of industries, including chemicals, automotive, textiles, power generation, and metal foundry.

Complementing the trend is increasing awareness among entities associated with these businesses regarding the importance of machinery maintenance in bringing down operational downtimes and increasing efficiency. In that regards, lubricants are an indispensable part of industrial activities. Moreover, product innovation has driven the incorporation of various additives in these oils to improve their lifecycle and sustainability.

U.S. industrial lubricants market

For the industry, regulations play a crucial role in shaping lubricant manufacturers’ R&D processes and product offerings. Evolving specifications pertaining to feedstock usage, lubricant function, and emissions over the course of its lifespan influence a company’s focus on development activities, future strategies, and existing offerings in the marketspace.

Over the past five years, the lubricants industry has shifted toward a more sustainable ecosystem, where companies are actively developing bio-based feedstock routes, complying with ecolabel norms, and improving overall production process to reduce byproducts and wastage. Significant initiatives by industry participants in this arena are prominent across European and American regions, where manufacturers have the financial capital and technological know-how.

Moreover, with Asian countries emerging as neo-manufacturing hubs for consumer goods, electronics, automobiles, textiles, and chemicals, the industry has also witnessed a shift in production landscape towards the region. A positive economic outlook has also been shaping consumption trends in the region, with China, India, and Southeast Asia touted to be the largest contributors to growth.

Production levels have risen to a large extent in emerging economies owing to rapid urbanization and industrialization in these regions. Industrial output in BRICS nations was estimated at USD 4,046.71 billion in 2008, which grew to USD 5,598.81 billion by 2013. Exponential rise in automation and proliferation of rapid production technologies has thus contributed largely to market growth in these regions.

Product Insights

Process oils commanded the largest volume share at nearly 33.0% in 2016. They are widely used to aid industrial processes, thereby improving operational efficiency and reducing energy and overhead costs that arise from downtimes. The segment is projected to expand at a CAGR of 3.1% from 2016 to 2024.

Industrial engine oils are gaining traction among mining equipment, irrigation pumps, generators, construction equipment, and industrial diesel engines. Rising industrial output means usage of machinery would eventually give rise to industrial engine oils, which is projected to register a CAGR of 3.5% from 2016 to 2024. Furthermore, companies are coming up with better products in the category with lower frictional coefficients and increased lubricity at higher temperatures.

General oils, which accounted for 30.0% of the overall industrial lubricants volume in 2016, include gear oils, hydraulic fluids, refrigeration fluids, and compressor oils. Demand for these products greatly arises from generic applications where machinery is subjected to constant wear and tear. The segment is projected to register the highest growth in China over the forecast period.

Application Insights

Chemical manufacturing was the leading application in the industrial lubricants market 2016, accounting for nearly 28.0% of the overall volume. Processing equipment is often subject to extreme temperatures, continuous operations, and contamination threats from particulate matter, water, and chemicals. Lubricants serve to reduce friction, wear and tear, and corrosion from such elements, while optimizing production levels and reducing servicing downtime.

Textiles, energy, and metalworking applications are touted be major contributors towards demand growth in future. Invariably, Asia Pacific is the largest consumer base for these industries as well, which is characterized by growing textile exports, power generation, and metal foundry sectors. In 2016, energy and textiles together accounted for over 6.80 million tons of lubricant consumption globally.

Global industrial lubricants market

However, high demand for renewable energy resources to offset declining crude oil reserves has opened new avenues for the industry in the application segment. Technologies harnessing and storing energy from renewable sources such as ocean, wind, and solar are growing at a rapid rate. Industrial lubricants are thus being utilized in such machinery to reduce damage and corrosion while also contributing to higher energy conversion rates.

Regional Insights

Asia Pacific was the largest consumer of industrial lubricants and accounted for nearly half of the global volume in 2016. The region is characterized by a positive outlook on economic activities in the region, increasing industrial output, and a stable supply-demand scenario. Companies of the West, such as Castrol, have started expanding production capacities in China and India.

North America and Western Europe are highly mature markets, with the presence of multinational corporations. The business ecosystem in these regions is sophisticated with competition determined by specialized offerings, impeccable standards, and sustainability. North America and Europe together accounted for nearly 40.0% of the overall demand in 2016.

South America, which has registered considerable gains over the past, is expected to grow at a slower pace over the forecast period. A key factor responsible for gradual growth is economic downturn and political instability in the region, which has overshadowed manufacturing activities and consequent consumption patterns.

Industrial Lubricants Market Share Insights

The industry is characterized by the presence of dominant multinationals such as BASF SE, ExxonMobil Corp., Petronas Lubricant International, and Chevron Corp., which occupy a significantly larger share in the market. Strategic collaborations between these and other regional players have led to the development of unique products from bio-based sources to gain a competitive edge.

New entrants are compelled to face intense competition from these existing players with their vast product offerings and well-established distribution networks. However, few players have managed to gain entry by differentiating their products using advanced technologies.

The industry currently comprises participants such as Fuchs Group; The Lubrizol Corporation; Royal Dutch Shell; Philipps 66; Lucas Oil Products Inc.; Amsoil Inc.; Bel Ray Co.; Total S.A.; Kluber Lubrication; Valvoline International Inc.; Chevron Corporation; Clariant; and Quaker Chemical Corporation.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2014 - 2015

Forecast period

2016 - 2024

Market representation

Volume in kilo tons, revenue in USD million and CAGR from 2016 to 2024

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, U.K., France, China, India, Japan, Southeast Asia, Brazil, Saudi Arabia, UAE

Report coverage

Volume & revenue forecast, company share, competitive landscape, growth factors and trends

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on latest industry trends in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the global industrial lubricants market report on the basis of product, application, and region:

  • Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2024)

    • Process Oils

    • General Industrial Oils

    • Metalworking Fluids

    • Industrial Engine Oils

    • Others

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2024)

    • Metalworking

      • Metal Forming

        • Aluminum

        • Copper

        • Others

      • Metal Cutting

        • Aluminum

        • Copper

        • Others

      • Metal Joining

        • Fastening

        • Others

      • Electronics

      • Industrial Heat Engines

      • Others

    • Textiles

      • Textile Weaving

      • Non-woven Textiles

      • Textile Finishing

      • Composites

      • Others

    • Energy

      • Transformer Oil

      • Pipelines

      • Liquefied Natural Gas

      • Ocean Energy

      • Others

    • Chemicals Manufacturing

      • Industrial Gases

      • Fertilizers

      • Polymers

      • Others

    • Food Processing

      • Beverages

      • Frozen Food

      • Canned Food

      • Processed Potatoes

      • Bakery

      • Cocoa & Chocolate

      • Others

    • Hydraulic

      • Compressors

      • Bearings

      • Others

    • Other Industrial Applications

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2024)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Japan

      • Southeast Asia

    • Central & South America

      • Brazil

    • Middle East & Africa

      • Saudi Arabia

      • UAE

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