The global industrial lubricant market size was valued at USD 52.57 billion in 2018 and projected to expand at a CAGR of 4.5% during the forecast period. Rapid industrialization in developing countries followed by a rise in the number of trade activities fuels the demand for industrial lubricants. Rising investments in R&D activities along with proper expansion channels helps in the global growth of key players. Some of the industries that are slated to witness considerable growth include unconventional energy, chemicals, and mining. This trend is expected to further strengthen product demand in compressors, hydraulics, industrial engines, centrifuges, and bearings.
In terms of volume, the U.S. market for process oil accounts for the largest share and estimated to expand at a CAGR of 2.8% during the forecast period. The U.S. has continuously evolved and made use of higher quality lubricants with longer oil drain intervals which have resulted in lower lubricant consumption as a result of efficiency.
Rising demand for a range of finished goods along with the subsequent need to expand production capabilities has compelled manufacturers to rely on machinery to automate their production process and processing activity. Initiatives such as continuously evolving emission standards, improving engine technology, and norms about mitigated carbon footprints that are being adopted in emerging economies such as China and India are touted to be among the key driving factors over the forecast period.
Changing consumer lifestyles and the adoption of western living standards have boosted the demand for processed and frozen foods. Packaging line automation and adaption to high-pressure operations with robotics is expected to foster processed foods market growth. The rising importance of agro-processing is expected to bring about further developments in the industry.
Increasing concerns and stringent regulations over contamination and environmental pollution where synthetic lubricants are used is a major cause of environmental pollution. Another issue faced is the disposal of used lubricants. Since most of the additives used in lubricants are petrochemical derivatives, they pose a serious threat to water pollution. Hence, rising environmental concerns regarding the use, disposal, and recycling of lubricants restrain market growth.
Based on the product, the industrial lubricants market can be segmented into process oils, general industrial oils, metalworking fluids, and industrial engine oils. Process oils emerged as a dominant product segment accounting for more than 32% of the overall volume in 2018. The segment is expected to maintain its dominance expanding at a CAGR of 3.4% during the forecast period.
Based on the application, the market can be segmented into metalworking, textiles, energy, chemical manufacturing, food processing, hydraulic, and others. Chemical manufacturing led the application segment accounting in 2018. Energy facilities rely heavily on the performance of their equipment to remain competitive, including gas and steam turbine power plants, wind turbines, natural gas compression plants, and coal-fired power plants.
The metalworking segment is also likely to witness rapid growth on account of increasing industrial activities and demand for metal in applications including machinery and building. Moreover, demand for metalworking processes, such as cutting, welding, and forming, across various applications, such as foundry, ships, aircraft, milling, and industrial machinery will drive the segment further.
The demand for food processing was valued at 1,847.54 kilotons in 2018 and is estimated to grow at a CAGR of 2.9% over the forecast period. General industrial oils are also expected to experience healthy growth due to the rise in awareness regarding machinery maintenance coupled with a change in maintenance strategies by industries to minimize machine handling costs.
Asia Pacific is projected to register the highest CAGR from 2019 to 2025 due to well-established end-use industries across emerging economies, such as India, Indonesia, Thailand, and Malaysia. Moreover, rising awareness regarding greater operating efficiency of industrial equipment after lubricant application is anticipated to enhance the products further.
Demand for industrial lubricants in North America and Europe is anticipated to remain at a higher level despite the relative stagnancy in industrial growth. Rising demand for oilfield chemicals due to drilling and exploration activities are expected to propel the market growth in North America. The resurgence in industrial activities along with the modernization of industrial machinery is the key driving factor determining European industrial lubricant demand in the forecast period.
The market is highly fragmented with a large number of global as well as local players. Companies are investing heavily in R&D to develop innovative products to gain a competitive edge in the industry. There has been a shift in trend towards the use of bio-based raw materials owing to rising awareness regarding the need for emission reduction and energy conservation.
The industry competition is inclusive of factors like distribution partnerships, technological innovations, product portfolio, strategic developments, and capabilities. Castrol announced the launch of two new cutting fluids to support the manufacturing of metal components.
Some of the key players in the market are ExxonMobil Corp.; Fuchs Group; The Lubrizol Corp.; Royal Dutch Shell; Phillips 66; Lucas Oil Products, Inc.; Amsoil, Inc.; Bel-Ray Co., Inc.; Total S.A.; Kluber Lubrication; Valvoline International, Inc.; Chevron Corp.; Clariant; Quaker Chemical Corp.; Zeller+Gmelin GmbH & Co KG; Houghton International, Inc.; Castrol; Blaser Swisslube, Inc.; Calumet Specialty Product Partners, L.P.; and Petronas Lubricant International.
The base year for estimation
Actual estimates/Historical data
2014 - 2017
2019 - 2025
Volume in Kilotons, Revenue in USD Million, and CAGR from 2019 to 2025
North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa
U.S., Canada, Mexico. Germany, U.K., France China, India, Japan, Southeast Asia, Brazil, Saudi Arabia, and UAE
Revenue forecast, company share, competitive landscape, and growth factors and trends
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This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global industrial lubricants market report based on product, application, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
General Industrial Oils
Industrial Engine Oils
Other Industrial Lubricants
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Industrial Heat Exchangers
Other Metalworking Applications
Other Textile Applications
Liquefied Natural Gas (LNG)
Other Energy Applications
Other Chemicals Manufacturing
Cocoa & Chocolate
Other Food Applications
Other Hydraulic Applications
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)
Central & South America
Middle East & Africa
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The prevalence of COVID-19 has led to decreased utilization rates of refineries across the globe, resulting in supply shortages for various end-use sectors. The health crisis has, on a different note, has led to a sudden spike in demand for olefins which find usage in the formulation of sanitizers and other cleaning products. The report will account for Covid19 as a key market contributor.