Industrial Lubricants Market Size, Share & Trends Analysis Report By Product (Process Oils, Industrial Engine Oils), By Application (Chemical Manufacturing, Textiles, Energy), By Region, And Segment Forecasts, 2019 - 2025

Industry Insights

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.

Product Insights

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.

Application Insights

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.

Regional Insights

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.

Industrial Lubricants Market Share Insights

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.

Report Scope

Segments Covered in the Report

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)

  • Process Oils

  • General Industrial Oils

  • Metalworking Fluids

  • Industrial Engine Oils

  • Other Industrial Lubricants

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Metalworking

    • Metal Forming

    • Metal Cutting

    • Metal Joining

    • Metalworking Electronics

    • Industrial Heat Exchangers

    • Other Metalworking Applications 

  • Textiles

    • Textile Weaving

    • Non-woven Textiles

    • Textile Finishing

    • Textile Composites

    • Other Textile Applications 

  • Energy

    • Transformers

    • Pipelines

    • Liquefied Natural Gas (LNG)

    • Ocean Energy

    • Other Energy Applications 

  • Chemical Manufacturing 

  • Industrial gases

    • Fertilizers

    • Polymers

    • Other Chemicals Manufacturing 

  • Food Processing

    • Beverages

    • Frozen Food

    • Canned Food

    • Processed Potatoes

    • Bakery

    • Cocoa & Chocolate

    • Other Food Applications 

  • Hydraulic

    • Compressors 

    • Bearings

    • Other Hydraulic Applications

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North Americ

    • The 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