Lubricants Market Size, Share & Trends Report

Lubricants Market Size, Share & Trends Analysis Report By Application (Industrial, Marine, Automotive, Aerospace), By Region (Asia Pacific, North America, Europe, MEA), And Segment Forecasts, 2021 - 2028

  • Published Date: Apr, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-123-8
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 205

Report Overview

The global lubricants market size was valued at USD 125.81 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 3.7% from 2021 to 2028. The industry dynamics are changing, in terms of raw material, owing to the rising demand for bio-based lubricants. The growing trade of vehicles and their spare parts is anticipated to fuel the demand for automotive oils and greases. The major economic recovery in North America and Europe is expected to boost the consumer vehicles segment, which, in turn, is a boon for the market. Typical lube manufacturers use crude oil, CBM, tight oil, and other additives to formulate all types of lubricants. Major companies, such as Royal Dutch Shell, Total SA, Chevron, ExxonMobil Corporation, British Petroleum, and Sinopec, have integrated their business operations globally. It ensures a steady raw material supply to manufacture mineral oils & additives needed for production.

U.S. lubricants market size, by application, 2017 - 2028 (USD Million)

However, many other manufacturers have definitive contracts with raw material manufacturers as well as suppliers. This strategically enables these companies to reduce uncertain time and price losses in the procurement of these materials. Lubricants are majorly used as diesel engine oils, gearbox & transmissions in passenger cars, commercial vehicles & motorcycle segments of the automotive sector. Growing automobile sales are expected to augment the global industry growth over the forecast period. Global automotive sales have been on the rise primarily driven by countries, such as India, China, the U.S., and Brazil.

Growth drivers for the manufacturing sector in these markets include favorable foreign investment norms, availability of a large pool of skilled labor & technological know-how. High growth in niche manufacturing sectors, such as 3D printing & medical devices, is expected to further complement the industrial growth in these markets. Hence, rapid industrialization in BRICS is expected to drive industrial fluids demand, which, in turn, is expected to complement the global lubricants sector growth.

Major companies in the market are running a consumer-centric business, which has led to a high level of innovations, in terms of distribution timeline reductions and enhanced accessibility of the products. Many manufacturers have established ground-level distribution channels with regional suppliers that enable them to focus on other aspects of the business, such as quality improvisation, product portfolio enhancement, and more, thereby leaving distribution handling to the dedicated sources with a broader reach and market knowledge.

The industry is characterized by a high number of new market entrants that are seeking to tap the lucrative opportunities in the global market; while existing players are entering into strategic collaborations to increase capacities & expand their reach into emerging markets. The joint venture, merger, and acquisition activities in the industry have increased significantly over the past decade. Companies constantly seek to establish long-term contract agreements with trusted partners for sustainable business operations globally.

Application Insights

In terms of volume, the automotive segment dominated the market with a share of more than 57% in 2020. This high share is attributed to the increased sales of consumer automotive, such as trucks, busses, and other forms of passenger transport. Economic growth in emerging countries, such as China, India, and Brazil, has led to the betterment of public transportation in these regions. This trend is expected to strengthen commercial automotive oil demand, thereby supporting segment growth over the forecast years.

Increasing industrial production in emerging markets of Asia Pacific and Latin America is anticipated to drive industrial oil products demand over the forecast period. Mining, unconventional energy, and chemicals industries are projected to be among the largest markets for industrial lubricants. This trend is expected to boost the demand for industrial lubricants in applications, such as industrial engines, compressors, hydraulics, bearings, and centrifuges.

Global industrial lubricants market share, by application, 2020 (%)

Marine lubes are widely used in high- and medium-speed engine oils and slow-speed marine engines. The product helps enhance the engine life and protects the components at high temperatures. Some of these products offer additive technology to provide protection against crankcases, camshaft areas, under-crowns, and ring belt. Furthermore, lubricants are used in slow-speed cylinders as they offer high-performance lubrication, enhanced protection from mechanical wear, and help mitigate cold corrosion.

Aerospace lubricants are used to provide reliability, long-lasting lubrication for critical components to operate efficiently in high vacuum and extreme temperatures. They undergo regular scrutiny with increasing regulatory intervention and specific military standards. Increasing air passenger traffic coupled with a significant rise in defense budgets across the globe are anticipated to remain the key driving factors for segment growth over the forecast period. Countries including the U.S., Germany, India, and Brazil have made a substantial increase in defense spending resulting in a rapidly expanding aerospace sector.

Regional Insights

Asia Pacific dominated the global market with a volumetric share of over 43% in 2020 and will expand further at the fastest CAGR from 2021 to 2028, in terms of volume as well revenue. This is attributed to the increasing growth in the base oil movement, rapid industrialization & urbanization, rising population, and high growth in major end-use industries, such as textiles, chemicals, food processing, and metalworking. The market presents several lucrative opportunities to innovators who tap into niche applications and introduce newer products with advantageous product characteristics. Moreover, major industry players are also shifting their production facilities to Asia Pacific owing to the presence of low-cost labor, ever-increasing demand, and favorable government policies.

Europe has a high growth potential for industrial lube products due to rapidly growing chemical manufacturing facilities in the region. The heavy growth is largely driven by the intervention of several multinational chemical manufacturers across countries, such as Russia, the U.K., France, and Germany. These industrial lubes are by large utilized for multiple applications, such as the production of fertilizers, rotatory as well as compressor units in manufacturing units, and more, which helps in multiple-fold increase in operating cycle as well as the performance of machinery that undergo severe stress.

Latin America is projected to formulate several trade strategies to attract Foreign Direct Investment (FDI) for infrastructure development. Various policies to promote investment and partnerships with the private sector have been formulated to address port and transportation infrastructure opportunities across the region. Brasil Terminal Portuario, one of the busiest container ports in Latin America, is also planning multiple terminal development projects in Moin, Costa Rica, Mexico, and Peru. These initiatives, in turn, are expected to boost product demand in the region’s marine industry in the coming years.

Most MEA countries are highly dependent upon crude oil production and the consequent revenue generated from this industry. Numerous countries in this region have undertaken efforts to diversify their economies in an attempt to reduce the dependency on crude oil. This, in turn, has fostered industrial development and boosted the demand for industrial machinery supporting market growth.

Key Companies & Market Share Insights

The global market is highly competitive with a large number of well-diversified regional, and independent small- and large-scale manufacturers and suppliers. The small-scale companies majorly compete on the basis of price, aftersales services, and delivery timelines. Whereas large-scale companies focus on product development and innovations as well as marketing strategies. Some companies are also redefining their supply chain to reduce cost and customer delays.

Key players as well as new entrants are focusing on the development of bio-lubricants, owing to the future concerns of energy security for petroleum products. However, bio-lubricants, being in the immature phase, have certain restrictions, such as temperature resistance and oxidative stability. Thus, companies are investing in R&D activities for these products.

Prominent manufacturers are involved in expanding their production sites in the developing regions of Asia, Africa, and South America owing to the rising demand for industrial and automobile lubes. Apart from lubricant production capacities, major players are also focusing on discovering new oil wells to be self-sustainable, in terms of raw materials, for internal manufacturing, and to maintain their sales revenue. Some of the key companies in the global lubricants market include:

  • ExxonMobil Corp.

  • Pennzoil

  • Quaker Chemical Corp.

  • Royal Dutch Shell Co.

  • JX Nippon Oil & Energy Corp.

  • British Petroleum

  • Lukoil

  • Total S.A

  • Chevron Corp.

  • Philips 66 Company

  • Sinopec Corp. 

Lubricants Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 130.03 billion

Revenue forecast in 2028

USD 167.48 billion

Growth rate

CAGR of 3.7% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2020

Forecast period

2021 - 2028

Quantitative units

Volume in kilotons, revenue in USD million/billion, and CAGR from 2021 to 2028

Report coverage

Revenue forecast, volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, Region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; U.K.; Switzerland; France; Russia; China; India; Japan; Brazil; Argentina; Saudi Arabia

Key companies profiled

ExxonMobil Corp.; Pennzoil; Quaker Chemical Corp.; Royal Dutch Shell Co.; JX Nippon Oil & Energy Corp.; British Petroleum; Lukoil; Total S.A.; Chevron Corp.; Philips 66 Company; Sinopec Corp.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global lubricants market report on the basis of application and region:

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Industrial

      • Process Oils

      • General Industrial Oils

      • Metalworking Oils

      • Industrial Engine Oils

      • Greases

      • Others

    • Automotive

      • Engine Oil

        • 0W-20

        • 0W-30

        • 0W-40

        • 5W-20

        • 5W-30

        • 5W-40

        • 10W-60

        • 10W-40

        • 15W-40

        • Others

      • Gear Oil

      • Transmission Fluids

      • Brake Fluids

      • Coolants

      • Greases

    • Marine

      • Engine Oil

      • Hydraulic Oil

      • Gear Oil

      • Turbine Oil

      • Greases

      • Others

    • Aerospace

      • Gas Turbine Oil

      • Piston Engine Oil

      • Hydraulic Fluids

      • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • Switzerland

      • France

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

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