Global Lubricants Market Segmentation, By Base Oil (Mineral Oil, Synthetic Oil, and Bio-Based Oil), Product (Engine Oil, Hydraulic Fluid, Metalworking Fluid, Gear Oil, Compressor Oil, Grease, Turbine Oil, and Others), End-Use Industry (Transportation and Industrial) - Industry Trends and Forecast to 2031
Lubricants Market Analysis
The lubricants market is witnessing significant growth due to advancements in technology and methods. Recent innovations include the development of synthetic and bio-based lubricants, which offer superior performance and reduced environmental impact. Synthetic lubricants, engineered for specific applications, enhance efficiency and extend equipment lifespan, making them increasingly popular in sectors such as automotive and industrial machinery.
In addition, advancements in additive technology have led to the creation of lubricants with improved thermal stability, oxidation resistance, and wear protection, which are crucial for high-performance applications. For instance, the incorporation of nano-additives has been shown to enhance lubricant properties, enabling better lubrication at lower volumes.
The rise in electric vehicles (EVs) is also driving the lubricants market as manufacturers adapt formulations to meet the unique requirements of electric drivetrains, such as thermal management and reduced friction.
Furthermore, the growth of automation in industries is increasing the demand for advanced lubricants, as efficient lubrication is essential for optimizing machinery performance and reducing downtime. Overall, the lubricants market is projected to grow significantly, driven by technological innovations and the shift towards more sustainable products.
Lubricants Market Size
The global lubricants market size was valued at USD 141.18 billion in 2023 and is projected to reach USD 196.21 billion by 2031, with a CAGR of 4.20% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include import export analysis, production capacity overview, production consumption analysis, price trend analysis, climate change scenario, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
Lubricants Market Trends
“Growth of Bio-Based Lubricants”
A significant trend driving growth in the lubricants market is the increasing demand for sustainability and eco-friendly products. Consumers and industries are becoming more environmentally conscious, prompting lubricant manufacturers to develop bio-based and biodegradable lubricants. For instance, In January 2024, Shell U.K. Limited completed the acquisition of MIDEL and MIVOLT from M&I Materials Ltd., integrating their products into Shell’s Lubricants portfolio. This strategic move is aimed at enhancing Shell’s capabilities in producing Transformer Oils, which are essential for offshore wind parks, utility companies, and power distribution. The acquisition is anticipated to strengthen Shell’s market presence and technological edge in lubrication solutions.
Report Scope and Lubricants Market Segmentation
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Attributes
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Lubricants Key Market Insights
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Segments Covered
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Countries Covered
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U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America
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Key Market Players
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Shell PLC. (U.K.), BP p.l.c. (U.K.), FUCHS (Germany), Petroliam Nasional Berhad (Patrons) (Malaysia), Lubrita Europe B.V (Europe), Liberty Lubricants (U.S.), China Petrochemical corporation (China), TotalEnergies (France), ExxonMobil Corporation (U.S.), Phillips 66 company (U.S.), Indian Oil Corporation Ltd. (India), Idemitsu Kosan Co.,Ltd. (Japan), Chevron Corporation (U.S.), JX Nippon Oil & Gas Exploration Corporation (Japan), KLÜBER LUBRICATION INDIA Pvt. Ltd. (India), Mineral Oil Corporation (India), Valvoline (U.S.), and ENEOS Holdings, Inc (Japan)
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Market Opportunities
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Value Added Data Infosets
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In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include import export analysis, production capacity overview, production consumption analysis, price trend analysis, climate change scenario, supply chain analysis, value chain analysis, raw material/consumables overview, vendor selection criteria, PESTLE Analysis, Porter Analysis, and regulatory framework.
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Lubricants Market Definition
Lubricants are substances, often liquids or semi-solids that reduce friction between surfaces in mutual contact, thereby minimizing wear and tear. They play a crucial role in various industries, including automotive, manufacturing, and aerospace, by enhancing the efficiency and lifespan of machinery and components. Common types of lubricants include oils, greases, and pastes, which can be derived from petroleum or synthesized from chemical compounds. Beyond mechanical applications, lubricants are essential in food processing, pharmaceuticals, and personal care products. The market for lubricants is driven by advancements in technology and the growing demand for environmentally friendly options, such as bio-based lubricants.
Lubricants Market Dynamics
Drivers
- Rising Demand for High-Performance Products
The lubricants market is significantly driven by the increasing demand for high-performance products across various industries. Companies are focusing on lubricants that enhance protection against wear, reduce friction, and improve overall operational efficiency. For instance, In June 2023, FUCHS Lubricants Co. unveiled the RENOLIT CSX AWE 0, a specialized grease designed for truck trailer axle hubs. This innovative product leverages lithium-free grease technology, which effectively reduces friction and temperature in heavy-duty trucks. The launch complements FUCHS's existing lubricant product line, showcasing the company's commitment to developing advanced solutions that enhance operational efficiency and reliability in the transportation sector.
- Automotive Sector Expansion
The automotive sector's expansion significantly drives the lubricants market, particularly in the Asia-Pacific region. Countries such as China and India are witnessing a surge in vehicle production and sales due to rising disposable incomes and urbanization. For instance, in 2023, China's vehicle production reached approximately 27 million units, fueling the demand for high-quality automotive lubricants such as engine oils and transmission fluids. This growth encourages manufacturers to develop advanced lubricant formulations that enhance fuel efficiency and engine performance. In addition, the shift towards electric vehicles (EVs) also creates new opportunities for specialized lubricants, further expanding the market landscape.
Opportunities
- Growth in Renewable Energy
The expansion of renewable energy sectors, particularly wind and solar, creates significant opportunities in the lubricants market. Specialized lubricants are essential for the unique operational environments of wind turbines and solar panels. For instance, lubricants used in wind turbines must withstand extreme temperatures and resist corrosion from moisture and salt. As global investments in renewable energy projects rise, companies are increasingly seeking high-performance lubricants that enhance equipment efficiency and longevity. A report from Fortune Business Insights indicates that the global wind energy market alone is projected to grow from USD 109.79 billion in 2021 to USD 211.61 billion by 2028, driving demand for tailored lubricant solutions.
- Increased Machinery Usage
The growing reliance on machinery across sectors such as agriculture, mining, and manufacturing creates significant opportunities in the lubricants market. As these industries expand, the demand for high-quality lubricants to maintain equipment efficiency and longevity intensifies. For instance, in August 2023, Valvoline launched a new range of Valvoline 4-stroke Full Synthetic Premium Motor Oil tailored for marine and powersports applications. Designed to withstand the high torque and elevated temperatures characteristic of four-stroke ATV/UTV and marine engines, this innovative oil formulation promises improved engine performance and protection. The new product line emphasizes Valvoline's commitment to meeting the demanding requirements of modern recreational vehicles.
Restraints/Challenges
- Volatility in Raw Material Prices
Volatility in raw material prices significantly hinders the lubricants market. Fluctuations in crude oil prices, a primary component in lubricant production, can lead to unexpected cost increases. When crude oil prices surge, manufacturers face higher production costs, which often translate to elevated retail prices. These sudden price hikes can adversely affect consumer demand, as businesses and individuals may seek cheaper alternatives or reduce lubricant usage. Moreover, the uncertainty associated with raw material pricing complicates financial forecasting for lubricant manufacturers, making it challenging to maintain profit margins and plan for future investments. Consequently, this volatility creates a precarious environment for the lubricants market.
- Shift Toward Synthetic Alternatives
The shift toward synthetic alternatives in the lubricants market poses significant challenges for traditional manufacturers. Synthetic lubricants generally provide superior performance, including better thermal stability and longer service life. However, their higher costs can deter consumers, particularly in price-sensitive markets. This price differential can lead to decreased demand for conventional lubricants, forcing manufacturers to re-evaluate their pricing strategies. As more consumers opt for synthetic options, traditional lubricant manufacturers risk losing market share. The competitive landscape shifts as companies adapt to consumer preferences, creating pressure on profitability and potentially leading to a decline in sales for those unable to transition effectively.
This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.
Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays
Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.
Expected Impact of Economic Slowdown on the Pricing and Availability of Products
When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.
Lubricants Market Scope
The market is segmented on the basis of base oil, product and end-user industry. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.
Base Oil
- Mineral Oil
- Synthetic Oil
- Bio-Based Oil
Product
- Engine Oil
- Hydraulic Fluid
- Metalworking Fluid
- Gear Oil
- Compressor Oil
- Grease
- Turbine Oil
- Others
End-Use Industry
- Transportation
- Industrial
- Process Oils
- General Industrial Oils
- Metalworking Oils
- Industrial Engine Oils
- Greases
- Others
Lubricants Market Regional Analysis
The market is analysed and market size insights and trends are provided by base oil, product and end-user industry as referenced above.
The countries covered in the market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.
Asia-Pacific is expected to dominate the lubricants market, driven by rapid urbanization and industrialization in countries such as China and India. The increasing population and rising demand for automotive and industrial lubricants further contribute to revenue growth. Key factors include a growing manufacturing sector, heightened automotive production, and significant infrastructure development projects, all of which are propelling the lubricants market forward in this region.
Europe is anticipated to be the fastest-growing region in the lubricants market during the forecast period, driven by a significant increase in chemical manufacturing facilities. This growth is fueled by rising industrial activities, investments in sustainable technologies, and stringent environmental regulations encouraging the use of advanced lubricants. As a result, the demand for high-performance lubricants is expected to surge, enhancing market growth in the region.
The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points such as down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.
Lubricants Market Share
The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.
Lubricants Market Leaders Operating in the Market Are:
- Shell PLC. (U.K.)
- BP p.l.c. (U.K.)
- FUCHS (Germany)
- Petroliam Nasional Berhad (Patrons) (Malaysia)
- Lubrita Europe B.V (Europe)
- Liberty Lubricants (U.S.)
- China Petrochemical Corporation (China)
- TotalEnergies (France)
- ExxonMobil Corporation (U.S.)
- Phillips 66 Company (U.S.)
- Indian Oil Corporation Ltd. (India)
- Idemitsu Kosan Co.,Ltd. (Japan)
- Chevron Corporation (U.S.)
- JX Nippon Oil & Gas Exploration Corporation (Japan)
- KLÜBER LUBRICATION INDIA Pvt. Ltd. (India)
- Mineral Oil Corporation (India)
- Valvoline (U.S.)
- ENEOS Holdings, Inc, (Japan)
Latest Developments in Lubricants Market
- In January 2024, Shell U.K. Limited completed the acquisition of MIDEL and MIVOLT from M&I Materials Ltd., integrating their products into Shell’s Lubricants portfolio. This strategic move is aimed at enhancing Shell’s capabilities in producing Transformer Oils, which are essential for offshore wind parks, utility companies, and power distribution. The acquisition is anticipated to strengthen Shell’s market presence and technological edge in lubrication solutions
- In June 2023, In June, Shell and Ducati announced a collaboration focused on developing a high-performance oil specifically for the Ducati Panigale equipped with a dry clutch. Utilizing Shell's proprietary PurePlus technology, the new oil formulation aims to enhance engine protection by minimizing friction and wear. This partnership reflects Shell’s dedication to engineering advanced lubricants tailored to the unique needs of high-performance motorcycle engines
- In March 2023, Aramco finalized the acquisition of Valvoline Inc.'s global products business, Valvoline Global Operations, in a deal valued at USD 2.65 billion. This acquisition marks a significant step for Aramco, enabling it to broaden its product offerings and market reach. Both companies aim to leverage their combined strengths to expand Valvoline’s brand presence and distribution capabilities across international markets, enhancing customer access to quality lubricants
- In March 2023, ExxonMobil announced plans to invest approximately INR 900 crore (around USD 110 million) in constructing a lubricants production facility in Raigad, Maharashtra, India. This new plant, expected to have an annual production capacity of 159,000 kiloliters of finished lubricants, aims to meet the rising demand from diverse sectors such as mining, construction, power, steel, and manufacturing, strengthening ExxonMobil’s footprint in the Indian market
- In 2022, Shell Plc entered a significant agreement with PJSC LUKOLI, where Shell wholesaled Shell Neft LLC, its lubricants business in Russia. This contract encompasses around 411 retail stations located in the northwestern regions of Russia. The deal highlights Shell's strategic efforts to streamline its operations in challenging markets while ensuring continued service to customers in those regions
- In 2022, Chevron Corporation announced a partnership with PT Pertamina in 2022 to explore potential business opportunities focused on lower carbon solutions in Indonesia. This collaboration aims to investigate geothermal energy projects and carbon offset technologies, utilizing nature-based solutions. The partnership reflects Chevron's commitment to sustainable energy initiatives and its efforts to support Indonesia's transition toward cleaner energy sources
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