Market Overview

The market for lubricants is expected to register a CAGR of around 2% during the forecast period. The major factor driving the market studied is the increasing demand for high-performance lubricants (owing to their better and improved properties, such as reduced flammability, reduced gear wear, and increased service life). However, increasing drain intervals in the automotive and industrial sectors are expected to hinder the growth of the market studied.

  • Engine oil dominated the market and is expected to grow during the forecast period, as it is widely used to lubricate internal combustion engines.
  • Growing prominence for bio-lubricants is likely to act as an opportunity in the future.
  • Asia-Pacific dominated the market across the world, with the largest consumption coming from the countries, such as China and India.



Key Market Trends

Engine Oil Segment to Dominate the Market

  • Engine oils are widely used to lubricate internal combustion engines and are generally composed of 75-90% base oils and 10-25% additives.
  • They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of engine internals. They function by creating a thin film between the moving parts for enhancing the transfer of heat and reducing tension during the contact of parts.
  • High-mileage engine oils are in demand lately, owing to the properties that help in the prevention of oil leaks and reduction of oil consumption.
  • Most of the light and heavy vehicle diesel and gasoline engines use 10W40 and 15W40 viscosity-grade oils, whereas, multi-grade oils, like 15W50 and 20W50, are used for aircraft engines.
  • The light motor vehicle segment records the highest consumption rate of engine oils among all the segments. Owing to the technological improvements and government-mandated requirements for fuel economy, the automakers have been manufacturing lighter vehicles with tighter tolerances (which make the vehicles more durable).
  • Owing to the increased engine oil change intervals, technological advancements are imposing a threat to the growth of the engine oil segment, in terms of volume consumption.
  • However, with the growing automotive fleet on road, the consumption of engine oil is projected to increase, but at a slower pace, during the forecast period.



Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share. With growing automotive fleet and the increasing need for wind power in countries, such as China, India, and Japan, the usage of lubricants is increasing in the region.
  • China is the largest lubricant consumer in the region, and the world, followed by the United States. Apart from automotive and wind power, chemical manufacturing is another prominent end-user industry in China.
  • Many major companies in the market have their chemical plants in China. These companies have increased their production capacities, which, in turn, may increase the consumption of lubricants. India was the world’s fifth-largest and sixth-largest producer of commercial vehicles and passenger cars, respectively and the automotive sector accounts for the largest share of the lubricant consumption in India. This can be majorly attributed to the diverse aftermarket sales of lubricants in the country.
  • Major OEM manufacturers rely on agreements with different lubricant producers during production, as well as the aftermarket service. Apart from the existing tie-ups, recent tie-ups made by few manufacturers in the sector are expected to boost the lubricants supplied through this route in India.
  • The aforementioned factors in China and India are contributing to the increasing demand for lubricant consumption in the region, during the forecast period.



Competitive Landscape

The market studied is consolidated among the top 10 players. The top companies have been utilizing competitive strategies and investments to retain and expand their shares. The top five players, namely, Royal Dutch Shell PLC, Exxon Mobil Corporation, BP PLC, Chevron Corporation, and Total, account for about 38% of the market studied. China National Petroleum Corporation (PetroChina), IdemitsuKosan Co. Ltd, Sinopec, and FUCHS are some of the other big players who enjoy a healthy presence in the market.
Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • Report customization as per the client’s requirements
  • 3 months of analyst support