The U.S. lubricants market size is projected to reach USD 24.50 billion by 2027, expanding at a CAGR of 3.1% over the forecast period, according to a new report by Grand View Research, Inc. Increasing demand for industrial lubricants in U.S. is anticipated to boost the market growth over the forecast period.

Rapid industrialization in the country led to higher consumption of oils in the industrial sector. Lubricants are widely used across various manufacturing industries, including metal forming, mining, paper & mill, construction, agriculture, food & beverages, energy, plastics, and others. Growth of the manufacturing industry has a direct impact on the demand for the lubricants. Increasing focus on the development of domestic manufacturing sector is likely to positively affect the demand for lubricants in the country. Other factors facilitating the lubricant consumption include focus on productive and cost-effective manufacturing techniques, increased mergers & acquisitions, and reshoring of factories.

Inflow of foreign investments in the marketspace, coupled with availability of several skilled labors with high adaptivity to technological interfacing, is driving the manufacturing sector in U.S. Rapid growth of the niche manufacturing sectors, like 3D printing, is also a key force behind constant demand for lubricants used in the printing machines. Moreover, as of 2017, in U.S., the major industrial machinery utilization was observed in the construction and agriculture industries, followed by the mining and food processing industries.

Furthermore, in terms of automotive industry movement, downsizing liter engine segment vehicles to reduce vehicle weight and enhance fuel efficiency is considered to be yet another key factor boosting the sales of passenger cars in U.S. With the rise in sales of automobiles in U.S., the projected consumption of lubricants in the manufacturing and maintenance of vehicles in the country is also expected to rise in the coming years.

Further Key findings from the study suggest:

  • The automotive application segment held the largest share of 57.73% in U.S. in 2019 due to high demand for vehicle maintenance. Engine oils held the largest share in 2019 and transmission fluids are anticipated to witness the fastest growth over the forecast period
  • The aerospace sector is projected to expand at the fastest CAGR of 4.0% in terms of volume due to increased shipping demand for U.S. produced civil space systems, general aviation aircrafts, and commercial aircrafts
  • In the industrial application segment, industrial engine oil is projected to register the highest CAGR of 3.2% from 2020 to 2027 due to high demand for the product to enhance machinery life by reducing wear and tear of engine components
  • Key players in U.S. lubricants market such as Total S.A., ExxonMobil, British Petroleum, and Royal Dutch Shell have integrated operations across the value chain.