Lubricants Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 38.43 Billion liters |
| Market Volume (2029) | 42.79 Billion liters |
| CAGR (2024 - 2029) | 2.18 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Lubricants Market Analysis
The Lubricants Market size is estimated at 38.43 Billion liters in 2024, and is expected to reach 42.79 Billion liters by 2029, growing at a CAGR of 2.18% during the forecast period (2024-2029).
In 2020, the lubricants market faced setbacks due to global supply chain disruptions caused by COVID-19. The pandemic led to shutdowns of numerous factories supplying essential raw materials, such as base oil and additives, to the lubricants industry. Nevertheless, buoyed by a positive automotive industry outlook and consistent advancements in the oil and gas sector, the lubricants market is expected to experience modest yet positive growth in the coming years.
- Over the short term, the surging vehicle population and robust growth of investments in the power generation sector are the major factors driving the demand for the market studied.
- However, stringent regulations amidst growing environmental concerns are expected to hinder the market's growth.
- Nevertheless, the growing adoption of bio-lubricants is expected to create new opportunities for the market studied.
- Asia-Pacific region is expected to dominate the market across the world, with the majority of demand coming from China and India.
Lubricants Market Trends
Automotive and Other Transportation Segment to Dominate the Market
- Automotive and other transportation sectors, including aircraft and marine, dominate the lubricant market.
- The automotive sector stands out as one of the primary consumers of lubricants, which are crucial for ensuring smooth vehicle operation. The lubricants also help clean and cool down the engine parts and prevent them from buildup of rust and corrosion.
- In the automotive sector, various lubricants such as engine oil, transmission oil, hydraulic oil, greases, and other lubricants are used in commercial vehicles and motorcycles, which will drive the lubricants industry.
- Light-duty vehicles, encompassing two-wheelers and passenger cars, predominantly use engine oils, gear oils, transmission oils, greases, and compressor oils. Both OEMs and the aftermarket show a strong preference for these lubricants.
- Growing demand for lightweight, high-performance cars in emerging markets, increasing automotive hubs, and rising disposable income are the major reasons for the high demand for lubricants.
- In 2023, global new vehicle sales saw a robust growth of 11.9% over 2022, totaling over 92.7 million units, as reported by the Organisation Internationale des Constructeurs d'Automobiles (OICA). Specifically, new passenger vehicle sales climbed by 11.3% year-over-year, hitting 65.3 million units, up from 58.6 million in 2022. Concurrently, new commercial vehicle registrations worldwide rose to 27.5 million units in 2023, marking a notable 13.3% increase from the 24.2 million units recorded in 2022.
- In North America, motor vehicle sales in 2023 accounted for 19.19 million units, an increase of 13.4% compared to 2022’s sales, which was reported to be 16.93 million units, according to the OICA. Out of the total 19.19 million units, passenger cars accounted for 3.98 million units, commercial vehicles made up 15.21 million units, and the remaining units were a combination of heavy trucks, buses, and coaches.
- Furthermore, as per the data from the European Automobile Manufacturers Association, in Europe, the overall registration of new motor vehicles increased by 18.7% in 2023 compared to the previous year. In 2023, passenger car and commercial vehicle sales reached 15 million units and 2.90 million units, respectively, compared to 12.64 million units and 2.44 million units in 2022.
- Given these dynamics, the market is poised for significant growth during the forecast period.
Asia-Pacific Region to Dominate the Market
- The Asia-Pacific region led the global market share. As countries like China, India, and Japan ramp up their wind power initiatives and bolster automotive production, the demand for lubricants in the region is on the rise.
- China stands out as a global powerhouse, both in lubricant consumption and production. Major players shaping China's lubricant landscape include Shell Plc, Sinopec, ExxonMobil Corporation, and BP Plc. The sector's growth was bolstered by heightened investments and expansions throughout the forecast period.
- In June 2024, Shell completed a significant expansion at its grease manufacturing plant in Bangkok, tripling its production capacity. This enhancement positions the plant to meet half of Thailand's grease demand, boosting its annual output from 5,000 to 15,000 metric tons.
- In September 2023, McDonch Petrochemical Co. unveiled plans for a new blending plant in Tianjin, China, targeting an annual production of 50,000 finished lubricant products.
- China's automotive sector, driven by a burgeoning vehicle fleet and tech advancements, emerges as the top lubricant consumer. 2023 saw both sales and production of automobiles in China hit a record 30 million units, marking a notable double-digit growth from the prior year, as highlighted by the China Association of Automobile Manufacturers (CAAM).
- In 2023, India's passenger vehicle sales surpassed the 4 million milestone for the first time, fueled by increasing disposable incomes, a boom in new sport-utility vehicles, and attractive loan rates. The domestic market recorded sales of over 4.1 million cars, sedans, and utility vehicles, marking an 8.2% rise from the previous year's 3.79 million, according to the Society of Indian Automobile Manufacturers (SIAM). Significantly, utility vehicles made up 57.4% of the overall sales.
- Moreover, with economies increasingly leaning towards renewable energies like wind, the Asia-Pacific's offshore wind installations are set for a significant uptick. The Global Wind Energy Council (GWEC) projects a 225.4% growth in the region's offshore wind installation volume by 2029, compared to 2022. This surge is poised to amplify the wind power industry's lubricant demand during the forecast period.
- Given these dynamics, lubricant consumption in the Asia-Pacific is set to rise, ensuring the region's continued market dominance.
Lubricants Industry Overview
The Global lubricants market is consolidated in nature. The major players (not in any particular order) include Shell PLC, Exxon Mobil Corporation, BP PLC (Castrol), TotalEnergies, and Chevron Corporation, among others.
Lubricants Market Leaders
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Exxon Mobil Corporation
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Chevron Corporation
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TotalEnergies
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BP PLC
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Shell PLC
*Disclaimer: Major Players sorted in no particular order
Lubricants Market News
- July 2024: BP PLC and Castrol announced their collaboration on co-engineering fuels and lubricants to maximize the performance of Audi's F1 Power Unit while meeting stringent environmental standards.
- Jan 2024: Shell Lubricants, a subsidiary of Shell plc, has acquired MIDEL and MIVOLT, both based in the UK, from M&I Materials Ltd., located in Manchester. These product lines will be manufactured, distributed, and marketed as integral components of Shell’s global lubricants portfolio.
- Oct 2023: Hindustan Petroleum Corporation Limited (HPCL) and Chevron Brands International LLC, a subsidiary of Chevron Corporation, entered into a long-term agreement encompassing the licensing, production, distribution, and marketing of Chevron’s lubricant products under the Caltex brand. It includes Chevron’s proprietary Havoline and Delo branded lubricant products in India.
- Sep 2023: ENSO Oils & Lubricants has partnered with Gazpromneft-Lubricants, a subsidiary of Gazprom Neft PJSC, to bolster lubricant distribution across South Asia. ENSO is set to import and distribute Gazpromneft's diverse range of oils and lubricants, catering to various industries in India.
Lubricants Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Surging Vehicle Population to Drive the Demand for Lubricants
4.1.2 Robust Growth of Investments in the Power Generation Sector
4.1.3 Other Drivers
4.2 Restraints
4.2.1 Stringent Regulations Amidst Growing Environmental Concerns
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Group
5.1.1 Group I
5.1.2 Group II
5.1.3 Group III
5.1.4 Group IV
5.1.5 Group V
5.2 Base Stock
5.2.1 Mineral Oil Lubricant
5.2.2 Synthetic Lubricant
5.2.3 Semi-synthetic Lubricant
5.2.4 Bio-based Lubricant
5.3 Product Type
5.3.1 Engine Oil
5.3.2 Transmission and Hydraulic Fluid
5.3.3 Metalworking Fluid
5.3.4 General Industrial Oil
5.3.5 Gear Oil
5.3.6 Grease
5.3.7 Process Oil
5.3.8 Other Product Types
5.4 End-user Industry
5.4.1 Power Generation
5.4.2 Automotive and Other Transportation
5.4.3 Heavy Equipment
5.4.4 Food and Beverage
5.4.5 Metallurgy and Metalworking
5.4.6 Chemical Manufacturing
5.4.7 Other End-user Industries (Packaging, Oil and Gas)
5.5 Geography
5.5.1 Asia-Pacific
5.5.1.1 China
5.5.1.2 India
5.5.1.3 Japan
5.5.1.4 South Korea
5.5.1.5 Malaysia
5.5.1.6 Thailand
5.5.1.7 Indonesia
5.5.1.8 Vietnam
5.5.1.9 Rest of Asia-Pacific
5.5.2 North America
5.5.2.1 United States
5.5.2.2 Canada
5.5.2.3 Mexico
5.5.3 Europe
5.5.3.1 Germany
5.5.3.2 United Kingdom
5.5.3.3 France
5.5.3.4 Italy
5.5.3.5 Spain
5.5.3.6 NORDIC countries
5.5.3.7 Turkey
5.5.3.8 Russia
5.5.3.9 Rest of Europe
5.5.4 South America
5.5.4.1 Brazil
5.5.4.2 Argentina
5.5.4.3 Colombia
5.5.4.4 Rest of South America
5.5.5 Middle-East
5.5.5.1 Saudi Arabia
5.5.5.2 Qatar
5.5.5.3 United Arab Emirates
5.5.5.4 Nigeria
5.5.5.5 Egypt
5.5.5.6 South Africa
5.5.5.7 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BP PLC
6.4.2 Chevron Corporation
6.4.3 China National Petroleum Corporation (CNPC)
6.4.4 China Petroleum & Chemical Corporation (Sinopec)
6.4.5 ENEOS Corporation
6.4.6 Exxon Mobil Corporation
6.4.7 FUCHS
6.4.8 Hindustan Petroleum Corporation Limited
6.4.9 Idemitsu Kosan Co. Ltd
6.4.10 Indian Oil Corporation Ltd
6.4.11 LUKOIL
6.4.12 MOTUL
6.4.13 Petromin
6.4.14 PETRONAS Lubricants International
6.4.15 Phillips 66 Company
6.4.16 PT Pertamina Lubricants
6.4.17 Repsol
6.4.18 Shell PLC
6.4.19 TotalEnergies
6.4.20 Valvoline (Saudi Aramco)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Adoption of Bio-lubricants
7.2 Other Opportunities
Lubricants Industry Segmentation
Lubricants are fluids designed to minimize friction between surfaces, thereby preventing wear and tear. Tailored for specific end users, these lubricants are crafted using distinct additives and base oils. Typically, base oils constitute 75% to 90% of a lubricant's formulation, endowing the final product with essential lubricating properties.
The lubricants market is segmented by group, base stock, product type, end-user industry, and geography. By group, the market is segmented into Group I, Group II, Group III, Group IV, and Group V. By base stock, the market is segmented into mineral oil lubricants, synthetic lubricants, semi-synthetic lubricants, and bio-based lubricants. By product type, the market is segmented into engine oil, transmission and hydraulic fluid, metalworking fluid, general industrial oil, gear oil, grease, process oil, and other product types. By end-user industry, the market is segmented segments into power generation, automotive and other transportation, heavy equipment, food and beverage, metallurgy and metalworking, chemical manufacturing, and other end-user industries (packaging, oil and gas). The report also covers the market size and forecasts for the lubricants market in 27 countries across major regions.For each segment, the market sizing and forecasts have been done on the basis of volume (liters).
| Group | |
| Group I | |
| Group II | |
| Group III | |
| Group IV | |
| Group V |
| Base Stock | |
| Mineral Oil Lubricant | |
| Synthetic Lubricant | |
| Semi-synthetic Lubricant | |
| Bio-based Lubricant |
| Product Type | |
| Engine Oil | |
| Transmission and Hydraulic Fluid | |
| Metalworking Fluid | |
| General Industrial Oil | |
| Gear Oil | |
| Grease | |
| Process Oil | |
| Other Product Types |
| End-user Industry | |
| Power Generation | |
| Automotive and Other Transportation | |
| Heavy Equipment | |
| Food and Beverage | |
| Metallurgy and Metalworking | |
| Chemical Manufacturing | |
| Other End-user Industries (Packaging, Oil and Gas) |
| Geography | |||||||||||
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Lubricants Market Research Faqs
How big is the Lubricants Market?
The Lubricants Market size is expected to reach 38.43 billion liters in 2024 and grow at a CAGR of 2.18% to reach 42.79 billion liters by 2029.
What is the current Lubricants Market size?
In 2024, the Lubricants Market size is expected to reach 38.43 billion liters.
Who are the key players in Lubricants Market?
Exxon Mobil Corporation, Chevron Corporation, TotalEnergies, BP PLC and Shell PLC are the major companies operating in the Lubricants Market.
Which is the fastest growing region in Lubricants Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Lubricants Market?
In 2024, the Asia Pacific accounts for the largest market share in Lubricants Market.
What years does this Lubricants Market cover, and what was the market size in 2023?
In 2023, the Lubricants Market size was estimated at 37.59 billion liters. The report covers the Lubricants Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Lubricants Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the challenges in the Lubricants Market?
The challenges in the Lubricants Market are a) Increasing drain intervals in lubricants for vehicles and machinery b) The modest impact of electric vehicles, which require less lubrication than traditional vehicles
Lubricants Industry Report
The Lubricants Market Research Report provides a comprehensive industry analysis, focusing on the segmentation by Group, Base Stock, Product Type, End-User Industry, and Geography. This market overview highlights the significant growth driven by the increasing demand for high-performance engines and rapid industrialization. The market is segmented into mineral oil, synthetic oil, bio-based oil, engine oil, hydraulic fluid, and metalworking fluid, among others.
Synthetic oil is projected to witness the fastest market growth due to its superior properties. The transportation sector, which includes commercial vehicles, passenger vehicles, marine, and railways, is expected to be the largest end-user industry. The Asia-Pacific region is anticipated to hold the largest share of the lubrication industry, attributed to its growing population, industrial investment, and infrastructure development.
Opportunities such as the demand for renewable energy and the growing prominence of bio-lubricants are expected to positively impact the market value. The lubricant market is highly competitive, with major players focusing on product development, innovation, and strategic partnerships. The report also provides a market forecast and market outlook, supported by statistics from the Lubricants market share, size, and revenue growth rate.
The industry research indicates that the market leaders are investing in new technologies to maintain their competitive edge. The market segmentation covers various sectors, ensuring a detailed market review. This report example includes a market prediction, highlighting the future trends and market data that are crucial for industry stakeholders.
In conclusion, the Lubricants Market Research Report offers a detailed industry outlook, providing valuable industry information, industry statistics, and insights into industry trends. The report pdf is available for those seeking an in-depth market analysis and industry reports.
