ID: PMRREP30828
Format: PPT*, PDF, EXCEL
Last Updated: 8 January 2024
Industry: Chemicals and Materials
Number of Pages: 219
The global industrial lubricants market is forecast to expand at a CAGR of 4.7% and thereby increase from a value of US$22.7 Bn in 2023, to US$31.3 Bn by the end of 2030.
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Attributes |
Key Insights |
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Industrial Lubricants Market Size (2023E) |
US$22.7 Bn |
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Projected Market Value (2030F) |
US$31.3 Bn |
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Global Market Growth Rate (CAGR 2023 to 2030) |
4.7% |
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Historical Market Growth Rate (CAGR 2018 to 2022) |
3.3% |
Industrial lubricants are specialized fluids or greases that are employed in a variety of industrial machinery to reduce friction, heat, and attrition between mechanical components. Lubricants are essential in the optimization of equipment performance, the extension of machinery lifespan, and the maintenance of operational efficiency. These protective materials are customized to address the unique requirements of various sectors, such as energy, manufacturing, automotive, and aerospace, while also ensuring resistance to contamination, corrosion, and rust.
The synthesis of industrial lubricants entails the amalgamation of base oils and additives, which impart characteristics that are engineered to endure exceedingly high temperatures, pressures, and operational circumstances. Such lubricants augment the overall dependability and operational effectiveness of industrial apparatus.
The global market for industrial lubricants is influenced by a variety of factors. The need for effective lubrication solutions is primarily driven by the expansion of manufacturing activities globally and the escalating demand for machinery and equipment across industries. The development of synthetic and bio-based lubricants, among other technological advances in lubricant formulations, contributes to improved performance and environmental sustainability.
In addition, the implementation of rigorous regulations that prioritize equipment efficiency and industrial safety serves to reinforce the demand for premium lubricants. The industry's increasing emphasis on preventive maintenance and equipment optimization strategies is a significant factor contributing to the ongoing expansion of the industrial lubricants market.
Greater Emphasis on Specialized and Synthetic Solutions
The global industrial lubricants market is substantially propelled by the swift advancement of technology, which in turn generates a need for sophisticated lubrication solutions. The increasing adoption of automation, artificial intelligence, and precision manufacturing across industries has led to a heightened demand for high-performance machinery. Machines utilized in contemporary industrial processes frequently operate beneath extreme conditions, including elevated temperatures, substantial masses, and accelerated velocities.
Conventional lubricants might have difficulty fulfilling the stringent requirements of these state-of-the-art End-use industries. As a result, there is a growing dependence on specialized lubricants that possess the ability to endure severe operational conditions while simultaneously guaranteeing the equipment's maximum efficiency and longevity.
The technological advancement and widespread utilization of synthetic lubricants are critical components of this industrial lubricants market movement. Using precise chemical processes, synthetic lubricants are manufactured to have a molecular structure and consistent properties. In contrast to traditional mineral-based lubricants, synthetic alternatives provide enhanced control over viscosity, resistance to oxidation, and thermal stability. This results in increased machinery life, decreased friction, and enhanced performance.
In addition, synthetic lubricants exhibit enhanced fluidity when exposed to low temperatures, thereby guaranteeing dependable functionality across a wide range of climatic conditions. In light of global industries' growing emphasis on efficiency and sustainability, synthetic lubricants are progressively gaining popularity as the preferred lubrication solution due to their extended service life and diminished environmental footprint. Ongoing research and development in the field of synthetic lubricant technology contribute to the expansion of the global industrial lubricants market by yielding novel formulations that address the changing requirements of contemporary industrial apparatus.
Sustainable Practices that Drive Demand for Eco-Friendly Innovations
One significant factor restraining the growth of the worldwide industrial lubricants market is the increasing awareness and emphasis on sustainable methodologies. To reduce their carbon footprints, industries are placing a greater emphasis on examining the environmental consequences associated with lubricants. Prominent concerns linked to conventional lubricants, which are frequently sourced from mineral oils, include pollution, depletion of resources, and disposal complexities.
Global regulatory organizations are implementing rigorous standards to reduce emissions and encourage the use of environmentally favorable alternatives. Industries are compelled by the current regulatory environment to seek out lubrication solutions that are environmentally responsible and high performing.
Several obstacles impede the widespread adoption of sustainable lubricants, including biodegradable and biobased alternatives, on account of cost, availability, and machinery compatibility. Manufacturers and end-users are confronted with the challenge of reconciling performance demands with environmental stewardship. This creates a constraining factor that emphasizes the industrial lubricants market's requirement for innovation and adaptation.
Increasing Industry 4.0, and IoT Integration
The increasing adoption of Industry 4.0 and the Internet of Things (IoT) represents a favorable circumstance driving the worldwide industrial lubricants market. In the pursuit of digital transformation, connectivity, and data-driven decision-making emerge as critical elements that significantly impact operational efficiency. The incorporation of IoT technologies enables machinery to be monitored in real-time and maintained predictively in the context of industrial lubricants.
Proactive measures can be taken to resolve issues before their escalation by utilizing continuous feedback on lubricant performance provided by intelligent sensors embedded in equipment. This practice not only improves the dependability and durability of equipment but also streamlines lubricant consumption by synchronizing maintenance timetables with real-time operational requirements. The insights provided by IoT-enabled lubrication system data regarding equipment health, utilization patterns, and efficiency are of great value to industries as they enable them to make well-informed decisions that result in cost savings and enhanced overall productivity.
In addition, the emergence of Industry 4.0 presents opportunities for the advancement of intelligent lubricants capable of dynamically modifying their characteristics in response to real-time operational circumstances. By reacting to variations in temperature, load, and motion, these adaptive lubricants deliver lubrication specifically where and when it is required. The integration of sophisticated lubrication technologies with the tenets of Industry 4.0 enhances the efficiency and intelligence of the industrial ecosystem.
The growing adoption of smart manufacturing practices across industries will sustain the rising demand for lubricants that adhere to the tenets of connectivity, automation, and data exchange. This phenomenon offers lubricant manufacturers a substantial prospect to foster innovation and develop solutions that not only fulfil the conventional demands of machinery but also seamlessly incorporate into the digitalized environment of contemporary industrial processes. Such endeavors will propel the expansion and development of the worldwide industrial lubricants market.
Price volatility of raw materials represents a formidable obstacle for the global industrial lubricants market. The costs of base oils, additives, and other basic materials utilized in the production of lubricants are highly vulnerable to volatility due to factors such as geopolitical unrest, disruptions in the supply chain, and market forces. The volatility of raw material costs presents lubricant manufacturers with a substantial obstacle in the form of pricing stability and profit margin preservation.
The industrial lubricants market has witnessed a surge in price volatility due to the increased demand for specialized additives and base oils, which is a consequence of the industry's efforts to incorporate advanced technologies and resolve environmental concerns. To surmount this challenge, manufacturers must employ efficient supply chain management tactics, investigate alternative sourcing options, and allocate resources towards research and development to develop lubricant solutions that are both economical and superior in performance. The capacity to alleviate the consequences of volatile raw material costs will be pivotal for industrial lubricant suppliers to maintain their competitiveness and long-term expansion on the international market.
Strong growth is anticipated in the global industrial lubricants market due to a convergence of factors. The rising need for industrial lubricants is closely associated with the expansion of the manufacturing sector, the rise in mechanization, and the increasing focus on equipment efficacy in various industries. In pursuit of developing sophisticated lubrication solutions, specifically synthetic and bio-based lubricants, manufacturers are allocating resources toward research and development. This trend is in line with the worldwide transition towards sustainable practices.
As consumers and manufacturers become more discerning, there is a growing emphasis on the provision of lubrication solutions that are specifically designed to operate in unique industrial settings. The market dynamics are being transformed by the emergence of Industry 4.0 and IoT technologies, which facilitate predictive maintenance and real-time monitoring, thus optimizing the utilization of lubricants.
Furthermore, the market is being influenced by strict environmental regulations in favor of formulations that are more environmentally benign. The future of the industrial lubricants market seems bright, as sectors across the globe place greater emphasis on preventive maintenance and operational dependability. This is evidenced by the market's propensity for innovation, sustainability, and a cooperative effort between producers and consumers to address the ever-changing requirements of contemporary industrial equipment.
Supply-side Dynamics
The global industrial lubricants market is marked by intricate supply-side dynamics, wherein numerous factors exert substantial influence on the manufacturing, distribution, and accessibility of lubricant merchandise. The sourcing and accessibility of base oils—primary constituents including mineral oil, synthetic oil, and bio-based oil—is a critical factor. The cost of mineral oils is influenced by variations in crude oil prices, whereas environmental sustainability initiatives and progress in chemical engineering determine the accessibility and competitiveness of synthetic and bio-based oils.
The effective administration of the supply chain assumes critical importance for manufacturers as it guarantees a reliable and economical provision of basic materials. Furthermore, the dynamics of supply are influenced by the capacity and efficacy of manufacturing facilities; to satisfy expanding market demands, businesses frequently invest in modernization and expansion.
The regulatory environment significantly influences the supply side of the market as well. Consistent adherence to industry-specific regulations and environmental standards requires ongoing innovation in the formulation of lubricants. Manufacturers are confronted with the challenge of accommodating changing demands, which impact the entire product portfolio, by involving the reduction of hazardous substances and the promotion of biodegradable alternatives.
Additionally, the availability of critical raw materials can be influenced by geopolitical factors and trade relations, which may introduce uncertainties in the supply chain. There is a growing interest in recycling and re-refining processes to recover and reuse used lubricants, thereby contributing to a more circular and resource-efficient supply chain, as the industry places a greater emphasis on sustainability. The supply-side dynamics of the industrial lubricants market are fundamentally determined by the availability of raw materials, the industry's commitment to environmental stewardship, manufacturing capabilities, and regulatory compliance.
North America Tops with a Robust Technological Innovation Commitment
In the global market for industrial lubricants, North America is anticipated to hold the largest market share. The region's sophisticated industrial infrastructure, well-established manufacturing sector, and strong commitment to technological innovation collectively contribute to this outcome. The industrial sector of the United States is notably varied, encompassing automotive, aerospace, and machinery manufacturing, all of which generate significant demand for high-performance lubricants.
Additionally, the utilization of specialized lubrication solutions in North America is propelled by rigorous environmental sustainability and equipment efficiency regulations. The regional market's pre-eminence on a global scale can be attributed to the coexistence of major lubricant manufacturers and a robust emphasis on research and development.
Growth of Manufacturing Sector Elevates Prospects of South Asia, and Oceania
South Asia, and Oceania are anticipated to experience the most rapid expansion of the worldwide industrial lubricants market. The demand for industrial lubricants is being propelled by the rapid industrialization, urbanization, and economic development occurring in countries such as India, China, and Southeast Asian countries. The substantial growth of the manufacturing sectors in these areas can be attributed to increased investments, advantageous government policies, and a burgeoning consumer market.
As industries modernize their apparatus and equipment, there is an increasing demand for premium lubricants to ensure equipment durability and optimal performance. Furthermore, the increasing recognition of the significance of preventive maintenance and environmentally sustainable industrial practices serves to stimulate the need for sophisticated lubrication solutions.
The region of South Asia, and Oceania is strategically situated, which enhances its importance in the global supply chain. This, in turn, stimulates investment activity and increases the demand for industrial lubricants. In general, South Asia, and Oceania's industrial expansion and dynamic economic development position the region as a significant catalyst for growth within the market.
The global market for industrial lubricants is dominated by major corporations including Shell, ExxonMobil, and Chevron Corporation. These prominent entities in their respective industries utilize their substantial research and development capacities, worldwide reach, and varied assortment of products to sustain a competitive advantage. The countries that have implemented industrial lubricants to a significant extent are Japan, the US, China, and Germany. The US is a significant consumer due to its advanced manufacturing sector, whereas China's burgeoning industrial landscape substantially contributes to market expansion.
An example of this is the significant demand for industrial lubricants resulting from China's burgeoning automotive and machinery industries. Germany and Japan, both renowned for their accuracy in manufacturing processes, significantly contribute to the advancement of market utilization, particularly in the realm of technology-driven lubrication solutions.
Market leaders are exerting considerable influence over the industrial lubricants sector through their concerted efforts to foster collaborations, promote sustainability, and drive innovation. For example, ExxonMobil prioritizes research in the field of synthetic lubricants to address the changing demands of the industry. Royal Dutch Shell is a leader in the development of bio-based lubricants, which is in line with the worldwide trend toward environmentally sustainable solutions. The strategic investments and acquisitions of Chevron Corporation expand the company's product line and market presence.
While this is occurring, BP investigates digital solutions, including IoT for real-time monitoring and predictive maintenance. In addition to expanding their range of products, these industry participants are also prioritizing environmental issues, thereby propelling the market towards more sophisticated, eco-friendly, and effective lubrication solutions. Their impact is widespread on a global scale, influencing industry standards and advocating for a fundamental change in the way lubricants are formulated, employed, and regarded across diverse sectors.
Investment
ExxonMobil announced in April 2023 that it will invest approximately INR 900 crore (USD 110 million) in the Isambe Industrial Area in Raigad, which is owned by the Maharashtra Industrial Development Corporation, to construct a lubricant manufacturing facility. In the presence of Deputy Chief Minister Devendra Fadnavis, Industry Minister Uday Samant, and senior officials from Maharashtra, the organization issued the statement.
Market Impact: A strategic expansion is indicated by ExxonMobil's substantial investment of roughly INR 900 crore (USD 110 million) in a new lubricant manufacturing facility in Raigad, Maharashtra, which is intended to satisfy the rising demand in the Indian market. This advancement highlights the industry's acknowledgment of the region's importance and emphasizes the flexibility of the global market to accommodate changing needs in critical geographic regions.
(Source: ExxonMobil)
Alliance
In February 2023, Gulf Oil Lubricant and Schwing Stetter introduced an assortment of authentic lubricants in collaboration. Gulf Oil and the latter have formed a strategic alliance to supply the latter with construction equipment. High-tech and premium lubricants, including hydraulic oil, engine oil, axle oil, gear oil, and high-end synthetic gear oil, are supplied by this partnership for their concrete pump, batching plant, concrete mélange, and self-loading mixer.
Market Impact: The strategic alliance formed between Gulf Oil Lubricant and Schwing Stetter to produce an exclusive range of lubricants for construction equipment exemplifies the company's commitment to meeting the unique requirements of the industry. This advancement demonstrates the capability of lubricant manufacturers to establish focused alliances, which may have an impact on the formation of comparable partnerships in the international marketplace.
(Source: Construction Week)
Market Entry
Steelbird International, a manufacturer of automotive components, entered the automotive lubricant market in July 2021. With an emphasis on four-stroke two-wheelers, a new line of engine lubricants, grease, and fork oils has been introduced. Additionally, Steelbird engine oils are subdivided into several variants that are optimal for particular varieties of two-wheelers.
Market Impact: Steelbird International's foray into the automotive lubricant sector, with a specific focus on four-stroke two-wheelers and an extensive assortment of engine oils and lubricants, signifies a significant market diversification. This strategic move introduces a fresh participant to the competitive arena, which has the potential to impact consumer decision-making and stimulate advancements in the worldwide automotive lubricants sector.
(Source: BW Auto World)
By Product Type:
By Base-Oil:
By End-use Industry:
By Region:
The market is anticipated to grow at a CAGR of 4.7% during the projected period.
The industrial lubricants market was valued at US$22.7 billion in 2023.
The US held the largest market value share in 2023.
Some of the prominent players in the market are ExxonMobil Corp., Fuchs Lubricants, Shell Plc., Total S.A., BP Plc., Philips 66, Clariant AG, and Chevron Corp.
Synthetic oil is expected to grow at the fastest pace during the forecast period.
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Attribute |
Details |
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Forecast Period |
2023 to 2030 |
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Historical Data Available for |
2018 to 2022 |
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Market Analysis |
US$ Million for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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| Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
Which is the Spearheading Product Type Segment?
Hydraulic Fluids Surge amid Global Automation, and Precision Prioritization
It is anticipated that compressor oil will hold the most significant market share within the industrial lubricants sector. Compressor oil is in high demand because of its indispensable function in maintaining the optimal operation of compressors, which are extensively employed across diverse sectors including manufacturing, petrochemicals, and energy generation. The expansion of industrial activities on a global scale drives the demand for dependable compression systems, which in turn stimulates the compressor oil market.
Conversely, hydraulic fluids are projected to experience the most rapid growth among industrial lubricants. The expansion is driven by the growing utilization of hydraulic systems across diverse industries, such as construction, agriculture, and automotive. The increasing demand for specialized hydraulic fluids is facilitated by the adaptability and effectiveness of hydraulic systems, which in turn stimulates the speedy expansion of this industry sector.
As sectors prioritize automation and accuracy, it is anticipated that the demand for hydraulic fluids to sustain sophisticated hydraulic systems will increase significantly. This will propel the hydraulic fluids sector of the industrial lubricants market to rapid growth.
Which is the Dominant Base Oil Category?
Mineral Oil Dominates in Line with Affordability, and Widespread Application
In terms of market share, the mineral oil segment is anticipated to dominate the industrial lubricants base-oil category. Mineral oils, which are obtained from crude petroleum, are extensively utilized as base fluids in numerous industrial sectors owing to their economical nature and extensive range of applications. The favorable pricing and well-established market presence of mineral oils collectively contribute to their dominant position in the base oil sector.
In contrast, the synthetic oil sector is projected to experience the most rapid expansion among the base oil markets for industrial lubricants. Synthetic lubricants, which are produced via sophisticated chemical processes, possess exceptional performance attributes including improved resistance to oxidation, thermal stability, and viscosity regulation.
With industries placing greater emphasis on high-performance lubrication solutions to address challenging operational conditions, it is anticipated that the demand for synthetic oils will increase significantly. This will propel the segment's accelerated growth. The continuous progress in synthetic oil technology, which encompasses the creation of specialized formulations tailored for harsh environments, additionally supports the anticipated surge in growth of the synthetic oil sector within the base oil industry for industrial lubricants.
Which End-use Industry Contributes the Maximum Share of Revenue?
Oil and Gas Industry Leads, Power Generation Sector to Pick Pace
The oil and gas sector is anticipated to hold the most substantial market share within the end-use industry domain concerning industrial lubricants. Specialized lubrication is required for the complex apparatus and equipment utilized in the upstream exploration, drilling, refining, and downstream distribution processes of the oil and gas industry to ensure optimal performance and durability. The substantial portion of the industrial lubricants market that the oil and gas industry possesses can be attributed to its expansive infrastructure and operational scope.
On the contrary, it is anticipated that the power generation sector will experience the most rapid expansion among the end-use industry sectors. A robust demand exists for high-performance lubricants as power generation facilities expand and upgrade their equipment in response to the rising global energy demand.
The growing emphasis on renewable energy sources, in conjunction with the modernization of traditional power facilities, generates a demand for specialized lubrication solutions that improve the dependability of equipment and operational efficiency. As a result, the power generation sector is expected to witness substantial expansion within the industrial lubricants market, driven by the dynamic nature of the energy sector.
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