Industrial Lubricants Market Overview
Estimated to value $48,860.7 million in 2016, the industrial lubricants market is expected to grow at a CAGR of 4.3% during the forecast period (2016–2024). The increasing demand for industrial lubricants from the textile, chemical manufacturing, and metal working industries is helping the market grow.
When segmented by product, general oil, process oil, engine oil, metalworking fluid, and others (lubricating grease, demolding oil, compressor oil, chainsaw oil, industrial gear oil, and turbine oil) are the categories of the industrial lubricants market. Among these, process oil led the market in 2016, with over 30.0% sales volume share. A special category of oils, process oils are utilized for a range of applications in the chemical as well as numerous technical industries. These oils can be used as a raw material or processing aid in various end-use industries, including chemicals, rubber, and plastic. The growing demand for chemicals, primarily in Asia-Pacific (APAC), is thus expected to result in increased sales of process oils.
GLOBAL INDUSTRIAL LUBRICANTS MARKET, BY PRODUCT, KILOTONS (2016-2024)
On the basis of application, the industrial lubricants market is divided into textile, metalworking, chemical manufacturing, energy, hydraulic machinery, food processing, and others (jewelry and mining). Among all, chemical manufacturing accounted for the largest sales volume, with more than 20.0% share in 2016, and will continue dominating the market during the forecast period. Chemical oils are used to maximize the life and performance of machines, which withstand severe stress. For example, machines pressed into the production of nitrogen fertilizers must withstand extreme pressure and temperature and, at the same time, be compatible with ammonia and the catalyst.
Geographically, APAC is expected to lead the industrial lubricants market during the forecast period. The market is expected to grow significantly in the region, owing to rapid industrialization in developing countries, such as China and India, and those in the Southeast. Further, modernization of industrial machinery is expected to play an important role in the growth of the market in APAC. The resumption in industrial and manufacturing activities in developed economies is further predicted to help raise the demand for these lubricants during the forecast period.
Industrial Lubricants Market Dynamics
Over the years, industrial production in developing nations, such as India, China, Russia, Indonesia, and Brazil, has increased substantially. The rise in industrial output has particularly been witnessed in primary manufacturing sectors, such as metal forming, consumer appliances, and plastics, apart from the mining industry. This has resulted in an increased use of lubricants, including metalworking fluids, process oils, engine oils, and industrial oils. Growing industrial output in these countries is, thus, expected to continue driving the demand for industrial lubricants during the forecast period.
Lubricants find wide application in various sectors, including metal forming, paper and mill, mining, energy, quarrying, food and beverages, plastic, and machining. The progress of the manufacturing industry has a direct impact on the demand for lubricants. The industrial output across the world slumped in 2008 and 2009 due to the European debt crisis and North American economic recession. However, the manufacturing sector in developing countries, such as India, Brazil, Russia China, and South Africa, remained largely unaffected. The industrial production in these countries grew at a high pace, resulting in the progress of the global industrial lubricants market.
In the past few years, the food and beverages industry has grown considerably. This can be attributed to the emergence of commodity branding, advent of multinationals, and low cost of technology, all of which are changing the market dynamics of the food and beverages industry. Since lubricants find extensive application in food processing, growth in the food and beverages industry is expected to result in increased demand for industrial lubricants for food processing, further driving the growth of the industrial lubricants market.
In the food processing industry, machines, such as blenders, sifters, mixers, dividers, slides, conveyors, slicers, knives, bottle washers, wrappers, labelers, and packaging machinery facilitate the processing of food items, and industrial lubricants are used in all such machines. One of the most important factors resulting in the growth of the processed food sector is the increasing population. Further, the demand for processed food, majorly in Latin American (LATAM) and APAC countries, is being boosted by changing lifestyle of the people. Thus, the prosperity in the food processing sector is further expected to result in the growth of the industrial lubricants market during the forecast period.
Additionally, due to the increased focus on renewable energy, the growth in the wind turbine industry is expected to have a positive impact on the industrial lubricants market. Industrial lubricants widely used by wind turbine manufacturers, as the production requires oils possessing low viscosity. The growing use of lubricants in the mining sector is also predicted to help the market for these lubricants to prosper during the forecast period.
The concerns and regulations regarding contamination in synthetic lubricants and the pollution caused by these are increasing, which, in turn, is hampering the growth of the industrial lubricants market. The environmental pollution caused by mineral oils is one of the major concerns across the world. Moreover, as the global crude oil reserves dwindle, more efforts are being put into finding replacements. As vegetable oils are a renewable and biodegradable source of lubricants, these appear to be a potential replacement for mineral oils. The proper disposal of used lubricants is another cause for concern, since most of the substances added to lubricants are derived from petrochemicals, thus posing a threat of water pollution.
Industrial Lubricants Market Competitive Landscape
Amsoil Inc., Phillips 66, Klüber Lubrication München SE & Co. KG, Calumet Specialty Products Partners L.P., Houghton International Inc., Quaker Chemical Corporation, PETRONAS Lubricants International, Blaser Swisslube AG, Exxon Mobil Corporation, BP PLC, Chevron Corporation, FUCHS PETROLUB SE, The Lubrizol Corporation, Total S.A., Idemitsu Kosan Co. Ltd., Royal Dutch Shell PLC, and Clariant AG are some of the major players operating in the global industrial lubricants market.