Industrial Lubricants Market Overview
The global industrial lubricants market is estimated to account for $33.3 billion in 2015 and is projected to witness a CAGR of 4.3% between 2016 to 2024. Growing demand for industrial lubricants in chemical manufacturing, textile and metal working industries is driving the growth of industrial lubricants market.
On the basis of product, industrial lubricants market has been segmented into process oils, general oils, metalworking fluids, engine oils and others. Process oils is estimated to hold largest share in the industrial lubricants market in 2017. Process oils is a special category of oils which find wide application scope in a range of chemical as well as technical industries. These oils are used either as a raw material or as a processing aid in diverse end-use industries such as rubber, chemicals, and plastic. Increasing demand for chemicals, primarily in Asia-Pacific, is expected to drive their production.
On the basis of application, global industrial lubricants market has been segmented into metalworking, textile, energy, chemical manufacturing, food processing, hydraulic and others. Chemical manufacturing is estimated to hold the largest share in the market during the forecast period. Chemical oils are formulated to optimize the performance and operating life of the equipment, which is subjected to severe stress when producing nitrogen fertilizers, particularly in terms of pressure, temperature and compatibility with ammonia and the catalyst.
Globally, Asia-Pacific is expected to dominate the industrial lubricants market during the forecast period. Industrial lubrication industry is expected to witness significant growth owing to factors such as rapid industrialization particularly in the developing countries such as China, India and Southeast Asian countries coupled with the modernization of industrial machinery. The resurgence in manufacturing and industrial activities in the developed economies is also expected to play a key role in determining the growth of these lubricants over the analysis period.
Industrial Lubricants Market Dynamics
There has been a sharp growth in the food and beverage industry over the past few years. Growth in this segment can be attributed to the rise of commodity branding, entry of multinationals, and low technology cost, which is changing the market dynamics of the food industry. Lubricants are used extensively in food processing. Therefore, growth in the food & beverage industry is anticipated to drive growth of industrial lubricants market in food processing applications over the forecast period.
Over the recent past, there has been an increase in industrial production in emerging economies including China, India, Indonesia, Russia, and Brazil. Industrial output rose particularly in core manufacturing industries, such as foundry, metal forming, plastics, and consumer appliances along with the mining industry. This trend has led to increasing use of lubricants such as process oils, metalworking fluids, industrial oils, and engine oils. Stable industrial output in these markets is expected to continue to drive industrial lubricants demand over the forecast period. India is a potential as well as huge market for process oils, with over half of the overall industrial lubricants market growth.
Lubricants are widely used across various manufacturing sectors such as paper & mill, metal forming, foundry, mining, quarrying, energy, plastics, food & beverages, and machining. The growth of manufacturing sector has a direct impact on lubricants demand. The global industrial output has witnessed a slump in growth in 2008 and 2009 owing to economic recession in North America and debt crisis in Europe. However, the manufacturing sector of emerging nations such as Brazil, India, China, Russia and South Africa largely remained unaffected. These markets registered high industrial production growth over the period, leading to increased demand of industrial lubricants.
Liquid flavors are largely used in processed and frozen foods to impart and restore flavor and aroma that is lost during extensive processing activities. Rising population is an important macro factor driving the global processed foods industry. Changing consumer lifestyles and adoption of westernized living standards has boosted the demand for processed and frozen foods mainly in Asia-Pacific (APAC) and Latin American countries. Growth in food processing sector is expected to boost industrial lubricants market during the forecast period.
Furthermore, growth in the wind turbine industry owing to the shift in focus toward utilizing renewable energy is expected to positively impact industrial lubricants market growth. Wind turbine applications require use of low viscosity oils, making these lubricants a product of choice for the producers. Expanding use of these lubricants in other end-use industries, such as mining, is also expected to support growth of industrial lubricants market over the forecast period.
There are increasing concerns and growing regulations over contamination and environmental pollution where synthetic lubricants are used, which in turn hinders the growth of industrial lubricants market. One of the major concerns is environmental pollution caused by mineral oils. As the world oil reserves are dwindling, the efforts for finding alternative replacements are increasing. Vegetable oils are a biodegradable and renewable source of lubricants. Thus, they seem to be an attractive replacement for mineral oils. Another issue faced is the disposal of used lubricants. Since most of the additives used in lubricants are petrochemical derivatives, they pose a serious threat of water pollution.
Industrial Lubricants Market Competitive Landscape
Some of the major players operating in the global industrial lubricants industry are ExxonMobil Corp., Fuchs Group, The Lubrizol Corporation, Royal Dutch Shell, Phillips 66, Lucas Oil Products, Inc., Amsoil, Inc., Bel-Ray Co., Inc., Total S.A., Kluber Lubrication, Valvoline International, Inc., Chevron Corp., Clariant, Quaker Chemical Corp., Zeller+Gmelin GmbH & Co. KG, Houghton International, Inc., Castrol, Blaser Swisslube, Inc., Calumet Specialty Products Partners, L.P., Petronas Lubricant International, Idemitsu Kosan Co., Ltd. and Yushiro Chemical Industry Co., Ltd.