Lubricants Market Size and Share Analysis by Base Oil (Mineral Oil, Synthetic Oil, Bio-Based Oil), Product Type (Engine Oil, Transmission and Hydraulic Fluid Oil, Gear Oil, General Industrial Oil, Grease, Metalworking Oil, Process Oil), End User (Automotive and Other Transportation, Heavy Equipment, Food and Beverages, Metallurgy and Metalworking, Chemical) – Global Industry Demand Forecast to 2030

Market Overview

The global lubricants market is estimated to generate USD 139,175 million in 2022 and is expected to grow at a CAGR of 3.20% during the forecast period. This is ascribed to the growing automotive and other manufacturing industries in emerging economies, such as China, India, Brazil, and Mexico; the increasing process automation in several end-use industries; and the rising number of vehicles on-road. Furthermore, the surging awareness among consumers regarding the usage of lubricants in vehicles and machinery and the mounting e-commerce industry drive the market demand.

Mineral Oil Contributes the Majority of Revenue

Mineral oil accounted for the largest revenue share, of around 68%, in 2022, and it is further expected to maintain its position during the forecast period. This is ascribed to the low raw material cost, less intricate manufacturing process, the presence of a larger number of mineral oil producers, and its high usage in several industries such as construction, automotive, industrial, and textile.

However, the synthetic oil category will witness substantial growth in the coming years. This growth can be attributed to the rising consumer preference for this oil due to its enhanced efficiency than mineral oils and the increasing spending power of consumers due to the surging per capita income.

Increasing Demand from Growing Automotive Industry Drives the Market

The automotive industry is one of the major application areas of lubricants. Automotive lubricants are generally used in crankcases of vehicle engines, which ensure their efficient operations. These are used in vehicles to reduce friction, which leads to their longer lifespan and reduces wear and tear. The surging use of lubricants in the automotive industry is mainly due to the increasing demand for heavy-duty and light passenger vehicles, owing to the rising disposable income and the surging consumer awareness pertaining to the use of lubricants in vehicles. Thus, the rise in vehicle sales and production increases growth opportunities for lubricant manufacturers.

Engine Oil Is the Prime Revenue Generator

Engine oil accounted for the largest revenue share, of around 32%, in 2022, and it is also expected to maintain its market dominance during the predicted period. This is due to the surging demand for vehicles and the mounting transportation industry across the globe; and the growing consumer awareness regarding the advantages of using lubricants in their vehicles, especially of their role in enhancing the mileage and increasing the life of automobiles.

Adoption of Bio-Based Oil and Grease Among Consumers Is a Key Industry Trend

To enhance fuel efficiency in vehicles and reduce harmful environmental effects, traditional lubricating materials are getting replaced by advanced lubricants, such as bio-based lubricants. The bio-based oil and grease are based on renewable and biodegradable materials, such as fatty acids, which are reacted with synthetic alcohols for producing esters. Moreover, government initiatives boost the adoption of such lubricants. For instance, the Farm Security and Rural Investment Act (FSRIA), created by the United States Department of Agriculture, helps in the increased use and procurement of bio-based products by creating a labeling program to enable the marketing of bio-based products and a procurement preference program for federal agencies and their contractors.

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Automotive and Other Transportation Industry Dominates the Market

The automotive and other transportation category held the largest revenue share, of around 58%, in 2022, and it is expected to maintain its position in the coming years as well. This is ascribed to the surging vehicle sales on account of the rising per capita income of people and the growing population across the globe; and the high demand for lubricants in railways, marine, and airspace sectors.

Majority of Revenue Comes from APAC

The APAC market accounted for the largest revenue share, of around 40%, in 2022, and it is further expected to maintain its dominance during the forecast period, advancing at a significant CAGR. This is ascribed to the rising number of industry players, the surging need for vehicles coupled with the growing population, the increasing industrial investments, the improving infrastructure along with rapid industrialization, and the surging number of ports.

Additionally, the region is becoming the manufacturing hub for the world, and companies are shifting their manufacturing facilities in the region due to low labor and raw material costs. As the demand for cars and their replacement parts grows, the need for lubricants such as automotive oils and component greases is increasing rapidly in APAC. Moreover, huge economic expansion in low-income and emerging economies further supports the regional industry growth.

The European market will witness significant growth during the predicted period. This can be due to the stringent government regulations, the rising consumer awareness to control CO2 emission levels, the increasing usage of synthetic and bio-based lubricants, and the growing end-use industries in the region.

Furthermore, the MEA market is expected to record a substantial growth rate during 2022–2030. This can be because of the existence of numerous oil wells in the region and a rise in the usage of lubricants in several industries due the to low-cost availability of crude oil and its by-products. In recent years, the region has observed a significant rise in the number of manufacturing plants, which have been major end users of such products. The flourishing of the manufacturing sector can be owed to the increasing focus of MEA countries on reducing their dependence on the oil sector and diversifying their economy.

Growing Consumer Awareness of Lubricants

One of the major factors driving the industry growth is the surging awareness among consumers about the advantages of using lubrication oil and grease in machinery, equipment, and tools. As saving conventional resources and cutting emissions and energy have become central environmental matters, lubricants are progressively attracting more consumer responsiveness. Companies are also adopting customer-oriented methods, so as to focus on creating brand awareness among consumers through visual and print media. Some examples of the method are trade shows and promotional campaigns, where companies offer free samples or gifts to the consumers, thus leading to an increase the interest and awareness among the consumers about lubricants.

Key Players in the Lubricants Market Are:

• PetroChina Company Limited
• Chevron Corporation
• Illinois Tool Works Inc.
• BP p.l.c.
• Shell plc
• China Petrochemical Corporation
• Castrol Limited
• Hindustan Petroleum Corporation Limited

Lubricants Market Size Breakdown by Segment

This fully customizable report gives a detailed analysis of the lubricants market from 2017 to 2030, based on all the relevant segments and geographies.

Based on Base Oil

• Mineral Oil
• Synthetic Oil
• Bio-Based Oil

Based on Product Type

• Engine Oil
• Transmission and Hydraulic Fluid Oil
• Gear Oil
• General Industrial Oil
• Grease
• Metalworking Oil
• Process Oil

Based on End User

• Automotive and Other Transportation
• Heavy Equipment
• Food and Beverages
• Metallurgy and Metalworking
• Chemical

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa