The global lubricants market is projected to generate USD 179,060 million revenue by 2030, advancing at a CAGR of 3.2% during 2022–2030. This can be ascribed to the rising urbanization and industrialization, the increasing demand from end-use industries such as automotive, and the surging need for vehicles and heavy equipment. Moreover, the demand for lubricants is rising, in order to increase the lifespan of vehicles and equipment, which will boost the industry expansion in the coming years.
Based on product type, the market is classified into engine oil, transmission and hydraulic fluid oil, gear oil, general industrial oil, grease, metalworking oil, process oil, and others. Among these, the engine oil category held the largest revenue share, of around 32%, in 2022, and it is further expected to maintain its dominance during the forecast period. This is because of its high sales, due to the rising demand for vehicles and the surging consumer awareness about the benefits of using such oils in vehicles.
The automotive and other transportation industry, based on end user, accounted for the largest demand for lubricants in 2022. This is due to rapid globalization, the growing aviation and marine industry, and the mounting manufacturing of aircraft and ships to cater to customers’ requirements, which result in the demand for lubricants to maintain the proper functioning of aircraft and ships.
Based on base oil, the market is categorized into mineral, synthetic, and bio-based oil. Among these, the bio-based oil category will witness significant growth during the predicted period. This can be ascribed to the increasing need for enhancing fuel efficiency in vehicles, the rising requirement for environment-friendly lubricants, the shifting focus of industry players to manufacture such oils, and the growing stringent rules proposed by several governments to control environmental pollution.
Geographically, APAC held the largest revenue share of the lubricants market in 2022. The region is a manufacturing hub for the world, and companies are shifting their manufacturing facilities in the region, due to low labor and raw material costs. Also, the presence of a large number of industries, where lubricants are used to run machinery and equipment smoothly, leads to the largest demand for lubricants. Further, the region is witnessing vast demographic changes and increasing people’s per capita income, which results in the rising sales of new vehicles. To maintain the efficiency of vehicles, consumers are using lubricants in the form of engine oil, brake oil, and transmission fluid, amongst others. Thus, these factors boost the market demand in the region.
The North American market held a noteworthy revenue share in 2022, and it is expected to witness significant growth in the coming years. This is due to the rising government stringent regulations to control CO2 emission, a high number of on-road vehicles, and increasing awareness regarding lubricant usage among consumers, in the region.
Some of the major 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, and Hindustan Petroleum Corporation Limited.