Global Lubricants Market Report and Forecast 2024-2032

Global Lubricants Market Outlook

The global lubricants market size reached approximately USD 138.60 billion in 2023. The market is projected to grow at a CAGR of 3.5% between 2024 and 2032, reaching a value of around USD 188.88 billion by 2032.

Key Takeaways

• There is a growing emphasis on sustainability and environmental protection which has led to increased demand for bio-based lubricants.

• The market is witnessing rapid technological advancements, leading to the development of high-performance and synthetic lubricants.

• Developing regions, such as Asia-Pacific, are experiencing rapid industrialisation and urbanisation, leading to increased demand for lubricants.

Lubricants refer to substances that help to reduce friction and wear between two surfaces in contact, while also reducing the heat generated when the surfaces move. They are usually utilised as antiwear, antioxidants, demulsifying and emulsifying agents, and rust and corrosion inhibitors, among others.

The growing sales of vehicles have propelled the demand for engine oils which is expected to fuel the overall lubricants market growth. Industrial sectors are focused on reducing energy consumption due to the rising cost of energy and lubricants can help reduce friction, which in turn helps in reducing energy consumption, while also increasing energy efficiency and reducing pollution. The rising demand for high-performance lubricants is also driving market growth as they help in reducing gear wear and friction while saving a lot of energy. Moreover, construction and infrastructure projects increase the demand for lubricants in machinery and equipment and contribute to the overall lubricants market development.

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Key Trends and Developments

Rising demand for bio-based lubricants; adoption of synthetic lubricants; and increasing focus on fuel efficiency are the major trends impacting the lubricants market expansion

January, 2024

Brakes India is expanding its lubricants portfolio by adding gear and transmission oil products under the Revia brand.

January, 2024

TotalEnergies Lubrifiants and Point S entered into a global service agreement, under which TotalEnergies Lubrifiants will provide its acclaimed products, such as Quartz engine oils, to Point S's extensive international network.

October, 2023

A subsidiary of Chevron, in collaboration with the state-operated Hindustan Petroleum Corporation Limited (HPCL), launched the American energy giant's lubricant brand Caltex to the Indian market.

September, 2023

SK Enmove announced that it is set to expand the scope of its lubricant brand ZIC, aiming to go beyond its traditional internal combustion engine (ICE) oil business.

Rising demand for bio-based lubricants

Bio-based lubricants are much more environment-friendly as they are more biodegradable than fossil fuel-based lubricants while being less consequential to the environment.

Adoption of synthetic lubricants

Synthetic lubricants are increasingly utilised for industrial and automotive applications as they have much better performance than mineral oil-based lubricants.

Increasing focus on fuel efficiency

There is a growing demand for lubricants that can enhance fuel efficiency in vehicles and machinery.

Technological advancements

Innovations in lubricant formulations and additives are improving efficiency while also extending the life of machinery.

Global Lubricants Market Trends

The rising demand for bio-based lubricants is driven by environmental concerns and stricter regulations. They are derived from renewable resources, such as vegetable oils, and are biodegradable, making them an eco-friendly alternative to conventional mineral oil-based lubricants. They offer comparable or even superior performance in terms of lubricity, thermal stability, and viscosity. The shift towards sustainability and the push for greener industrial practices are key factors fueling the demand for bio-based lubricants in various applications such as automotive.

Market players are expanding their portfolios through the incorporation of innovative products. Brakes India announced in January 2024 that it is set to expand its lubricants portfolio by adding gear and transmission oil products under the Revia brand. The addition of gear and transmission oil products is a significant step for Brakes India, as it allows the company to cater to a wider range of customer needs and strengthens its position in the lubricants market.

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Market Segmentation

“Lubricants Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Base Oil

• Mineral Oil

• Synthetic

• Bio-based

Market Breakup by End Use

• Automotive

• Marine

• Aerospace

• Industrial

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Mineral oils account for major lubricants market share due to their cost-effectiveness and broad range of applications

Mineral oils hold a major share of the market owing to their low price compared to synthetic oils. They are manufactured in vast numbers based on industrial sectors' requirements. However, the use of mineral oil-based lubricants can cause adverse environmental effects. They are preferred for their ease of production and ability to provide adequate lubrication under various conditions. Moreover, they are used extensively across various industrial sectors, including automotive, industrial, and marine, due to their reliable performance in lubrication and protection against wear and corrosion.

Synthetic base oil is expected to go through rapid development during the forecast period. This is due to their enhanced viscosity which increases the efficiency of the machine and chemical stability, which helps in reducing environmental consequences.

The automotive segment maintains its dominance in the market due to the rise in production of vehicles and increasing purchasing power

The automotive segment holds the largest share in the lubricants market, attributed to the increasing sales of consumer vehicles across the world and the growing spendable income of people around the world.  The growth in vehicle production, the increasing number of vehicles on the road, and the rising demand for high-performance lubricants to improve fuel efficiency and reduce emissions also contribute to the dominant share of the automotive sector in the market.

The industrial sector is expected to witness robust growth in the lubricants market as the demand for lubricants increases in various applications. This sector includes a wide range of applications such as manufacturing, power generation, construction, mining, and metalworking. Industrial lubricants are used to reduce friction, protect machinery, and ensure smooth operation of equipment. The demand for industrial lubricants is driven by industrial growth, maintenance requirements, and the need for energy-efficient and high-performance lubricants.

Competitive Landscape

The market players are continuously investing in research and development to create advanced lubricant formulations to gain a competitive edge in the lubricants market

Shell Plc is one of the largest multinational oil and gas companies in the world, founded in April 1907 and headquartered in London, United Kingdom.

Chevron Corporation is an American multinational company engaged in the energy and oil and gas sector, founded in September 1879, and involved in the exploration of oil and natural gas.

Idemitsu Kosan Co., Ltd is a petrochemical company engaged in producing, refining, and selling petrochemical products and is leading the market with high-quality lubricants and synthetic engine oils.

BP p.l.c, is a global energy company with a broad range of operations that include the exploration, production, refining, and marketing of oil and natural gas.

Other prominent players in the lubricants market include PetroChina Company Limited, FUCHS PETROLUB SE, and Valvoline Inc., among others. These players are actively engaging in various strategies to enhance their market position, address evolving consumer demands, and capitalize on emerging opportunities.

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Lubricants Market Analysis by Region

The Asia Pacific region is the largest market region due to rising economic growth in countries such as India, South Korea, and Indonesia, as well as China being one of the largest automobile markets in the world. The ongoing urbanisation and infrastructure development projects in the region, such as roads, bridges, and buildings, require the use of construction equipment and machinery, which, in turn, drives the demand for lubricants. The region is also adopting advanced technologies that require high-performance lubricants. For example, the increasing use of electric vehicles (EVs) and hybrid vehicles is leading to a demand for specialised lubricants suitable for these new technologies.

The lubricants market in North America is expected to grow at a sizeable rate in the coming years. In recent years, there has been a growing emphasis on environmental sustainability and reducing emissions in North America. This has led to stricter regulations on the automotive and industrial sectors, prompting a shift towards more environmentally friendly and biodegradable lubricants. The oil and gas sector, particularly in regions such as Texas and Alberta, has a significant demand for lubricants used in drilling, extraction, and processing operations.

Key Highlights of the Report