Increased demand for lubricants across several end-use industries and growth of the automotive industry has boosted the growth of the global lubricants market.
It is forecast to hit $168.2billion by 2031 at 3.2 per cent compound aggregate growth rate (CAGR), according to an Allied Market Research report released at the weekend.
On the other hand, a rise in auto sales across developing countries such as India and China and other countries would open new opportunities in the future.
During the COVID-19 pandemic, the halt in manufacturing sectors such as fabrication, oil and gas, metalworking sectors hampered the production. This drop in industrial processes impacted the market negatively.
However, as the countries have focused their efforts on vaccination drives, the demand for lubricants is expected to increase in the future.
The synthetic segment to manifest the highest CAGR through 2031.
By base oil, the synthetic segment is estimated to portray the highest CAGR of 3.66 per cent during the forecast period, due to superior characteristics of synthetic lubricants over mineral lubricants as well as their increased hardware compatibility with vehicle components.
But, the mineral segment held the largest share last year, accounting for nearly two-thirds of the global lubricants market, as mineral oil is used in a variety of industries, including automotive, textile, construction, industrial, medical, pharmaceutical, electronics, and consumer goods. The segment is expected to continue its dominance in terms of revenue in the future.
By product type, the engine oil segment held the largest share in 2021, contributing to more than one-fourth of the global lubricants market, as engine oil lubricates the engine parts for its efficient movement, thereby reducing the extent of metal contact, friction, and heat generation within the engine. The segment is projected to continue to maintain its leading position during the forecast period.
However, the general industrial oil segment is projected to manifest the highest CAGR of 4.05per cent during the forecast period, as these oils are employed in various energy generation sectors, such as coal, nuclear, solar, and wind, as they help in enhancing equipment reliability and uptime.
By end use industry, the power generation segment is projected to manifest the highest CAGR of 4.32per cent during the forecast period, due to increase in demand for energy, construction of new power plants to boost the capacity and efficiency of existing power generation plants. However, the automotive and other transportation segment dominated the global lubricants market in 2021, accounting for nearly three-fifths of the market, and is expected to continue to dominate throughout the forecast period. This is owing to increase in demand for these cars and general utility vehicles globally along with rise in public transportation expenditure.
By region, the global lubricants market across Asia-Pacific held the largest share in 2021, accounting for more than two-fifths of the market, and is projected to maintain its leadership position during the forecast period. In addition, the region is expected to register the highest CAGR of 3.41 per cent during the forecast period, owing to increase in urbanization, specifically in China, India, Brazil, and other developing countries. The market is analyzed across several other regions including North America, Latin America, Middle East and Africa (LAMEA), and Europe.
According to the report, the major market players include British Petroleum, Chevron Corp, ExxonMobil Corp, Marathon Petroleum Corporation, Neste OYJ and Philips 66 Company.
Others are Saudi Aramco, Shell Co and Sinopec Corp.
The report analyzed these key players of the global lubricants market. These players have adopted various strategies such as expansion, new product launches, partnerships, and others to increase their market penetration and strengthen their position in the industry. The report is helpful in determining the business performance, operating segments, product portfolio, and developments by every market player.