Lubricants Market Research - 2031
The global lubricants market size was valued at $123.8 billion in 2021, and is projected to reach $168.2 billion by 2031, growing at a CAGR of 3.2% from 2022 to 2031. The growing demand in the automotive and aerospace industries is driving the lubricants market's expansion. Both sectors require high-performance lubricants to enhance engine efficiency, reduce friction, and extend component lifespan. As vehicle production increases and aerospace innovations advance, the need for specialized lubricants to meet stringent performance standards and maintenance requirements rises, thereby fueling the market growth.
A lubricant is a substance that aids in decreasing friction between surfaces in close proximity, which, in turn, lowers the heat produced as the surfaces move. It may also have the function of transmitting forces, transporting foreign particles, or heating or cooling the surfaces. The property of reducing friction is known as lubricity. Lubricants reduce friction, prevent wear, protect the equipment from corrosion, control temperature, control contamination, transmit power (hydraulics), and provide a fluid seal. Light-duty vehicles include two-wheelers and passenger cars. The most common lubricants in these automobiles are engine oils, gear oils, transmission oils, greases, and compressor oils. Both the OEM and the aftermarket have a substantial share of the lubricant market.
The growing demand in the automotive industry is a key driver for the expansion of the lubricants market. As global automotive production increases, the need for efficient lubrication in engines, transmissions, and other vehicle components rises. Lubricants play a critical role in reducing friction, enhancing performance, and extending the lifespan of automotive parts. As reported by the India Brand Equity Foundation, the Indian passenger car market was valued at $32.70 billion in 2021, with projections to reach $54.84 billion by 2027. In FY24, the total production of passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and quadricycles was 2,84,34,742 units. Thus, as vehicle ownership expands in developing regions, the demand for high-performance and synthetic lubricants grows to improve fuel efficiency and reduce emissions. This surge in the automotive sector directly influences the lubricants market steady growth trajectory.
Volatility in crude oil prices significantly hampers the growth of the lubricants market, as crude oil is a primary raw material in lubricant production. Fluctuating prices lead to unpredictable production costs, making it difficult for manufacturers to maintain consistent pricing and profitability. This instability forces companies to either absorb the increased costs that impact on the profit margins, or pass the price hikes onto consumers, thereby reducing demand. In addition, sharp price changes can disrupt supply chains and limit access to raw materials. As a result, the lubricants market faces challenges in sustaining growth during periods of crude oil price volatility.
The rising adoption of industrial automation and increased use of advanced machinery present significant opportunities for the lubricants market. As industries such as manufacturing, automotive, and aerospace integrate more automated systems, the demand for high-performance lubricants to ensure smooth operation and reduce equipment wear increases. Lubricants play a crucial role in maintaining machinery efficiency, minimizing downtime, and enhancing equipment lifespan. With the ongoing shift toward automated processes, especially in emerging markets, the need for specialized lubricants tailored to specific industrial applications is increasing, thus driving growth and innovation in the lubricants market.
The is segmented on the basis of product type, base oil, end-use industry, and region. On the basis of product type, the market is classified into engine oil, transmission & hydraulic fluid, metalworking fluid, general industrial oil, gear oil, grease, process oil, and others. On the basis of base oil, the market is classified into mineral oil, synthetic oil, and bio-based oil. On the basis of end-use industry, the market is classified into automotive & other transportation, heavy equipment, food & beverage, metallurgy & metalworking, and others.
The major players operating in the global lubricants market report include British Petroleum, Chevron Corp, ExxonMobil Corp, Marathon Petroleum Corporation, Neste OYJ, Philips 66 Company, Saudi Aramco, Shell Co, Sinopec Corp, and S-Oil Corporation. These players have adopted product launch, acquisition, and business expansion as their key strategies to increase the lubricants market share.
By Base Oil
Mineral Oil is projected as the most lucrative segment.
By base oil, the mineral segment dominated the global lubricant market in 2021. This is attributable to the fact that mineral oil is used in a variety of industries, including automotive, textile, construction, industrial, medical, pharmaceutical, electronics, and consumer goods, as a result of which its demand is constantly increasing.
By Product Type
Engine Oil is projected as the most lucrative segment.
By product type, the engine oil segment dominated the global lubricant market in 2021. The engine oil lubricates the engine parts for its efficient movement, thereby reducing the extent of metal contact, friction, and heat generation within the engine. In addition, cleaning & cooling the engine parts, sealing the gaps, and rust prevention are the other functions carried out by the engine oil.
By End Use Industry
Automotive and Other Transportation is projected as the most lucrative segment.
By end-use industry, the automotive & other transportation segment dominated the global lubricants market in 2021. Passenger cars offer maximum market potential in the automotive lubricants industry, owing to increase in demand for these cars and general utility vehicles globally along with rise in public transportation expenditure.
By Region
Asia Pacific holds a dominant position in 2021 and would continue to maintain the lead over the forecast period.
By region, Asia-Pacific is projected to be the fastest growing market. Asia-Pacific is expected to dominate the market, owing to increase in urbanization, specifically in China, India, Brazil, and other developing countries.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the lubricants market analysis from 2021 to 2031 to identify the prevailing lubricants market opportunities.
- The lubricants market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the lubricants market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global lubricants market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global lubricants market trends, key players, market segments, application areas, and lubricants market growth strategies.
Lubricants Market Report Highlights
| Aspects | Details |
 By Base Oil |
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 By Product Type |
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 By End Use Industry |
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 By Region |
|
 Key Market Players | BRITISH PETROLEUM, S-OIL CORPORATION, EXXON MOBIL CORPORATION, SAUDI ARAMCO, MARATHON PETROLEUM CORPORATION, NESTE OYJ, CHEVRON CORPORATION, SHELL PLC., PT PERTAMINA, PHILLIPS 66 COMPANY |
Analyst Review
The lubricant market is driven by high demand for lubricants in the automotive sector. In addition, increased demand for high-performance engines is expected to boost the market growth of lubricants during the forecast period. Additional factors that are anticipated to propel the global lubricant market during the forecast period include rise in process automation in most industries and gradual increase in the number of vehicles on the road. Moreover, Europe exhibits high growth potential due to rapidly growing chemical manufacturing facilities in the region. The presence of numerous multinational chemical manufacturers from the countries such as Russia, the UK, France, and Germany is largely responsible for the rapid growth.
The growth drivers, restraints, and opportunities are explained in the report to better understand the market dynamics. This report further highlights the key areas of investment. In addition, it includes Porter’s five forces analysis to understand the competitive scenario of the industry and role of each stakeholder. The report features the strategies adopted by key market players to maintain their foothold in the market. Furthermore, it highlights the competitive landscape of the key players to increase their market share and sustain intense competition in the industry.
The global lubricant market was valued at $123.8 billion in 2021, and is projected to reach $168.2 million by 2031, registering a CAGR 3.6% from 2022 to 2031.
Increasing demand for vehicles and their spare parts is anticipated to fuel the demand for automotive oils and greases during the forecast period.
The leading players in the market are British Petroleum, Chevron Corp, ExxonMobil Corp, Marathon Petroleum Corporation, Neste OYJ, Philips 66 Company, Saudi Aramco, Shell Co, Sinopec Corp, and S-Oil Corporation.
High demand for lubricants across various end-use industries and high demand for lubricants in automotive industry. These are the key factors driving the global lubricants market.
During the COVID-19 pandemic, extensive lockdown in crucial manufacturing sectors such as metalworking, fabrication, oil & gas, chemicals, and consumer goods caused a temporary production halt in all regions. As a result, the industrial sector witnessed a drop in demand for lubricating oils. However, the industrial sector was able to partially resume operations as the lockdown was gradually lifted.
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