Grease Market Expected to Reach $5.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Grease Market," The grease market size was valued at $4.2 billion in 2021, and is estimated to reach $5.7 billion by 2031, growing at a CAGR of 3.2% from 2022 to 2031.

Grease is a kind of liquid lubricant made of thickener, additives, and oil. It is the sealant used to turn away the access of water and incompressible materials. Grease offers a number of beneficial qualities, such as lubrication to the surface during movement under gravity, pressure, and centrifugal force. It makes it easier to reduce noise pollution and energy use, avoid contamination and wear and tear loss, and increase efficiency. It is widely used in many different industries, including construction, railways, automotive, oil, gas, and mining.

Grease is used to lubricate a wide variety of machinery to reduce wear over long periods of operation. It is made by combining base oils, thickeners and additives. Grease is used in the manufacturing industry to keep machines running smoothly. The automotive industry, which extensively uses industrial grease in vehicle manufacturing and maintenance, is the largest segment of the grease market. Grease is used in a wide range of applications and is indispensable for machinery due to its water resistance. It has the ability to contact and lubricate moving surfaces without leakage due to gravity, and centrifugal force.

A major factor contributing toward the growth of the grease market is the rapid growth of the automotive and other industrial sectors. In addition, technological developments in grease quality and increase in demand for metal soap thickeners are other factors driving the grease market growth. However, exchange rate volatility, availability of alternative products, and the introduction of stringent environmental regulations are some of the factors limiting the market growth trend. On the basis of base oil, the mineral oil segment accounted 89.1% revenue market share of the global grease market in 2021, and is expected to maintain its dominance during the forecast period.

One of the main advantages of mineral oils is that they are soluble with a wide range of additives which can help improve the overall performance of grease. Mineral oils are compatible with many grease thickener systems. Also, the cost of mineral oil is low compared to synthetic oil. On the basis of thickener type, the metallic soap segment dominated the global grease market in terms of revenue, in 2021, owing to increase in urbanization in emerging countries.

On the basis of end-use industry, the automotive segment dominated the global grease market in terms of revenue, in 2021, owing to increase in urbanization in emerging countries. Passenger and commercial vehicles drive the demand for high-performance grease in the automobile sector. Grease is widely utilized in the automobile sector for a variety of vehicle parts, including wheel bearings, springs, universal joints, axles, cables, and switches, due to its excellent heat sensitivity, structural strength, antioxidants, and water resistance.

On the basis of region, Asia-Pacific accounted for the largest share of the global grease market during the forecast period. Europe is predicted to have a notable market share in grease during the forecast period. This is due to the country’s growing need for grease from the pharmaceutical and nutraceutical industries.The major players operating in the grease industry include Axel Christiernsson, ENEOS Holdings, Inc., Exxon Mobil Corporation, FUCHS, Idemitsu Kosan Co., Ltd., Petroliam Nasional Berhad (PETRONAS), PKN ORLEN, Sinopec Corporation, The Chevron Corporation, TOTAL energies. These players have adopted product launch, acquisition, and business expansion as their key strategies to increase their grease market shares.

Key findings of the study

• By base oil, the synthetic oil segment is projected to grow at the highest CAGR of approximately 3.7%, in terms of revenue, during the forecast period.
• By thickener type, the non-soap segment is expected to dominate the market during the forecast period.
• By end-use industry, the power generation system segment is projected to grow at the highest CAGR of approximately 4.3%, in terms of revenue, during the forecast period.

Impact of COVID-19 outbreak on the market

• The automotive industry's demand for grease greatly impacts the grease market. During the projection period, the expansion of the OEM and RMO sectors in the automotive sector is anticipated to directly affect the need for greases.
• The International Organization of Motor Vehicle Manufacturers (OICA) estimates that 80.15 million vehicles were produced in 2021, a 3% increase over 2020. In 2021, the main hub for car manufacturing Asia-Pacific witnessed a general increase of around 6%.
• In 2021, China produced the most automobiles with 26 million units, an increase of 3% over the previous year. On the other side, the Indian car industry had tremendous growth, with 4.4 million automobiles produced in 2021, a 30% increase from 2020.
• Production of electric vehicles has increased significantly as a result of the expanding use of batteries in the automotive industry. Norway's fleet had the highest percentage of electric vehicles as of 2021. Therefore, the consumption of grease is projected to increase over the projection period due to all of the aforementioned factors.