The global lubricants market size is expected to reach USD 166.25 billion by 2025, according to a new report by Grand View Research, Inc., expanding at a 3.8% CAGR during the forecast period. Increasing demand for a diverse, innovative grade of lubricants for industrial as well as automotive applications is expected to drive growth.
With the expansion of the passenger vehicles segment, there has been a rise in demand for high-quality automotive lubricants with better fuel efficiency and lower emissions. Government schemes in emerging economies, such as the "Make in India" program initiated by the Indian government, have attracted high foreign investments across the automotive industry. This has further boosted demand for lubricants.
Stable base oil production across regions has stimulated feedstock security among blenders in the recent past. Stable supply would thereby address profitability concerns of manufacturers, thereby positively influencing industry competition. Moreover, recovering end-use industries are likely to drive sales of lubricating oil, which is slated to provide equilibrium to the supply-demand scenario.
In addition, high growth in the base oil market, rapid industrialization, burgeoning population and urbanization, and high growth in major end-use industries such as textiles, chemicals, food processing, and metalworking are some other factors driving industry growth.
Industrial engine oils are being utilized in a wide array of applications owing to their exceptional inherent characteristics. These oils are designed to offset rising fuel and operating costs. They have a lower coefficient of friction, which helps in saving fuel and at the same time, keeps the engine clean for maximum combustion efficiency. These oils also help in keeping ports, piston, crankcase, and filters clean for a longer duration.
The global lubricants consumption was estimated at over 40 million tons in 2016, and is projected to expand at a CAGR of 2.8% from 2017 to 2025
The aerospace industry is projected to witness a high growth rate owing to rapidly increasing air passenger traffic along with rising defense spending across emerging economies
Regulatory sanctions on conventional lubricating oils on account of their detrimental environmental impact have led to rapid utilization of bio-based alternatives in recent years
Development of low-viscosity products for wind turbines owing to increasing awareness regarding long-term benefits of wind energy is another factor driving industry growth
The industry is highly fragmented in nature owing to presence of a large number of participants
Several manufacturers such as Fuchs Group; Valvoline; and Amsoil Inc. are strategically expanding their operations in emerging nations. These companies have tie-ups with large oil and gas multinationals to suffice their raw material requirements
Lubricant manufacturers such as Total and Castrol are venturing into exclusive agreements with Tata Motors and other companies to expand their reach.
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Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.
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