Grease Market

Grease Market Research, 2031

The global grease market was valued at $4.2 billion in 2021 and is projected to reach $5.7 billion by 2031, growing at a CAGR of 3.2% from 2022 to 2031.

The COVID-19 pandemic has significantly reduced the demand for grease from end-use industries such as power generation, heavy equipment, metallurgy & metalworking, and chemical manufacturing. However, the automotive industry's demand for grease greatly impacts the grease market. The expansion of the OEM and RMO sectors in the automotive sector is anticipated to directly affect the need for greases during the forecast period.

A semi-solid lubricant called grease is used to shield equipment, machinery, vehicles, and their parts from rust, wear, and tear. It includes thickeners, lubricants, and additives that help improve performance. It is produced using rendered fat from animal waste, inedible lard, synthetic oil, or petroleum-derived products that contain thickeners. Grease works as a sealant to reduce water loss and helps guard against pollutants. It helps to retain flexibility, safeguard bearing surfaces, improve stop-start functionality, and lower friction. It offers improved rust-proofing performance, high viscosity index, high thermal stability, and corrosion protection. Therefore, grease finds extensive application across various industries, such as automotive, chemical manufacturing, power generation, metallurgy, and food & beverage.

A positive outlook for the market is being produced by the global automobile industry's significant growth. Ball joints, tie-rod ends, suspension, chassis, control arm-shafts, and U-joints are frequently lubricated with grease. Accordingly, the rise in demand for high-performance vehicles is promoting market expansion. Grease also prevents wear and tear on a number of auto parts, including switches, connections, wheel bearings, and gears, due to its stability and temperature tolerance. The development of bio-based and environment-friendly grease made from renewable, non-toxic ingredients with low sulphur levels is just one example of the many product advancements that are significantly boosting the expansion of the market.

In addition, the widespread adoption of high-performance grease in wind power plants to remove residue and ensure cleaner operations is positively impacting the market growth. Apart from this, the implementation of various government initiatives to encourage the utilization of bio-based grease and the increase in product demand in the manufacturing sector are anticipated to drive the grease market growth.

The grease market is segmented on the basis of base oil, thickener type, end-use industry, and region. On the basis of base oil, the market is classified into mineral oil, synthetic oil, and bio-based oil. On the basis of thickener type, the market is classified into metallic soap, non-soap, and inorganic. On the basis of end-use industry, the market is classified into power generation, automotive, heavy equipment, food & beverage, chemical manufacturing, and others. Region wise, the grease market size is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

On the basis of base oil, the mineral oil segment dominated the global grease market in terms of revenue, in 2021, and is expected to maintain its dominance during the forecast period. Mineral oil is frequently a liquid by-product of refining crude oil. Crude oil is produced from crude petroleum through distillation procedures that involve many refining steps, including extraction, crystallization, and purification by acid treatment, and hydrogenation. Due to its superior lubricating qualities, mineral oil is currently the most popular base oil in the manufacturing of grease. Mineral oils have the major benefit of being soluble with a variety of additives, which can enhance the general performance of grease.

On the basis of thickener type, the metallic soap segment dominated the global grease market in terms of revenue in 2021. This is because of its versatility, which enables it to be used in the off-highway industrial, construction, and automotive sectors. Metal soap thickener has a superior ability to retain superb consistency at higher temperatures, in addition to other desirable features such as load-bearing, shear strength, water resistance, and corrosion safety.

On the basis of end-use industry, the automotive segment dominated the global grease market in terms of revenue, in 2021. The passenger cars offer maximum market potential in the automotive grease market, owing to increase in demand for these cars and general utility vehicles globally, with rise in public transportation expenditure. For instance, according to the Association des Constructeurs Européens d'Automobiles (ACEA) in 2021, a total of 79.1 million motor vehicles were produced around the world; an increase of 1.3% compared to 2020.

On the basis of region, Asia-Pacific dominated the grease market in terms of revenue, in 2021, owing to increase in urbanization in emerging countries. China is the largest consumer of grease in the current scenario. The vast manufacturing activities pertaining to different sectors and the rapid growth in the industrial and automotive sectors have pushed the country to stand among the major consumers and grease producers in the global landscape.

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 the grease market shares.

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the grease market analysis from 2021 to 2031 to identify the prevailing grease market opportunities.
• The 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 grease market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global 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 grease market trends, key players, market segments, application areas, and market growth strategies.

Impact of COVID-19 outbreak on the market

• The government has taken various measures to combat the effect of the pandemic on this market. Accelerated business is expected because of this. Therefore, there is a slight impact of COVID-19 on automotive market.
• The use of cutting-edge technology is essential to the growth of all these industries as competition increases and manual operation challenges increase. Rise in labor costs and safety requirements are also increasing the demand for process automation. The use of automation contributes to higher production rates, lower labor costs and improved worker safety. As such, most companies are automating their operating systems, which in turn encourages grease consumption.
• 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.

 Grease Market Report Highlights