Lubricant And Grease Market Expected to Reach $168.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Lubricant And Grease Market," The lubricant and grease market size was valued at $123.8 billion in 2021, and is estimated to reach $168.2 billion by 2031, growing at a CAGR of 3.2% from 2022 to 2031.

Lubricant refers to an organic substance that assists in declining friction between the two surfaces in mutual contact. Function of lubricant works on heating or cooling surfaces, transporting foreign particle and transmitting forces.

One of the key factors propelling growth of the lubricants and grease market industry is increase in global trade in vehicles and their spare parts. The lubricant and grease market is expanding quickly, owing to rules governing emissions and fuel economy as well as spike in demand for high-performance engines. Increase in demand for diesel engine oils, gearbox & transmissions in passenger cars, commercial vehicles, and motorcycles, as well as the  expansion of the sector of refinery capacity, all have an impact on the lubricant and grease market.

In addition, the market for lubricants and grease is positively impacted by application of the product in efficient use of energy resources, growing industrialization, and decreased crude oil prices. Furthermore, increase in demand for renewable energy extends profitable opportunities for market players during the forecast period. On the other hand, increase in demand for hybrid vehicles and shift toward synthetic lubricants causing shrink are expected to obstruct the lubricants and grease market growth. Stringent environmental norms and continuous reforms by governments are projected to challenge the lubricants market during the forecast period.

Further, Bio-based lubricants offer several advantages over conventionally used petroleum-based products, in that these are non-toxicity, renewable, and environment friendly. Owing to high flash point and high stability, bio-based lubricants are relatively safer to use over conventional lubricants. This has resulted in a shift in preference of consumers from petrol-based lubricants to bio-based lubricants, thus forming a major trend in the bio-lubricant market.

The lubricant and grease market is segmented on the basis of type, application, and region. On the basis of type, type, the lubricant and grease market is classified into heavy-duty engine oils (HDEO), passenger car motor oil (PCMO), gear oil, hydraulic fluids, turbine oils, greases, compressor oil, and others. On the basis of application, it is categorized into power generation, automotive, heavy equipment, foods & beverages, chemical manufacturing, and others. Region wise, the lubricant and grease market is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East. 

On the basis of type, heavy duty engine oils (HDEO) hold the largest share in the lubricant and grease market. The engine oils are typically used for applications, such as wear reduction, corrosion protection, and ensuring smooth operation of the engine internals. High-mileage engine oils are experiencing increased demand, owing to specific properties, such as oil leak prevention and reduction in oil-burn off. Increase in average age of passenger cars and rise in urban population in the developing countries are expected to drive the growth of the market for engine oils. 

Based on application, automotive segment dominates the global lubricant and grease market. Passenger cars offer maximum market potential in the automotive lubricant market, owing to increase in demand for these cars and general utility vehicles globally, with rise in public transportation expenditure.Moreover, increase in inclination of consumers toward efficient and easy transportation boosts the growth of this segment. The use of automotive lubricants in light commercial vehicle (LCVs) has witnessed major developments, owing to constant growth in per capita disposable income and rise in demand for commercial utility vehicles. 

By region, Asia-Pacific holds the highest lubricant and grease market share. The main drivers of market expansion in the Asia-Pacific region are rapid industrialization, urbanization, population growth, and high growth in key end-use sectors including chemicals, food processing, and textiles. Due to the rising demand for affordable energy from natural-gas-fueled power plants, power generation is predicted to have the quickest rate of growth among end users of lubricants in Asia-Pacific. As China's construction sector grows, there is an increasing demand for lubricants used in heavy equipment applications, such as bearing grease, penetrating and coating lubricants for wire rope, engine oil, and diesel fuel. In addition, China now produces more electricity, which has raised demand for the lubricants used in power plants, such as synthetic and lubricating oil. 

Major players operating in the lubricant and grease market industry include,  Armor Lubricants, Total,  Petromin, Aljomaih And Shell Lubricating Oil Company Limited, Behran Oil Co., FUCHS, Exxon Mobil Corporation, GULF OIL Middle East Limited (GULF OIL International), Emarat, and Idemitsu Kosan Co., Ltd. These players have adopted product launch, acquisition, and business expansion as their key strategies to increase their lubricant and grease market shares. These players have adopted strategies such as product launch and business expansion to sustain the competition and to strengthen their foothold in the lubricant and grease market.

Key findings of the study

• On the basis of type, the turbine oils segment is projected to grow at the highest CAGR of approximately 4.1%, in terms of revenue, during the forecast period.
• On the basis of application, the power generation segment is projected to grow at the CAGR of approximately 4.3%, in terms of revenue, during the forecast period.

COVID-19 impact analysis on the lubricant and grease 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. 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.
• 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.