According to a new report published by Allied Market Research titled, " Synthetic Lubricants Market by Pump Type and Application: Global Opportunity Analysis and Industry Forecast, 2019–2026," the global synthetic lubricants market size was valued at $12.0 billion in 2018, and is projected to reach $18.8 billion by 2026, growing at a CAGR of 5.8% from 2019 to 2026.
Synthetic lubricants enhance the overall durability and functioning of a vehicle and safeguard it from wear & tear, friction, and high temperatures. Increase in preference of consumers toward high-quality synthetic automotive lubricants is a key factor that boosts the synthetic lubricants market growth. Automotive lubricants exemplify the futuristic technologies capable of manufacturing durable surfaces, maximizing the overall efficiency.
In the overall lubricants market, the synthetic lubricants segment is projected to have a promising future due to its greater penetration among original equipment manufacturers (OEM) and superior properties associated with it. Europe has witnessed greater penetration of synthetic lubricants market by reporting the highest luxury vehicle production and sale. This is due to the superior hardware compatibility of synthetic lubricants and lower vehicle emissions. One of the prime factors that make synthetic lubricants a promising choice is consistently growing need for advanced vehicle design to attain fuel efficiency. As a result, more advanced design requires development in the lubricants to enable new engines, power trains, and other equipment or high-end automotive component at their peak efficiency. On the split side, emergence of bio-based lubricants as substitute of synthetic lubricant is expected to restrain the market growth.
The engine oil product segment accounted for more than half of the global market, in terms of value and volume, in 2018. In response to the consistent modifications in the automotive industry, efficient lubricants are in demand globally. Thus, increase in requirement of high-tech automotive lubricants and rise in adoption of new vehicles fuel the demand for synthetic lubricants market globally.
Based on end user, the automotive segment emerged as the global leader by acquiring more than 60% market share in 2018. Several factors such as tremendous rise in the sale of passenger cars and the resulting growth in production; growth in spending power of middle-class population; and rise in repair, vehicle conditioning, and maintenance activities boost the growth of the automotive segment.
Some of the major market players operating in the global synthetic lubricants market include Royal Dutch Shell PLC, ExxonMobil Corporation, British Petroleum (Bp) PLC, Chevron Corporation, Total SA, Idemitsu Kosan Co. Ltd., Sinopec Limited, Lukoil, Petroliam Nasional Berhad (Petronas), and Indian Oil Corporation Ltd.
Key Findings of the Study:
- Based on base oil, the polyalphaolefin segment emerged as the major revenue generating segment in 2018 due to its wide application area in the automotive industry.
- Based on product type, the engine oil segment accounted for the largest synthetic lubricants market share in 2018, and it is anticipated to be the largest one by the end of forecast period.
- Asia-Pacific is the largest regional market due to largest automotive production sales outlook, strong industrial growth, presence of emerging economic such as China, India, Japan, and South Korea.
- Introduction of new age engine and superior compatibility of synthetic oil with them is considered one of the major advantages in this market.
- Development in the synthetic lubricant technology is anticipated to offer lucrative growth opportunities to the market during the forecast period.
- Growth in the adoption of bio-based lubricants in response to rise in awareness regarding the environment and changing emission standards is the key to the market players in this market.