Lubricants Market size was valued at USD 127.5 billion in 2023 and is set to cross USD 162.5 billion by the end of 2036, registering more than 4% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of lubricants is estimated at USD 130.5 billion.
The growing production of automobiles acts as a primary growth driver for the lubricants market by directly influencing the need for high-performance lubricants across various segments of the automobile industry. According to the International Organization of Motor Vehicle Manufacturers (OICA), the estimated world vehicle motor production in 2023 was approximately 93 million units. Modern vehicles are designed with higher performance standards, which necessitate advanced lubricants to meet these requirements. This includes lubricants that can withstand higher temperatures, reduce friction, and improve fuel efficiency. Moreover, global expansion of vehicle fleets drives demand for lubricants for maintenance and performance optimization.
Growth Drivers
Challenges
|
Base Year |
2023 |
|
Forecast Year |
2024-2036 |
|
CAGR |
4% |
|
Base Year Market Size (2023) |
USD 127.5 billion |
|
Forecast Year Market Size (2036) |
USD 162.5 billion |
|
Regional Scope |
|
Application (Industrial, Automotive, Marine, Aerospace, Construction, Food Processing, Chemical, Oil & Gas)
Automotive segment is projected to account for around 54.1% lubricants market share by 2036. The segment growth can be attributed to the growing sales of electric vehicles. As per the International Energy Agency (IEA), sales of electric vehicles increased by 3.5 million in 2023 compared to 2022, a 35% annual rise.
The market is anticipated to be driven by the adoption of EVs, which need lubricants in critical electrical components such as braking fluids, grease, gear oils for differentials, wheels, chassis, and gear reducers, and coolants for car batteries to improve efficiency, extend the life of the vehicle, and lessen friction and wear on its moving parts.
Base Oil (Mineral, Synthetic, Bio-based)
The synthetic segment in lubricants market is estimated to gather the highest CAGR during the forecast timeframe. The major factor in the expansion of the segment is the rising focus on sustainability. In 2023, more than 55% of businesses globally began utilizing more environmentally friendly resources, such as recycled materials and goods with reduced emissions.
Synthetic lubricants ensure sustainable performance as they improve fuel efficiency, have low maintenance costs, and help to adopt a more environmentally friendly and sustainable strategy by lowering the need for packaging materials. Synthetic lubricants are made from sophisticated synthetic base stocks; therefore, there is less need for large-scale crude oil extraction, which also lowers the carbon emissions brought on by lubricant distribution, logistics, and transportation.
Product Type (Engine Oil, Hydraulic Fluid, Metalworking Fluid, Gear Oil, Grease)
The hydraulic fluid segment is assessed to generate a significant lubricants market share by the end of 2036 due to its widespread applications across different sectors. For instance, hydraulic fluids are widely used in forklift trucks, log splitters, car lifts, snow plows, skid steerers, aircraft, air tools, tractors, cruise ships, and the marine industry. Hydraulic oil keeps moving parts lubricated, promotes effective power transmission, and ensures smooth operation of hydraulic equipment. The demand for hydraulic oil is mostly driven by the growing use of hydraulic equipment in heavy machinery and automobiles.
Our in-depth analysis of the global lubricants market includes the following segments:
|
Base Oil |
|
|
Application |
|
|
Product Type |
|
APAC Market Statistics
Asia Pacific region in lubricants market is projected to hold more than 45.1% revenue share by 2036. The market growth in the region is expected on account of the increasing manufacturing activities. Presence of many key players like Shell, ExxonMobil, and Total Energies dominate the regional market, focusing more on innovation and sustainability in lubricant products to meet diverse industry needs.
Japan's aerospace sector is now a thriving industry, which may lead to higher demand for lubricants that are used in the production, maintenance, and repair of aircraft, spacecraft, and defense systems and technologies. The aircraft manufacturing business produced over USD 10 billion in fiscal year 2022, up from around USD 7 billion in the previous fiscal year.
In the upcoming years, there is anticipated growth in the lubricants market in China as the country aims to lead the world in smart manufacturing. Moreover, China’s automotive lubricants market is expected to grow at a significant growth rate. For instance, according to the China Association of Automobile Manufacturers, total vehicle sales of both passenger and commercial vehicles increased from 27 million in 2021 to 27.7 million in 2022.
South Korea's robust automobile manufacturing sector is one of the primary growth drivers leading to market expansion. Key players such as Hyundai and Kia are experiencing a constant increase in demand for premium lubricants. Furthermore, the strong industrial sector in South Korea has boosted market growth. This includes the shipbuilding, steel, and electronics sectors, all of which depend on different kinds of lubricants to ensure the reliable and efficient operation of machinery.
North American Market Analysis
The North America region will also register tremendous lubricants market revenue during the forecast period. The market expansion is attributed to the rising demand for oil and gas lubricants in the region. This rise has been fueled by factors such as shale production and energy infrastructure investments, in addition to good economic conditions and continuous regional industrial advancements.
The lubricants market in the United States is one of the world's largest, owing to the presence of diverse industrial sectors, wide transportation networks, and robust automobile industry. According to the International Trade Administration in 2020, U.S. light vehicle sales were 14.4 million units.
In Canada the construction sector’s growth and infrastructure development projects create a demand for lubricants for construction equipment and machinery. The Canada construction landscape reached USD 350.1 billion in 2023.
The lubricants market consists of many key players who are thought to be the main participants in this market as they are always working together, growing, signing deals, and participating in joint ventures to support the development of this industry.
Author Credits: Rajrani Baghel
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?