The Global Lubricants Market - Growth, COVID-19 impact and Forecast (2021-2025)
The Lubricant market is segmented by Base Stock (Mineral oil lubricant, Synthetic lubricant, Semi-synthetic lubricant and Bio-based lubricant) ;Application (Automotive, Industrial and Others); Geography (APAC, North America, Europe and ROW).
Introduction
Lubricants are used to reduce the friction among the surfaces, which in turn, helps to reduce the heat generated. It is extracted from crude oil, which undergoes a preliminary purification process, known as sedimentation. Then it is heated in huge fractionating towers. The various vapors which are used to make fuel, are boiled off & are collected at different points in the tower.
Some of the major properties of lubricants are lubricity, demulsibility, high boiling point, corrosive prevention, and thermal stability. Due to these factors, they are widely used in automotive and industrial application.
Despite the current pandemic situation, the end-users of this market is recovering to operate in full capacities from 2021 beginning. Along with this, the recovering industrial and automotive sector are expected to mitigate to numerous potential negative impacts caused during COVID-19 and maximize their opportunities in future
Table of Contents
Market Overview
The Global lubricants market is expected to grow to $ 180.70 billion by 2025.
Growth momentum is expected to accelerate at slower pace during the forecast period with 2.92% CAGR.
Factors such as growth in industrialization, increasing number of vehicles and process automation in industries are fuelling the lubricants demand.
APAC is forecasted to remain as largest consumer for this market. Post COVID-19, Middle East and Africa region is expected to show considerable growth during forecast period.
Key Trends
Demand for renewable energy to positively impact the lubricants market expansion in future. As per world wind energy association, wind power generation accounts for a very small share in the overall energy mix, but the sector is growing at a rate of 10%. Moreover, Wind turbines require lubricants for optimum operability.
Stringent environmental compliances is expected to trigger the demand for bio-based lubricant products in future.
Key Market Players
The market is dominated by global vendors like Royal Dutch Shell, ExxonMobil Corporation, BP, Chevron Corporation, Total, Petrochina Company Limited.
The key players are rigorously competing and offering custom solutions for high-performance requirements. Also, they using competitive pricing strategy to maintain their customer base.
Companies are also adopting collaborative business strategy to provide highly regarded products to consumers, and to expand their regional presences.
Growth Drivers and Challenges
Increased demand for high-performance engines had led to production of very high RPM engines which in turn, required better quality engine oil. Therefore, all these improvements in the engine technology had led the lubricant market to evolve and expand
Emission and fuel economy norms to drive demand for lubricants in emerging markets after COVID-19
Rise in the Disposable Personal Income and infrastructural development in the APAC region
The growing number of hybrid vehicles will reduce the demand for lubricants per vehicle almost by half, as per industry experts. This factor, coupled with increasing battery parity, will reduce the volume of the global lubricants market.
Volatility in the prices of raw materials is expected to restrain product demand.
Stringent environmental norms and continuous reforms by governments.