by Market Overview:
Lubricants are used to reduce friction between moving surfaces and components. They help in minimizing wear and tear of the moving parts. Lubricants find wide application in transportation, industrial machinery, and other equipment. They play a vital role in smooth functioning and improving efficiency of engines and mechanical systems. Some key types of lubricants include engine oil, hydraulic oil, gear oil, grease, and process oil. Growing automotive production and vehicle parc globally is driving the demand for lubricants in the transportation industry. Rapid industrialization and infrastructure growth is also fueling the need for industrial lubricants for various machinery.
Market key trends:
One of the key trends gaining traction in the lubricants market is the development of bio-based and environment-friendly products. Stringent emission norms and sustainability initiatives are prompting lubricant manufactures to increasingly offer bio-lubricants made from renewable resources like plant oils and animal fats. Bio-lubricants help reduce dependence on crude oil and offer comparable performance to conventional petroleum-based lubricants. Advancements in additive technology is another trend, with novel additives enabling multi-functional lubricants with improved durability, higher oxidation stability, and lower friction for better fuel efficiency. Growth in electric vehicles is also opening up opportunities for specialized lubricant formulations suitable for electric drive components and reducing drivetrain losses.
The Global Lubricants Market Demand is estimated to be valued at US$ 178.4 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the lubricants market requires huge investments and is dominated by few major global players.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of many substitute options and undifferentiated products. Buyers can switch between suppliers easily based on price.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw material suppliers dominate the supply chain. However, suppliers cannot influence prices much due to availability of substitutes.
Threat of new substitutes: The threat of substitutes is high due to availability of product substitutes. Advancements in technology are bringing new synthetic and bio-based lubricant alternatives.
Competitive rivalry: Competitive rivalry in the lubricants market is high due to presence of large multinational companies. Players compete based on product innovation, quality, and price.
Key Takeaways
The global lubricants market is expected to witness high growth, exhibiting CAGR of 4.0% over the forecast period 2023 to 2030, due to increasing applications in automotive, industrial and other sectors. The market size for lubricants in 2023 is estimated to be around US$ 178.4 Bn.
On a regional basis, Asia Pacific is anticipated to dominate the global lubricants market over the forecast period. This can be attributed to rapid industrialization and growing automotive industry in China and India. North America is also expected to grow significantly supported by ongoing shale gas production activities demanding superior lubricants.
Key players operating in the lubricants market are ExxonMobil Corp., Pennzoil, Quaker Chemical Corp., Royal Dutch Shell Co, British Petroleum, Chevron Corp., Total S.A, JX Nippon Oil & Energy Corp., Lukoil, and Philips 66 Company. Major players are focusing on expanding their product portfolio and strengthening distribution networks globally.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
