Industrial Lubricants: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

Industrial lubricants are fatty or oily fluids that are applied to gears, bearings, and other moving machine parts to lessen friction and wear. In order to promote effective movement between two surfaces, lubricants serve as a boundary layer.

Market Insights

In 2022, the market for industrial lubricants was estimated to be worth $55 billion. By 2030, the market is anticipated to have grown at a CAGR of 3.9%. The market is growing as a result of extensive industrialization, globalization, and rising purchasing power. However, this market is being constrained by factors including high end product pricing, severe regulations, and the expensive manufacturing costs of synthetic lubricants. The metal and mining industries in Australia, Canada, Germany, the United Kingdom, Italy, Spain, New Zealand, Mexico, and many other nations face numerous difficulties as a result of COVID-19. Since COVID-19 will directly affect 2020 sales revenues, more than 80% of mining and related companies report that this will be the case. In terms of value, the construction end-use sector accounted for 20% of the industrial lubricants market as a whole in 2022. Growing worldwide infrastructure development is a major factor driving the need for industrial lubricants in the construction sector. Due to the rising need for energy and the growing number of wind power plants around the world, the market in the power generation category is anticipated to have the highest CAGR, in terms of both value and volume, during the forecast period.

Over the past few years, the industrial lubricants market has undergone significant upheaval. An industry that was formerly driven by volume is now driven by value. High performance industrial lubricants have a substantial impact on volumetric consumption, increase oil drain intervals, minimize pollutants, and improve equipment life. The development of 3D printing, car sharing, and the refinement of spent oil are further market factors. In terms of both volume and value, the hydraulic fluid category dominated the industrial lubricant industry. In terms of value, it held a 32% share of the market for industrial lubricants in 2022. Rising industrial production and demand from numerous end-use sectors are the main drivers of the expansion. In terms of value, the metalworking fluid market category held a 19% share of the entire market in 2022. During the forecast period, it is anticipated to increase at the fastest rate. This rapid expansion is primarily related to the expanding automotive sector.

The markets in Asia-Pacific, the Middle East and Africa, and South America are expanding, and businesses are vying for market share with similar products. In terms of volume, Asia-Pacific held a 51.15% share of the market in 2022, followed by Europe with 18.2%. The dominance of the Asia-Pacific region is mostly attributable to the region’s fast economic development, especially in the industries of construction, metal and mining, electricity production, and food processing. The market for industrial lubricants is also being propelled by Asia-Pacific’s rapid industrialization, infrastructure growth, and rising living standards. Due to the developed European and North American markets, the market for industrial lubricants is anticipated to rise steadily over the next years, while emerging countries like Asia-Pacific and the Middle East and Africa are predicted to have rapid expansion. The major market participants, including Royal Dutch Shell plc, Exxon Mobil Corp., BP PLC, Chevron Corp., Total S.A., Sinopec Lubricant Company, and Idemitsu Kosan Co., Ltd., are expanding their market share.

Market Dynamics: Drivers

Growing Industrial Activities in Emerging Economies Will Drive the Market

Over the next five years, the demand for industrial lubricants is anticipated to remain strong due to the tremendous industrial growth that Asia-Pacific has been experiencing over the previous few years. Over the past ten years, Asia-Pacific has seen an increase in both foreign and local investments in important industries like construction, metal and mining, and energy, among others. Due to its extensive industrialization and expanding population, China has also surpassed the U.S. in terms of industrial lubricant use. The prospects for industrial expansion in China are favorable, and the market for industrial lubricants is expanding rapidly. The industrial lubricants market is expanding in part because to the rapid industrial growth in the Middle East and Africa. The prospects for industrialization in Africa’s sub-Saharan region are quite promising. Government laws, abundant natural resources, and a favorable investor outlook all favour industrialization in the area. During the projected period, it is anticipated that the growing commerce and export-import of sub-Saharan nations with significant economies like India and China will increase transportation and, as a result, increase sales of industrial lubricants.

Market Dynamics: Challenges

High Cost of Bio-based and Synthetic Industrial Lubricants Will Restrict the Growth of the Market

Market expansion is being constrained by the high cost of industrial lubricants based on synthetic oil and biomaterials. Industrial lubricants with synthetic oil bases and those with bio-based bases are more expensive than those with mineral oil bases. Costs for bio-based industrial lubricants might range from 18% to 200% more than those for industrial lubricants based on mineral oil. In significant growing economies like China, India, and Brazil, price is of utmost importance. In light of this, the high prices of synthetic oil-based and bio-based industrial lubricants are discouraging their usage in price-sensitive areas and, as a result, promoting the use of subpar, inexpensive industrial lubricants. However, with more competition, these high prices should decline over the next five years.

 Market Segmentation

• Based on Base Oil, the Global Industrial Lubricants market is segmented into
  • Mineral Oil
  • Synthetic Oil
  • Bio-Based Oil
• Based on Type, the Global Industrial Lubricants market is segmented into
  • Hydraulic Fluid
  • Metalworking Fluid
  • Gear Oil
  • Grease
  • Compressor Oil
  • Turbine Oil
  • Others
• Based on End Use, the Global Industrial Lubricants market is segmented into
  • Construction
  • Metal and Mining
  • Cement Production
  • Power Generation
  • Automotive (Vehicle Manufacturing)
  • Chemical
  • Oil & Gas
  • Textile
  • Food Processing
  • Others
• Based on Geography, the Global Industrial Lubricants market is segmented into
  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa

• All market revenue has been given in US Dollar, while the market volumes are given in tons.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Industrial Lubricants Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Industrial Lubricants Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Industrial Lubricants Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Industrial Lubricants Market study?