Lubricants Market: Current Analysis and Forecast (2021-2027)
$3999 – $7577
Emphasis on Base Oil (Group I, Group II, Group III, Group IV, and Group V); Product Type (Engine Oil, General Industrial Oil, Metalworking Oil, Grease, Transmission and Hydraulic Fluid Oil, Gear Oil, Process Oil, and Others); End Use (Automotive & Other Transportation, Heavy Equipment, Food & Beverages, Metallurgy & Metalworking, Chemical, and Others); and Region/Country
Published: | Dec-2021 |
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Pages: | 239 |
Table: | 58 |
Figure: | 109 |
Report ID: | UMCH21589 |
Geography: |
Report Description
Lubricants Market was estimated to be around US$ 135 billion in 2020 and is anticipated to display a CAGR of ~ 2% over the forecast period (2021-2027). Global demand of lubricants is growing at a moderate rate owing to saturated industrial sector and slow growth in automotive sector. However, during the past couple of decades automotive and industrial sectors were the key factors for the growth of lubricating oil market owing to the increasing industrialization across the globe and growing consumer purchasing power thus resulted in higher sales of automobiles. For instance, production of automobiles increased to 91.7 million in 2019 compared to 89.7 million in 2014. However, in 2020 production decreased to 77.6 million due to manufacturing shutdown in order to curtail the spread of COVID-19. However, rapid adoption of electric vehicles has opened the door for the lubricant manufacturers to focus on electric vehicles lubricants. Countries are focusing on electric vehicles to meet their net zero emission, for instance, according to EV-volumes, a total of 2.65 million EV’s were sold during the first half of 2021, an increase of nearly 168% compared to 2020.
Chevron Corporation, British Petroleum Plc., Exxon Mobil Corporation, PetroChina Company Limited, Royal Dutch Shell Plc., TotalEnergies SE, Idemitsu Kōsan kabushiki geisha, China Petroleum & Chemical Corporation, JX Nippon Oil & Gas Exploration Corporation, Fuchs Petrolub SE are some of the prominent players operating in the lubricants market. Several M&As along with partnerships have been undertaken by these players to facilitate customers.
Insights Presented in the Report
“Amongst base oil, Group II segment holds the major share.”
Based on Base Oil, the market is categorized into group I, group II, group III, group IV, and group V. Among these, Group II base oil accounted for the lucrative market share in 2020 and is likely to retain its position during the forecast period owing to its higher efficiency and lower emission relative to group I base oil. Further, industries are finding easy to transit from group I base oil to group II base oil by changing in work techniques, work with new base oil manufacturers, and changing equipment. As a result, penetration of lube oil has been increased in the industries.
“Amongst product type, engine oil held lucrative market share in 2020.”
Based on Product Type, the market is categorized into engine oil, general industrial oil, metalworking oil, grease, transmission and hydraulic fluid oil, gear oil, process oil, and others. Among these, engine oil category held the significant market share owing to large base of automobiles and increasing demand of automobiles in developing regions like Asia Pacific because of rising purchasing power of population. Further, increasing automotive emission regulation is expected to fuel the market of lubricants globally, as lubricant reduce wear and tear of equipment thus improving the performance of automobiles.
“Amongst end use, automotive & other transportation hold a prominent market share.”
Based on End Use, market is sub-segmented into automotive & other transportation, heavy equipment, food & beverages, metallurgy & metalworking, chemical and others. The automotive and other transportation category held the prominent position in the market for lubricants, based on end use. This was due to the surging vehicle sales on account of the rising per capita income of people worldwide. According to the International Organization of Motor Vehicle Manufacturers, around 44.4 million were sold in first half of 2021 compared to 34.3 million vehicles in the same period of 2020. Moreover, the expanding mobility services sector is amplifying vehicle sales, thereby boosting the consumption of lubricants.
“Asia Pacific a prominent regional market share in the lubricants market.”
For better understanding of the market penetration of Lubricants, the report provides a detailed analysis of major regions including North America, Europe, Asia Pacific, and the Rest of the World. APAC held the largest demand of lubricants in 2020 and is projected to be the highest consuming region during the forecast period. Large base of industries including automotive, manufacturing, and metalworking among others couple with large and growing demography of the region helped the region in attaining the top market position. For instance, countries such as China, Japan, South Korea, and India are among the largest producer of automotive worldwide. In 2020, China produces 25.2 million units of automobiles followed by Japan, South Korea, and India with 8 million units, 3.5 million units, and 3.4 million units, respectively.
The extensive growth in the Chinese manufacturing sector in last couple of decades owing to the changes in government policies list the country as the global manufacturing hub. In June 2021, China’s official manufacturing PMI stood at 50.9, with a reading above 50 signifying activity growth in the sector. According to data published by the United Nations Statistics Division, China accounted for 28.7% of global manufacturing output in 2019. That puts the country more than 10% points ahead of the US, which used to have the world’s largest manufacturing sector until China overtook it in 2010. Owing to the aforementioned factors, country captured significant portion of global lubricants demand and is likely to do so.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts
- The report presents a quick review of overall industry performance at one glance
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
- The study comprehensively covers the market across different segments
- Deep dive country-level analysis of the industry
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Research Methodology
Analyzing the historical market, estimation of the current market, and forecasting the future of the global lubricants adoption were the three major steps undertaken to create and analyze the adoption of EV across various segments in North America, Europe, Asia Pacific, and Rest of the world. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the lubricants sector. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the lubricants through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the lubricants market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report as base oil, product type, and end use. Further regional & country-level analyses were conducted to evaluate the overall adoption of the lubricants in the global context.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of lubricants. Further, we conducted factor analysis using dependent and independent variables such as growing industrial sector and increasing adoption of electric vehicles. A thorough analysis was conducted for demand and supply-side scenario considering top partnerships, merger and acquisition, business expansion, and product launches in the lubricants industry.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global lubricants market, and market shares of the segments. All the required percentage split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major regions globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of value (US$) and the adoption rate of lubricants across the major markets
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the lubricants market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the global lubricants market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of base oil, product type, and end use.
The main objective of the lubricants market study
The current & future market trends of lubricants were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends determine the overall attractiveness of the market at a global & country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of lubricants in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of base oil, product type, and end use. Defined analysis of the regulatory framework for the lubricants industry
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
- Analyze the current and forecast market size of the lubricants for the major regions & countries
- Major regions studied in the report include North America, Europe, Asia Pacific, and Rest of World
- Company profiles of the lubricants market players and the growth strategies adopted by them to sustain in the fast-growing market
- Deep dive regional & country level analysis of the industry