Lubricants Market Size, Share, and Trends 2024 to 2034

Lubricants Market (By Application: Industrial, Automotive, Marine, Aerospace; By Base Oil: Mineral Oil, Synthetic Oil, Bio-based Oil) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2034

  • Last Updated : July 2024
  • Report Code : 3848
  • Category : Energy and Power

Lubricants Market Size and Companies

The global lubricants market size was USD 145.83 billion in 2023, accounted for USD 151.66 billion in 2024, and is expected to reach around USD 224.50 billion by 2034, expanding at a CAGR of 4% from 2024 to 2034.

Lubricants Market Size 2024 to 2034

Lubricants Market Key Takeaways

  • Asia Pacific has contributed more than 45% of market share in 2023.
  • Europe is expected to experience significant growth during the forecast period.
  • By application, the automotive segment accounted for more than 54% market share in 2023.
  • By application, the industrial segment is expected to grow significantly during the forecast period.
  • By base oil, the synthetic lubricants segment dominated the market with the largest share in 2023.
  • By base oil, the bio-based oil segment is observed to be the fastest growing during the forecast period.

Asia Pacific Lubricants Market Size and Growth 2024 to 2034

The Asia Pacific lubricants market size was estimated at USD 65.62 billion in 2023 and is predicted to be worth around USD 101.03 billion by 2034, at a CAGR of 4.2% from 2024 to 2034.

Asia Pacific Lubricants Market Size 2024 to 2034

Asia-Pacific led the market with the biggest market share of 45% in 2023, capturing a significant revenue share. This growth is driven by the rapid expansion of the automotive industry, industrial development, and automotive manufacturing hubs in countries like Japan, India, and China. Predominantly used lubricants in the Asian market include automotive engine oils, greases, and hydraulic fluids. Major countries such as China, India, Japan, and South Korea contribute to demand. The market exhibits diversity due to swift industrialization, business sector expansion, and local vendors' presence.

  • In 2022, Chevron Corporation partnered with PT Pertamina to explore business opportunities related to lower carbon initiatives in Indonesia. The collaboration aims to investigate technologies such as geothermal energy and carbon offsets, utilizing nature-based solutions.

Lubricants Market Share, By Region, 2023 (%)

Europe held a substantial revenue share in the lubricants market and is expected to experience a significant compound annual growth rate (CAGR) in the forecast period. The European Union (EU) automotive industry is one of the largest globally, playing a vital role in the region's economy. During the first three quarters of 2023, the EU produced over 9 million cars, marking a 14% increase compared to the previous year.

Bar Chart 256289

Market Overview

The lubricants market refers to the industry involved in the production, distribution, and sale of lubricating oils and greases. Lubricants are substances used to reduce friction, heat, and wear between moving parts in machinery and equipment, thereby extending their lifespan and improving efficiency. The lubricants market encompasses a wide range of applications across various industries, including automotive, industrial, marine, aerospace, construction, and agriculture. Depending on their application, Lubricants can transmit power, protect against damage, and eliminate wear and heat debris.

Liquid lubricants, categorized as mineral, synthetic, or semi-synthetic oils based on their base oil, typically contain additives to enhance performance. The effectiveness of lubricants relies on critical characteristics, with viscosity and density being the most significant attributes in lubrication theory. The primary goal of lubrication strategies is to create a lubricant layer that separates rubbing surfaces, preventing direct contact between the bodies involved.

Lubricants Market Growth Factors

  • The growing trade of piston engine lubricants, in terms of imports and exports, is fueling market expansion. Consumer interest in improving vehicle performance and introducing innovative and premium product options drives the demand for lubricants.
  • The rise in middle-class incomes, leading to higher demands for two-wheelers and four-wheelers, is a crucial factor contributing to the growth of the lubricants market.
  • Global seaborne trade growth and the increasing prevalence of tourism and recreational sports are expected to drive the demand for marine lubricants.
  • The rapid increase in power generation from wind energy is driving the demand for gear oils, mainly due to the growing installation of wind turbines. This trend is contributing to the growth of the lubricants market.
  • The widespread use of various power generation sources, such as wind, solar, thermal, and hydro turbines, increases lubricant demand. This, in turn, is driving the lubricants market.
  • The growing preference for bio-based grease requires more effective additives to remain compatible with oxygen-containing oil esters. There is an increasing demand for oils derived from algae, incorporating a blend of mineral, synthetic, or plant-based oil in new feedstocks within the lubricants market.

Market Scope

Report Coverage Details
Global Market Size in 2023 USD 145.83 Billion
Global Market Size in 2024 USD 151.66 Billion
Global Market Size by 2034 USD 224.50 Billion
Growth Rate from 2024 to 2034 CAGR of 4%
Largest Market Asia Pacific
Base Year 2023
Forecast Period 2024 to 2034
Segments Covered By Application and By Base oil
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa


Market Dynamics

Drivers

expansion of application in various sectors

In various industries, including construction, automotive, aerospace, agriculture, automotive, construction, marine, mining, oil drilling, steel and cement, and wind energy, lubricants play a crucial role. In construction, lubricants are crucial for their resistance to corrosion and anti-wear properties, which aid equipment like excavators and loaders.

The demand for lubricants is rising due to their unique qualities, primarily dependent on. Properties such as high boiling point, thermal stability, hydraulic stability, a high viscosity index, and oxidation resistance help reduce friction in various applications, increasing the global lubricant demand. The growing utilization of lubricants, driven by their superior properties, is expected to boost the market's growth rate.

Growing demand for lubricants in the automotive sector

Lubricants play a vital role in diverse industries, including automotive and industrial manufacturing, where their use has grown significantly. With the rapid expansion of industrial activities in many developing nations, companies employ machinery to meet their daily production needs. The rising demand for consumer goods necessitates increased raw material supply. Lubricants effectively blend with oil and act as a protective barrier, preventing impurities from causing damage to surfaces. This makes lubricants essential in meeting the demands of different end-user sectors, including the automotive industry and industrial manufacturing.

  • In October 2022, TotalEnergies partnered with MG Motor to create a new line of lubricants in Chile. The upcoming product, anticipated to be MG Oil, is poised to be MG Motor's first specially formulated oil for automobiles. This innovative product will be produced entirely in Chile and is expected to enhance TotalEnergies' footprint in the region.

Restraint

Rising demand for hybrid vehicles or battery-operated vehicles

The increasing adoption of battery-operated and hybrid vehicles is gradually reducing the demand for internal combustion engines (IC) in the automotive sector, significantly impacting lubricant demand in the forecast period. Strict vehicle emission standards and regional initiatives to ban diesel engines are substantial factors impeding the growth of the lubricants market in the forecast period.

Additionally, fluctuations in crude oil prices pose a significant challenge as the production of lubricants heavily relies on the fractioning process of crude oil. Mineral oil-based lubricants, a substantial part of the global market, are particularly affected by raw material fluctuations from the oil and gas industry, impacting the cost of marine lubricants.

Opportunities

Increasing research and development in the automotive sector

The global automotive industry has witnessed substantial growth driven by factors like increased market openness, the introduction of new vehicle models, easy access to low-interest financing, and price reductions by dealers and manufacturers. The past decade has seen a nearly twofold increase in passenger vehicle sales due to pent-up demand and expanded market access. The surge in demand for personal mobility, including traditional and advanced electric vehicles, has driven the need for improved components, leading to a heightened demand for lubricants.

  • In July 2022, ExxonMobil Lubricants Pvt. Ltd. launched an advanced range of lubricants for passenger vehicles in New Delhi, featuring cutting-edge technology and compliance with Indian government BS-VI specifications. These lubricants offer notable fuel economy benefits, enhanced wear protection, and improved engine cleanliness through their Mobil Super All-In-One Protection and Mobil Super Friction Fighter series.

Surging demand for bio-based lubricants

One of the recent trends in the global market is the increasing adoption of bio-based lubricants by end-users and manufacturers. These greener lubricants offer improved safety with more elevated flashpoints, even viscosity, and reduced vapor emissions and oil mist. Many vendors are emphasizing bioaccumulation and eco-toxicity to minimize adverse environmental impacts. Bio-based lubricants can help reduce pollution in stormwater from the engine, hydraulic systems, and brake line leaks.

Several European countries now mandate using bio-based lubricants in specific environmentally sensitive applications. Companies like RSC Bio Solutions, with their FUTERRA brand, offer plant-based lubricants. Castrol and FUCHS are also manufacturing eco-friendly lubricants. Bio-based lubricants degrade gradually, leaving minimal environmental traces, contributing to increased adoption and market focus during the forecast period.

Application Insights

In 2023, the automotive sector took the lead in the global lubricants market. This dominance results from increased sales of consumer vehicles, including buses and trucks. The surge in automobile production and demand, especially in developing nations like China, India, Brazil, and Indonesia, has propelled the lubricants market. The growing preference for passenger cars, particularly in the mentioned countries, is set to expand the automotive industry, subsequently boosting the demand for lubricants.

The industrial sector is expected to grow significantly during the forecast period, primarily driven by robust industrial production in emerging markets. Moreover, automotive lubricants play a critical role in enhancing fuel efficiency, reducing friction and wear, and extending the lifespan of automotive components. They also prevent component seizures and severe damage. Additionally, lubricants exhibit high resistance to oil degradation and minimize evaporation, contributing to improved fuel efficiency. The increasing use of automotive lubricants in new applications, including battery cooling and noise reduction, further drives market demand.

Base Oil Insight

The synthetic lubricants segment contributed to the largest share of the lubricants market in 2023. The increasing demand for synthetic lubricants serving as base oils is fueled by their compatibility with automotive components, reduced vehicle emissions, and cost-effectiveness. Specifically, lubricants derived from Group IV synthetic base oils, such as polyalphaolefins, demonstrate a broad temperature tolerance, making them ideal for lubricating automotive parts exposed to extreme temperatures. Synthetic oils showcase enhanced chemical and shear stability and an improved viscosity index, driving the demand for synthetic oils in lubricant production. The segment is expected to experience growth.

During the forecast period, the bio-based oil segment emerges as the fastest-growing segment. Bio-based lubricants, sourced from renewable materials like vegetable oils, animal fats, and other natural sources, are characterized by their biodegradability, although only sometimes. The aim is to reduce environmental impact by decreasing reliance on non-renewable petroleum-based lubricants.

Lubricants Market Companies

  • ExxonMobil Corp.
  • Royal Dutch Shell Co.
  • BP PLC.
  • Total Energies
  • Chevron Corp.
  • Fuchs
  • Castrol India Ltd.
  • Amsoil Inc.
  • JX Nippon Oil & Gas Exploration Corp.
  • Philips 66 Company
  • Valvoline LLC
  • PetroChina Company Ltd.
  • China Petrochemical Corp.
  • Idemitsu Kosan Co. Ltd.
  • Lukoil
  • Petrobras
  • Petronas Lubricant International
  • Quaker Chemical Corp.
  • PetroFer Chemie
  • Buhmwoo Chemical Co. Ltd.
  • Zeller Gmelin Gmbh & Co. KG
  • Blaser Swisslube Inc.

Recent Developments

  • In January 2024, Shell U.K. Limited acquired MIDEL and MIVOLT from M&I Materials Ltd. The products of the latter two will be produced and distributed as part of Shell’s Lubricants portfolio. This acquisition enhances Shell’s position in Transformer Oils, which is utilized in offshore wind parks, utility companies, and power distribution.
  • Starting September 2023, Total Energies Lubrifiants accelerated the incorporation of recycled plastics (50% PCR high-density polyethylene) in its lubricants bottles, following a pilot project launched in 2021 called Quartz Xtra bottles. This initiative aims to contribute to a circular economy and reduce the use of virgin plastic.

Segments Covered in the Report

By Application

  • Industrial
    • Process Oils
    • General Industrial Oils
    • Metalworking Oils
    • Industrial Engine Oils
    • Greases
    • Others
  • Automotive
    • Engine oil
      • 0W-20
      • 0W-30
      • 0W-40
      • 5W-20
      • 5W-30
      • 5W-40
      • 10W-60
      • 10W-40
      • 15W-40
      • Others
    • Gear oil
    • Transmission fluids
    • Brake fluids
    • Coolants
    • Greases
  • Marine
    • Engine oil
    • Hydraulic oil
    • Gear oil
    • Turbine oil
    • Greases
    • Others
  • Aerospace
    • Gas turbine oil
    • Piston engine oil
    • Hydraulic fluids
    • Others

By Base Oil

  • Mineral Oil
  • Synthetic Oil
  • Bio-based Oil

By Geography

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East and Africa

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Frequently Asked Questions

The global lubricants market size is expected to increase USD 224.50 billion by 2034 from USD 145.83 billion in 2023.

The global lubricants market will register growth rate of 4% between 2024 and 2034.

The major players operating in the lubricants market are ExxonMobil Corp., Royal Dutch Shell Co., BP PLC., Total Energies, Chevron Corp., Fuchs, Castrol India Ltd., Amsoil Inc., JX Nippon Oil & Gas Exploration Corp., Philips 66 Company, Valvoline LLC, PetroChina Company Ltd., China Petrochemical Corp., Idemitsu Kosan Co. Ltd., Lukoil, Petrobras, Petronas Lubricant International, Quaker Chemical Corp., PetroFer Chemie, Buhmwoo Chemical Co. Ltd., Zeller Gmelin Gmbh & Co. KG, Blaser Swisslube Inc., and Others.

The driving factors of the lubricants market are the expansion of application in various sectors and growing demand for lubricants in the automotive sector.

Asia Pacific region will lead the global lubricants market during the forecast period 2024 to 2034.

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