Global Liquid Lubricants Market Size (2024 - 2030)

In 2023, the Global Liquid Lubricants Market was valued at $55 billion, and is projected to reach a market size of $77.39 billion by 2030. Over the forecast period of 2024-2030, market is projected to grow at a CAGR of 5%.

Industry Overview:

Liquid lubricants are used to separate and lessen friction between two moving surfaces and to reduce wear and tear. In general, lubricants have a base oil content of 90% and an additive content of less than 10%. Base oils are typically made of synthetic or vegetable oils like esters, fluorocarbons, silicones, hydrogenated polyolefins, and silicone esters. Mineral, synthetic, and bio-based lubricants are the three primary product categories into which they can be separated. Bio-based lubricants are made from either vegetable (such as palm, castor, or sunflower) or animal-derived oils and are renewable and biodegradable. Bio-based lubricants are being used in a variety of industries, such as the automotive, shipping, forestry, agricultural, and railroads, owing to their special mechanical, chemical, and environmentally friendly qualities. The need for automotive oils and greases is expected to increase owing to the growing commerce in automobiles and their replacement parts. All varieties of lubricants are created by standard lube makers using crude oil, tight oil, CBM,  and other additives. In the passenger automobile, commercial vehicle, and motorbike segments of the automotive industry, lubricants are primarily employed as diesel engine oils, transmission fluids, and gearbox lubricants. The United States, China, Brazil, India, and other developing nations have been major drivers of the increase in global vehicle sales owing to the expansion of industrialization as well as the rise in process automation in most industries. The availability of a large pool of skilled labor and technological know-how, as well as foreign investment norms, are key growth drivers for the manufacturing sector in developing regions.  A lot of producers have formal agreements with suppliers and producers of raw materials. Strategically, this enables these businesses to cut down on unknown time and cost losses during the acquisition of these materials. Major corporations have integrated their corporate operations globally, including Royal Dutch Shell, Chevron, Total SA, British Petroleum, ExxonMobil Corporation, and Sinopec. It guarantees a consistent raw material supply for the manufacturing of the necessary mineral oils and additives. The industry is characterized by a significant number of new competitors looking to capitalize on attractive prospects in the global market, while established firms are forming strategic alliances to boost capabilities and broaden their reach into emerging regions.

COVID-19 pandemic impact on Liquid Lubricants Market

The lubricants industry faced numerous difficulties as a result of COVID-19's effects on the industrial and transportation sectors. The major economies were impacted by the pandemic, which caused a halt in business operations across all sectors that require lubricants in their machinery and equipment. The COVID-19 crisis had a significant influence on the world's automotive supply business since it abruptly stopped both the manufacturing and sales of cars in most regions. Millions of vehicles were not produced as a result of these work stoppages throughout the world. The OICA estimates that the first nine months of 2020 saw about a 23% decrease in automotive manufacturing compared to the same period in 2019. In 2020, the demand for lubricants was adversely impacted by this. Lockdown has had an impact on the transportation industry, causing very little movement of commercial and passenger vehicles and entirely grounded airplanes worldwide. With industrial and transportation operations getting back on track and operating at full capacity, the market is anticipated to rebound.

MARKET DRIVERS:

Rising Automotive Demand and High-Performance Engines Drive Growth in the Liquid Lubricant Industry

The demand for liquid lubricants is anticipated to increase along with the demand for automobiles. The architecture of internal combustion engines has advanced greatly since Ford created the first mass-produced automobile at the turn of the 20th century. The interior components are now subjected to significantly higher tension and heat since the engine has been improved.  Engines now run at very high RPMs and need engine oil of higher quality. In addition, the internal transmission system of cars has improved, allowing them to attain speeds of up to 150 mph. Better lubricants are required as a result of all these advancements and growth. The lubricants have evolved and expanded as a result of this.

The market for liquid lubricants is likely to be benefitted from increased demand for renewable energy

Industrial lubricants, such as transformer oil and turbine oil, are extensively used in the power sector. A potential subsegment of the power generation market is the renewable energy sector. Although wind energy generation only makes up a relatively small portion of the total energy mix at the moment, the industry is expanding. For optimal operation, lubricants are necessary for wind turbines.

The liquid lubricants market is likely to expand with the use of bio-based lubricants

In terms of formulation, the preference for bio-based lubricants with lower emissions is growing over the synthetic lubricants that are currently used. The usage of bio-based lubricants is estimated to grow as a result of regulatory restrictions on mineral lubricants, which negatively affect the environment. To meet environmental regulations, cut greenhouse gas emissions, and save energy, governments are promoting the development and use of bio-lubricants. In the nations of Europe and North America, numerous laws and policies support bio-lubricants.

MARKET RESTRAINTS:

The growth of the liquid lubricants market may be adversely impacted by rising battery price parity and rising demand for hybrid vehicles

For market participants in lubricants, the rising popularity of hybrid electric vehicles (HEV) is posing a challenge. To maximize power efficiency and cut down on pollution, hybrid cars have both a tiny internal combustion engine (ICE) and an electric motor.  HEVs make it easier to shut off the internal combustion (IC) engine when the electrical system's output is greater than what is needed to move the vehicle forward. As a result, the internal combustion engine runs for a shorter period, which reduces the use of lubricants or engine oil consumed by hybrid cars. Engine oil and transmission fluid are the two main lubricants required by ICE inside a car. As more cars become hybrids, the need for lubricants is likely to be reduced. Manufacturers in the lubricants industry are facing a challenge as governments in nations like India and regions like Europe encourage HEVs.This element may lower the size of the global lubricants market, together with rising battery parity. Electric car batteries are relatively expensive, but as technology advances, the price is coming down and the driving range per charge is rising. These elements significantly affect lubricant use.

Crude oil price volatility and growing environmental concern can be major obstacles to the expansion of the liquid lubricants market

The market is being challenged by the volatile price of mineral oil and the high price of lubricants made from bio-based and synthetic materials. Since lubricating oil is spilled into the air as oil mist and small droplets, it poses a major hazard to the environment. Mineral oils have zero potential for biodegradation. Petroleum-derived oil has secondary concerns as it accumulates in groundwater, plant, and animal tissues. Furthermore, aquatic ecosystems are seriously threatened by lubricating oils generated from crude oil.

LIQUID LUBRICANTS MARKET REPORT COVERAGE:

This research report on the global Liquid Lubricants Market has been segmented and sub-segmented based on base oil, product, end-user, and region.

Liquid Lubricants Market – By Base Oil

• Mineral Oil
• Synthetic Oil
• Bio-based Oil

Based on Base Oil, the Liquid Lubricants Market is bifurcated into Mineral Oil, Synthetic Oil, and Bio-Based Oil. Mineral oil accounts for the greatest portion of the global lubricants market owing to its widespread availability and low price. The synthetic oil segment is anticipated to grow at the greatest CAGR during the forecast period owing to its superior qualities. In comparison to mineral oils, synthetic oils can be designed to impart superior physical features such as biodegradability, high-temperature performance, and oxidation stability. Businesses in the lubricants industry are producing more bio-based lubricants. Bio-based lubricants are made from either plant or animal-derived oils and are biodegradable and renewable. Bio-based lubricants are anticipated to expand faster than mineral oils since they are more environmentally friendly. These lubricants are anticipated to witness substantial revenue growth throughout the assessment period driven by government support that encourages the usage of bio-based lubricants. Manufacturers are considering thermal and oxidative stability when developing new lubricants.

Liquid Lubricants Market – By Product

• Engine Oil
• Gear Oil
• Hydraulic fluid
• Metalworking fluid
• Grease
• Compressor oil
• Turbine Oil
• Other

Based on Product, the Liquid Lubricants Market is bifurcated into Engine Oil, Gear Oil, Hydraulic fluid, Metalworking fluid, Grease, Compressor oil, Turbine Oil, and Others. The engine oil segment is anticipated to dominate the worldwide lubricant market followed by hydraulic fluid during the forecast period.  Engine oil's popularity is mostly attributable to its greater usage in the transportation sector than other types and its demand from the construction industry, particularly from construction trucks. To transfer power inside hydraulic machinery and equipment, hydraulic oil, a non-compressible fluid, is employed. Hydraulic oil, often called hydraulic fluid, can be made of mineral or synthetic materials. While synthetic hydraulic oils are created using base fluids manufactured chemically, mineral-based hydraulic oils are formed from crude oil fractions.

Liquid Lubricants Market – By End User

• Transportation
  • Commercial vehicles
  • Passenger vehicles
  • Aviation
  • Railways
  • Marine
• Industrial
  • Construction
  • Mining & Metal
  • Cement Production
  • Power Generation
  • Automobile Manufacturing
  • Chemical
  • Oil & Gas
  • Textile
  • Food Processing
  • Others

Based on End User, the Liquid Lubricants Market is bifurcated into Transportation and Industrial. There is a significant demand for lubricants in the transportation sector due to the growing number of vehicles on the road in China and the increasing demand for transportation in India and ASEAN. In terms of volume, the automobile industry held a dominant market share of more than 57 % in 2021 owing to the growing sales of consumer automobiles, including passenger trucks, buses, and other modes of transportation. Public transportation has improved in these areas as a result of economic growth in developing nations like China, India, and Brazil. Over the forecast years, this trend is anticipated to assist segment expansion by boosting the demand for commercial automotive oil.

For crucial components to function well in high vacuum and extremely high temperatures, aerospace lubricants are utilized to offer dependable, long-lasting lubrication. They are regularly examined while facing rising regulatory interference and particular military criteria. Over the forecast period, it is anticipated that rising air passenger traffic and considerable increases in defence spending would continue to be the main drivers of category growth. The aerospace industry is rising quickly as a result of countries like the United States, Germany, Brazil, and India significantly increasing their defence spending.

High- and medium-speed engine oils, as well as slow-speed marine engines both, frequently employ marine lubricants. The product extends the life of the engine and safeguards its components in hot environments. Some of these products use additive technology to guard against ring belts, under-crowns, and crankcases as well as other regions of the camshaft. Additionally, lubricants are employed in slow-speed cylinders as they provide high-performance lubrication, improved defence against mechanical wear, and assistance with cold corrosion mitigation.

Liquid Lubricants Market - By Region:

• North America
• Europe
• Asia-Pacific
• Rest of the World

Geographically, the North American Liquid Lubricants Market held a significant revenue share in the global market in 2021. After China, North America has the second-largest market for automobiles. The North American economy has an impact on the country's auto industry, which is limiting the expansion of the consumer automotive lubricants market in the area. One major reason that is adversely affecting the growing revenues in the North American lubricants industry is the volatility in base stock pricing.

Europe is anticipated to hold the second-largest market share in terms of both volume and value in the worldwide lubricants industry during the projected period The market for liquid lubricants in Europe is regarded as being developed and on the verge of saturation. Europe offers significant growth potential for industrial lubricant goods due to the region's expanding chemical manufacturing facilities. The involvement of numerous multinational chemical producers from nations like Russia, the U.K., France, and Germany is largely responsible for the rapid rise. Largely used in a variety of processes, including the manufacture of fertilizers, rotatory and compressor units in manufacturing facilities, and more, these industrial lubricants help improve the operation of machinery that is subjected to high stress.

The Asia Pacific region is anticipated to account for the greatest portion of the worldwide lubricants market during the forecast period. This can be attributed to many factors, including the base oil movement's rapid growth, rapid industrialization and urbanization, an increase in population, and rapid growth in key end-use industries including chemicals, textiles,  food processing, and metalworking. The market offers several lucrative chances for businesses that capitalize on niche markets and launch innovative items with advantageous features. Major industrial players are also relocating their manufacturing operations to the Asia Pacific as a result of the region's access to cheap labor, rising demand, and supportive governmental regulations.

The majority of MEA nations are heavily reliant on the production of crude oil and the subsequent revenue from the liquid lubricants sector. To lessen their reliance on crude oil, many nations in this region have made steps to diversify their economies. This has encouraged industrial growth and increased demand for industrial machinery, which is driving the market growth. To attract FDI for infrastructure development, Latin America is anticipated to create many trade tactics. Many terminal expansion projects are being planned by Brasil Terminal Portuario, one of the busiest container ports in Latin America, for Moin, Costa Rica, Mexico, and Peru. The marine sector in the area is anticipated to experience increased product demand.

Major Key Players in the Market

1. ExxonMobil Corp.
2. Pennzoil
3. Petrochina Company Limited
4. Quaker Chemical Corp.
5. Royal Dutch Shell Co.
6. JX Nippon Oil & Energy Corp.
7. British Petroleum
8. Lukoil
9. Total S.A.
10. Chevron Corp.
11. Philips 66 Company
12. Fuchs Petrolub AG
13. Sinopec Corp. are some leading companies in the global Liquid Lubricants Market.

One of the top manufacturers of lubricants is Royal Dutch Shell. The business has adopted expansion as its lubricants market growth strategy. In the market for lubricants, ExxonMobil is rated second. The business sells turbine oil along with other lubricants like hydraulic fluid, compressor oil, metalworking fluid, and gear oil. To maintain its position as a market leader in lubricants, the company concentrates on new product releases and agreements.

The number of independent, well-diversified regional small- and large-scale manufacturers and suppliers makes the worldwide market extremely competitive. The main areas of competition for small businesses are pricing, after-sales services, and delivery schedules. Large-scale businesses, on the other hand, concentrate on marketing techniques as well as product development and innovation. To cut costs and consumer delays, several businesses are also rethinking their supply chains.

Notable happenings in the Global Liquid Lubricants Market in the recent past:

• Acquisition- In February 2021, The FUCHS Group revealed that it has purchased 70% of the lubricant business of the Vietnam-based specialized distributor STD & S Co. Ltd.\
• Partnership- In February 2021, The OTK Kart Group and ENI SpA partnered to develop lubricants for Vortex engines, the OTK Group's engine division.
• Acquisition- In April 2021, IMM Private Equity and SK Innovation agreed to a value of 1.09 trillion South Korean won for SK Innovation's 40% ownership in SK Lubricants (983 million USD )