Market Overview
The Global
Industrial Lubricants Market is expected to reach a value of
USD 60,955.2 million in 2024. It is projected to exhibit a
CAGR of 4.5% for the forecast period (2024-2033).
The growing industrialization witnessed in developing nations, along with the amplification of trade activities, is fueling the steady desire for industrial lubricants. Key players in the sector are gaining profit from this trend by directing substantial investments toward research & development, complemented by effective expansion strategies. Sectors across chemicals, unconventional energy, & mining are on a growth trajectory, further intensifying the requirements for industrial
lubricants in diverse domains such as industrial engines, hydraulics, compressors, centrifuges, & bearings.
Emerging nations including India, South Africa, Japan, China, & Brazil have observed substantial growth in the industrial sector in recent years, with sectors spanning from foundry product manufacturing & plastics production to mining & metal consumer appliances showing increasing prominence, thereby propelling the demand for industrial lubricants with better quality. This rise has led to more utilization of lubricants including metalworking fluids, process oils, engine oils & industrial oils.
The consistent industrial output in these growing markets is anticipated to sustain the rising need for industrial lubricants, with India remarkably harnessing a significant share in the market in process oils, representing over half of the total industrial lubricant demand. Furthermore, the increasing expansion of power generation & distribution has heightened the transformer oils’ demand.
Key Takeaways
- The synthetic oil in the base oil segment is expected to hold the highest market share in 2024.
- based on product, the hydraulic fluid segment emerges as the dominant player in the industrial lubricants market, expected to hold a maximum share of the market, in 2024.
- The power generation sector is projected to stand out as a dominant force in end-use segment in 2024.
- Asia Pacific is expected to command 46.4% in 2024 and project the following growth in the forthcoming year of 2024 to 2033.
- Following Asia-Pacific, North America is expected to show the highest growth potential in the upcoming period.
Use Cases
- Industrial lubricants are used in manufacturing equipment as is used to minimize heat generated in metal forming processes.
- In the automotive industry, industrial lubricant is used in the assembly line machinery and engine components where its main function is assembly of vehicles including its robotic arms, conveyors, and other moving parts.
- Industrial lubricants play a vital role in energy and power generation as they are used to maintain the turbines and generators in power plants by reducing friction which ensures their efficient operation.
- The aerospace industry also uses industrial lubricants to reduce friction and heat in components like bearings, gears, and shafts for their smooth working.
- Lubricants are extensively used in the marine industry on diesel engines to reduce friction and wear in critical components which extend the engine's life.
Market Dynamic
One of the driving forces behind this market's growth is the rising demand for a diverse range of finished products, which has resulted in manufacturers embracing machinery automation to enhance their production capabilities.
Initiatives for meeting stringent emission norms, developing engine technology, & aligning with the policy of carbon footprint reduction, especially observable in emerging nations like India & China, are all set to play a crucial role in upcoming years. However, the sector witnessed environmental challenges related to the utilization of synthetic lubricants, such as strict regulations to mitigate contamination & environmental pollution.
The disposal of used lubricants, frequently containing additives that are petrochemical-derived, poses a significant threat to water pollution, leading to enhanced environmental concerns that restrict the expansion of the market.
The U.S. is dominant in the North American industrial lubricants market, holding a substantial revenue share in 2024. Within this arena, the United States process oil market, measured by volume, came out to be a frontrunner and is projected to maintain robust growth over the forecast period. The United States market's prominence is because it adopts high-quality lubricants, showcasing extended oil drain intervals that efficiently decrease lubricant consumption, thereby improving overall operational efficiency.
Driver
The industrial lubricants market is propelled by rapid industrialization in emerging economies coupled with increasing machinery usage. As a result, high performance lubricants that ensure equipment efficiency and durability become essential components in today's industrial marketplace. An increase in vehicle production and demand for advanced lubricants that enhance engine performance while meeting stringent emission norms drives market expansion.
Automated manufacturing processes emphasize the value of lubricants for reducing friction, wear and energy consumption. Industries prioritize operational efficiency and equipment longevity; hence more industries are adopting specialty lubricants across various applications.
Trend
Adopting bio-based lubricants has been an emerging trend in the industrial lubricants market. Rising environmental awareness and stringent emissions regulations are driving companies towards seeking eco-friendly options as a viable strategy. Bio-based lubricants made from
renewable resources offer biodegradability, reduced toxicity, and comparable performance compared to synthetic alternatives.
Companies are investing heavily in R&D to enhance thermal stability and oxidative resistance of these eco-friendly options. Due to increasing environmental compliance and sustainability goals being prioritized by industries, demand for bio-based lubricants continues to increase across Europe and North America.
Restraints
The industrial lubricants market faces difficulties from fluctuating raw material prices, driven by fluctuations in crude oil markets. Base oils, an integral component in lubricant manufacturing, can be affected by global supply and demand factors, geopolitical tensions and economic uncertainties that impact production costs and profit margins for manufacturers.
This unpredictability impedes business decisions as a whole. Environmental compliance requirements also increase production expenses, with manufacturers required to develop formulations with lower sulfur content and reduced environmental impact. All these factors conspire to hamper market expansion - especially among smaller and mid-sized enterprises who struggle to absorb cost fluctuations or invest in sustainable product development strategies.
Opportunity
The growing demand for high-performance lubricants provides great opportunities for the industrial lubricants market. Energy, construction and aerospace industries increasingly demand lubricants that can tolerate extreme temperatures, pressures and operating conditions.
Recent advances in
synthetic and semi-synthetic formulations offering enhanced thermal stability, oxidation resistance and longer equipment life are finding widespread support. Due to the expansion of renewable energy projects such as wind turbines and solar farms, manufacturers who focus on product differentiation through advanced formulations and value-added services can use this opportunity to strengthen their market presence and strengthen their market position.
Research Scope and Analysis
By Base Oil
During the forecast period (2024-2033), the synthetic oil segment is expected to hold the predominant share in 2024. In automotive & industrial applications, the most used synthetic base oil is PAO (polyalphaolefin) a variant of synthetic which have observed significant attention in this market because of its superior performance when compared to natural mineral oils, making them highly favored as lubricants across several sectors, demanding a higher degree of reliability.
Due to their inherent physical-chemical properties, synthetic oils show reduced volatility, a lower pour point, a higher viscosity index, & enhanced oxidative as well as thermal stability.
By Product
The Hydraulic Fluid segment emerges as the dominant player in the industrial lubricants market, expected to hold the maximum share of the market, in 2024. It is primarily due to its extensive usage across a wide range of finished goods. This prominence has resulted in the expansion of production capacities, making manufacturers depend on automated machinery to fulfill the needs of high-volume production activities.
Moreover, the metalworking sector is also set for rapid growth throughout the projected period, led by the increasing industrial undertakings & the escalating demand for metal in domains such as machinery & construction. Furthermore, the surge in desire for various metalworking processes, including welding, cutting, & forming, across numerous areas including ships, foundries, aircraft, industrial machinery, & milling, is poised to propel the growth within this segment.
By End User
The power generation sector stands as a cornerstone of the global economy, serving as a pivotal element without which several manufacturing operations would be hindered. The maximum share attained by the power generation sector in 2024 is due to its ongoing developments in manufacturing technologies, which has resulted in the establishment of new plants, therefore increasing the demand for electricity across several end-user sectors.
Turbines, vital in the energy sector for electricity generation, play an important role. Turbines are common in power generation no matter the source of electricity, whether thermal (solar, wind), hydroelectric, or others. In the process of generating electricity, turbines give off some heat. Aside from the turbines, key components that support power generation include bearings, pump compressors fans gears, and hydraulic systems.
Among other factors, wind turbines have to endure high pressures as well as vibrations, humidity, and heavy loads for that matter constant temperature changes. Moreover, gear & turbine oils find wide utilization in this sector, majorly for lubrication purposes.
The Industrial Lubricants Market Report is segmented based on the following
By Base Oil
- Synthetic Oil
- Mineral Oil
- Bio-Based Oil
By Product
- Hydraulic Fluid
- Gear Oil
- Grease
- Metal Working Fluid
- Turbine Oil
- Transformer Oil
- Others
By End-User
- Metal & Mining
- Construction
- Power Generation
- Cement Production
- Oil & Gas
- Textile
- Food Processing
- Automotive
- Others
Regional Analysis
Among various regions, Asia Pacific is expected to command
46.4% in 2024 and is marked to witness the fastest CAGR in the forthcoming years. This dominance is accredited to the existence of well-established end-use sectors in developing nations including Indonesia, India, Thailand, & Malaysia.
Moreover, there is a heightened awareness about the enhanced operational efficiency of industrial equipment following the application of lubricants, which is anticipated to foster demand in the region. In Europe & North America, demand for industrial lubricants is projected to remain steady, even as industrial growth levels off.
The North American market is expected to get an advantage from escalated demand for oilfield chemicals led by drilling & exploration activities. Meanwhile, the resurgence of industrial activities and the modernization of industrial machinery are major drivers of European industrial lubricant demand throughout the anticipated period.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The market shows a high degree of fragmentation, featuring several global & local players. These companies are making substantial investments in research & development while engaging in mergers to yield innovative products, thus putting themselves in a competitive advantage within the sector. Remarkably, there's a recent trend shift towards the usage of bio-based raw materials, led by growing awareness regarding the need to reduce emissions & conserve energy.
Competition in the sector consists of several factors, such as the establishment of distribution partnerships, strategic advancements, technological developments, diversified product portfolios, and organizational capabilities. As a prime example, Castrol recently showcased two novel cutting fluids specific to support the manufacturing of metal components.
Some of the prominent players in the Global Industrial Lubricants Market are
- Fuchs Lubricants
- ExxonMobil Corp.
- Phillips 66
- The Lubrizol Corp.
- Royal Dutch Shell
- Amsoil Inc.
- Bel-Ray Co. Inc.
- Clariant
- Chevron Corp.
- TOTAL S.A
- Castrol
- Kluber Lubrication
- Other Key Players
Recent Development
- March 2024, ExxonMobil will invest nearly USD 110 million in a Maharashtra plant, producing 159,000 kiloliters of lubricants annually, targeting commercial startups by late 2025, which aims to support local sourcing by new job opportunities.
- October 2022, Valeo and Totalenergies formed an agreement to develop a new product that can minimize the heat emissions by batteries in electric vehicles by using high-performance dielectric liquid.
- July 2022, SKF RecondOil’s Double Separation Technology (DST) with Quaker Houghton’s industrial oils has come into agreement to share their expertise in this market by working together to reduce the unsustainable use of oil.
- January 2022, Chevron Corporation a subsidiary of Chevron Lubricants Lanka PLC formed a marketing agreement with Rock Energy in Bangladesh for their lubricant product and market expansion.
Report Details
| Report Characteristics |
| Market Size (2023) |
USD 60,955.2 Mn |
| Forecast Value (2032) |
USD 90,334.8 Mn |
| CAGR (2023-2032) |
4.5% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Base Oil (Synthetic Oil, Mineral Oil, and Bio-Based
Oil), By Product (Hydraulic Fluid, Gear Oil, Grease,
Metal Working Fluid, Turbine Oil, Transformer Oil,
and Others), and By End-User (Metal & Mining,
Construction, Power Generation, Cement Production,
Oil & Gas, Textile, Food Processing, Automotive, and
Others). |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
Fuchs Lubricants, ExxonMobil Corp., Phillips 66, The
Lubrizol Corp., Royal Dutch Shell, Amsoil Inc., Bel-Ray
Co. Inc., Clariant, Chevron Corp., TOTAL S.A, Castrol,
Kluber Lubrication, and Other Key Players. |
| Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
Global Industrial Lubricants Market is expected to reach a value of USD 60,955.2 million in 2024.
The Global Industrial Lubricants Market is expected to grow at a compound annual growth rate of 4.5%
from 2024 to 2033.
The Asia Pacific is expected to dominate the Global Industrial Lubricants Market accounting for 46.4% in
2024.
Some of the prominent players in the Global Industrial Lubricants Market include Fuchs Lubricants,
ExxonMobil Corp., Phillips 66, The Lubrizol Corp., Royal Dutch Shell, Amsoil Inc., Bel-Ray Co. Inc.,
Clariant, Chevron Corp., TOTAL S.A, Castrol, etc.