Industrial Lubricants Market: Overview
The market size for Industrial Lubricants Market was USD 66.6 billion in 2021, and it is projected to grow at a CAGR of 3.1 percent during the forecast period. Industrial lubricants prevent wear and tear on machinery and related components, ensuring smooth operation. Growing automation in end-use sectors and robust industrial growth in emerging nations like China, India, and Brazil are the main drivers of this market's expansion. The industrial lubricants industry is expanding due to the rising demand for eco-friendly lubricants.
The availability of a big pool of skilled labor, technological know-how, and attracting foreign investment norms are key growth drivers for the manufacturing sector in these regions. The rapid expansion of specialized manufacturing industries like 3D printing and medical devices is anticipated to complement the industrial growth in these markets. Therefore, it is anticipated that the increasing industrialization of BRICS will fuel demand for industrial fluids, supporting expanding the global lubricants industry. The Civil Aviation Administration of China (CAAC) reports that the Chinese government intends to construct airports, which would be twice as many as there are currently. The number of airports is predicted to rise from 234 in 2019 to 450 in 2035. Similarly, the Indian government announced plans to build 5,000 compressed biogas (CBG) facilities by 2023 in 2019.
Due to illegal dumping or inappropriate disposal, industrial lubricants are considered a severe pollution issue because they contaminate groundwater, surface water, and soil. Without pre-treatment, it is impossible to burn these spent lubricants immediately. Environmental limits apply since they could have poisonous and dangerous leftovers like metal and metalloid particles. The atmosphere may be exposed to these chlorinated substances. IOCL launched a new Lube Blending Plant in Kolkata, India, in December 2020. This facility is outfitted with a NABL-accredited laboratory and cutting-edge product evaluation methods. The factory produces more than 200 different kinds of oils for various uses.
Industrial Lubricants Market: COVID-19 Impact
COVID-19 had a negative effect on this market in 2020. Due to a government-imposed lockdown during the pandemic to stop the spread of new COVID-19 cases, activities in several end-user industries, including metallurgy and metalworking, chemical manufacturing, and others, temporarily ceased. This had a short-term negative impact on the industrial lubricants market. However, COVID-19 has had a favorable, significant impact on the automation process in industrial activities. The pandemic's limited human resources, the necessity to maintain a safe working distance, and the usage of various personal protective equipment have sped up the spread of automation across all industries.
Industrial Lubricants Market: Drivers
Industrial Lubricants has Expanded Due to Robust Industrial Growth in Emerging Economies
The main drivers of the growth of the industrial lubricants market in emerging nations are rapid urbanization, industrialisation, and rising technical advancements. The Civil Aviation Administration of China (CAAC) reports that the Chinese government intends to construct airports, which would be twice as many as there are currently. The number of airports is predicted to rise from 234 in 2019 to 450 in 2035. Similarly, the Indian government announced plans to build 5,000 compressed biogas (CBG) facilities by 2023 in 2019. The South African government announced a $1.0 billion investment in the oil sector of South Sudan in November 2018. The investment was made to help Sudan grow its oil industry and give South Africa access to more reasonably priced energy. Industrial lubricants are anticipated to rise due to these investments and attempts to assist industrialization, accelerating market growth.
Expanded as a Result of Rising Automation and Consumer Desire For Eco-Friendly Lubricants
As automation grew, automatic lubrication techniques also became commonplace, which helped to cut down on poor lubrication. Ineffective lubrication has been a significant contributor to bearing failure over the years, which has negatively influenced production and driven up industry-bearing replacement costs. Instead, automated lubrication uses the proper amount of oil at the appropriate moment, particularly when the parts require it. Additionally, it addressed the ongoing concern for worker safety when lubricating machinery because many machines are hazardous to lubricate. In addition, the demand for biodegradable lubricants is rising globally due to increased environmental sustainability initiatives. Compared to petroleum-based lubricants, biodegradable lubricants have better viscosity indices, greater flash points, lower volatility, and better boundary lubricant properties.
Industrial Lubricants Market: Restraints
Used Lubricants Are a Major Source of Pollution Thereby Restraining Market Growth
Due to illegal dumping or inappropriate disposal, industrial lubricants are considered a severe pollution issue because they contaminate groundwater, surface water, and soil. Without pre-treatment, it is impossible to burn these spent lubricants immediately. Environmental limits apply since they could have poisonous and dangerous leftovers like metal and metalloid particles. The atmosphere may be exposed to these chlorinated substances. Instead of being disposed of as waste, used lubricant should be recycled. The quality of lubricants, measured in terms of the quantity of contamination by water, solids, or other fluids, is a major factor in determining their worth.
Industrial Lubricants Market: Segment Overview
Industrial Lubricants Market Was Dominated By Hydraulic Oil Due to Its Low Cost
The hydraulic oil segment is anticipated to contribute the highest share of the overall industrial lubricants oil market compared to other product categories in 2021. It also generated a significant amount of revenue. The increasing demand from end-user industries, particularly from the construction and mining sectors, as well as this segment's low cost compared to other kinds of industrial lubricants, are mostly to blame for its overall rise. For instance, since 2013, government spending on highway development in India has surged more than three times. The estimated cost of highway building in 2013–2014 was $5,317.0 million (Rs 32,438 crores), and it rose to $17,004.2 million (Rs 1,16,324 crores) in 2017–2018.
Automotive Segment led market Due to Increased Demand
In terms of volume, the automotive sector controlled a share of more than 57% of the market in 2021. This high share is related to rising consumer auto sales, including buses, trucks, and other forms of passenger transportation. Due to their growing economies, public transportation has improved in emerging economies like China, India, and Brazil. This pattern is anticipated to increase the need for commercial, and automotive oil, boosting segment expansion throughout the anticipated years.
Industrial Lubricants Market: Regional Landscape
Asia-Pacific Dominated the market Due To Rising Number of Industries in This Area
The Asia Pacific dominated the global market with a volumetric share of over 43% in 2021. From 2022 to 2027, it will grow at the quickest CAGR in volume and revenue. The fast industrialization, urbanization, population increase, and significant growth in key end-use industries, including textiles, chemicals, food processing, and metallurgy, are all to blame for this. The market offers several lucrative chances for entrepreneurs that capitalize on niche markets and launch innovative items with attractive features. Major industrial players are also moving their production facilities to the Asia Pacific due to the region's availability of cheap labor, rising demand, and supportive governmental regulations.
Due to the region's expanding chemical manufacturing facilities, industrial lubricant products have significant growth potential in Europe. 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 various processes, including the manufacture of fertilizers and compressor units in manufacturing facilities, these industrial lubricants help increase running cycles and improve the operation of machinery subjected to high stress.
Industrial Lubricants Market: Competitive Landscape
In Kolkata, India, IOCL launched a new Lube Blending Plant in December 2020. This facility is outfitted with a NABL-accredited laboratory and cutting-edge product evaluation methods. The factory produces more than 200 different kinds of oils for various uses. To improve engine protection, MAK Lubricants introduced MAK Titanium CK4 engine lubricants for heavy-duty commercial vehicles in October 2020.
Few of the Industrial Lubricants Market players include Royal Dutch Shell (the Netherlands), BP p.l.c. (UK), Chevron Corporation (US), ExxonMobil (US), PetroChina Company Limited (China), Total S.A. (France), Idemitsu Kosan Co. Ltd. (Japan), Sinopec Limited (China), Fuchs Petrolub AG (Germany), Valvoline (US), Petronas (Malaysia), Gazprom Neft (Russia), Pertamina (Indonesia), Lukoil (Russia), and others.
Regional Classification of the Global Industrial Lubricants Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Industrial Lubricants Market
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