Lubricants Market Is Estimated To Witness High Growth Owing To Increasing Demand From Automotive Industry

Lubricants Market Is Estimated To Witness High Growth Owing To Increasing Demand From Automotive Industry

 Market Overview:

Lubricants are substances introduced to reduce friction between surfaces in contact which ultimately prevents wear and tear of automotive components. The key applications of lubricants include engine oils, transmission fluids, greases, industrial oils and process oils. They are used across automotive, industrial and marine applications.

Market Dynamics:
The lubricants market is primarily driven by growing automotive industry around the world. As per industry sources, over 95 million vehicles are produced annually requiring engine and transmission oils during their operation. Furthermore, expansion of industrial sectors such as power generation, metalworking, construction etc. has also augmented the lubricant consumption over the years. Another driver for the market growth is stringent emission norms forcing automakers to use advanced lubricants to improve fuel efficiency and reduce emissions. On the other hand, growing adoption of electric vehicles which have less moving parts may limit the demand for conventional engine and transmission lubricants during the forecast period.

The Global Lubricants Market Demand is estimated to be valued at US$ 178.4 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.


SWOT Analysis

Strength: The lubricants market benefits from wide applications across various end-use industries like automotive, construction, mining, and agriculture. Leading players offer a diverse product portfolio with speciality and high-performance lubricants. They invest heavily in R&D to develop eco-friendly and energy-efficient lubricants.

Weakness: Fluctuations in raw material prices poses challenges for lubricant producers. Increasing demand for electric vehicles could reduce demand for engine oils in the long run.

Opportunity: Growth in emerging economies offer new expansion opportunities for lubricant producers. Increasing demand from industries like wind energy and food processing present lucrative growth prospects. Adoption of synthetic and bio-based lubricants provides opportunities to companies.

Threats: Stringent environmental regulations around the world increase compliance costs for producers. Substitutes like greases present competition. Economic slowdowns impact demand from end-use sectors.

Key Takeaways

The global lubricants market is expected to witness high growth, exhibiting CAGR of 4.0% over the forecast period, due to increasing demand from the automotive industry. Growing vehicle parc and needs for fuel-efficient vehicles drive the automotive lubricants market.

Regional analysis
The Asia Pacific region currently dominates the global lubricants market, accounting for over 35% of the global demand in 2023. China, India, and Southeast Asian countries are major consumers, driven by the growing automotive production and manufacturing industry. North America and Europe are other major markets for lubricants.

Key players
Key players operating in the lubricants market are ExxonMobil Corp., Pennzoil, Quaker Chemical Corp., Royal Dutch Shell Co, British Petroleum, Chevron Corp., Total S.A, JX Nippon Oil & Energy Corp., Lukoil, and Philips 66 Company. Major players focus on expanding their production capacity and product portfolios through mergers and acquisitions.

For more details on the report, Read-

https://www.pressreleasebulletin.com/lubricants-market-growth-demand-and-overview/