Market Overview:
Lubricants are compounds that are used to reduce friction and wear between surfaces in contact. They are obtained either from petroleum or synthetic sources. Lubricants are widely used in automotive, industrial machinery and equipment to facilitate smooth functioning and increase their lifetime. Oils like engine oil, transmission oil, gear oil, hydraulic oil etc. are commonly used lubricants in automobiles and other engines to reduce friction between moving parts.

Market key trends:
One of the major trends driving the growth of the lubricants market is rising automotive production across the globe. As per statistics, more than 90 million vehicles are manufactured annually worldwide. Lubricants like engine oil, gear oil, transmission oil etc. find major application in automotive industry. With growing automobile sales and production, demand for automotive lubricants is also rising steadily. Furthermore, increasing industrialization and growing machinery usage in various sectors like manufacturing, construction, mining etc. has augmented the demand for industrial lubricants over the years. Continued investment in development of high-performance, fuel-efficient and environment-friendly lubricants by major companies is another key trend propelling the market growth.

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.

Porter's Analysis

Threat of new entrants: The threat of new entrants in the lubricants market is moderate. The market requires large capital investments and presence of strong brand names to enter.

Bargaining power of buyers: The bargaining power of buyers in the lubricants market is high due to availability of various branded and generic products. Buyers can negotiate on price easily.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers of base oil and additives in the market.

Threat of new substitutes: The threat of new substitutes is low in lubricants market as there are very few product alternatives available.

Competitive rivalry: High due to presence of many global and domestic players.

SWOT Analysis

Strength: Strong distribution network and brand presence of major players. Innovation in bio-based and specialty lubricants.

Weakness: Volatility in raw material prices affects the profit margins. Market is fragmented with presence of local and private label brands.

Opportunity: Growing automotive industry worldwide boosts demand for motor oils. Increasing demand from industrial sector for greases and metalworking fluids.

Threats: Stringent environmental regulations for disposal of used lubricants. Substitution threat from synthetic and semi-synthetic lubricants.

Key Takeaways

The global lubricants market is expected to witness high growth, exhibiting CAGR of 4.0% over the forecast period, due to increasing vehicle production and miles driven. The market size for 2023 is estimated to reach US$ 178.4 Billion.

Regionally, Asia Pacific dominates the global lubricants market and is expected to maintain its leading position during the forecast period. This is attributed to growing automotive manufacturing in China and India. Furthermore, increasing industrialization coupled with improving economic conditions supplement the regional market growth.

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 are focused on new product launches to diversify their product portfolios. For instance, Shell launched a new range of Edge motorcycle oils suited for modern engine technologies.

For more details on the report, Read-
https://www.insightprobing.com/lubricants-market-growth-market-size-share-analysis/