Industrial Lubricants Market

The global industrial lubricant market size was valued at USD 52.57 billion in 2018 and projected to expand at a CAGR of 4.5% during the forecast period. Rapid industrialization in developing countries followed by a rise in the number of trade activities fuels the demand for industrial lubricants. Rising investments in R&D activities along with proper expansion channels helps in the global growth of key players. Some of the industries that are slated to witness considerable growth include unconventional energy, chemicals, and mining. This trend is expected to further strengthen product demand in compressors, hydraulics, industrial engines, centrifuges, and bearings.

In terms of volume, the U.S. market for process oil accounts for the largest share and estimated to expand at a CAGR of 2.8% during the forecast period. The U.S. has continuously evolved and made use of higher quality lubricants with longer oil drain intervals which have resulted in lower lubricant consumption as a result of efficiency.

Rising demand for a range of finished goods along with the subsequent need to expand production capabilities has compelled manufacturers to rely on machinery to automate their production process and processing activity. Initiatives such as continuously evolving emission standards, improving engine technology, and norms about mitigated carbon footprints that are being adopted in emerging economies such as China and India are touted to be among the key driving factors over the forecast period.

Changing consumer lifestyles and the adoption of western living standards have boosted the demand for processed and frozen foods. Packaging line automation and adaption to high-pressure operations with robotics is expected to foster processed foods market growth. The rising importance of agro-processing is expected to bring about further developments in the industry.

Increasing concerns and stringent regulations over contamination and environmental pollution where synthetic lubricants are used is a major cause of environmental pollution. Another issue faced is the disposal of used lubricants. Since most of the additives used in lubricants are petrochemical derivatives, they pose a serious threat to water pollution. Hence, rising environmental concerns regarding the use, disposal, and recycling of lubricants restrain market growth.

Based on the product, the industrial lubricants market can be segmented into process oils, general industrial oils, metalworking fluids, and industrial engine oils. Process oils emerged as a dominant product segment accounting for more than 32% of the overall volume in 2018. The segment is expected to maintain its dominance expanding at a CAGR of 3.4% during the forecast period.

Asia Pacific is projected to register the highest CAGR from 2019 to 2025 due to well-established end-use industries across emerging economies, such as India, Indonesia, Thailand, and Malaysia. Moreover, rising awareness regarding greater operating efficiency of industrial equipment after lubricant application is anticipated to enhance the products further.

Demand for industrial lubricants in North America and Europe is anticipated to remain at a higher level despite the relative stagnancy in industrial growth. Rising demand for oilfield chemicals due to drilling and exploration activities are expected to propel the market growth in North America. The resurgence in industrial activities along with the modernization of industrial machinery is the key driving factor determining European industrial lubricant demand in the forecast period.