The India industrial lubricants market size reached USD 1,732.7 million in 2018. The market observed a 3.8% year-on-year growth in 2022 and is estimated to reach USD 1,954.2 million in 2023.
Over the projection period (2023 to 2033), industrial lubricant sales in India are likely to rise at 4.0% CAGR, culminating in a market size of USD 2,902.7 million by the end of 2033.
Demand in the market remains particularly high for hydraulic fluids, owing to their high usage in a wide variety of sectors. The target segment is anticipated to progress at a CAGR of 5.1% between 2023 and 2033.
| Attribute | Key Insights |
|---|---|
| India Industrial Lubricants Market Value in 2022 | USD 1,882.1 million |
| Estimated India Industrial Lubricants Market Size (2023E) | USD 1,954.2 million |
| Projected Market Value (2033F) | USD 2,902.7 million |
| Value CAGR (2023 to 2033) | 4.0% |
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Industrial lubricants are specialized fluids used for industrial applications to lessen friction between moving parts in a variety of machinery and equipment.
These lubricants are derived from bio-based oil, mineral oil, and synthetic oil. They are essential in maintaining and improving the performance and lifespan of these machines.
There are numerous product types available in the market. This includes gear oils, hydraulic oils, compressor oils, metal working fluids, turbine oils, heat transfer fluids, and others. Each type of lubricant is designed to meet specific requirements of different applications.
The use of bio-based lubricants, which are produced from renewable resources such as vegetable oils and animal fats, is on the rise. These lubricants are popular in various sectors including food processing and pharmaceutical manufacturing due to their eco-friendly and biodegradable nature.
The Indian government is enacting regulations focused on reducing greenhouse gas emissions and promoting sustainable practices. These regulations are accelerating the adoption of bio-based lubricants as a viable alternative to petroleum-based lubricants.
Rising popularity of bio-based industrial lubricants will therefore continue to play a key role in boosting the market growth during the forecast period.
The Industrial Internet of Things (IIoT) and Industry 4.0 are driving the adoption of predictive maintenance systems, which use lubricant analysis to monitor the health of machinery and foresee maintenance needs. This tendency is leading to an increase in the demand for lubricants that can provide exact data for preventive maintenance.
The exponential growth of metal and mining sectors is expected to positively impact industrial lubricant sales in India.
The metal and mining sectors frequently utilize heavy-duty gear, which requires specialized lubricants that can withstand extreme temperatures and pressures. Lubricants such as synthetic oils and greases are designed to meet these specific requirements and are in high demand in this sector.
In metal and mining sectors, industrial lubricants are utilized for the use of metal production and mining operations such as for the use in rolling mills to reduce the thickness of metal sheets or to shape metal into different forms.
Industrial lubricants are also utilized in compressors which are used in mining operations to supply compressed air for drilling and other applications.
The country's metalworking activities witnessed resurgence as the lockdown measures were progressively loosened and state and local governments concentrated on domestic production. This created high demand for industrial lubricants and the trend is expected to continue through 2033.
Strict environmental laws that apply to the metal and mining sectors have prompted the creation of eco-lubricants that are biodegradable and contain less hazardous chemicals. Adoption of these eco-friendly lubricants can assist metal and mining businesses in achieving their sustainability goals.
Several prominent industrial lubricant manufacturers are introducing novel solutions in India market to gain profits. For instance, in 2021 Idemitsu introduced its cutting-edge EV lubricants in India market. The new high-performance lubricants are designed to optimize performance and protection of electric vehicles.
As per Future Market Insights (FMI), sales of industrial lubricants in India increased at a CAGR of 3.8% during the historical period from 2018 to 2022. Total market valuation in India at the end of 2022 was estimated at USD 1,882.1 million.
Looking forward, India industrial lubricants industry is projected to expand at a CAGR of 4.0% between 2023 and 2033. It is predicted to cross a valuation of USD 2,902.7 million by the end of 2033.
The market is anticipated to witness robust investment opportunities over the forecast period owing to India's rapidly growing industrial sector which includes manufacturing, automotive, construction, and others.
As industrial activities increase, there will be a corresponding demand for lubricants to maintain the smooth functioning of machinery and equipment.
India is one of the world's leading automobile markets, and the production and sales of vehicles are expected to continue growing. According to the International Organization of Motor Vehicle Manufacturers (OICA), total vehicle production in India reached around 5.35 million in 2022 and this figure is estimated to further rise during the forthcoming period.
Rising production and sales of vehicles in turn is expected to create a high demand for industrial lubricants such as lubricant oils.
Lubricants are essential for vehicle maintenance, and the rising automobile sector will drive the demand for industrial lubricants.
The Indian government has been focusing on infrastructure development projects, including the construction of roads, railways, ports, and airports. These projects require heavy machinery and equipment that rely on lubricants for optimal performance. Owing to these reasons infrastructure development initiatives will flourish the demand for industrial lubricants in India during the forecast period.
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The oil and gas sector is a significant consumer of industrial lubricants and has been instrumental in driving the market's expansion. This is due to rising importance of industrial lubricants and industrial greases in this sector.
The oil & gas sector depends on machinery that functions in harsh environments, such as those with high temperatures and pressures, which puts the machinery under a great deal of strain. To minimize the harm that these demanding circumstances can produce, lubricants are essential.
Industrial lubricants are crucial for providing the effective and flawless operation of oil and gas equipment, which will ultimately maximize productivity and reduce downtime.
As the global demand for oil and gas continues to rise, there is a corresponding increase in the need for lubricants to support the industry in maintaining and optimizing production levels.
With the development of more complex and sophisticated machinery in the oil & gas sector, including offshore rigs, subsea equipment, and deepwater drilling, it is essential to employ lubricants that can withstand the particular risks these environments present.
Manufacturers are working constantly to develop new products that are tailored to meet the demands of the oil and gas sector. This innovation will significantly impact market growth in India.
The advent of Industry 4.0 and automation technologies in several industrial processes is boosting demand for lubricants. These cutting-edge technologies frequently need continuous, high-speed operations in harsh environments, which increases the wear and tear on machinery and equipment.
Industrial lubricants are essential for reducing friction, eliminating heat, preventing corrosion and oxidation, and ensuring that machinery and equipment operate well.
With the growing use of automation and Industry 4.0 technologies, demand for industrial lubricants is expected to rise steadily. This is due to their ability to maintain optimal performance and prolong the lifespan of advanced systems.
Modern manufacturing and industrial processes involve complex and sophisticated machinery, which calls for the usage of specialized lubricants that can fulfill their specific performance and environmental needs.
For instance, certain machines may necessitate lubricants capable of withstanding high temperatures, extreme pressures, or harsh chemical environments.
Owing to these reasons it is projected that the market would expand in unison with the increased adoption of automation and Industry 4.0 technologies.
Manufacturers will employ these lubricants to ensure effective operations, minimize downtime, and reduce maintenance and repair costs associated with their sophisticated machinery and equipment.
Oil price volatility has the potential to have an influence on both the regional economy as a whole and the demand for industrial lubricants.
For instance, during periods of high oil prices, companies may incur higher operational costs, which could lead to less money being spent on maintenance and equipment. This could result in a decline in the market owing to the result of businesses postponing maintenance or lowering use to save money.
High oil prices can also have an impact on the spending power of both businesses and consumers due to inflationary pressures. This could lead to businesses foregoing lubricants in favor of other costs, which might further shrink the demand.
The unpredictability of oil prices can make it difficult for businesses to plan and invest in this sector. Owing to this, to retain profitability and competitiveness, businesses participating in this industry must continuously monitor oil prices and modify their plans as necessary.
Robust Expansion of End-use Sectors to Bolster Industrial Lubricant Sales in West India
West India is expected to remain a prominent region in the India industrial lubricants market owing to the presence of key manufacturers along with the higher production volume of the lubricants.
Significant development of end-use sectors such as construction, automotive, oil & gas, etc. in Maharashtra and Gujarat will further elevate industrial lubricant demand in the region.
The growing industrialization across the West India region has led to an increase in demand for lubricants in various sectors including manufacturing, construction, and marine. As these sectors continue to expand, industrial lubricant sales in the target region will rise significantly.
As per Future Market Insights (FMI), the West India market is expected to represent a total incremental D opportunity of USD 383.7 million between 2023 and 2033.
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Sales to Remain High for Hydraulic Fluids in India Market Through 2033
According to Future Market Insights’ (FMI) latest report, hydraulic fluids will remain the top-selling product types in India market. This is due to increasing applications of hydraulic fluids across various industries.
Sales of hydraulic fluids are projected to rise at 5.1% CAGR in India market, totaling a valuation of USD 827.7 million by 2033. This will make it a key revenue-generation segment for industrial lubricant manufacturers.
Hydraulic fluids are specially designed fluids used to transmit power in hydraulic systems. They are used in a variety of applications, including heavy machinery, automotive brakes, and aircraft systems.
Hydraulic fluids are used because they have unique properties that make them ideal for these applications. This includes their ability to transfer energy, lubricate moving parts, and protect against corrosion.
Power Generation Sector to Dominate India Market in a Bid to Meet Growing Domestic Energy Needs
Based on end-use, power generation sector is expected to create a higher demand for industrial lubricants in India market. This is attributable to rising usage of industrial lubricants in the expanding power generation sector.
As per Future Market Insights (FMI), power generation segment is likely to thrive at 3.9% CAGR during the assessment period. It is set to total a valuation of USD 612.5 million by 2033, creating an incremental opportunity of USD 193.8 million.
India has a diverse power sector in the world with a wide range of possible power generation options. The demand for power in India has grown significantly and is expected to continue expanding.
It is vital to increase the installed generating capacity to meet the growing energy needs of the nation. This in turn will create a favorable environment for the development of the industrial lubricants industry.
Industrial lubricants play a critical role in the power generation sector. They help ensure efficient and reliable operation of equipment, which is crucial for power generation plants to meet the growing energy demands of modern society.
Rapid expansion of power generation infrastructure due to penetration of industrialization & urbanization will positively impact industrial lubricant sales during the assessment period.
The India market is characterized by numerous key players, resulting in a fragmented landscape. The market is dominated by key participants which will hold 60% to 65% of the total market share.
Several small and medium-sized players actively compete with the prominent players at domestic and regional levels, contributing to the market's competitiveness.
To boost their sales, key industrial lubricant manufacturers are launching new products, forming partnerships and collaborations, and adopting merger & acquisitions strategy.
Smaller manufacturers on the other hand are prioritizing cost-effective solutions and value-for-money services to improve their revenue and enhance their market presence.
Recent developments:
| Attribute | Details |
|---|---|
| Estimated Market Value (2023) | USD 1,954.2 million |
| Projected Market Value (2033) | USD 2,902.7 million |
| Anticipated Growth Rate (2023 to 2033) | 4.0% CAGR |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Industry Analysis | USD Million for Value and Tons for Volume |
| Key Regions Covered | North India, South India, East India, West India |
| Key Segments Covered | Product Type, Base Oil, End Use, and Region |
| Key Companies Profiled | Indian Oil Corporation Limited; Hindustan Petroleum Corporation Limited; Castrol Oil; Bharat Petroleum Corporation Limited; Shell plc.; Valvoline Cummins Private Limited; Gulf Oil; Tide Water Oil Co. (India) Limited; Total Energies SE; Amsoil, Inc.; Savita Oil Co. Ltd; Nyanas AB; Raj Petrochem Ltd.; PetroChina Company Limited; China Petroleum and Chemical Corp (Sinopec Corporation); The Idemitsu Kosan Company, Ltd. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Driver, Restraint, Opportunity, and Trends Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The India market was valued at US$ 1,882.1 million in 2022.
The India industrial lubricants market size is estimated to reach US$ 1,954.2 million in 2023.
Industrial lubricant demand in India is expected to rise at a CAGR of 4.0% through 2033.
The India industrial lubricants industry is projected to reach US$ 2,902.7 million by the end of 2033.
The top region driving the Indian market demand is West India.
Mineral oil segment is expected to account for a prominent market share.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Market - Pricing Analysis 7. Market Demand (in Value or Size in US$ million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 9. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Product Type 9.1. Hydraulic Fluids 9.2. Metalworking Fluids 9.3. Gear Oil 9.4. Compressor Oil 9.5. Grease 9.6. Turbine Oil 9.7. Transformer Oil 9.8. Refrigeration Oil 9.9. Textile Machinery Lubricants 9.10. Others 10. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Base Oil 10.1. Mineral Oil 10.2. Synthetic Oil 10.3. Bio-Based Oil 11. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by End Use 11.1. Construction 11.2. Metal & Mining 11.3. Cement Production 11.4. Power Generation 11.5. Automotive 11.6. Chemical Production 11.7. Oil & Gas 11.8. Textile Manufacturing 11.9. Food Processing 11.10. Agriculture 11.11. Pulp & Paper 11.12. Marine Applications 11.13. Others 12. Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 12.1. North India 12.2. South India 12.3. East India 12.4. West India 13. North Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. South Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. East Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. West Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Market Structure Analysis 18. Competition Analysis 19. Assumptions and Acronyms Used 20. Research Methodology
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India Industrial Lubricants Market
