Lubricant Market

Lubricant Market Outlook from 2024 to 2034

The lubricant market is valued at USD 174.94 billion in 2024 and is projected to reach USD 271.68 billion by 2034, exhibiting a modest CAGR of 4.50% over the forecast period.

Attributes	Key Statistics
Lubricant Market Value (2024)	USD 174.94 billion
Anticipated Market Value (2034)	USD 271.68 billion
Estimated Growth (2024 to 2034)	4.50% CAGR

Key Market Drivers

The lubricant market generated an estimated revenue of USD 134.35 billion in 2019. In the five years, the market grew at a 5.42% CAGR and added a staggering revenue of USD 40.59 billion. Several reasons can be attributed to this growth:

• Increasing industrial activities worldwide contribute to the heightened demand for lubricants in machinery and manufacturing processes.
• The growing global automotive industry fuels the need for lubricants due to increased vehicle production and maintenance requirements.
• Growing awareness of the importance of preventive maintenance and lubrication enhances machinery lifespan and performance.
• Ongoing innovations in lubricant technology, such as high-performance formulations, enhanced efficiency, and extended product lifecycles drive market growth.
• Increased international trade and transportation activities escalate the demand for lubricants in the shipping and logistics sectors.
• Robust growth in construction and infrastructure projects necessitate lubricants for heavy machinery and equipment in countries like India, China, and the United States.
• The growing exploration and extraction activities in the energy sector, including oil and gas, in the United States, Russia, Saudi Arabia, Canada, Brazil, etc., are also driving market growth.
• The expanding renewable energy sector, such as wind and solar power, requires lubricants for the maintenance and efficient operation of equipment, thus fueling product demand.

Consumption Analysis of the Lubricant Market

• The automotive industry is increasingly adopting lubricants, especially car manufacturers, service stations, and individual vehicle owners. These consumers use lubricants for engines, transmissions, and other vehicle components.
• Sales of lubricants are also rising in the manufacturing and processing industries. These entities utilize lubricants for machinery and equipment to ensure smooth operations and minimize friction.
• Lubricants are also experiencing increasing demand from aircraft manufacturers and operators. These companies use specialized lubricants for engines, gears, and other critical components in aviation.
• Exploration and production companies in the oil and gas industry are also opting for lubricants for drilling equipment and machinery used in extraction processes.
• The growing adoption of lubricants is also observed in shipping companies and maritime operations, where they are used for engines and various marine equipment to ensure optimal performance.
• The sales of lubricants for engines and various marine equipment to ensure optimal performance are also touching the skies in the agriculture sector.

Restraining Factors Adversely Affecting the Lubricant Market

The market is anticipated to surpass a global valuation of USD 271.68 billion by the year 2034, with a growth rate of 4.50% CAGR. While the market is expected to experience remarkable growth, several restraining factors could adversely affect its development:

• The increasing adoption of electric vehicles reduces the demand for traditional lubricants in EVs. This is posing a significant challenge to the market, especially in the automotive sector.
• The growing popularity of synthetic lubricants, due to their superior performance characteristics, is adversely affecting the market for traditional mineral-based lubricants.
• The trend toward maintenance-free systems and components in various industries may reduce the need for regular lubrication, impacting the demand for lubricants.
• War-like situations in the Middle Eastern countries and the European region have heavily impacted the global supply chain for lubricant raw materials and finished products. This has substantially slowed down the market for lubricants.

Category-wise Insights

Adoption of Synthetic Lubricants Due to their Superior Performance

Attributes	Details
Leading Base Oil Type	Synthetic
Market Share in 2024	39.43%

Depending on the base oil, the market is bifurcated into bio-based, synthetic, and mineral oil. The synthetic segment is anticipated to hold a share of 39.43% of the lubricant market.

• Synthetic lubricants have seen a surge in adoption due to their expanding range of applications across various industries, such as automotive, aerospace, and industrial machinery.
• Industries are also increasingly preferring synthetic lubricants for their superior performance characteristics, such as higher viscosity index, better thermal stability, and enhanced resistance to oxidation and degradation.
• The automotive sector has witnessed a significant rise in the use of synthetic lubricants, due to the need for improved fuel efficiency, extended oil change intervals, and enhanced engine protection.

Automotive Oil to Become the Next Big Thing in Lubricant Industry

Attributes	Details
Top Product Type	Automotive Oil
Market Share	36.54%

The market is categorized by product type into automotive, hydraulic, gear, compressed oil, etc. The automotive oil segment dominates the market and is anticipated to hold a market share of 36.54%.

• In the last few decades, there has been a noticeable shift in consumer and industry preference toward automotive oil due to its capability to provide superior engine protection and fuel efficiency.
• The ability of automotive oil to perform effectively in extreme conditions, such as high temperatures and heavy loads, is another key factor driving its adoption in the lubricant industry.

Country-wise Insights

The section provides an analysis of the lubricant market by country, including Germany, China, the United States, India, and Australia. The table presents the CAGR for each country, indicating the expected growth of the market in that country through 2034.

Countries	CAGR through 2034
Australia	6.8%
India	6.8%
China	5.70%
The United States	3.70%
Germany	2.80%

Lubricant Market in Australia

Australia is one of the leading countries in this market. The Australian market is anticipated to retain its dominance by progressing at an annual growth rate of 6.80% through 2034.

• Australia is blessed with a diverse topography that is best suited for the mining and exploration industry. These industries require effective lubricants for optimal performance and maintenance of machines and equipment. This substantially creates an overwhelming demand for lubricants in the country.
• Besides this, ongoing infrastructure projects and construction activities in Australia also create a consistent need for lubricants to ensure the smooth operation and maintenance of heavy machinery.

Lubricant Market in India

India is the leading Asian country that dominates the market. The Indian lubricant market is anticipated to retain its dominance by progressing at an annual growth rate of 6.80% until 2034.

• In the last few years, India has been rapidly going through a period of industrialization. This automatically generates excellent demand for lubricants as it is used in various industries, including steel, cement, and textiles, etc.
• The Indian automotive sector is also expanding exponentially due to the increased disposable incomes of the middle-class population, creating huge demand for lubricating oils.

Lubricant Market in China

China, too, dominates the market in the international marketplace. The Chinese lubricant market is anticipated to exhibit a CAGR of 5.70% through 2034.

• China’s large agricultural sector relies heavily on machinery, and the demand for lubricants in the agricultural industry is escalating as modern farming practices involve the use of advanced equipment requiring effective lubrication.
• The Chinese government is also investing heavily in infrastructure projects to improve the overall connectivity and transportation systems. These projects create significant demand for lubricants to facilitate the efficient operation and maintenance of a vast range of machinery.

Lubricant Market in the United States

The United States is also one of the leading countries in the global market, which is anticipated to register a CAGR of 3.70% through 2034.

• Increasing awareness of environmental sustainability and the shift towards eco-friendly lubricants in the U.S. market drive the growth of bio-based and environmentally conscious lubricants.
• The United States is also blessed with a robust industrial base spanning sectors like manufacturing, aerospace, and energy. This creates a consistent demand for lubricants in machinery and equipment used across diverse industries.

Lubricant Market in Germany

Germany leads the market in the European region. Over the next ten years, German demand for lubricants is projected to rise at a 2.80% CAGR.

• Germany is the global leader in the automotive sector. This ensures a steady demand for high-performance lubricants as they are essential to maintain and optimize the advanced and precision-engineered machinery and vehicles.
• Germany is also one of the leading countries in the machine tools manufacturing industry. These machines require specialized lubrication to ensure optimal performance, aiding the market growth of lubricants in the country.

Competitive Landscape

The market for lubricants is filled with numerous companies such as ExxonMobil, Royal Dutch Shell, Chevron Corporation, BP, TotalEnergies, Sinopec, Fuchs Petrolub AG, etc. These companies have a strong foothold in the international marketplace as entities across various industries rely on these companies for their lubrication needs.

Key players in the market are also focusing on increasing the eco-friendliness of their products to cater to the demands of eco-conscious consumers and businesses.

Recent Developments

• In January 2024, TotalEnergies Lubrifiants and Point S formed a strategic alliance. TotalEnergies supplied its renowned products, including Quartz engine oils, to Point S's extensive network of over 6,185 independent tire dealers and auto repair centers across 51 countries.
• In January 2023, Hindustan Petroleum Corporation Ltd. (HPCL) and Chevron Brands International LLC finalized a long-term agreement for licensing, production, distribution, and marketing of Chevron's lubricant products in India. HPCL's Silvassa facility began manufacturing premium Caltex lubricants, strengthening the collaboration and delivering increased value to consumers.
• In October 2023, BPCL unveiled a three-film campaign featuring brand ambassador Rahul Dravid for Mak Lubricants, emphasizing the importance of choosing the right lubricant. The films showcased individuals stuck with non-starting vehicles, with Dravid highlighting the need for thoughtful lubricant selection to prevent such issues.
• In April 2023, Brakes India, a braking systems manufacturer and part of the $3 billion TSF group, expanded its lubricants line with the introduction of gear and transmission oil under the brand Revia, leveraging its distribution network to meet growing demand in the lubricants market.

Key Companies in the Market

• ExxonMobil
• Royal Dutch Shell
• Chevron Corporation
• BP
• TotalEnergies
• Sinopec
• Fuchs Petrolub AG
• Valvoline
• Castrol (BP)
• Idemitsu Kosan Co., Ltd.
• PetroChina
• Lukoil
• Phillips 66
• Indian Oil Corporation
• Repsol
• JXTG Nippon Oil & Energy Corporation
• Pertamina
• Gazprom Neft
• SK Lubricants
• Petrobras

Key Market Segmentation

By Base Oil:

• Bio-based Oil
• Mineral Oil
• Synthetic Oil

By Product Type:

• Automotive Oil
• Hydraulic Oil
• Gear Oil
• Compressed Oil
• Greases
• Metal Working Fluid

By End-User Vertical:

• Automotive
• Industrial
• Marine
• Chemical
• Oil & Gas
• Aerospace
• Others

By Region:

• North America
• Latin America
• Asia Pacific
• Middle East and Africa (MEA)
• Europe

Frequently Asked Questions

How Big is the Lubricant Market in 2024?

The lubricant market is expected to be worth USD 174.94 billion in 2024.

What is the Sales Forecast for Lubricants through 2034?

The market is expected to reach USD 271.68 billion by 2034.

At What Rate is the Market Growing over the Forecast Period?

The market is growing at a CAGR of 4.50% from 2024 to 2034.

Which are the Key Manufacturing Companies for Lubricants?

Some of the key players in the market are ExxonMobil, Royal Dutch Shell, Chevron Corporation, BP, TotalEnergies, Sinopec, Fuchs Petrolub AG, etc.

What was the Value of the Market in 2023?

The valuation for the market was USD 167.41 billion in 2023.