The synthetic lubricants and functional fluids market, which is currently valued at USD 7.90 billion in 2022, is expected to grow at a CAGR of 5.80% to reach USD 13.88 billion by 2032.
In the past few years, the growth rate of the synthetic lubricants market has seen a tremendous increase. The primary factor driving the synthetic lubricants and functional fluids market growth is the expanding demand for the automotive industry. Using synthetic lubricants in place of petroleum-refined oils in high-temperature applications is likely to present profitable growth opportunities for synthetic lubricants and functional fluids market players all over the world.
The global synthetic lubricants and functional fluids market is expanding as a result of the demand for high-performance products and increasingly strict environmental regulations.
The rising availability of high-quality base stocks as a result of increasing investments in newer base stock capacities around the world is anticipated to also fuel synthetic lubricants and functional fluids market growth. Original equipment manufacturers (OEMs), which are moving toward global specifications, are more and more anticipated to promote the use of high-performance synthetic products as a result of the growing supply of synthetic lubricants and functional fluids.
The superior performance synthetic lubricants can achieve over their conventional counterparts in terms of low friction, high-temperature performance, and higher load-carrying capacity is another major factor fuelling the synthetic lubricants and functional fluids market expansion.
The synthetic lubricants and functional fluids market is expanding as a result of rising demand from the Asia-Pacific automotive and industrial sectors. Lower vehicle miles are driven as a result of factors like higher fuel prices and lower disposable incomes that have kept customers off-road and their enthusiasm for SUVs waning. Lower new vehicle sales are a result of low employment rates and low purchasing power, which is restraining the growth of the global synthetic lubricants and functional fluids market.
The automotive sector is anticipated to probably hold the top spot among all end-users in the global synthetic lubricants and functional fluids market over the anticipated timeframe. The segment's expansion is primarily attributed to synthetic lubricants' suitability for use in all industrial vehicle systems.
According to type, the PAO segment is anticipated to hold the largest share of the global synthetic lubricants and functional fluids market during the period of forecasting. The most frequently used synthetic lubricant for numerous applications and in large quantities is polyalphaolefin (PAO). PAO is primarily utilized in hydraulic, engine, transmission, and compressor oils as high-performance functional base fluids.
Additionally, the global market for synthetic lubricants and functional fluids has been adversely affected by the decline in industrial production, automotive production, and mining and construction activities.
A sizeable portion of the synthetic lubricants and functional fluids market was accounted for by Europe. However, due to the relocation of manufacturing operations to parts of Asia and South America, the region is likely to lose synthetic lubricants and functional fluids market share.
A high CAGR growth is anticipated in Asia Pacific. Due to the unabated pace of industrialization, developing economies like China and India have performed well. Most industrial sectors in the Chinese and Indian synthetic lubricants and functional fluids market have robust domestic demand.
It is anticipated that a major factor in the rising demand is anticipated to be the developing automotive industries in China and India. The region's expanding aviation industry is also anticipated to increase demand for synthetic lubricants and functional fluids over the course of the forecast period.
| Attributes | Details |
|---|---|
| Synthetic Lubricants and Functional Fluids Market CAGR | 5.80% |
| Synthetic Lubricants and Functional Fluids Market Size 2022 | USD 7.90 billion |
| Synthetic Lubricants and Functional Fluids Market Size 2032 | USD 13.88 billion |
Synthetic lubricants are produced by means of chemical synthesis of refinery by products and comprises of group III, IV and group V base oils including polyalphaolefins, polyalkylene glycols and esters, etc. Owing to the high viscosity indexes, high temperature stability, low pouring points, and low traction coefficients, synthetic lubricants are superior to the conventional mineral oils.
Functional fluids primarily consists of fluids used for their lubricating, mechanical, electrical insulation, and thermodynamic properties. Functional fluids are liquid under standard conditions; i.e. grease and gases (such as refrigerants) are excluded. Functional fluids finds use in a variety of applications including lubrication, hydraulic power transmission, and heat transfer.
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Global synthetic lubricants and functional fluids market is segmented into product type, synthetic base stock, end-use industry, and region. The global synthetic lubricants and functional fluids market is segmented on the basis of product type which includes engine oils, transmission and hydraulic fluids, antifreeze and deicing fluids, metalworking fluids, heat transfer fluids, and dielectric fluids etc.
On the basis of synthetic base stock, the global synthetic lubricants and functional fluids market can be segmented into glycols, polyalphaolefins, esters, and Group III base oils etc. Global synthetic lubricants and functional fluids market is segmented on the basis of end-use industry which includes automotive, aerospace/aircrafts, metals, industrial machinery, energy/power generation, construction and process industries etc.
Region wise, the global synthetic lubricants and functional fluids market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific (APEJ), Japan, Middle East and Africa (MEA).
In 2014, Europe accounted for a major share of the global synthetic lubricants and functional fluids market. However, the region is likely to lose share as a result of the shift in manufacturing activities to parts of Asia and South America.
Asia Pacific is anticipated to witness a high CAGR growth between 2015 and 2025. Developing economies like China and India have shown high performance, owing to the undeterred pace of industrialization. There is a strong domestic demand in most of the industrial sectors in the Chinese and Indian markets.
The budding automotive sector in China and India is predicted to be a key driver for the increased demand. Furthermore, the growing aviation industry in the region is further projected to boost the demand for synthetic lubricants and functional fluids over the forecast period.
Principal Consultant
The requirement of high performance products and increasingly stringent environmental regulations are the key factors driving the growth of the global synthetic lubricants and functional fluids market.
Growth of the global synthetics and functional fluids market will also be fueled by the rising availability of high quality base stocks as a result of increasing investments in newer base stock capacities all over the world.
Owing to the expanding supply of the synthetic lubricants and functional fluids, original equipment manufacturers (OEMs), which are taking steps towards global specifications, are increasingly willing to advocate the use of high performance synthetic products.
Synthetic lubricants and functional fluids have emerged as the ideal choice, owing to its ability to decrease the maintenance time and downtime costs by increasing the drain intervals.
Another key factor driving the growth of the global synthetic lubricants and functional fluids market is the superior performance obtainable by synthetic lubricants over their conventional counterparts in terms of low friction, high temperature performance, and higher load carrying capacity.
Additionally, the rising demand from the automobile and industrial segment in Asia-Pacific drives the growth of the global synthetic lubricants and functional fluids market.
Factors such as higher fuel prices and low disposable incomes have kept customers off-road with the passion for SUVs waning, thus causing decline in the number of vehicle miles driven. Weak employment rates and spending power have accounted for lower new vehicle sales, thus hindering the growth of the global synthetic lubricants and functional fluids market.
Additionally, decline in the industrial production, automotive production, and mining and construction activities have negatively impacted the global synthetic lubricants and functional fluids market.
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Some of the major players identified in the global synthetic lubricants and functional fluids market are Exxon Mobil, Prestone Products, Royal Dutch Shell, AMSOIL Incorporated, Ashland Incorporated, Autoparts Holdings Limited, BASF SE, Calumet Specialty Products Partners LP, Berkshire Hathaway Incorporated, BP plc, Chemtura Corporation, Chevron Corporation, ConocoPhillips, CLC Lubricants Company, Dow Chemical Company, DuPont (EI) de Nemours, Eastman Chemical Company, Milacron LLC, Total SA, and Warren Oil Company Incorporated, etc.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
The report also maps the qualitative impact of various market factors on market segments and geographies.
The market is likely to register a CAGR of 5.80% through 2032.
The market is currently valued at US$ 7.90 Bn in 2022.
The market is likely to grow to a valuation of US$ 13.88 Bn by 2032
Asia Pacific is likely to be a leading market during the forecast period.
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Synthetic Lubricants and Functional Fluids Market
