The global industrial lubricants market is projected to witness a CAGR of 2.67% during the forecast period to reach the total market size of US$71.413 billion by 2023, increasing from US$60.964 billion in 2017.
Rapid industrialization in emerging economies, increase in process-automation in manufacturing units, rising demand for automobiles and increased trade are some of the major factors driving the global industrial lubricants market. The automation of manufacturing units leads to an increase in efficiency and productivity of machines which further increases the machinery run time resulting in a higher demand for industrial lubricants to prevent equipment failure. However, strict environmental regulation acts as a major restraint in the industrial lubricants market.
On the basis of base oil, the industrial lubricants market can be segmented into mineral oil lubricants, bio-based oil lubricants, and synthetic oil lubricants. Synthetic oil lubricants contribute to a significant share in the market owing to its high performance in extreme conditions and better viscosity index.
However, the major demerit of the synthetic oil lubricants is its high costs and their environmental implications. Mineral oil lubricants are least expensive and are derived from crude oil. The growing environmental concerns and increasing depletion of crude oil resources have led to an increased demand for bio-based oil lubricants which are expected to have a lighter environmental footprint.
By type, the global industrial lubricants market can be segmented as grease, gear lubricants, hydraulic lubricants, compressor lubricants, turbine lubricants, metalworking fluids, and others. Increased consumption of metal in the automotive industry has resulted in a growth of metalworking fluids.
Compressor lubricants are widely used in manufacturing facilities to cool, seal and lubricate internal components of machinery. There has also been an increase in the use of grease in the mining industry. The rising industrial base will fuel the demand for industrial lubricants.
On the basis of industry, the industrial lubricants market can be segmented into Marine, Automotive, Industrial, Transportation, Textiles, Chemicals, Power Generation, Mining, Food processing and others. Rising demand for low viscosity fluid in the automotive sector has resulted in an increased demand for grease in industries to maintain smooth functioning of machinery.
Power generation industry is also expected to witness a boost in growth due to rise in demand for energy globally. Chemical manufacturing sector involves a significant application of industrial lubricants due to the demand for nonreactive and sustainable processing fluids. To replace conventional lubricants the transportation industry is increasingly adopting bio-based lubricants. The shift can be primarily attributed to stringent vehicle emission regulations.
Asia Pacific region along with middle east and Africa are the fastest growing economies in the industrial lubrication market. Rising population, increasing disposable income, rising awareness and demand for superior quality products will increase the demand for industrial lubricants in these regions. Various initiatives are being adopted in emerging economies like India and China to improve engine quality, to regulate vehicle emission standards and thus to move towards more environmentally friendly products. North America and Europe serve as mature markets and thereby present various opportunities in research and development.
The global industrial lubricants market is competitive owing to the presence of well diversified international, regional and local players. The competitive landscape details strategies, products, and investments being done by key players in different technologies and companies to boost their market presence.