Lubricants Market is Expected to Reach 44,165.11 Kilo Tons Globally by 2020

Transparency Market Research has released a new market report titled “Lubricants Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014 - 2020” that defines and segments the global lubricants market with analysis and forecast in terms of volume. The report observes that the global demand for lubricants stood at 39,140.12 kilo tons in 2013 and is projected to reach 44,165.11 kilo tons by 2020, expanding at a CAGR of 1.72% from 2014 to 2020.

The market study analyzes the product segments: mineral oil, synthetic, and bio-based. In terms of volume, mineral oil was the largest segment in 2013 and accounted for more than 80% of the global lubricants market. Bio-based lubricants segment is expected to be the fastest-growing segment during the forecast period. Base oils and lubricant additives are blended together to produce finished lubricants. The performance of a lubricant depends on the type of base oils used and the additives blended with the base oils. The use of better quality lubricants reduces the maintenance cost and increases the lifespan of the machinery.

Application segments analyzed in the lubricants market report are automotive oils, industrial oils, metalworking fluids, grease, and other lubricants. In 2013, the automotive oils segment dominated the global lubricants market in terms of volume. This segment accounted for more than 50% of the market share. Automotive oils comprise a wide range of lubricants such as engine oil, hydraulic oil, and gear oil used by various passenger cars, commercial vehicles, and construction vehicles. Improving gross domestic product (GDP) in developing countries such as China and India has boosted the growth of the automotive industry in these countries. This has resulted in increasing demand for lubricants in the developing countries. Growing automotive industry is also boosting the metalworking fluids market as vehicle components are machined first, before being assembled into the final product. Machining these components requires metalworking fluids for better results.

In terms of volume, Asia Pacific dominated the global lubricants market with over 40% share in 2013. The region is likely to be the most attractive market for lubricants during the forecast period. Factors such as infrastructure development and increasing number of passenger cars in China have significantly contributed to the high market share. However, the global lubricants market is hampered by a longer engine oil drain interval as the improved drain interval minimizes the consumption of finished lubricants by a vehicle.

Some of the key players in the global lubricants market include Royal Dutch Shell plc, Total S.A., Chevron Corporation, Exxon Mobil Corporation, BP p.l.c., and PetroChina Company Limited. The lubricants market is dominated by a few MNCs. This factor makes it difficult for new players to enter the market. Distribution network is another important factor affecting a company's entry in the market. Lubricant manufacturing companies are expanding their business in regions such as Asia Pacific and Africa, which are growing and potential markets for lubricants. Companies are penetrating the market by increasing their retail centers and production capacities in these regions. In November 2013, Total Lubricant China inaugurated a lubricant blending plant in Tianjin, China. The plant has an annual production capacity of 200,000 metric tons. In July 2013, Singapore Lube Park Pte Ltd, a joint venture between Sinopec Ltd., Total, and Shell, announced the construction of a lube park consisting of shared import, export, and storage facilities in Tuas, singapore.