The global Synthetic Lubricants Market is valued at USD 17.2 Billion in 2022 and is projected to reach a value of USD 21.8 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 3.5% between 2023 and 2030.
Synthetic Lubricants comprise thickeners, synthetic base oils, and additives. Compared to many mineral-based fats, they have advantages. The global market for synthetic greases is anticipated to expand significantly over the projected period due to numerous contributing factors. The improved characteristics of Synthetic Lubricants, such as their ability to manage temperature by absorbing the heat produced by moving vehicle parts and transferring it to a cooler or sump, are responsible for the market's expansion. This fuels demand in end-use sectors like the automotive and industrial machinery and equipment industries. Synthetic Lubricants have advantages over mineral ones, such as higher hardware compatibility with automotive components. Therefore, over the forecast period, the demand for Synthetic Lubricants is expected to rise due to the introduction of modern engines and high-end automotive parts, improvements in vehicle designs, and technological advancements.
Synthetic Lubricants Market Size, 2022 To 2030 (USD Billion)
Due to increased vehicle production and new machine installations, it is also projected that demand for the product will rise in Asia Pacific. The need for Synthetic Lubricants is also growing due to technological advancements like the adoption of the NSF Food Lubricants Standard by major equipment manufacturers in the food industry. Manufacturers are creating new products and technologies with various equipment running at high temperatures and pressures. However, it is projected that consumer preference for less expensive Synthetic Lubricants may impede market progress. Due to the increased demand in the manufacturing industry to decrease maintenance costs, it is also projected that the variety of Synthetic Lubricants will be limited.
They are frequently categorized as oily and liquid compounds not derived from petroleum yet possessing properties resembling lubricants manufactured from oil. These lubricants aid in temperature regulation by absorbing heat generated by moving vehicle parts and dispersing them to the sump or cooler. These components help make the life cycle of a vehicle better overall. Only a few advantages of Synthetic Lubricants include low energy consumption, excellent thermal and oxidative stability, volatility, and flashpoints. Therefore, they have a broad range of uses in various industries, including building, mining, oil and gas, textile, food processing, chemical, and automotive. A lubricant is a substance applied to the surfaces of two engines or other pieces of machinery to reduce or control friction.
Report Coverage & Deliverables
- Real-Time Data Updates:
- Competitor Benchmarking
- Market Trends Heatmap
- Custom Research Queries
- Market Sentiment Analysis
- Demographic and Geographic Insights
The recession has mainly affected the US and other European countries, such as Germany and the UK. According to the World Bank, a global recession is predicted to start in 2023 because central banks worldwide have raised interest rates in reaction to inflation. The sector as a whole is growing only modestly because of a downturn in manufacturing. Businesses must deal with a lack of labor and rising raw material costs. Russia's invasion of Ukraine affected the key industrial sector, which is currently feeling the impacts of it. Agriculture is a significant industry in each of these areas. A food and energy crisis is expected to occur if things worsen, especially in countries that depend on European countries for both.
Top Market Trends
- Rising awareness Among Prominent Players: Many companies know that reducing the total cost of ownership (TCO) over the machine's lifespan is the key to getting the most out of their investment. Mineral-based oils are not favored over synthetic oils. However, the impact of lubrication on TCO is far too frequently underestimated. Less than 5% of the entire operational expenses of the company are generally spent on lubricants. Turbine operators benefit from unique properties such as less friction, increased heat transfer, and quicker air release thanks to the primary synthetic lubricant formulations. With the construction of new power plants, it is anticipated that demand for turbine oil and other lubricants used in engines will significantly rise.
- Increasing Utilization within the Automotive Sector: They are often described as oily, liquid substances that are not directly generated from petroleum but have properties similar to those of petroleum-based lubricants. Their use within the automotive industry is on the rise. These lubricants help control the car’s temperature by absorbing the heat generated by the vehicle’s moving parts and dissipating it into the sump or cooler. Together, these components enhance the vehicle's total life cycle. Another major market trend for Synthetic Lubricants is the adoption of advanced engines and pricey car components. Additionally, these high-end engines and parts work better with Synthetic Lubricants. Therefore, there is tremendous potential for these lubricants within the anticipated period.
- Development of Bio-Based Synthetic Lubricants: Synthetic Lubricants are growing in popularity because they are more mechanically compatible with vehicle parts than mineral lubricants are. The fact that these lubricants are less expensive than those composed of minerals and bio-based materials is one of the key factors anticipated to fuel the market's growth. Two constraints that could limit the industry are the high operating costs of making Synthetic Lubricants and potential breakdown worries in specific environmental environments. Adopting cutting-edge new-generation engines and the ongoing evolution of vehicle design is predicted to offer promising growth potential. One of the most recent developments in the Synthetic Lubricants industry globally is using cutting-edge automobile components and new-generation engines.
The global Synthetic Lubricants market can be categorized into Type, Product Type, End-Use Industries, and Region. Based on Type, the Global Synthetic Lubricants Market can be segmented into Group III (Hydrocracking), Esters, Poly Alkylene Glycol (PAG), and Poly Alpha Olefin (PAO). Additionally, based on Product Type, the market can be further divided into Engine Oil, Hydraulic Fluids, Metalworking Fluids, Compressor Oil, Gear Oil, Refrigeration Oil, Transmission Fluids, and Turbine Oil. Additionally, based on the segment End-Use Industries, the market may be divided further into Textile, Food Processing, Marine (Deck Manufacturing), Oil & Gas, Mining, Construction, Metal Production, Cement Production, Power Generation, and Other End-Use Industries. Similarly, based on Region, the market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
Below tree is interactive. You can click the nodes to get more information.
Based on Type
Poly Alpha Olefins (PAO) to Dominate Market Owing to Higher Hydrolytic Stability
In terms of revenue and market share, the Poly Alpha Olefins (PAO) sector is anticipated to rule the worldwide Synthetic Lubricants market during the forecast period. This is explained by the high viscosity index and hydrolytic stability it provides. The growing use of PAO in gear and bearing oils, its flexibility to high and low temperatures, and its relative cost compared to other base oils contribute to its rise. Its physical and chemical qualities are also influenced by its lower volatility, oxidative stability, high viscosity index, wide working temperature range, lower pour point, and higher oxidative/thermal stability. Due to the adaptability of synthetic esters, which enables them to be used in both soft and high-temperature applications, the esters segment will experience the fastest growth in CAGR throughout the projection period. They also respond well to additions that enhance performance, such as corrosion inhibitors, antioxidants, load-carrying additives, and anti-wear agents.
Based on Product Type
Engine oil to Lead Market Owing to Rising Utilization in Automobiles
Regarding revenue and share, engine oil will hold the most significant market share over the forecast period. The automotive industry is growing and comprises commercial and passenger automobiles. Engine oil is often used in cars to lower metal-on-metal friction and guard against damage. According to OICA, the production of automobiles increased from 77.6 billion to 80.1 billion between 2020 and 2022. Modern high-performance petrol and diesel-based engines have increased demand for Synthetic Lubricants due to their higher viscosity than conventional lubricants. Due to these fluids’ crucial role in the upstream and downstream sectors of the processing of gas and oil, including the processing of natural gas and crude oil, as well as transportation and refining, gearbox fuels will grow at the fastest rate of CAGR during the forecast period.
Based on End-Use Industries
Power generation accounts for the Largest Market Share Owing to Advancements in Technologies
The power generation sector will dominate the market share for Synthetic Lubricants globally. Power generation is one of the most critical sectors of the world economy. Various end-user industries are experiencing an increase in energy consumption due to the opening of multiple new plants brought on by advancements in manufacturing technologies. Synthetic oils are employed in gas turbines that are used in heavy-duty applications. These turbines are essential to the energy sector's ability to produce power. When producing electricity, machinery has a lot of heat. In addition to turbines, the power generation business also uses pumps, bearings, fans, compressors, gears, and hydraulic systems. Synthetic oils are extensively used for lubrication and temperature control in power production. Construction will grow with the fastest-growing CAGR during the forecast period owing to rising infrastructure projects on a global scale.
Based on Region
Asia Pacific Region Accounted for the Most Considerable in terms of Revenue
During the anticipated period, Asia Pacific will dominate the global market for Synthetic Lubricants. This increase is due to the region's growing petrochemical and automotive industries. Large oil companies that manufacture synthetic greases and have extensive distribution networks control most of the market. The low price of crude oil has increased the region's petrochemical production and has benefitted the Asia Pacific refinery industry, especially in countries like China, India, and Singapore. Regional markets benefit from stronger industrialization, rising urbanization, and more significant automotive sales and production than other regions.
The most populous area is Asia Pacific, where more middle-class households have discretionary income, which helps to increase automobile sales. Urbanization is accelerating swiftly in China, Indonesia, and India, fueling market expansion. Increased investment in synthetic lubricant blending facilities across many countries, including China and India, drives the Asia Pacific market. Additionally, stricter regulations on CO2 emissions from cars have boosted the need for fuel-efficient lubricants, which has pushed the Synthetic Lubricants Market into the transportation sector.
The global Synthetic Lubricants market is highly competitive due to the presence of numerous players. The market leaders invest significantly in their research and development teams to diversify their product offerings. Due to their accelerated expansion, the market leaders are expanding their footprint in emerging markets like Asia Pacific and Latin America. The international players concentrate on growing their presence through producing locally and regionally.
A few of the leading companies in the worldwide Synthetic Lubricants market are - BP Lubricants Pvt. Ltd. (India), Chevron Corporation (U.S.), LANXESS (Germany), Valvoline (U.S.), FUCHS (Germany), Pennzoil (U.S.), Phillips 66 Company (U.S.), Motul (France), AMSOIL INC. (U.S.), Agip (Jordan).
Recent Market Developments
- March 2022: The FUCHS Group has a contract to buy the lubricants division of Gleitmo Technik AB, and it plans to merge that division with its Swedish subsidiary, FUCHS LUBRICANTS SWEDEN AB.
- May 2020: To expand the manufacturing capacity of its lubricants oil blending plant (LOBP) in Jakarta, Indonesia, Shell Indonesia announced investment. Once constructed, the plant may manufacture up to 300 million liters of finished lubricants annually.
Segmentation of the Global Market
- Type (PolyAlphaolefin (PAO), Esters, Poly Alkylene Glycol (PAG), Group III (Hydrocracking))
- Product Type (Engine Oil, Hydraulic Fluids, Transmission Fluids, Compressor Oil, Refrigeration Oil, Gear Oil, Turbine Oil)
- End-Use Industry (Construction, Mining, Metal Production, Cement Production, Power Generation, Automotive Manufacturing, Chemical, Marine (Deck Manufacturing), Oil & Gas, Textile, Food Processing, Other Industries)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- BP Lubricants Pvt. Ltd. (India)
- Chevron Corporation (U.S.)
- LANXESS (Germany)
- Valvoline (U.S.)
- FUCHS (Germany)
- Pennzoil (U.S.)
- Phillips 66 Company (U.S.)
- Motul (France)
- AMSOIL INC. (U.S.)
- Agip (Jordan)
||Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST
analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market
attractiveness analysis by segments and North America, company market share analysis, and COVID-19
Pricing and purchase options
||Avail of customized purchase options to meet your exact research needs. Explore purchase options