The worldwide market for industrial lubricants is estimated to grow at a CAGR of 3.0% between 2018 and 2026. Increasing demand for different types of these products from various industrial sectors is expected to drive the market over the next decade. Manufacturing industry worldwide has played a significant role in generating a surge in demand for these products in the past few years. The industrial trends of the lubricant industry shows the highest increase in demand has been from the manufacturing sector and it tend to grow with increase in the expansion of the lubricant market.
The lubricant market is an immensely profitable business for the downstream oil and gas sector and has provided many opportunities for the companies to grow their business. This also provides opportunities for new entrants. The industry has witnessed major policy shifts during the past decade. Some of these include decanalisation of base oil imports that has certainly brought in more private players into the industry and have added significantly to boost the market share. The industry determined base oil pricing, quantitative restrictions has been laid off for the allotment of product demanded as per the quantity, and reduction in custom duties of base oil has shifted the lubricant industry to further greater and achievable heights.
The industrial lubricant sector presents new market opportunities for the firm’s growth in the worldwide automotive, power, and engineering sectors. These end-use sectors have played a considerable role in the growth of the product manufacturers. There are numerous prospects of high level investments in the, transport and power, manufacturing sector and has the potential to drive very strong growth in the aviation industrial lubricant segment as well as in the transformer oil segments. Eventually the overall scenario for these products looks bright because the growth of emerging economies along with the developed economies worldwide has led to an increase in the buying power of the consumer.
Companies are paving ways for sustainability in the industry. These product manufacturing companies are maintaining a good brand image within the minds of the customers, so as to combat competition. Competition in the industrial oil & grease market has been a major factor for the companies to survive in this lucrative market. They have been creating awareness in the market about their presence through dealer’s and distribution network meets, advertisements through hoardings, TV broadcasting, and Shutter paintings, in order to create a sense of visibility and to retain their specific products in the market. Companies have been engaging in tie-ups with major oil companies and general manufacturing companies so as to capture the consumer on sight in order to benefit both the company and their respective clients.
The industry participants are even doing product costing and competitive pricing at varying rates in order to differentiate their product with complementary brands in the industry space. Companies are also doing mergers and acquisitions in order to get a bigger brand image and brand awareness for the consumer to be aware of the brand existing the market.
Asia Pacific regional market is projected to be the largest consumer of industrial lubricants industry in terms of volume and revenue both. The shift from western industrialization to the Asia Pacific has been the primary factor for driving this regional industry. The business operators or primarily the manufacturers have become increasingly and exceptionally globalized to make out higher value for cost and, simultaneously, compete to fulfill the rapidly emerging expertise in the Asian market. Demand in this region picked up the slack that increased from 30% to 45% within the same time period and currently overshadowing both North America and Europe combined.
The few of the leading leading industry participants currently operating in a worldwide scale include Arabol Lubricants, Total Oil, BP, Indian Oil Corporation, Phillips 66 Lubricants, Bel-Ray Company LLC., Amsoil (Wisconsin), Bharat Petroleum, Morris Lubricants, Ultrachem Inc , Penrite Oil, Valvoline , Rock Valley Oil and Chemical Co., Peak Lubricants Pty Ltd , Lubrizol, Liqui Moly, Eni S.P.A. and Emulsichem Lubricants Pvt. Ltd.