Comparing 20 vendors in Lubricants across 101 criteria.
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The Lubricants Companies Quadrant is a comprehensive industry analysis that provides valuable insights into the global market for Lubricants. This quadrant offers a detailed evaluation of key market players, technological advancements, product innovations, and emerging trends shaping the industry. MarketsandMarkets 360 Quadrants evaluated over 150 companies of which the Top 20 Lubricants Companies were categorized and recognized as the quadrant leaders.
Lubricants are substances that reduce friction between surfaces in contact, enabling smooth movement and preventing wear and tear. They come in various forms, including oils, greases, and solid lubricants, and are extensively used in industries, automotive, household appliances, and more. Lubricants play a crucial role in promoting reliability, cost-effectiveness, and sustainability in various applications, making them indispensable tools for industries and everyday users.
The 360 Quadrant efficiently maps the lubricants companies based on criteria such as revenue, geographic presence, growth strategies, investments, channels of demand, and sales strategies for the market presence of the lubricant’s quadrant. While the top criteria for product footprint evaluation included Base Oil (Mineral Oil, Synthetic Oil, and Bio-Based Oil), Product Type (Engine Oil, Gear Oil, Hydraulic Fluid, Compressor Oil, Transmission Fluid, Grease, and Others), and End-Use Industry.
Key trends highlighted in 360 Quadrants:
- The global lubricants market was valued at USD 164.8 billion in 2022 and is projected to reach USD 187.9 billion by 2027, growing at a CAGR of 2.7% from 2022 to 2027. Rapid industrialization in the Asia Pacific and the Middle East & Africa post-COVID-19, coupled with the rise in process automation in most industries and the gradual increase in the number of vehicles on-road are key factors expected to drive the global Lubricants industry during the forecast period.
- The dynamics of the lubricants industry are advancing at a rapid pace. Lubricants companies are modifying their lubricants portfolio in order to meet the ever-evolving demand of various industrial and automotive applications. For instance, TotalEnergies introduced water-based lubricants (WBL) that provide a paradigm-shifting advancement for electric vehicle lubricants. The WBL can meet all the requirements for a single fluid designed for lubricating and cooling the Electric Drive Unit (EDU).
- The synthetic lubricants segment is projected to witness the highest CAGR of 2.85% in terms of value from 2022 to 2027, owing to its excellent properties such as high performance in extreme conditions, better viscosity index, higher shear stability, and chemical resistance compared to mineral oil lubricants. Some of the notable lubricants companies in the domain include Shell, ExxonMobil, Castrol, TotalEnergies, Chevron, FUCHS, Valvoline, Amsoil, PetroChina, and Sinopec among others. These companies offer a diverse portfolio of synthetic lubricants and cater to specific requirements across multiple industries while providing maximum efficiency and protection.
- On the basis of product type, engine Oil dominated the global lubricants market, in terms of value and volume, in 2022. The segment is driven by the wide usability in the transportation and industrial end-use industry oil. Additionally, engine oil finds its major application specifically in construction vehicles in the construction industry.
- Rising population, rapid urbanization, rising trade, and changing lifestyles in developing nations are spurring the demand for automobiles, thereby driving the demand for lubricants in the transportation sector. It can be expected that passenger vehicles will be a dominant consumer of lubricants in the transportation segment due to these reasons. Within the industrial segment, the construction segment will dominate the lubricants market in terms of value in 2023.
- The lubricants market is witnessing high demand from end-use industries such as construction and mining in Asia Pacific and the Middle East & Africa. Additionally, industrial growth in these regions is expected to drive the demand for Group II and Group III base oil lubricants, thereby flourishing the business of lubricants companies in the region.
- Another primary reason that is driving the growth of lubricants companies is the increased demand for high-performance engines. Lubricant manufacturers are now developing high-performance engine oils specifically tailored to meet the demands of modern engines. For instance, Castrol developed products like Castrol EDGE, designed to provide superior performance and protection for high-performance vehicles. Similarly, companies like Shell and Valvoline have also introduced advanced lubricants catering to the increasing demand for high-performance engines, thereby driving growth and innovation in the lubricants industry.
- The mineral oil lubricants segment is expected to dominate in 2023, in terms of value, owing to the growing demand for mineral oil in developing countries of Asia Pacific, the Middle East & Africa, and South America in the automotive sector.
- The demand for bio-based lubricants based on organic origin, such as vegetable oils are expected to shift market trends for lubricants. It is driving lubricants companies to explore and invest in sustainable solutions. For instance, a company like ExxonMobil has ventured into producing bio-based lubricants, such as the Mobil SHC Bio Series, made from vegetable oils. This shift towards eco-friendly lubricants not only promotes environmental conservation but also opens new business opportunities for bio-lubricant manufacturers, fostering a greener and more sustainable future for the lubricants industry.
- Asia Pacific was the largest market for lubricants companies, accounting for 37% of the overall market in terms of value, followed by Europe and North America in 2022, and it is expected to be the fastest growing during 2022 and 2027. The primary reason for this is the large-scale industrialization and the large number of on-road vehicles in the region.
- There are a significant number of global lubricants companies in this market, with top players like Shell plc (UK), ExxonMobil Corp. (USA), TotalEnergies (France), BP plc (UK), Chevron Corp. (USA), Sinopec (China) and PetroChina Company Ltd. (China). These Lubricants companies account for nearly 30%-40% of the entire lubricants market.
- Companies are adopting various strategies such as geographic expansions, new product launches, partnerships, and acquisitions to accelerate their position in the market. Some lubricants companies are focusing on launching new products and expanding their manufacturing units in the emerging economies of Asia Pacific and the Middle East & Africa to meet the growing demand. For instance, in April 2022, Shell Overseas Investment B.V., a wholly owned subsidiary of Shell plc (Shell), signed an agreement with Actis Solenergi Limited (Actis) to acquire 100% of Solenergi Power Private Limited for USD1.55 billion and with it, the Sprng Energy group of companies, where Solenergi Power Private Limited (“SPPL”) is incorporated in Mauritius and is the direct shareholder of the Sprng Energy group of companies in India.
- Lubricants companies are also focused on building strategies in order to address the demands of electric vehicles. To cite an example, in October 2022, TotalEnergies partnered with Valeo to develop an innovative way of cooling electric vehicle batteries using a new, very high-performance dielectric1 fluid. The partnership will not only improve the use of EVs but will also help in reducing the carbon footprint.
- Most lubricants companies are prioritizing sustainable synthetic lubricants, aiming to reduce environmental impact while delivering superior performance. These companies are trying to achieve it through various modes such as biodegradable formulations, renewable feedstocks, and energy-efficient processes among others. For instance, Shell, one of the top lubricants companies in the industry markets its Helix Ultra with PurePlus Technology, a synthetic motor oil designed from natural gas, and has recently released its carbon-neutral next-generation lubricants.
The Full List
|San Ramon, USA
|Saint Petersburg, Russia
|Rio de Janerio, Brazil
|Kuala Lumpur, Malaysia