SAN FRANCISCO, Dec. 13, 2022 /PRNewswire/ — The global synthetic lubricants market size is expected to reach USD 23.4 billion by 2030, as per the new report by Grand View Research, Inc., expanding at a CAGR of 3.7% from 2023 to 2030. The market is majorly driven by the growing automotive industry around the globe.
Key Industry Insights & Findings from the report:
- The market growth can be attributed to increasing application of synthetic lubricants in the automotive sector in the form of gearbox lubes, engine oils, and transmission oils in passenger and commercial vehicles due to their superior performance over their mineral counterparts.
- Asia Pacific dominated the global market in 2022 with a revenue share of over 40.0%. This is owing to growing automobile industry and refinery business in the region. Countries such as India, China, and Singapore have capitalized on low crude oil prices. This has resulted in the increased production of petrochemicals in Asia Pacific, thus improving the product demand in the region.
- Polyalphaolefins (PAOs) dominated the market with a revenue share of over 50.0% in 2022. This growth is attributed to the increased use of PAO in automotive engines coupled with OEM recommendations in brand cars such as Volkswagen and BMW.
- Several functional benefits associated with PAO-based synthetic lubricants such as anti-wear and varnish control properties have fueled their usage in various industrial applications. Furthermore, high viscosity index of PAO has accelerated its usage in machinery with extreme temperature environments.
- The engine oil application segment dominated the global market with a revenue share of over 35.0% in 2022. This is attributed to the growing automotive vehicle sales, especially in the emerging economies of China and India. This is expected to augment demand for engines, in turn, driving the demand for synthetic lubricants in engine oil application.
- In January 2020, FUCHS Group, a German lubricants company, announced the completion of the acquisition of Nye Lubricants Inc., a U.S.-based specialty synthetic lubricant manufacturer. This acquisition helped FUCHS Group to expand and strengthen its position in the specialty lubricants product portfolio.
Read full market research report, “Synthetic Lubricants Market Size, Share & Trends Analysis Report By Product (Esters, PAO, PAG), By Application (Engine Oil, HTFs, Transmission Fluids, Metalworking Fluids), By Region, And Segment Forecasts, 2023 – 2030“, published by Grand View Research.
Synthetic Lubricants Market Growth & Trends
High viscosity index of synthetic lubricants as compared to their mineral counterparts reduces friction and prevents wear and tear, which takes place in automotive engine components such as pistons, shafts, and connecting rods. In addition, PAO-based synthetic lubricants have the ability to perform across a wide temperature range.
The growing natural gas production in GCC is also driving the demand for synthetic lubricants in the market. This is due to the fact that refineries use liquid phase HTFs for heating reboilers and columns for distillation of oil and oil-based products. Additionally, the companies which reprocess and recycle used lubricating oils utilize HTFs at high temperatures along with high vacuum distillation operations. Booster stations located in between refining and distribution channels use HTFs for maintaining viscosity of petroleum products that travel long distances. All these factors are propelling the demand.
The high cost of synthetic lubricants compared to their mineral counterparts is expected to have a negative impact on the market over the forecasted period. Rising concerns over reducing maintenance costs in the manufacturing sector are expected to trim down the scope of synthetic lubricants, where central lubrication or a huge quantity of oil is required. Therefore, high cost is expected to remain a key restraining factor for the growth of the market.
The emergence of bio-lubricants is also acting as a restraining factor in the growth of the market. Bio-lubricants have huge demand due to their superior properties, including biodegradability, low maintenance, storage and disposal, reduced emissions, better safety, and constant viscosity with higher flash points and viscosity index as compared to synthetic lubricants. The favorable regulatory scenario and higher consumer awareness in North America and Europe are further boosting the bio-based lubricants, and thus restraining the growth of the market.
Synthetic Lubricants Market Segmentation
Grand View Research has segmented the global synthetic lubricants market on the basis of product, application, and region:
Synthetic Lubricants Market – Product Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 – 2030)
Synthetic Lubricants Market – Application Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 – 2030)
- Engine Oil
- Heat Transfer Fluids (HTFs)
- Transmission Fluids
- Metalworking Fluids
Synthetic Lubricants Market – Regional Outlook (Volume, Kilotons; Revenue, USD Billion, 2018 – 2030)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
List of Key Players of Synthetic Lubricants Market
- BP Lubricants Pvt. Ltd.
- Chevron Corporation
- Phillips 66 Company
- AMSOIL INC.
Check out more related studies published by Grand View Research:
- Lubricants Market – The global lubricants market size is estimated to reach USD 180.21 billion by 2030, registering a CAGR of 3.7% over the forecast years, according to a new report by Grand View Research, Inc. The product demand is expected to increase in the coming years due to an increase in the number of vehicles on the road and high-performance requirements in a vehicle. Furthermore, manufacturers are also moving and expanding their production facilities in developing countries due to several factors, including lower infrastructure and labor costs.
- Industrial Lubricants Market – The global industrial lubricants market size is expected to reach USD 71.73 billion by 2025 registering a CAGR of 4.5%, according to a new report by Grand View Research, Inc. Improving PMI indices across the globe and resultant rise in production capacities are anticipated to boost the demand for industrial lubricants. Moreover, rising manufacturing activities are touted to spur investments in production machinery, thereby creating a strong growth potential for industrial lubricants.
- Food Grade Lubricants Market – The global food grade lubricants market size is expected to reach USD 657.2 million by 2028, as per the new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 8.6% from 2021 to 2028. The growth is majorly driven by rising demand from end-use industries and rising awareness for sustainable alternatives over petrochemical feedstock such as bio-based products coupled with expanding the food and beverages industry.
Browse through Grand View Research’s Petrochemicals Industry Research Reports.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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