Global demand for the synthetic lubricant market was valued at approximately USD 32.4 billion in 2018 and is expected to generate revenue of around USD 41.2 billion by end of 2025, growing at a CAGR of around 3.5% between 2019 and 2025.
The report covers forecasts and analyses for the synthetic lubricant market on a global and regional level. The study provides historical data from 2015 to 2018 along with a forecast from 2019 to 2025 based on volume (Kilotons) and revenue (USD Billion). The study includes drivers and restraints for the synthetic lubricant market along with the impact they have on the demand over the forecast period. Additionally, the report includes the study of opportunities and various trends in the synthetic lubricant market on a global as well as regional level.
As per the report, the global demand for the synthetic lubricant market was valued at approximately USD 32.4 billion in 2018 and is expected to generate revenue of around USD 41.2 billion by end of 2025, growing at a CAGR of around 3.5% between 2019 and 2025.
Synthetic lubricant is composed of synthetic base oil, thickeners, and additives. Synthetic lubricants are lubricants formulated with base oil coming from the advanced chemical industry like esters, PAO, and PAG, among others. Synthetic lubricant fluids offer excellent lubricating properties like mineral oils but do not have their disadvantages. Synthetic lubricants possess advantages like improved oxidative and thermal stability, superior volatility characteristics, preferred frictional properties, and higher flash point and autoignition temperatures. Rising industrialization coupled with the growing population is projected to promote the application of synthetic lubricants in the automotive industry, thereby, propelling market growth. Synthetic lubricant in the automotive sector is used in the form of gearbox lubes, diesel engine oils, and transmission oils in commercial passenger vehicles and motorcycles. Additionally, new technologies such as fire-resistant ester-based oils are used in several industries. Besides this, synthetic lubricants are widely used in the transportation and manufacturing sectors, such as aviation, marine, automotive, food & beverage, metal production, transportation equipment manufacturing, commercial machinery manufacturing, and rubber & plastic industries. Hence, rapid growth in these industries is projected to accelerate the growth of the synthetic lubricant market. But, the rising preference for cheaper alternate mineral oils due to the high cost of these lubricants is likely to hamper the market growth over the forecast period. However, the application of synthetic lubricants in the food industry is growing rapidly owing to technological advancements, such as the NSF food lubrication standard set by major equipment manufacturers. Therefore, this is likely to enhance the synthetic lubricant market growth in the upcoming years as well.
The global synthetic lubricant market is segmented based on type and application. Based on type, the global synthetic lubricant market is segregated into polyalphaolefin, esters, polyalkylene glycol, and others. The polyalphaolefin segment contributed the largest share of the global synthetic lubricant market. Owing to the improved thermal and oxidative stability of the polyalphaolefin it is being used in various applications like metalworking fluids, engine oil, and hydraulic fluids. Besides this, polyalkylene glycol, or PAG is expected to grow at the fastest pace during the forecast period. Based on application, the global synthetic lubricant market is classified into metalworking fluids, hydraulic fluids, transmission fluids, engine oil, compressor oil, refrigeration oil, gear oil, and others. In 2018, the engine oil application segment dominated the global synthetic lubricant market. The rising application of engine oils in the automotive industry is projected to boost the synthetic lubricant market growth.
Geographically, the global synthetic lubricant market is segmented into the Asia Pacific, North America, Europe, Latin America, and the Middle East and Africa. In 2018, Europe dominated the global synthetic lubricant market. The rapidly emerging applications in the automotive industry coupled with increasing investment in blending plants for synthetic lubricants are likely to drive the regional market. Moreover, the Asia Pacific anticipates being the fastest growing regional market owing to the increasing sales of premium vehicles.
Some of the key players operating in the global synthetic lubricant market include Royal Dutch Shell Plc, Castrol, Pennzoil, Total S.A, The Dow Chemical Company, Fuchs Petrolub SE, ExxonMobil Corporation, BP, Lubrizol Corporation, Chevron Corporation Idemitsu Kosan Co. Ltd., and PETRONAS, among others.