Lubricant Demand Driven by High Vehicle Sale
The OICA states that global vehicle sales increased from 34,321,700 units in January–June 2020 to 44,401,850 units in January–June 2021. As per the organization, 1,772,866 vehicles, 555,988 vehicles, and 21,372,188 vehicles were sold in Central and South America, Africa, and Asia/Oceania/Middle East, respectively, between January 2021 and June 2021. The burgeoning automobile sale, especially in developing countries, will lead to the high volume consumption of lubricants in the foreseeable future. Lubricants are utilized in the crankcase of the vehicle engine to ensure efficient operations of automobiles.
Besides, the surging customer awareness about lubricants will help the lubricants market exhibit a CAGR of 2.3% between 2020 and 2030. According to P&S Intelligence, the market will generate $115,350.6 million revenue by 2030. In recent years, the soaring focus of the industrial sector on bio-based lubricants, owing to the growing concerns regarding global warming and the rising emphasis of industries and governments on reducing dependence on crude oil and its by-products, has become a major market trend.
The automotive and other transportation, heavy equipment, food and beverages, metallurgy and metalworking, chemical, mining, cement, medical, agriculture, and power generation sectors use compressor oil, engine oil, grease, general industrial oil, metalworking oil, penetrating oil, process oil, refrigeration fluid, transmission and hydraulic fluid oil, turbine oil, and transformer oil for lubrication. In the coming years, the engine oil will be consumed in the highest volume, due to the burgeoning vehicle sale around the world, as it helps enhance the mileage and increase the life of automobiles.
In the years gone by, mineral oil-based lubricants were consumed in the highest volume, owing to their easy availability and low cost. Additionally, the presence of numerous mineral oil producers around the world also facilitates the use of this lubricant. In addition, end users will also consume a considerable volume of bio-based oil and synthetic oil in the coming years. Some of the prominent producers of these lubricants are Chevron Corporation, FUCHS PETROLUB SE, Royal Dutch Shell p.l.c., ENEOS Holdings Inc., and PetroChina Company Limited.
Globally, in 2019, APAC accounted for the major share in the lubricants market, due to the presence of a strong manufacturing sector in the region. In contemporary years, global manufacturers are shifting their production bases from Western countries to APAC countries, due to the easy availability of cheap labor and low-cost raw materials. Moreover, the burgeoning vehicle sale, on account of the growing population and rising per capita income, also drives the demand for lubricants in the region.
Whereas, the MEA lubricants market is expected to demonstrate the fastest growth in this decade, owing to the existence of numerous oil wells and the growing manufacturing sector in the region. Manufacturing companies in MEA can reduce their expenditure due to the low-cost availability of crude oil and by-products. As per the EIA, Saudi Arabia holds almost 15% of the world’s crude oil, which, along with its derivatives, is also its major source of export revenue. Moreover, the Middle East produced 27.27.7 Mb/d of oil in 2020, accounting for over 30% of the global production.
Therefore, the rising vehicle sale and the increasing customer awareness about lubricants will create a huge requirement for these oil products, worldwide.
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