The global finished lubricant market is bound to increase during the forecast period owing to the rising demand for automobiles. Lubricants reduce the friction between components which leads to greater efficiency and less energy consumption. Rising environmental concern in recent past is expected to fuel the market growth for finished lubricant over the next eight years.
The quality of a good lubricant depends on certain properties which include high boiling point, hydraulic stability, high viscosity index, thermal stability, high resistance to oxidation and hydraulic stability. These factors help to reduce friction in various applications, which is responsible for increased demand for lubricants usage worldwide.
Lubricants are segmented into different types such as liquid lubricants, semi-solid lubricants, synthetic lubricants, vegetable lubricants and animal lubricants. Lubricants can also be classified under various end use applications such as industrial, consumer automotive and commercial automotive. Additionally, lubricants can also be classified by the additives used in the processing.
Finished Lubricants are used in some automobile processing such as piston movement and chain movement. The automobile sector is expected to grow at a CAGR of 12% over the forecast period. Increasing demand for consumer automotive like passenger cars coupled with commercial automotive such as buses, railways have further fuelled the finished lubricants demand.
Industry participants include Chevron, Shell, BP, ExxonMobil, Lukoil, Total S.A, and Idemitsu Kosan Co.Ltd. More than half of the global market demand is satisfied by these companies. Numerous companies are trying to acquire small businesses to achieve higher growth in regional markets. Improvement in technology, business segment sell-offs, and mutual agreements are the strategies adopted by different manufacturing companies.
Shell has manufacturing plants at different locations facilitating efficient distribution. To promote innovation, Shell has five research & development centers across the globe. Also, the company offers a wide variety of lubricants to cater the customer requirements. It has fully robotized, modernized, spill proof and environmentally safe processes to ensure a high quality finished lubricants.
ExxonMobil is another major competitor in the finished lubricant market.The company has maintained its competitive position by providing better deals to its distributors. The company avails exclusive discounts on some products which relatively acquire a larger share in the commodity market. The company policies are totally quality driven and customer oriented. ExxonMobil follows governmental rules for the proper implementation of environmental norms and concerns.
Rapid industrialization and increased automobile demand in the Asia Pacific region are expected to affect the finished lubricant market growth positively. Rising demand for construction equipment along with growing middle-class demand for automotive is also anticipated to benefit the overall market growth. Rapid industrialization and strict environmental norms in emerging countries such as China, India and Thailand is also expected to aid the finished lubricant market.
The manufacturing sectors in India and China have grown in the recent past and are expected to continue the same trend over the forecast period. The finished lubricant demand in these countries has increased due to automation in manufacturing.
Countries such as Nigeria and South Africa are expected to grow at a faster pace which in turn shall assist the global finished lubricant market demand. In Nigeria, due to non-availability of power generation, distribution and transmission system, the majority of the population is dependent on generators. Generators require finished lubricants for production and maintenance which is anticipated to surge the regional market growth.
Research Support Specialist, USA