The report identifies FUCHS, ADDINOL Lube Oil GmbH, BVA Oil, AMSOIL INC., Carlube, Motul, and Forsythe Lubrication as some of the most prominent companies operating in this market, although FUCHS is considerably ahead of the curve, arresting nearly 37% of the market share the same year. The study, focused on various independent manufacturers of lubricants across the world, has also noted the presence of a chunk of regional and domestic players who are eating into the global pie by offering similar products at lower costs.
Advent of Bio-based Products a Boon for the Global Lubricant Market
As per the projections of the TMR report, the demand in the global independent manufacturers market will increment at a CAGR of 3.80 during the forecast period of 2017 to 2025, reaching a valuation of US$9,454.04 mn by 2025, considerably up from its evaluated worth of US$6,800.79 mn in 2016. In the near future, while product pricing will continue to define who maintains a position of strength in the global lubricant market, product innovation and strengthening of distribution channels is also expected to aid market players to gain greater shares. The vendors of this market will continue to expand into emerging economies to gain new revenue avenues. In addition to that, research and development activities are expected to escalate with the advent of bio-based lubricants, which are gaining adoption among the end users.
Based on product type, the global independent lubricant market has been segmented into mineral lubricants, synthetic lubricants, and bio-based lubricants. Among these, the mineral lubricants segment accounted for 60.8% of the total demand in 2016, but its demand percentage is expected to reduce over time as synthetics lubricant products gaining popularity. Application-wise, the market has been bifurcated into automotive, aerospace, industrial, marine, and others, with the automotive sector providing for 67.4% of the total demand in 2016 and anticipated to remain the key consumer for the manufacturers of lubricants.
Geographically, the report highlights vastly populated region of Asia Pacific as most profitable among all, which can be attributed to radical expansion of emerging economies wherein the automotive industry is flourishing. In addition to that, strong availability of raw materials as well as low cost labor and presence of several key players in this region are a few factors driving Asia Pacific independent lubricant manufacturers market.
Prosperity of Automotive Industry in APAC Driving Demand
The prosperity of the automotive industry is driving the demand for lubricants, which helps the vehicles to achieve higher efficiency and smoothness of the engine. In addition to that, implementation of stringent policies by various governments and growing awareness regarding the environment among the consumers is expected to propel the demand for greener and high quality lubricants, such as bio-based lubricants which are showing high adoption rate. On the other hand, fluctuations in the prices of raw materials is strong obstructing the market from attaining its true potential. Variable feedstock prices affects the final pricing of the products and significantly reduce the profit margins, which is not welcomed in several cost-effective markets wherein customer often shift to low-cost alternatives. The moderate rise of bio-based lubricants can be attributed to their higher costs as vast masses of consumers continue to depend on crude-oil based lubricants.
The information presented in this review is based on a Transparency Market Research report, titled, “Lubricant Market Opportunity Analysis by Independent Manufacturers (Type – Mineral Lubricants, Synthetic Lubricants, and Bio-based Lubricants; Application – Automotive, Aerospace, Marine, and Industrial) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 – 2025.”