Why the Lubricants Market Is Set for Growth in 2024 and Beyond 

The expansion of the automotive and manufacturing sectors around the world is propelling the lubricants market forward. What should investors know to capitalize on this trend?

The global lubricants market is expected to reach over $180 billion by 2030, according to Grand View Research.

One of the reasons is that manufacturing in Asia, LatAm, and other developing markets remains robust despite slowing global demand. As an expert in automotive and industrial lubricants, I am seeing a shift to more efficient and environmentally friendly oils around the world.

Lubricants can significantly reduce costs and increase the efficiency of manufacturing and transportation. As a result of some of our projects, factories, and automotive companies have cut operational and maintenance costs by 40-50 percent simply by choosing the right type of oils.

Mineral or synthetic: Which oil is better?

Any engine or machine can operate better and last longer if proper oils are applied. According to ResearchAndMarkets, mineral oil, or natural oil coming directly from the ground, still accounted for the biggest revenue share, over 68%.

This is attributed to the low cost of the raw materials and a simpler production method, as well as its widespread use in many industries. In the coming years, however, the synthetic oil sector will see significant growth.

Mineral oil has been on the market for over 100 years, but its molecular structure is not as good as synthetic oil, which is man-made. It has been refined, distilled, purified, and broken down through chemical engineering, increasing its purity.

The benefits and performance of synthetics outweigh the expense. Mineral oils flow slowly through the engine circuit, resulting in increased fuel consumption and reduced vehicle performance. They also demand more frequent changes compared to synthetic ones.

Why lubricants are important in the automotive industry

As a part of my work with one of the biggest public transportation companies in South Asia, operating a fleet of 150 buses across Bangladesh, Nepal, and India, I recommended synthetic oil to increase efficiency.

As a result, the company doubled its oil drain from 7,000 km to 14,000 km with an extra high-performance oil that provided excellent lubrication for diesel engines, ensuring their extended life cycle.

In addition to reduced lubricant and filter consumption, the company saved 21,312 liters of waste oil and 761 hours of labor, which also improved personnel work safety.

My other client, a major truck company, faced engine oil sludge formation leading to frequent oil and filter replacements. As a result, they incurred a significant revenue loss due to unscheduled downtime.

We proposed a premium engine oil with a detailed implementation plan and monitored the engine condition for several trucks. As a result, the oil drain interval improved from 7,000 km to 11,000 km. The company also reduced engine oil consumption, filter consumption, and servicing downtime.

What’s next for engine oil?

Analysts predict that engine oil, which holds the largest revenue share at approximately 32%, will maintain its market dominance. This forecast is attributed to heightened awareness regarding the crucial role of oil in enhancing fuel efficiency, extending vehicle lifespan, and the continued expansion of the global transportation sector.

To ensure the efficient operation of vehicle engines, automotive lubricants are commonly applied in crankcases. Their usage reduces friction in automobiles, thereby prolonging lifespan and minimizing wear and tear.

The growing demand for both heavy-duty trucks and light passenger vehicles is a significant driver behind the increased role of lubricants in the automotive sector.

The improvement of public transportation in large, growing markets such as China, India, and Brazil, will bolster the demand for commercial automotive lubricants.

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(Featured image by  Tim Mossholder via Unsplash)

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