Synthetic Lubricants Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 10.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Synthetic Lubricants Market Analysis
The Synthetic Lubricants Market size is estimated at 4.62 Billion liters in 2024, and is expected to reach 7.54 Billion liters by 2029, growing at a CAGR of greater than 10% during the forecast period (2024-2029).
The COVID-19 pandemic negatively impacted the market. COVID-19-related restrictions led to declined maintenance requirements from several industries, such as oil and gas, automotive, metallurgy, etc. The major impact was observed in the automotive industry. Currently, the market recovered from the pandemic. The market reached pre-pandemic levels in 2022 and is expected to grow steadily in the future.
- The major factor driving the market studied is the increasing demand for high-performance synthetic lubricants owing to their better and improved properties. It includes reduced flammability, reduced gear wear, and increased service life.
- However, the increasing adoption of electric vehicles limits the market growth and is anticipated to hinder the growth of the studied market.
- Moreover, growing advancement in industrial manufacturing is likely to provide opportunities for the market over the coming years.
- The European region dominated the market around the world, with countries like Germany, France, and the United Kingdom being the biggest consumers.
Synthetic Lubricants Market Trends
Rising Demand from Automotive Industry
- Synthetic lubricants are significantly used in the automotive industry owing to rising environmental regulations to reduce carbon emissions. Synthetic lubricants include water solubility, high viscosity index, and biodegradability, which makes them environmentally friendly.
- The stringent regulations on CO2 emissions from vehicles increased the demand for fuel-efficient lubricants. They are driving the market for synthetic lubricants in the automotive sector.
- According to the Organisation Internationale des Constructeurs d'Automobiles(OICA), 85.02 million vehicles were produced across the globe in 2022, witnessing a growth rate of 6% compared to 2021. It is, thereby, enhancing the demand for synthetic lubricants, which are employed for various automotive applications.
- China is the largest manufacturer of automobiles in the world. The country’s automotive sector is shaping up for product evolution. The country is focusing on manufacturing products to ensure fuel economy while minimizing emissions, owing to the growing environmental concerns.
- According to OICA, automobile production and sales in China reached 27.021 million and 26.864 million, respectively, in 2022, up 3.4% and 2.1% from the previous year.
- The United States is the second-largest automotive market in the world after China, which occupies a significant share of the global automotive vehicles market. According to OICA, in 2022, the United States automotive vehicle production reached 10.06 million compared to 9.15 million units manufactured in 2021, at a growth rate of 9%.
- All factors above will likely enhance the demand for synthetic lubricants in the automotive segment and thus will propel the growth of the market studied.
European Region to Dominate the Market
- Europe represents the largest market for synthetic lubricants. In countries like Germany, Italy, France, etc., the demand for synthetic lubricants is increasing owing to growing industries like automotive, transportation, power generation, etc.
- The German economy is the largest in Europe and the fifth-largest in the world. Germany is one of the largest automotive markets in Europe. According to the VDA, German Association of Automotive Industry, in August 2023, a total of 266,800 units of automobiles were manufactured compared to 290,354 units in July 2023.
- Europe is also one of the leading manufacturing bases for the aircraft industry. It is home to manufacturers from different segments, such as equipment manufacturers, material and component suppliers, engine producers, and whole system integrators.
- In Europe, according to the Boeing Commercial Outlook 2022-2041, the total deliveries of new airplanes are estimated to be 8,550 units by 2041, with a market service value of USD 850 billion. The demand for synthetic lubricants is likely to rise through the years to come.
- Thus, owing to the increasing preference of OEMs for synthetic lubricants, the demand for synthetic transmission oils is expected to grow further in the near future.
- The power generation sector further boosts the market demand. Advancements in manufacturing technologies are resulting in the commencement of various new plants. It, in turn, is increasing the demand for electricity in various end-user industries.
- According to the Federal Ministry for Economic Affairs and Climate Action, Germany is at the heart of the European network. Its geographical location in the heart of Europe makes it a major player in the European power market and a hub for pan-European power flows. Germany is also increasing electricity exports to neighboring countries. Germany holds the largest power plant capacity in Europe and produces and consumes the most electricity.
- Thus, rising demand from the end-users above industries is expected to drive growth in the European region.
Synthetic Lubricants Industry Overview
The synthetic lubricants market is partially consolidated in nature. The major players in the studied market (not in any particular order) include Exxon Mobil Corporation, Chevron Corporation, Shell plc, TotalEnergies, and BP p.l.c., among others.
Synthetic Lubricants Market Leaders
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Chevron Corporation
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BP p.l.c.
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Shell plc
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Exxon Mobil Corporation
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TotalEnergies
*Disclaimer: Major Players sorted in no particular order
Synthetic Lubricants Market News
- October 2023: Chevron Corporation entered into a definitive agreement with Hess Corporation. It is to acquire all of the shares of Hess in an all-stock transaction valued at USD 53 billion with an aim to increase production and fasten the free cash flow.
- August 2023: Chevron Corporation completed the acquisition of PDC Energy, Inc. The assets acquired include 275,000 net acres in the Denver-Julesburg (DJ) Basin adjacent. It adds more than 1 billion barrels of oil equivalent proved reserves and 25,000 net acres in the Permian Basin that are held by production.
Synthetic Lubricants Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Increasing Usage of High-performance Synthetic Lubricants
- 4.1.2 Increasing Demand from Automotive Sector Owing to Rising Environmental Concerns
- 4.1.3 Other Drivers
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4.2 Restraints
- 4.2.1 Increasing Adoption of Electric Vehicles Limits the Market Growth
- 4.2.2 Other Restraints
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 By Product Type
- 5.1.1 Engine Oils
- 5.1.2 Transmission and Gear Oils
- 5.1.3 Hydraulic Fluids
- 5.1.4 Metalworking Fluids
- 5.1.5 Greases
- 5.1.6 Other Product Types (General Industrial Oils, Etc.)
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5.2 By End User
- 5.2.1 Power Generation
- 5.2.2 Automotive
- 5.2.3 Heavy Equipment
- 5.2.4 Metallurgy and Metalworking
- 5.2.5 Other End-user Industries (Oil and Gas, Etc.)
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5.3 Geography
- 5.3.1 Asia-Pacific
- 5.3.1.1 China
- 5.3.1.2 India
- 5.3.1.3 Japan
- 5.3.1.4 South Korea
- 5.3.1.5 Malaysia
- 5.3.1.6 Indonesia
- 5.3.1.7 Thailand
- 5.3.1.8 Vietnam
- 5.3.1.9 Rest of Asia-Pacific
- 5.3.2 North America
- 5.3.2.1 United States
- 5.3.2.2 Mexico
- 5.3.2.3 Canada
- 5.3.3 Europe
- 5.3.3.1 Germany
- 5.3.3.2 United Kingdom
- 5.3.3.3 Italy
- 5.3.3.4 France
- 5.3.3.5 Russia
- 5.3.3.6 NORDIC Countries
- 5.3.3.7 Turkey
- 5.3.3.8 Rest of Europe
- 5.3.4 South America
- 5.3.4.1 Brazil
- 5.3.4.2 Argentina
- 5.3.4.3 Colombia
- 5.3.4.4 Rest of South America
- 5.3.5 Middle East and Africa
- 5.3.5.1 Saudi Arabia
- 5.3.5.2 South Africa
- 5.3.5.3 Nigeria
- 5.3.5.4 Qatar
- 5.3.5.5 Egypt
- 5.3.5.6 UAE
- 5.3.5.7 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 Valvoline Global Operations (Saudi Arabian Oil Co.)
- 6.4.2 Shell plc
- 6.4.3 TotalEnergies
- 6.4.4 BP p.l.c.
- 6.4.5 Chevron Corporation
- 6.4.6 Exxon Mobil Corporation
- 6.4.7 China Petrochemical Corporation
- 6.4.8 PETRONAS Lubricants International
- 6.4.9 FUCHS
- 6.4.10 JX Nippon Oil & Gas Exploration Corporation
- 6.4.11 Indian Oil Corporation Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Growing Advancement In Industrial Manufacturing
- 7.2 Other Opportunities
Synthetic Lubricants Industry Segmentation
Synthetic lubricants are chemically engineered lubricants derived from pure chemicals, unlike conventional lubricants refined from crude oil. These lubricants do not contain nitrogen, sulfur, or any other harmful elements that lead to sludge formation and, thereby, damage the engine or machine.
The synthetic lubricants market is segmented by product type and end-user industry. By product type, the market is segmented into engine oils, transmission and gear oils, hydraulic fluids, metalworking fluids, greases, and other product types (general industrial oils, etc.). By end-user industry, the market is segmented into power generation, automotive, heavy equipment, metallurgy and metalworking, and other end-user industries (oil and gas, etc.). The report offers market size and forecasts for 26 countries across major regions. For each segment, market sizing and forecasts are done on the basis of volume (liters) for all the above segments.
| By Product Type | Engine Oils | |
| Transmission and Gear Oils | ||
| Hydraulic Fluids | ||
| Metalworking Fluids | ||
| Greases | ||
| Other Product Types (General Industrial Oils, Etc.) | ||
| By End User | Power Generation | |
| Automotive | ||
| Heavy Equipment | ||
| Metallurgy and Metalworking | ||
| Other End-user Industries (Oil and Gas, Etc.) | ||
| Geography | Asia-Pacific | China |
| India | ||
| Japan | ||
| South Korea | ||
| Malaysia | ||
| Indonesia | ||
| Thailand | ||
| Vietnam | ||
| Rest of Asia-Pacific | ||
| Geography | North America | United States |
| Mexico | ||
| Canada | ||
| Geography | Europe | Germany |
| United Kingdom | ||
| Italy | ||
| France | ||
| Russia | ||
| NORDIC Countries | ||
| Turkey | ||
| Rest of Europe | ||
| Geography | South America | Brazil |
| Argentina | ||
| Colombia | ||
| Rest of South America | ||
| Geography | Middle East and Africa | Saudi Arabia |
| South Africa | ||
| Nigeria | ||
| Qatar | ||
| Egypt | ||
| UAE | ||
| Rest of Middle East and Africa |
Synthetic Lubricants Market Research Faqs
How big is the Synthetic Lubricants Market?
The Synthetic Lubricants Market size is expected to reach 4.62 billion liters in 2024 and grow at a CAGR of greater than 10% to reach 7.54 billion liters by 2029.
What is the current Synthetic Lubricants Market size?
In 2024, the Synthetic Lubricants Market size is expected to reach 4.62 billion liters.
Who are the key players in Synthetic Lubricants Market?
Chevron Corporation, BP p.l.c., Shell plc, Exxon Mobil Corporation and TotalEnergies are the major companies operating in the Synthetic Lubricants Market.
Which is the fastest growing region in Synthetic Lubricants Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Synthetic Lubricants Market?
In 2024, the Asia Pacific accounts for the largest market share in Synthetic Lubricants Market.
What years does this Synthetic Lubricants Market cover, and what was the market size in 2023?
In 2023, the Synthetic Lubricants Market size was estimated at 4.16 billion liters. The report covers the Synthetic Lubricants Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Synthetic Lubricants Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Synthetic Lubricants Industry Report
Statistics for the 2024 Synthetic Lubricants market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Synthetic Lubricants analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
