The global lubricating oil market is expected to grow at a favorable rate from 2021 to 2031 (forecast period). The rapid growth of the worldwide automobile industry is the main aspect projected to drive the global lubricating oil market during the forecast period. The automotive sector has gained from increased disposable income in emerging countries like India, China, South Korea, and Brazil. Moreover, the high demand for cars and commercial vehicles in emerging nations is likely to be a key driver for the lubricating oil market.
Another significant driver for the global lubricating oil market is the growing industrialization in emerging countries. Manufacturing, in particular, has undergone rapid expansion in India and China, which are expected to remain major manufacturing hubs in the future years.
Moreover, consistent technological improvement in the automobile industry is projected to boost the global lubricating oil market in the years ahead. Furthermore, the engagement of major automotive firms has resulted in an influx of investment in the lubricating oil market, which has accelerated the pace of innovation. In addition, the development of low-viscosity lubricants for modern machinery is likely to create significant growth opportunities for the global lubricating oil market.
Key players active in the global lubricating oil market are ExxonMobil Corporation (U.S.), Royal Dutch Shell Plc. (Netherlands), Total S.A. (France), Chevron Corporation (U.S.), BP p.l.c. (U.K.), Petrochina Company Limited (China), Fuchs Petrolub AG (Germany), Sinopec Limited (China), LUKOIL (Russia), and Idemitsu Kosan Co. Ltd (Japan).
To expand their market network, key market players are actively pursuing inorganic market strategies such as investments, collaborations, acquisitions, technological innovations, and R&D activities.
Total S.A. signed a distribution deal with Mighty Distributing Systems in July 2021. Products such as the Quartz Ineo and Quartz 9000 sub-ranges and other "TotalEnergies" ranges are distributed largely by Mighty in the United States.
With the rising cost of energy needed to conduct industrial activities, the industrial sector is taking measures to save energy in order to lower overall operating costs. Engine parts that are not lubricated are more inclined to friction and use more fuel, resulting in emissions and pollution. As a result, manufacturers are under increased pressure to reduce their environmental effects while lowering operational expenses. Maintenance departments are concentrating their efforts on lowering maintenance costs by enhancing machinery use and dependability. A good grade lubricant plays a crucial role in this process by minimizing friction between parts and enhancing machine efficiency. Such factors are expected to boost the global lubricating oil market.
Moreover, due to the growing demand in the automotive sector, the automotive sector is likely to propel the global lubricating oil market. Economic expansion in developing countries is increasing automobile ownership, which is expected to drive the demand for lubricating oils. However, the entire segment is likely to grow steadily in developed countries such as the United States.
The Asia Pacific lubricating oil market is expected to grow due to increased demand from the industrial and automotive sectors. The rising population and increased investment in a variety of industrial sectors are projected to drive the demand for superior lubrication in the region. Moreover, the growing population is driving up demand for automobiles, which in turn is driving up demand for automotive oils. Furthermore, Japan, China, and India are expected to contribute considerably to the lubricating oil market in Asia Pacific.
The North America lubricating oil market is projected to expand due to the bourgeoning automotive industry. The United States is likely to contribute significantly to the lubricating oil market in North America. Royal Dutch Shell, ExxonMobil Corporation, and Chevron Corporation are established significant participants in the United States.