Synthetic lubricants Market Overview
Synthetic lubricants size was worth USD 5.34 Billion in 2021, accounting for a CAGR of 5.2%during the forecast period (2022-2030), and the market is expected to be worth USD 8.43 Billion by 2030.
Synthetic lubricants are specialized oils that are developed from synthetic ester they are engineered to provide superior performance compared to traditional mineral-based lubricants. These lubricants are often used in applications where high temperatures, extreme pressures, or other demanding conditions are present. Synthetic lubricants are far more superior when compared to mineral based lubricants they have better lubricating properties, better shelf life and are ecofriendly too.
Synthetic lubricants are artificially engineered oils. They have all the advantages that of mineral oils with no major disadvantages. High viscosity index of synthetic oils allows them to function at extreme low temperatures. At the same time these lubricants also have high flash points making them suitable to function at extreme high temperatures. Synthetic lubricants poses excellent flammability resistance. These properties make them perfect for industrial and heavy duty applications.
Synthetic mineral oils are biodegradable in nature which could be one of the major driver for its demand in coming years. The awareness for environment preservation is on the rise all around the globe. Consumers and governments all over the world are now more invested in environment friendly alternatives then were ever before.
For instance, according to United States Environmental Protection Agency. Merchant vessels make over 1.7 million port Visits annually and account for leakage of 4.4 to 28.6 million liters of lubricating oil. Furthermore, it is estimated that approximately 32 million liters of oil escapes into oceanic waters from other operational discharges. In total, operational discharges account for 36.9 to 61 million liters of lubricating oil into marine port waters annually. Oils spills pose as a major threat for marine life. Hence applications of synthetic lubricants in marine applications could be beneficial for ecosystem due to their environment friendly nature. Thus, the bio degradable nature of synthetic lubricants is estimated to be a major driver for the demand for synthetic lubricants.
Market Dynamics:
Driver:
- Surging Demand For Industrial Applications:-
Synthetic lubricants have superior physical properties like high viscosity index, high flash point, high oxidation stability and good energy efficiency. These properties make them suitable for industrial lubrication applications. The demand from industries is on this rise due to surging manufacturing processes and industrial expansions especially in developing economies.
- Rising demand from automotive segment :-
When compared to conventional lubricants the synthetic lubricants have far more superior properties. They offer better fuel efficiency and better have lubricating properties which results into longer engine life. Thus it is more desired by consumers involved in heavy duty tasks.
- Rising demand due to integration of turbochargers in Automotive engines:-
The turbocharger market is growing at a CAGR of 10 annually. Growing number of automobile manufacturers are opting of turbocharges in their cars engines due to its better fuel efficiency and power out. The conventional engine oils are not suitable under turbocharged conditions it tends to break at very fast. But on the other hand, synthetic oils flow quicker to critical parts, creating the proper lubrication your engine needs. Thus, using a full synthetic option keeps turbocharged vehicle operating at peak performance.
Restraint:
High cost of synthetic oils as compared to conventional oils is the main constraint obstructing the growth of this industry. High cost makes the adoption of synthetic lubricating oils very hard for regular users. Moreover the high cost also result into lesser demand into price sensitive markets in developing economies. Another major restraint which could inhibit the demand for lubricating oils is slowing demand for traditional fossil fueled. The demand for electric cars is on the rise and this trend is estimated to continue in coming years. The requirement of lubricating oils is far less in electric vehicles as compared to traditional ones.
Covid-19 Impact:
The Synthetic lubricants market is estimated to be significantly impacted due to COVID-19 pandemic. The leading factor was restriction imposed by governments. In order to curb the virus spread. These restrictions resulted into disruptions in production operations due to partial or complete shutdown of manufacturing facilities. Also travel and transportation activates were also halted due to lockdowns which disrupted the demand for these oils. But now the economy is back on tracks with all the restrictions lifted and the demand for synthetic lubricating oils is back at pre pandemic levels and this trend is expected to continue in coming years.
Synthetic lubricants Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 8.34 USD billion |
| CAGR (2022-2030) | 5.2% |
| By product type | Esters, PAO (Polyalphaolefin), PAG (Polyalkylene glycol) |
| By application | Engine Oil, HTFs, Transmission Fluids, Metalworking Fluids |
| By Geography | North America, Europe, Asia Pacific, Latin America, Middle East and Africa |
| Key Players | Dow Chemical Company, BASF Se, Royal Dutch Shell Plc, Eastman Chemical Company, Mitsui Chemicals Inc., China National Petroleum Corporation, Zhejiang Xinhua Chemical Co Ltd, Lag CChem Ltd, Oxea Gumby, Lyc Chemical Corp, Is Chemical Co Ltd |
Market Segmentation:
By product Type
The product type segment is divided into Esters, PAO, and PAG. The Polyalphaolefin (PAO) segment had the largest market share at the time of study. This type of synthetic lubricating oils offers superior functionality because of better oxidative and thermal stability. At the same time they are less volatile and have lower pour pints making them best suited in high performance functions.
The Esters segment is estimated to witness significant growth in the forecasted period. The ester based lubricating oils could function optimally at extreme high and low temperatures. Making them suitable for industrial applications. Esters oils are biodegradable and have low toxicity level. They also have excellent solvency properties.
PAG oils are best known as compressor lubricants. These oils are water soluble which enables easy cleanups. Many top refrigeration compression and air compressional manufacturers use esters oil.
By Application
The application segment could be categorized into Engine Oil, HTFs, Transmission Fluids, and Metalworking Fluids. In this segment the largest market share is captured by engine oil applications. The main driver for this demand is rising automobiles sales for personal as well as heavy cargo transportation. Rising awareness about fuel economy and engines health enhancement due to synthetic oil lubricants is driving the demand.
The HFT’s (heat transfer fluids) segment is also expected to gain significant market share in the forecasted period. The HFT’s are designed to tolerate extreme temperatures and could function in a wide temperature range. They boast excellent hydrolytic stability. These types of oils are extensively used in industrial applications including textile, food, rubber manufacturing, and pharmaceutical industries and manufacturing. Alternatively, they can also be used in open heating systems, especially in laboratory settings.
By Region
By region this market is segment into North America, Europe, and Asia Pacific, Latin America, Middle East and Africa. According to our estimates the European region was the largest consumer for synthetic oils in the forecasted period. Main applications were in engine oils as Europe region presents cold climates. The synthetic oils are far superior alternatives as they could efficiently function at cold temperatures due to high viscosity index.
Asia pacific regions are expected to showcase significant market growth in the forecasted period. Main propeller for this demand will be automotive and industrial applications. The Latin America region is also anticipated to showcase significant growth. The reason being surging demand for vehicles in countries like Brazil.
Synthetic lubricants Competitive Landscape:
The Synthetic lubricants has been analyzed according to the competitive landscape, with main players profiled in the report. These players are driving the market through their investments in research and development (R&D) and product innovation. The report includes company overviews, financials, revenues, market potential, global presence, production sites and capacities, strengths and weaknesses, product launches, product diversity, application and others. Following are key market players:-
AMSOIL Inc.
BP Lubricants Pvt. Ltd.
Chevron Corporation
FUCHS
LANXESS
Motul
Pennzoil
Phillips 66 Company
Valvoline
Agip
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