Global Lubricants Market Trends
Category Intelligence on Global Lubricants covers the following
- Information relating to market, supply, cost, and pricing analysis
- Hard to find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Global Market Outlook on Lubricants
- Global lubricant supply as of 2018 stood at 36.7 MMT. Demand is expected to grow at a CAGR of –0.5 to –1.5 percent CAGR until 2020
- Demand from the automotive sector and industrial sector is expected to lead the industry growth
- About 2.2 MMT of capacity was added globally during 2016, and 1.5 MMT of capacity was removed, globally, during the same period. Emission regulations, improved quality and OEM requirements will have an impact on the demand of lubricants. Lubricant recycling programs will also impact the demand and supply of lubricants base stock in the market, affecting the prices
- The major share of global lubricants market is North America: 22 percent, Europe: 15 percent, and Asia: 46 percent.
- The top global lubricant companies include Shell, ExxonMobil, Total, Chevron, BP (Castrol), Petrochina, Fuchs, Idemitsu, Lukoil, and Indian Oil.
- The challenges for the global lubricant market include an increasing demand for high performance lubricants and delays in investments related to new plants. The industry growth may be mapped to the auto sector and economic recovery.
Demand Market Outlook
Lubricant prices and availability is highly driven by the lubricant stock (base oil) in the region. The US and Europe have shifted their base oil stock to Group 2 and Group 3 stocks respectively, while Asian and LATAM markets continue using Group 1 and Group 3 stocks
Industry Best Practice
Asia Pacific's market for lubricants will be driven by the growing population of the region, coupled with the rising economic level. Markets in North America and Australia are expected to decline, as they are mature markets, and due to the decline or average growth in production and sales of vehicles and demand moving away from mineral oil lubricants
- A modest demand growth of 1 percent surplus capacity and weak margins have made base oil market a buyer's market in 2015
- With the declining growth of demand of lubricant oil, inefficient refineries will close down and the market will move towards consolidation. By 2021, there will be fewer and diverse product offering suppliers controlling the market The lubricant category is expected to shift from leveragein 2015 to strategicby 2021
Global Market Size: Lubricants
- The global lubricant market reached $148 billion in 2016, and it is projected to reach $167 billion by 2021
- APAC remains the largest market for lubricants. MEA has seen the fastest growth of lubricant demand
- The increasing number of passenger, commercial vehicles, and more disposable income in the developing economies would drive the lubricant demand in the upcoming years
Global Supply–Demand Analysis
- Global lubricant supply stands at 36.4 MMT for 2016. The market is oversupplied on a global scale, with about 2.0 MMT of excess capacity in 2015
- Demand is expected to see a negative growth of –0.5 to –1.5 percent (CAGR) until 2017–2018, post which, the lubricant market is anticipated to grow modestly from 0 to 0.75 percent until 2021, due to slower growth in the African and LATAM region and slow economic recovery in the European and North American countries
Lubricants Market Overview
On the capacity front, about 1.4 MMT of capacity is expected to be added to the global lubricant supply base by 2021. Lubricant consumption is expected to decrease over the next couple of years, due to lower demand because of slow global economic growth. The automotive sector (53 percent) is the major driver for lubricant demand. However, demand for specialty lubricants (14 percent) is expected to grow at a faster rate owing to the increasing downstream demand from (a) the industrial sector using specific types of lubricants for their process and (b) from the mining industry, using lubricants for their fleets and to maintain minimal downtime. Specialty grades and price of the base stock have been the major drivers of trade in lubricants market. According to lubricant market analysis some of the factors affecting the market are
location of storage hubs, technological innovations in the automobile sector that reduces the frequency of oil changes and crude oil supply. The production cost is lowest in Asia due to the availability of cheap feedstock and low labor rates.
Why You Should Buy This Report
● The report provides the trade dynamics and supply-demand analysis of regional and global lubricant market.
● It lists out the industry drivers, constraints and innovations including Porter’s five force analysis of North America, Europe and APAC.
● The report gives the cost structure analysis, pricing forecasts and supplier analysis.
● It gives SWOT analysis of key suppliers like ExxonMobil, Royal Dutch Shell, etc.