Post COVID-19, the Report “COVID-19 Impact on Lubricants Market by Product Type (Engine Oil, Hydraulic Oil, Compressor Oil, Metalworking Fluid, Gear Oil, Turbine Oil, and Grease), End-use Industry, and Region – Global Forecast to 2021”, published by MarketsandMarkets, the global Lubricants Market size is estimated to reach USD 165.5 billion by 2021, from USD 164.3 billion in 2019.
Lubricants include various compounds such as fluids, oils, and greases. Lubrication is an essential process for industrial processes, which helps to reduce the friction between moving parts or surfaces to enhance the efficiency of machines. Lubricants are manufactured using base oil, which is categorized as mineral oil, synthetic oil, and bio-based oil. Mineral oil and synthetic oil are sourced from petroleum crude, and bio-based oils are sourced from vegetable oils. The major factor that is driving the lubricants market is massive industrialization, the increasing disposable income, and rapid urbanization in emerging countries.
Engine oil is expected to be the most affected product type segment of the lubricants market due to COVID-19.
The engine oil segment is expected to account for the largest share of the lubricants market in 2021, in terms of both volume and value. Engine oil is used mainly in ICEs, where its primary functions include lubrication and heat removal in the automobile and equipment engine. Engines are the most widely used machines, majorly used in vehicles and transport vessels. These engines form the basis of a vehicle function. Engine oil is the most common type of fluid being used in the industry.
The COVID-19 pandemic is likely to pose many challenges to industrial production globally. Lack of workers, global travel restrictions, and disturbed supply chain are some of them which are impacting the most. Even though industries continue their operations, delay in raw material supplies and less to no supply of produced goods have left no choice but to cap production and reduce the capacity utilization rate.
Transportation accounts for the largest share in the lubricants market in 2021 and is expected to be the most affected end-use industry due to COVID-19.
Transportation is expected to account for the largest share of the lubricants market in 2021, in terms of both volume and value. This is due to the rise in vehicle count both in commercial and passenger segments, influenced by the increasing spending power in the developing nations. The growing emphasis on optimized supply chain and logistics will also have a positive impact on this market.
Commercial vehicles are largely used for supply chain and logistics operations for various industries. They are also used for transportation purposes such as public busses and taxis. Commercial vehicles are crucial for some of the industries; even a small downtime in logistics can lead to delays and loss of capital expenditure. Therefore, lubricants play a vital role in business continuity. For the supply chain and logistics business, commercial vehicles play an important role, as they help in the transfer of goods and materials and prevent the degradation of perishable goods, especially in the food & beverage industry.
APAC is estimated to be the largest lubricants market in 2021
APAC is projected to lead the lubricants market in 2021, in terms of both volume and value. The increasing population, the rising expenditure in the industrial sector, and the growing vehicle count in emerging markets of China, India, and ASEAN countries are some of the major factors projected to drive the demand for lubricants in the region. Furthermore, improved lifestyle, increase in employment rate, rise in disposable income of the people, and increase in foreign investments in various sectors are making APAC an attractive market for lubricants manufacturers.
The US witnessed the highest number of coronavirus positive cases and witnessed a very high impact on lubricants demand. However, the impact of COVID-19 is not that much deep in other countries of North America, i.e., Canada and Mexico due to comparatively fewer number of positive cases and functioning of end-use industries. The lubricant market in the US is expected to witness a negative growth in 2020 as the country is completely locked down, and very few industries for essential services are functioning. End-use industries such as transportation, oil & gas, automotive, and chemical are the most affected industries of the lubricants industry in the region.
The key lubricants market players profiled in the report include Royal Dutch Shell Plc. (Netherlands), ExxonMobil Corporation (US), Chevron Corporation (US), BP p.l.c. (UK), Total S.A. (France), PetroChina Company Limited (China), Sinopec Limited (China), LUKOIL (Russia), Fuchs Petrolub AG (Germany), and Idemitsu Kosan Co. Ltd (Japan), among others.
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