The lubricants market was valued at approximately US$ 175.73 billion in 2024 and is projected to grow to US$ 236.71 billion by 2031, reflecting a compound annual growth rate (CAGR) of 4.6% from 2025 to 2031.
Globally, manufacturers are channeling investments into enhancing their supply chains to boost automobile sales, particularly in emerging markets. For instance, the Society of Indian Automobile Manufacturers (SIAM) reported that passenger vehicle sales in India surged to 2,854,242 units in November 2023, up from 2,409,535 units in November 2022. Similarly, the China Association of Automobile Manufacturers (CAAM) noted that commercial vehicle sales in China experienced a year-on-year increase of 18.3% in September 2023. In South Africa, the National Economic Development and Labor Council (Nedlac) indicated that automobile production reached 633,332 units in 2023, generating revenues of US$ 14.7 billion. This positions South Africa as the 22nd largest automotive manufacturer globally and the largest in Africa, accounting for over 54% of the continent's vehicle assembly in 2023. Furthermore, the International Organization of Motor Vehicle Manufacturers (OICA) highlighted Brazil as the leading manufacturer and exporter of light and commercial vehicles in South and Central America, with a production output of 2.3 million vehicles in 2022.
Traditionally, lubricants have played a crucial role in internal combustion engine (ICE) vehicles by minimizing friction, preventing wear, and regulating engine temperature. However, electric vehicles (EVs), which do not utilize conventional engines, still depend on lubricants for various components, including transmissions, motors, and other drivetrain elements. These EVs often necessitate specialized lubricants to ensure efficient power transfer, effective cooling, and the long-term durability of electric motor components. As the mechanical structures of EVs differ from those of ICE vehicles, the demand for high-performance lubricants has grown to cater to the specific requirements of these systems. According to the International Energy Agency's annual Global Electric Vehicle Outlook, over 14 million electric cars were sold globally in 2023, further driving the demand for lubricants that enhance vehicle performance and longevity.
In the lubricants market, the Asia Pacific region is anticipated to exhibit the highest CAGR from 2024 to 2031. Countries such as China, Australia, and Vietnam are significant producers of antimony, with substantial reserves. Additionally, India, China, and Australia lead in global garnet production and reserves. The mining, quarrying, and perforating sectors utilize lubricants to enhance the lifespan and efficiency of their machinery. Consequently, the abundance of metal and non-metal reserves, coupled with an increase in regional mining activities, is expected to elevate the demand for lubricants. Moreover, the Asia Pacific region has been the largest and fastest-growing producer of renewable energy for over a decade. Japan's government has set ambitious targets for offshore wind energy installations, aiming for 10 GW by 2030 and 30-45 GW by 2040, which will further stimulate lubricant demand in the wind energy sector.
Key players in the global lubricants market include Castrol Ltd, Shell Plc, Pennzoil, Quaker State Lubrication Limited, TotalEnergies SE, Repsol Group, Mobil, Motul SA, Valvoline Inc, and Chemron Corp. These companies are committed to delivering high-quality products that meet customer expectations and are actively engaged in launching innovative and superior products.
Manufacturers are crucial in shaping the lubricants market, influencing its dynamics through production, innovation, and strategic market approaches. As significant contributors to the industrial landscape, lubricant manufacturers are often at the forefront of addressing the diverse needs of various sectors, including automotive, manufacturing, and agriculture. They are responsible for formulating and producing lubricants that comply with industry standards and meet specific performance criteria. The quality and effectiveness of their products directly affect the efficiency and longevity of machinery and equipment across different applications. Manufacturers face challenges related to sourcing raw materials, production processes, and quality assurance to ensure their lubricants' reliability in the market. Additionally, market strategies encompassing pricing, distribution, and branding are vital for lubricant manufacturers. Establishing robust distribution networks and brand recognition is essential for market penetration and building customer trust. Manufacturers frequently engage in strategic partnerships with suppliers, distributors, and research institutions to enhance their capabilities and maintain a strong presence in the competitive landscape.
The overall size of the global lubricants market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. Furthermore, numerous primary interviews were conducted with industry participants to validate the data and gain deeper analytical insights. Participants included industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants like valuation experts, research analysts, and key opinion leaders specializing in the lubricants market.