Wherever there are mechanical objects at work, there are friction and wear and tear due to their constant contact with each other. This is why lubricants are so important in factories and other industrial settings. Wear and tear and the heat generated due to friction are the major forces behind the breakdown of machines. Apart from leading to the need for regular maintenance and overhauling, these forces also lead to a high fuel and electricity consumption, by making the machine work harder to do the same thing.
Hence, considering the burgeoning manufacturing output around the world, P&S Intelligence sees a bright future for the industrial lubricants market ahead. The rising population is leading to the increasing demand for all kinds of products, which is giving a boost to the manufacturing sector. Additionally, governments of numerous nations are encouraging manufacturers to set up their plants there. Some of the efforts made in this regard are the Made in China 2025, Make in India, and Making Indonesia 4.0 initiatives.
Therefore, be it automotive, aerospace & marine, pharmaceutical & medical device, food & beverage, defense, chemical & polymer, metal & mining, building & construction, wood & furniture, electrical & electronics, textile & clothing, consumer products (including cosmetics & personal care), or power & energy (including oil & gas exploration & production), every industry is growing around the world. This is being seen in the rapid construction of manufacturing plants and expansion of the existing ones. Therefore, with more machines in use around the world, the consumption of lubricants is increasing as well.
General oils, process oils, engine oils, metalworking fluids, demolding oils, chainsaw oils, lubricating greases, compressor oils, industrial gear oils, and turbine oils are the various types of lubricants used in manufacturing plants, among which process oils account for the heaviest usage. This is attributed to the high significance of this product in the chemical, rubber, and plastic industries. Chemical is a broad term that refers to a wide variety of solid and liquid products. Some chemicals are used on their own, while others are added to other products.
In the coming years, the usage of engine oils is set to pick up the fastest because of the rising automobile sales. The engine is the most-important component of conventional vehicles, determining their speed, driving range, fuel consumption, and tailpipe emissions. Therefore, it needs to be kept in the best working condition possible, which is why engine oils are widely used around the world. By reducing the wear and tear between the mechanical parts in contact, engine oils enhance the speed of the vehicle and decrease their fuel consumption and emissions.
Due to these reasons, Asia-Pacific has accounted for the highest industrial lubricants market value and sales volume till now. China, Japan, South Korea, and India have among the highest industrial outputs in the world as they offer raw materials and labor at cost-effective rates and are subject to less-stringent environmental regulations than the countries in Europe and North America. Therefore, apart from local ones, almost all Western manufacturers have their plants here.
Seeing the continuous rise in the number of industrial spaces, even lubricant manufacturers have shifted their production base to APAC countries. This has allowed them to leverage the cost advantages and target a wider consumer base easily. This is being aided by the government measures that seek to boost manufacturing capacity and reduce their reliance on imports. For instance, the Indian government now allows 100% foreign direct investment (FDI), to boost industrial production.
Therefore, as the industrial sector grows, so will the demand for various kinds of lubricants to keep the machines running smoothly.