India Industrial Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Indian industrial lubricants market is expected to record a CAGR of above 4%, during the forecast period, 2019-2024. The major factors driving the growth of the market studied are rising demand from the wind energy sector and the ‘Make in India’ initiative, which is expanding the industrial base in India. However, increased environmental pollution leading to growing industrial regulations is likely to hamper the growth of the market studied.

• The heavy equipment segment dominated the market, in 2018.
• Factors, such as the growing mining operations and robust growth of the construction industry, are likely to provide opportunities for the market studied, during the forecast period.

Key Market Trends

Heavy Equipment Segment to Dominate the Market Demand

• Exposure to conditions, like extreme cold or heat, moisture, dust and dirt, can affect heavy equipment performance and, in turn, lead to premature equipment failure.
• In order to keep the equipment and its performance intact, various industrial lubricants are designed for the equipment. For instance, greases, engine oil, diesel fuel, wire rope lubricants, etc.
• Heavy equipment dominates the demand for industrial lubricants in the country. The growing construction and mining activities have increased the usage of heavy equipment in the country.
• With increased usage of such equipment, the demand for industrial lubricants is also increasing in the country.
• The government has planned an investment target of USD 120.5 billion for developing 27 industrial clusters. This is expected to boost commercial construction in the country. The government also allocated resources to upgrade infrastructure facilities across the country.
• Besides, the government has plans to build about 100 airports before 2032, which is expected to drive the construction activities in the country, in the coming years.
• The country is one of the largest producers of iron ore, coal, and chromium in the world. It is also engaged in the mining of bauxite, manganese ore, talc, and barytes. There has been an increase in the mining activities of such minerals in the country, which may increase the demand for, and usage of heavy equipment.
• With growing modernization in the sector, the demand for agricultural equipment has also been increasing in India.
• Therefore, the increasing demand for, and usage of heavy equipment are further projected to drive the demand for industrial lubricants, during the forecast period.

Surging Demand from Wind Energy Sector

• Gear oils find applications in wind turbines, for lubrication of the main gearbox and other gear motor components.
• The lubricant requirements in wind turbine gearboxes are more stringent, compared to other industrial gear oils. This is due to the high temperatures, bearing wear, corrosion and oxidation, and load weights involved during the process of power generation.
• There is an increasing demand for synthetic gear oils in wind turbines, due to their enhanced properties, over their mineral-based counterparts, owing to the performance additives used during the formulation of synthetic oils, as per the requirement.
• Power generation from wind energy is growing at a rapid pace in the country, with continuously increasing installed capacities of wind turbines every year. The government has been taking initiative to increase the renewable energy infrastructure, including wind energy.
• For instance, the Ministry of New and Renewable Energy (MNRE) has set an ambitious target to set up renewable energy capacities to the tune of 175 GW, by 2022, which includes the addition of 60 GW for wind power installed capacity.
• Therefore, with increase in wind energy infrastructure, the demand for industrial lubricants, such as gear oils, grease, etc., is expected to increase in the country, during the forecast period.

Competitive Landscape

The India industrial lubricants market is partially consolidated in nature, with numerous players holding a significant share of the market, to individually affect the market dynamics. Some of the noticeable players in the market include Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), Castrol Limited (BP), Royal Dutch Shell PLC, and Gulf Oil Lubricants India, among others.

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