Synthetic Lubricants Market by Base Oil, Product and End User: Global Opportunity Analysis and Industry Forecast, 2019-2026

Executive Summary

According to the report titled 'Synthetic Lubricants Market by Pump Type and Application: Global Opportunity Analysis and Industry Forecast, 2019-2026', the global synthetic lubricants market size was valued at $12.0 billion in 2018, and is projected to reach $18.8 billion by 2026, growing at a CAGR of 5.8% from 2019 to 2026.

Synthetic lubricants enhance the overall durability and functioning of a vehicle and safeguard it from wear & tear, friction, and high temperatures. Increase in preference of consumers toward high-quality synthetic automotive lubricants is a key factor that boosts the synthetic lubricants market growth. Automotive lubricants exemplify the futuristic technologies capable of manufacturing durable surfaces, maximizing the overall efficiency.

In the overall lubricants market, the synthetic lubricants segment is projected to have a promising future due to its greater penetration among original equipment manufacturers (OEM) and superior properties associated with it. Europe has witnessed greater penetration of synthetic lubricants market by reporting the highest luxury vehicle production and sale. This is due to the superior hardware compatibility of synthetic lubricants and lower vehicle emissions. One of the prime factors that make synthetic lubricants a promising choice is consistently growing need for advanced vehicle design to attain fuel efficiency. As a result, more advanced design requires development in the lubricants to enable new engines, power trains, and other equipment or high-end automotive component at their peak efficiency. On the split side, emergence of bio-based lubricants as substitute of synthetic lubricant is expected to restrain the market growth.

The engine oil product segment accounted for more than half of the global market, in terms of value and volume, in 2018. In response to the consistent modifications in the automotive industry, efficient lubricants are in demand globally. Thus, increase in requirement of high-tech automotive lubricants and rise in adoption of new vehicles fuel the demand for synthetic lubricants market globally.

Based on end user, the automotive segment emerged as the global leader by acquiring more than 60% market share in 2018. Several factors such as tremendous rise in the sale of passenger cars and the resulting growth in production; growth in spending power of middle-class population; and rise in repair, vehicle conditioning, and maintenance activities boost the growth of the automotive segment.

Some of the major market players operating in the global synthetic lubricants market include Royal Dutch Shell PLC, ExxonMobil Corporation, British Petroleum (Bp) PLC, Chevron Corporation, Total SA, Idemitsu Kosan Co. Ltd., Sinopec Limited, Lukoil, Petroliam Nasional Berhad (Petronas), and Indian Oil Corporation Ltd.

Key findings of the study:

Based on base oil, the polyalphaolefin segment emerged as the major revenue generating segment in 2018 due to its wide application area in the automotive industry.
Based on the product type, the engine oil segment accounted for the largest synthetic lubricants market share in 2018, and it is anticipated to be the largest one by the end of forecast period.
Asia-Pacific is the largest regional market due to largest automotive production sales outlook, strong industrial growth, presence of emerging economic such as China, India, Japan, and South Korea.
Introduction of new age engine and superior compatibility of synthetic oil with them is considered one of the major advantages in this market.
Development in the synthetic lubricant technology is anticipated to offer lucrative growth opportunities to the market during the forecast period.
Growth in the adoption of bio-based lubricants in response to rise in awareness regarding the environment and changing emission standards is the key to the market players in this market.

Companies Mentioned

• Royal Dutch Shell PLC
• ExxonMobil Corporation
• British Petroleum (Bp) PLC
• Chevron Corporation
• Total SA
• Idemitsu Kosan Co. Ltd.
• Sinopec Limited
• Lukoil
• Petroliam Nasional Berhad (Petronas)
• Indian Oil Corporation Ltd.

Methodology

The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.

They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.

They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:

• Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
• Scientific and technical writings for product information and related preemptions
• Regional government and statistical databases for macro analysis
• Authentic news articles and other related releases for market evaluation
• Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast

Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.