North America Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• Over the short term, growing demand from the construction and power generation industries, along with increasing demand for high-performance lubricants, is expected to drive the market’s growth.
• On the flip side, the growing population of electric and hybrid vehicles, the increase in the life of lubricants, and stringent environmental regulations are hindering the market growth.
• The North American lubricant market is expected to grow during the forecast period owing to the growing construction and power generation industry demand.
• The United States is expected to dominate the market with the largest consumption in the North American Region.

North America Lubricants Market Trends

Growing Demand form Power Generation Industry

• Power generation is one of the most important sectors among all other industries, as it provides electricity, the basic requirement for any industry to run its operations as planned.
• The growing industrialization and advancements in technologies are resulting in the commencement of new plants, thereby increasing the electricity demand. Turbines are basic elements in energy generation regardless of sources, such as wind, thermal, and hydropower. Other than turbines, lubricants are used in pumps, fans, compressors, etc., in the power generation industry.
• In construction or power generation, lubricants are used to protect the equipment and movable parts from heat, dust, and moisture. They reduce friction and provide dealing, protection, and cooling. The growing investments in power generation and construction are driving the market.
• According to International Trade Administration, as of 2021, Canada includes an installed power generation capacity of 627.7 TWH (terra watt-hours), with more than 60.1% coming from hydropower.
• Wind power is the largest source of renewable energy in the US, generating nearly half of the total. Texas produces far more than any other state, followed by Iowa, Oklahoma, and Kansas. According to the US Department of Energy, the US wind industry installed 13,413 megawatts (MW) of new wind capacity in 2021, bringing the cumulative total to 135,886 MW. It is the second-highest wind capacity installed in one year (behind 2020). Thus, the increase in wind turbine capacity and the new installations will drive up lubricant consumption in the country.
• As the growth of the wind power industry continues to rise, the demand for a greater number of high-performance and customized lubricants is increasing in the market, which is expected to drive the market for North American lubricants during the forecast period.

United States Region to Dominate the Market

• The United States region is expected to dominate the market for lubricants in the North American region during the forecast period due to an increase in demand from end-use industries such as power generation, construction, and automotive.
• According to the US Census Bureau, in January 2022, the value of construction in the United States was around USD 1,726.01 billion. The share from the residential sector was about USD 881.91 billion, and the non-residential was approximately USD 499.79 billion. The total construction value referring to public buildings in January 2022 is USD 344.89 billion. The growing construction activities in the non-residential and residential sectors are driving the market.
• The automotive industry is one of the largest consumers of lubricants in the region. As of 2022, ~76% of the United States population have a car. Therefore, such high motor vehicle demand in the region fuels the lubricant industry's growth. Furthermore, according to the OICA, in 2021, almost 9.2 million motor vehicles were produced in the United States. Compared to the previous year, US motor vehicle production increased by more than 4% in 2021. Thus, the growth in motor vehicle production in the United States produced a great demand for lubricants.
• The United States is one of the region's largest producers of oil and gas, with around 19.89 million barrels of petroleum per day in 2021. It was an increase in consumption of about 1.6 million barrels per day over consumption in 2020. The increase was largely the result of the economy recovering from the coronavirus (COVID-19) pandemic. Thus, the increased oil and gas production is significantly impacting the demand for lubricants in the country.
• The factors above, coupled with government support, are contributing to the increasing demand for the lubricants market in the United States region during the forecast period.

North America Lubricants Market Competitor Analysis

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