U.S. Industrial Lubricants Market - Industry Outlook and Forecast 2022-2027
The U.S. industrial lubricants market is expected t grow at a CAGR of 3.11% from 2022 t 2027
The U.S. industrial lubricants market is evolving t cater t customers' changing needs and preferences. Industrial lubricants were used t prevent corrosion, reduce friction, and offer cooling effects t equipment. However, with advancements in technology, the U.S. lubricants market now offers extended benefits such as it reduces the interval for changing oil, increasing the equipment life of the machine, emitting low carbon, and reducing the equipment maintenance cost. The industry has undergone significant changes due t the recent developments, evolving needs, and preferences of customers.
Due t rising environmental concerns and stringent governmental regulations, the demand for bio-based lubricants manufactured from bio-based oil is growing, contributing t the growth of the U.S. industrial lubricants market. U.S. industrial lubricants are manufactured t protect machines and equipment from wear and tear, reduce downtime, prolong service intervals, and lower maintenance costs. Further, the South region is expected t continue t dominate the industrial lubricant market due t the high penetration of manufacturing units such as manufacturing, construction, chemical, and oil & gas.
KEY TRENDS & DRIVERS
- Growth In Renewable Energy Sector
The U.S. is rapidly working towards transforming power generation. Due t environmental and climatic changes, shifting from carbon-based petroleum derivatives t cleaner alternative energy sources is mandated. With the increasing effects of greenhouse gases and growing awareness about net zer emission and climate change risk, there is significant growth in the renewable energy sector.
Industrial lubricants are used in almost every renewable energy generating power, such as wind, hydroelectric, and solar power plants. Using lubricants highly increases efficiency and allows for low power loss, less breakdown time, and low maintenance, resulting in increased productivity and service life. Hence it is highly used in renewable energy plants, which further contributes t the growth of the U.S. industrial lubricants market.
- Increasing Use Of High-Performance Lubricants
These high-performance lubricants include added additives such as extreme pressure additive, friction modifier, pour point depressants, emulsifiers, and tackifiers, among others. They perform better in high and low operating temperatures, dust, damp, or exceptional environmental conditions. High-performance lubricants maintain the servicing cycle of machines and equipment, resulting in less manufacturing cost. These high-performance lubricants can be used in machines and equipment subjected t moisture, such as conveying systems, packaging machines, and automatic filling machines. Due t better dust resistance, they can als be used in chains used in dusty environments.
- Environmental Concerns Associated With Use And Disposal Of Industrial Lubricants
Lubricants are a highly regulated industry where public health and environmental protection is the main driver. Focusing on carbon footprint as well as sustainable development has contributed t the strict regulations regarding the use of industrial lubricants. Lubricants available in the industry are produced from mineral oil. The biodegradability of mineral oils is very low. Hence, used lubricants cause environmental pollution. These used lubricants cannot be directly combusted without pre-treatment as they are subjected t environmental restrictions. Since these lubricants may contain toxic and hazardous residues such as metal and metalloid particles, chlorinated compounds may be released int the atmosphere.
Industrial lubricants are used in various industries for a wide range of applications such as reducing friction, increasing efficiency, reducing wear, maintaining the temperature, and increasing the service life of the machinery. The U.S. industrial lubricants market is classified int four product types industrial oil, metalworking fluids, process oils, and greases.
The industrial oil segment is estimated t be the largest segment in U.S. industrial lubricants market. The oil used for lubrication in industrial machinery and equipment is called industrial oil. All industrial oils consist of base oils such as mineral oil, synthetic oil, or bio-based oil. Industrial oils include hydraulic fluid, compressor oil, refrigeration oil, cylinder oil, spindle oil, and transformer oil. Industrial oils are used t improve the performance of industrial machinery and equipment and protect them against damage during operations.
The manufacturing industry is estimated t be the major end-user in the U.S. industrial lubricants market. Lubricants are used in manufacturing, power generation, metal & mining, and construction industries. High growth in the metal & mining, and power generation industry is one of the main drivers for growth in the U.S industrial lubricants market. As in the power generation industry, industrial lubricants are widely used in power generation plants such as coal power plants, gas turbine power plants, hydroelectric power plants, natural gas engines, nuclear energy power plants, and wind energy plants.
Segmentation by Product Type
- Industrial Oil
- Metalworking Fluid
- Process Oil
Segmentation by End-Use
- Power Generation
- Metal & Mining
The Western, South, Midwest, and Northeast are four key regions in which the U.S. industrial lubricants market is divided and their corresponding regions. The geographical segment examines demand & supply side aspects impacting the industrial market and critical factors affecting the industry throughout the forecast period, such as drivers, constraints, opportunities & future trends. Political, sociological, and technical als impact the U.S. industrial lubricants market.
The South region is the largest industry for industrial lubricants in the US. This region consists of major manufacturing states such as Texas, North Carolina, and Florida. The demand for lubricants in the Southern U.S. is driven by strict emission regulations and the growing sustainability trend. In addition, the booming automotive, manufacturing, and construction industries als support the U.S. industrial lubricants market growth.
Segmentation by Geography
The competitive scenari in the U.S. industrial lubricants market is currently intensifying. In the industrial lubricants market, the initial capital investment is very high in terms of setting up a manufacturing plant and developing a supply chain network. In addition, there are many well-established players in the lubricants industry, and producing industrial lubricants from crude oil and other additives is a very complex process.
The U.S. industrial lubricants market consists of major global multinational players such as Shell plc (UK), ExxonMobil Corporation (US), Chevron Corporation (US), Valvoline (US), and Phillips 66 Company (US) in the lubricants industry. The major players focus on innovation, product diversification & entering new industries.
The rapidly changing industry scenari with an increasing emphasis on sustainability is expected t provide growth opportunities t vendors. Chevron Corporation is a US-based multinational company founded in 1879 and headquartered in California, the U.S. In the coming years, the company aims t become one of the top renewable energy producers globally. Hence, the company is highly investing in solar and wind power, which would help increase energy storage.
- Shell plc
- Exxon Mobil Corporation
- Chevron Corporation
- Phillips 66 Company
Other Prominent Vendors
KEY QUESTIONS ANSWERED
- Castrol Limited
- DuBois Chemicals
- Gulf Oil International Limited
- Klüber Lubrication
- Morris Lubricants
- Petronas Lubricants International
- Petr Canada Lubricants Inc.
- Renewable Lubricants
- Total Energies
1. How much is the U.S. industrial lubricants market worth?
2. What is the U.S. industrial lubricants market growth rate?
3. Wh are the key players in the industrial lubricants market in the U.S?
4. What are the major factors driving the U.S. industrial lubricants market?
5. Which region holds the U.S. industrial lubricants market share?