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Synthetic Lubricants & Functional Fluids


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Synthetic Lubricants & Functional Fluids

US demand to increase 6% annually through 2018
US demand for synthetic lubricants and functional fluids is forecast to increase 6.0 percent per annum to $6.2 billion in 2018, with volume rising to 550 million gallons. Synthetic products will continue to grow at the expense of conventional fluids, with rising market penetration driven by environmental concerns and increasingly demanding requirements for product performance. Each market segment for synthetics will be subject to a unique set of factors influencing future demand. In some cases, government regulations and manufacturer and industry groups will specify the usage of synthetic products, while in others end user preferences for the benefits of synthetics will boost demand.

Engine oils to account for largest share of new growth
Engine oils will account for the largest share of growth through 2018. In the light vehicle market, synthetic engine oils will benefit from lubricant specifications in new cars that will increasingly call for lower viscosity motor oils, often necessitating the use of synthetics. General Motors’ DEXOS1 specification, along with the requirement for SAE 0W-20 motor oils in most new Honda and Toyota vehicles, will be especially important in increasing synthetics’ market share. The upcoming introduction of the ILSAC GF-6 specification will further encourage synthetics’ use. Synthetics will also begin to see wider use in the heavy-duty and off-highway segments, based on the improved fuel efficiency and extended maintenance intervals that synthetics offer. Transmission and hydraulic fluids will be the fastest growing category, benefiting from many similar factors as engine oils. The impact of increasingly demanding equipment specifications and the ability to improve energy efficiency will be key driving factors for these fluids. Synthetic metalworking fluids and dielectric fluids will continue to be used where they can provide worker safety or environmental benefits, or meet a specific performance requirement, although these markets -- along with heat transfer fluids and antifreeze -- all tend to be more mature and grow more slowly.

Group III base oil to remain fastest growing material
Group III base oil will remain the fastest growing material in synthetic lubricants in value terms. Along with rising global capacity for conventional Group III base oil production, the increasing availability of gas-to-liquids (GTL) basestocks will also support gains. Production of GTL base oils, which are considered a premium synthetic product, is expected to expand in the US during the forecast period. Nonetheless, polyalphaolefins, which have grown only modestly in recent years due to competition from Group III base oil, will accelerate as they enjoy greater use in industrial lubricant markets. Specialty ester-based lubricants, which hold a significant share in key niche markets, will grow at an above average pace as well.

The energy and power generation, automotive equipment, and industrial machinery markets will all present growth opportunities for synthetics. In power generation, niche and emerging applications -- for example, synthetic turbine oils, heat transfer fluids for concentrated solar power, and wind turbine gear oils -- will boost growth. In automotive equipment and industrial machinery, in contrast, growth will be broad based, resulting from steady gains in market size paired with increasing penetration of synthetics.


  • INTRODUCTION
  • EXECUTIVE SUMMARY
    • Table SYNTHETIC LUBRICANT & FUNCTIONAL FLUID DEMAND
  • MARKET ENVIRONMENT
    • General
    • Macroeconomic Outlook
      • Table MACROECONOMIC INDICATORS
    • Demographic Outlook
      • Table POPULATION & HOUSEHOLDS
    • Personal Consumption Expenditures
      • Table PERSONAL CONSUMPTION EXPENDITURES
    • Manufacturing Outlook
      • Table MANUFACTURERS' SHIPMENTS
    • Competitive Products
    • Environmental & Regulatory Issues
      • Recycling & Re-Refining
      • Motor Vehicle Lubricant Specifications
    • Pricing Trends
      • Table SYNTHETIC FUNCTIONAL FLUID PRICING
      • Table CHART II-1 SYNTHETIC FUNCTIONAL FLUID PRICING VOLATILITY BY PRODUCT, 2003-2023
    • Foreign Trade & International Activity
      • Table SYNTHETIC LUBRICANT & FUNCTIONAL FLUID FOREIGN TRADE
  • PRODUCTS
    • General
      • Table SYNTHETIC LUBRICANT & FUNCTIONAL FLUID DEMAND BY PRODUCT
      • Table CHART III-1 SYNTHETIC LUBRICANT & FUNCTIONAL FLUID DEMAND BY PRODUCT, 2013
    • Engine Oils
      • Fully Synthetic Engine Oils
        • Table FULLY SYNTHETIC ENGINE OIL DEMAND BY TYPE
        • Table FULLY SYNTHETIC GASOLINE ENGINE OIL DEMAND
        • Table FULLY SYNTHETIC HEAVY-DUTY DIESEL ENGINE OIL DEMAND
        • Table OTHER FULLY SYNTHETIC ENGINE OIL DEMAND
      • Semi-Synthetic Engine Oils
        • Table SEMI-SYNTHETIC ENGINE OIL DEMAND
    • Antifreeze & Deicing Fluids
      • Table SYNTHETIC ANTIFREEZE & DEICING FLUID DEMAND
      • Antifreeze
      • Deicing Fluids
    • Transmission & Hydraulic Fluids
      • Table SYNTHETIC TRANSMISSION & HYDRAULIC FLUID DEMAND BY PRODUCT, CHEMICAL, &MARKET
      • Transmission Fluids
      • Hydraulic Fluids
    • Heat Transfer Fluids
      • Table SYNTHETIC HEAT TRANSFER FLUID DEMAND
      • Low Temperature
      • High Temperature
    • Metalworking Fluids
      • Product Characteristics
      • Demand
        • Table SYNTHETIC METALWORKING FLUID DEMAND
        • Table SYNTHETIC METAL REMOVAL FLUID DEMAND
        • Table SYNTHETIC METAL FORMING FLUID DEMAND
        • Table OTHER SYNTHETIC METALWORKING FLUID DEMAND
    • Dielectric Fluids
      • Table SYNTHETIC DIELECTRIC FLUID DEMAND
    • Other Products
      • Table OTHER SYNTHETIC LUBRICANT & FUNCTIONAL FLUID DEMAND
      • Gear Oils
      • Compressor Lubricants
      • Turbine Lubricants
      • All Other
  • MATERIALS
    • General
      • Table SYNTHETIC LUBRICANT & FUNCTIONAL FLUID DEMAND BY MATERIAL
      • Table CHART IV-1 SYNTHETIC LUBRICANT & FUNCTIONAL FLUID DEMAND BY MATERIAL, 2013
    • Glycols
      • Table GLYCOL DEMAND IN SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Polyalphaolefins
      • Table POLYALPHAOLEFIN DEMAND IN SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Esters
      • Table ESTER DEMAND IN SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Group III Base Oils
      • Table GROUP III BASE OIL DEMAND IN SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Aromatics
      • Table AROMATICS-BASED CHEMICAL DEMAND IN SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Silicone Fluids
      • Table SILICONE FLUID DEMAND IN SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Other
      • Table DEMAND FOR OTHER CHEMICALS, ADDITIVES, &BLENDING COMPONENTS IN SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
  • MARKETS
    • General
      • Table SYNTHETIC LUBRICANT & FUNCTIONAL FLUID DEMAND BY MARKET
      • Table CHART V-1 SYNTHETIC LUBRICANT & FUNCTIONAL FLUID DEMAND BY MARKET, 2013
    • Automotive
      • Motor Vehicle & Off-Highway Equipment Outlook
        • Table MOTOR VEHICLE & OFF-HIGHWAY EQUIPMENT INDICATORS
      • Synthetic Lubricant & Functional Fluid Demand
        • Table AUTOMOTIVE MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
        • Table LIGHT VEHICLE MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
        • Table MEDIUM- & HEAVY-DUTY VEHICLE MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
        • Table OFF-HIGHWAY EQUIPMENT MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Metals
      • Metal Industry Outlook
        • Table METAL PRODUCT SHIPMENTS
      • Synthetic Lubricant & Functional Fluid Demand
        • Table METALS INDUSTRY MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Aircraft/Aerospace
      • Aircraft/Aerospace Outlook
        • Table AIRCRAFT IN SERVICE
      • Synthetic Lubricant & Functional Fluid Demand
        • Table AIRCRAFT/AEROSPACE MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Energy/Power Generation
      • Energy/Power Generation Industry Outlook
        • Table ENERGY/POWER GENERATION INDICATORS
      • Synthetic Lubricant & Functional Fluid Demand
        • Table ENERGY/POWER GENERATION MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Industrial Machinery
      • Industrial Machinery Outlook
        • Table MACHINERY SHIPMENTS
      • Synthetic Lubricant & Functional Fluid Demand
        • Table INDUSTRIAL MACHINERY MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Process Industries
      • Process Manufacturing Industry Outlook
        • Table PROCESS MANUFACTURERS' SHIPMENTS
      • Synthetic Lubricant & Functional Fluid Demand
        • Table PROCESS INDUSTRIES MARKET FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
    • Other Markets
      • Table OTHER MARKETS FOR SYNTHETIC LUBRICANTS & FUNCTIONAL FLUIDS
  • INDUSTRY STRUCTURE
    • General
      • Table US SYNTHETIC LUBRICANT & FUNCTIONAL FLUID SALES BY COMPANY, 2013
    • Market Share
      • Table CHART VI-1 SYNTHETIC LUBRICANT & FUNCTIONAL FLUID MARKET SHARE, 2013
    • Competitive Strategies
      • Research & Development
        • Table RESEARCH & DEVELOPMENT SPENDING PATTERNS: SELECTED SYNTHETIC FLUID COMPANIES, 2011-2013
      • Chemical Management Services
    • Merger & Acquisition Activity
      • Table SELECTED ACQUISITIONS & DIVESTITURES
    • Manufacturing
    • Marketing
      • Synthetic Engine Oil
      • Antifreeze
      • Other Synthetic Fluids Marketing Strategies
    • Distribution
    • Company Profiles
      • AMSOIL Incorporated
      • Ashland Incorporated
      • Autoparts Holdings Limited
      • BASF SE
      • Berkshire Hathaway Incorporated
      • BP plc
      • Calumet Specialty Products Partners LP
      • Chemtura Corporation
      • Chevron Corporation
      • Chevron Phillips Chemical Company LLC
      • CLC Lubricants Company
      • ConocoPhillips
      • Dow Chemical Company
      • Dow Corning Corporation
      • DuPont (EI) de Nemours
      • Eastman Chemical Company
      • Exxon Mobil Corporation
      • FUCHS Petrolub SE
      • Houghton International Incorporated
      • Milacron LLC
      • Old World Industries LLC
      • Petróleos de Venezuela SA
      • Phillips 66
      • Quaker Chemical Corporation
      • Royal Dutch Shell plc
      • Total SA
      • Warren Oil Company Incorporated
    • Additional Companies Mentioned in the Study

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