The increasing industrial output in the emerging economies, such as India, Indonesia, China, Brazil, and Russia, has boosted the consumption of industrial lubricants such as process oil, engine oil, general oil, and metalworking fluid. In recent years, the production capacity of the consumer appliance, mining, metal forming, plastics industries of these nations has increased to a significant extent. The surging industrial output can be primarily owed to the advent of Industrial 4.0 and rapid urbanization in developing countries.
Besides, the flourishing food and beverage sector, on account of the changing lifestyle of the people and burgeoning population in Latin America (LATAM) and Asia-Pacific (APAC), will drive the industrial lubricants market at a CAGR of 4.3% during the forecast period (2016–2024). The market is expected to grow from $48,860.7 million in 2016 to $68,412.0 million by 2024. This industry is transforming due to the advent of multinationals, the emergence of commodity branding, and the low cost of technology. This industry uses industrial lubricants in slides, labelers, conveyors, bottle washers, blenders, sifters, knives, mixers, packaging machinery, slicers, and wrappers.
Additionally, the strengthening wind turbine industry, owing to the surging focus on non-conventional energy, is also expected to amplify the consumption of industrial lubricants worldwide. These fluids are used in the production of turbines as it requires oils with low viscosity. With the growing environmental concerns and depleting fossil fuel sources, wind turbines will be installed at a rapid pace. Apart from this, the growing mining sector will also fuel the consumption of industrial fluids for quarrying purposes.
According to P&S Intelligence, APAC accounted for the largest share in the industrial lubricants market, in 2016, and it is projected to continue this trend in the forecast years as well. This can be ascribed to the rapid industrialization in China and India and the emerging economies of Southeast Asia. Moreover, the advancements in industrial machinery in such countries also support market growth in the region. Besides, the increasing investments in the construction of utilities, industrial hubs, and other civic infrastructure facilities in APAC is expected to drive the demand for industrial lubricants in the foreseeable future.
Thus, the expanding capacity of industrial units, flourishing food and beverage sector, and strengthening wind turbine industry will boost the requirement for industrial lubricants in the foreseeable future.