North America Industrial Lubricants Market

North America Industrial Lubricants Market Size (2023-2028):

The North America Industrial Lubricants Market is expected to reach USD 9 billion by 2028. In this region, in particular, the USA has been a huge contributor to the rising industrial lubricant market that was estimated at 2260 kilo tonnes in a year  It is foreseen that it will be worth USD 8.94 billion by 2028.

Market Drivers and Restraints:

There is an emerging trend in the creation of advanced internal combustion engines (IC Engines) and mechanical engineering in the worldwide automotive sector. The components of the automobile engine are being exposed to increased tension and heat because of the developments in engines, which have resulted in a progression in the industrial lubricants industry. Besides, very high RPM engines have emerged that need improved engine oil quality. Also, the transmission system within a vehicle is enhanced with automobiles that can now reach up to 150 miles per hour. Besides, the gearing technology and bearing system are also improved. All these developments and evolutions increased the call for better lubricants resulting in the expansion of the North American industrial lubricants industry.
Natural oil reserves have almost reached a mature state and offshore oil production is attracting more domestic and international investments, which is driving the demand in the local industry.

In recent years, there has been increased production of electric vehicles and hybrid vehicles across the world. These vehicles do not use the IC engines to their fullest, resulting in less adoption of industrial lubricants. This has had an adverse effect on the call for these lubricants as vehicles cut the demand by almost 50%.

Market Segmentation:

North America Industrial Lubricants Market - By Base Oil:

• Mineral Oil
• Synthetic Oil
• Bio-Oil

North America Industrial Lubricants Market - By Product:

• Engine Oil
• Metalworking Fluid
• Hydraulic Fluid
• Turbine Oil
• Grease
• Gear
• Compressor

North America Industrial Lubricants Market - By End-Use Industry:

• Automotive
• Construction
• Power Generation
• Metal
• Cement
• Manufacturing
• Food

The Automobile engine oil industry is heavily reliant on the growth and functioning of the automobile sector. With the global shift towards hybrid and electric vehicles, the consumption and demand for conventional oil have reduced and investments are being made in offshore plants.

Industrial engine oil continues to be the dominant contributor to the well-being of the North American industry. Transmission fluids will grow at a CAGR of 2.5% which is followed by engine oil at 2.1% in the forecasted period of 2020 to 2026.

In the grease market, North America comes second only behind the Asia Pacific region. This market is fragmented with few companies accounting for up to 30% of the overall revenue.

Market Regional Analysis:

Mexico is expected to resume growth in late 2020 followed by a slowdown imposed by the pandemic and a change in regional policies. The Mexican market will grow by 2% from 2020 to 2026.

The lubricant manufacturing industry in Canada stands at USD 2 billion with a total of 120 businesses. The demand for automotive lubricants has been decreasing since 2016 and with the current scenario, it is not expected to improve. The engine oil lubricant market in the USA was valued at USD 19 Billion in 2019 and is expanding because of the introduction of offshore projects. From 2020 to 2026, it is expected to grow at a 3% CAGR.

Impact of COVID-19 on the Europe North America Industrial Lubricants Market:

Engine oil is the largest and most affected segment in the lubricants market. It is expected to experience a negative impact due to lockdown, as demands for a passenger vehicle is at an all-time low. The demand is low in the commercial segment too. OEMs have also brought a halt to their production, which has further decreased the demand for engine oil. Before the pandemic, the growth rate was expected to be flat thanks to the technological shift, and post that it has suffered dearly. North America has become the most affected region by the pandemic, and it has affected businesses severely. The lubricant industries suffered huge losses and often were required to prove strong liquidity to avoid bankruptcy. The pandemic can bring some changes in the consumer segment of the industry which will eventually affect the demand as the lubrication requirement is no longer being seen as a top priority.

Key Market Players:

• ExxonMobil Corporation
• Royal Dutch Shell Plc.
• Valvoline
• Schlumberger Ltd.
• Chevron Corp.
• Total SA

Market Recent Developments:

• Exxon Mobil Corp published its plan of investing $30 billion a year to reinforce its portfolio to combat the threat associated with the company’s dividend.
• James expects Valvoline will increase its EBITDA growth in the next two years at a compounded rate of ~9%. Upgrades them to overweight.
• Royal Dutch Shell plc’s subsidiary Shell Gas B.V. announced that their final decision on investment in a processing unit in Nigeria has been met and investments will be made.