Market Overview:

According to a new report by IMIR Market Research on Global Synthetic Lubricants Market was valued at approximately USD 18.1 Billion in 2023. Over the course of the forecast period (2024–2031), the market is expected to develop at a compound annual growth rate (CAGR) of 3.7%, reaching a value of USD 24.15 Billion by 2031.

The rise in the market is ascribed to the superior qualities of synthetic lubricants, which help regulate temperature by transferring heat from moving vehicle parts to a sump or cooler. They are in high demand in end-use sectors like the automotive and machinery for the industrial industries.

The mineral lubricants lack some of the finer qualities of synthetic lubricants, such as greater hardware compatibility with vehicle components. Thus, during the course of the projected period, consumer demand for synthetic oils will be driven by the development of technological advances leading to constant modifications, improvements in vehicle designs, and the creation of cutting-edge engines and premium automotive parts.

The demand for the product is also anticipated to rise in Asia Pacific as a result of higher auto production and new machine installations. The need for synthetic lubricants is also being increased by technical developments, including the NSF Food Lubricants standard, which key equipment manufacturers in the food sector have adopted to require the use of synthetic lubricants.

The developers are creating new products and technology that can survive high pressures and temperatures. However, it is projected that customer inclination toward less costly substitutes for synthetic lubricants could obstruct market growth. It is also expected that the increased need from manufacturing organizations to decrease their maintenance costs will narrow the selection of synthetic lubricants. The incompatible nature of Polyalkylene Glycol (PAG)-based oils in Polyalphaolefins (PAOs) and conventional mineral oils is expected to pose additional obstacles to future market expansion.

North America's biggest market for synthetic lubricants is the United States. The reason for this is because there are significant manufacturers of industrial machinery in the area. The region's ever-increasing need for machinery for mining, construction, industrial products, agricultural, and automobile production is met by businesses including Deere & Co., AGCO Corp., Caterpillar Inc., Baker Hughes Inc., and Veritiv Corp. Consequently, there is a rise in the need for synthetic lubricants to ensure that machinery operates at peak efficiency.

Market Dynamics:

Market Drivers-

Environmental Regulations and Sustainability Initiatives

• Environmental campaigns and more stringent environmental laws are driving the industry shift to more environmentally friendly lubricants, which is helping the synthetic lubricant industry. The environmental risks associated with pollutants and additives included in conventional mineral-based lubricants raise the possibility of pollution from oil leaks, spills, and emissions. Regulatory agencies worldwide have tightened their regulations on lubricant formulas as a result. These regulations specify limits on emissions, biodegradability, and toxicity. The need for lubricant with lower carbon footprints & lower environmental effect throughout their lifecycle is also being driven by sustainability efforts and business environmental responsibility pledges. Synthetic lubricants are more environmentally friendly than conventional lubricants since they are more volatile, biodegradable, and emit fewer greenhouse gases.  The base oils used to create synthetic lubricants include polyalphaolefins (PAOs), esters, or polyalkylene glycols (PAGs). These oils have superior oxidation resistance, viscosity index, and thermal stability than mineral oils.​

Performance and Technological Advancements

• The rise of high-performance lubrication formulations is being driven by technological improvements and sustained performance in the synthetic lubricants market. When compared to mineral-based lubricants, synthetic lubricants have greater viscosity-temperature behavior, shear security, wear protection, & friction reduction. Furthermore, by carefully choosing the base oil type, additives, and formulation methods, synthetic lubricants can be made to precisely match certain performance requirements. The performance and longevity of synthetic lubricants are being further enhanced by developments in lubricant addition technology, including anti-wear, anti-oxidant, & friction modifier additives, in crucial applications such as power generation, industrial machinery, automotive, and aerospace. Furthermore, the range of synthetic lubricants accessible is growing, and their production costs are decreasing due to developments in synthetic bases oil production techniques including hydrocracking, catalysts dewaxing, and olefin polymerization, which makes them competitive with mineral oils.  The need for high-performance synthetic lubricants is anticipated to rise as businesses look to enhance equipment dependability, energy efficiency, and upkeep intervals; this will fuel market expansion and innovation in the synthetic lubricants industry.

Market Trends-

Shift Towards Bio-Based Synthetic Lubricants

• The growing use of bio-based synthetic lubricants as a sustainable substitute for petroleum-based lubricants is driving the synthetic lubricants market. In comparison to conventional petroleum-based lubricants, bio-based synthetic lubricants have lower toxicity, less greenhouse gas emissions, and are biodegradable because they are made from renewable sources of energy such plant oils, fats from animals, and biomass. To increase the availability and adaptability of bio-based lubricant formulations, producers are creating novel methods to transform bio-based feedstocks into premium synthetic base oils & lubricant additives. The aforementioned bio-based synthetic lubricants are suitable for an extensive variety of applications across industries like automotive, machinery for industrial use, marine, and also aerospace. They exhibit performance characteristics that are either comparable to or superior to those of their petroleum-based counterparts, such as excellent thermal endurance, oxidation resistance, and lubricity. In the Synthetic Lubricants industry, the usage of bio-based synthetic lubricants is anticipated to rise as sustainability concerns fuel demand for environmentally friendly lubrication solutions.

Focus on Extended Equipment Lifespan and Total Cost of Ownership

• The market for synthetic lubricants is driven by the increased focus on using optimum lubrication solutions to lower the total price of ownership (TCO) and increase equipment longevity. Better wear protection, reduced friction, and temperature stability are just a few benefits that synthetic lubricants have over traditional mineral-based lubricants. ​The significance of choosing appropriate lubricant formulations and executing proactive lubrication maintenance procedures in order to optimize equipment dependability, effectiveness, and uptime is being acknowledged by manufacturers and end users more and more. Furthermore, by lowering frictional losses, consuming less energy, and enhancing machine dependability, synthetic lubricants can help save energy and increase operating efficiency. Over the course of their asset lifecycle, enterprises can realize considerable cost savings & productivity advantages by concentrating on extending the lifespan of equipment while minimizing downtime. The need for high-performance synthetic fluids is anticipated to rise as businesses look to streamline their lubrication procedures and lower TCO. This will propel market growth and creativity in the synthetic lubricants industry.

Market Restraining Factors-

Cost and Price Sensitivity

• The market for synthetic lubricants is driven by end consumers' sensitivity to price, especially in price-sensitive sectors including manufacturing, transportation, and automobiles. Due to the increased production costs of synthetic base oils and sophisticated additive packages, synthetic lubricants often fetch a higher price than traditional mineral-based lubricants. Mindful of expenses consumers and businesses may find it difficult to make the initial investment necessary to convert from mineral-based oils to synthetic lubricants due to the associated costs of procurement, storage, and disposal. This is particularly true in markets where operating budgets are limited and profit margins are narrow. The use of synthetic lubricants is restricted in price-sensitive market segments even though they provide better performance advantages and long-term savings through decreased maintenance, downtime, and energy consumption. End users may place a higher priority on immediate costs and short-term savings than long-term effects. To overcome this obstacle and increase market penetration in the synthetic lubricants market, it is imperative to address cost concerns and illustrate the general value proposition of synthetic lubricants using performance indicators and total cost of ownership (TCO) analysis.

Report Coverage:

The report will cover the qualitative and quantitative data on the global Synthetic Lubricants Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations:

Synthetic Lubricants Market Players Analysis:

• BP Lubricants Pvt. Ltd.
• Chevron Corporation
• LANXESS
• Valvoline
• FUCHS
• Pennzoil
• Phillips 66 Company
• Motul
• AMSOIL INC.
• Agip

Key Industry Developments:

• In August 2023, Hess Corporation and Chevron Corporation signed a final agreement. The goal of this all-stock, USD 53 billion deal is to buy all of Hess's shares in order to boost output and accelerate free cash flow.

Synthetic Lubricants Market Segmentation Analysis:

By Product 

• PAO
• Esters
• PAG

By Application 

• Engine Oil
• Heat Transfer Fluids (HTF)
• Transmission Fluids
• Metalworking Fluids
• Others

 By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
• Asia-Pacific (China, India, Japan, ASEAN, Rest of Asia-Pacific)
• LAMEA (Latin America, Middle East, Africa)

The report also helps in understanding Global Synthetic Lubricants Market dynamics, structure by analyzing the market segments, and project the Global Synthetic Lubricants Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global Synthetic Lubricants Market make the report investor’s guide.

Global Synthetic Lubricants Market Segmentation Insights:

The market is divided into segments based on By Product, By Application.

By Product

Based on the Product of the market is segmented into PAO, Esters, PAG.

In 2022, PAO (polyalphaolefin) had the highest revenue share—more than 50.0%. This is explained by the high viscosity index and hydrolytic stability it provides. Other factors supporting PAO's rise include its increasing use in bearing and gear oils, its suitability in both extreme cold and heat, and its relatively inexpensive cost when compared to other base oils.

Esters are anticipated to increase significantly during the projection period. This makes sense given that synthetic esters can be used in both high- and low-temperature applications and are effective when combined with load-carrying, corrosion-inhibiting, antioxidant that and anti-wear additives. They are therefore used in a wide range of applications, such as jet engines, compressors, gearboxes, hydraulic power packs, bearings, and chains.

The market for polyalkylene glycol (PAG) is anticipated to expand quickly due to its growing use in fluids intended for use in metalworking and food processing. PAG is encouraged to be used in a number of environmentally sensitive applications due to its biodegradable nature. Consequently, each of these elements is fostering its expansion.

By Application

Based on the Application of the market is segmented into Engine Oil, Heat Transfer Fluids (HTFs), Transmission Fluids, Metalworking Fluids, Others.

In 2022, the engine oil category held a dominant market share of approximately 35.0% in the global market. This is related to the expanding automotive sector, which includes both personal and commercial vehicles. Engine oil is typically used in cars to reduce metal-on-metal friction, which lessens damage. Furthermore, with the advent of new, high-performance gasoline and diesel engines with better needs, the market demand for synthetic lubricants has increased due to their higher viscosity than conventional lubricants.

The sector having the most rapid development during the projected time is predicted to be heat transfer fluids (HTFs). The reason for this is that these fluids are essential to the processing of gas and oil, both upstream and downstream, including transportation, refining, and the processing of natural gas and crude oil. Heat transfer fluids are also utilized extensively by businesses that recycle or reprocess used lubricating oils. Consequently, each of these elements is assisting in the rapid expansion of heat transfer fluids.

Regional Snapshots:

By region, Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. In 2022, Asia Pacific had the highest revenue share, exceeding 40.0%. The growing automotive and petrochemical industries in the area are blamed for this expansion. Some large oil firms that produce synthetic lubricants and have wide distribution networks dominate the market. The Asia Pacific region's refinery industry, particularly in China, India, and Singapore, has benefited from the low price of crude oil, leading to a rise in petrochemical production in the area.

Europe is another region that the market is growing rapidly. A number of factors are credited with this expansion, such as the recovery of the industrial sector in the area, increased focus on reducing CO2 emissions from cars, higher-quality products, and access to base oil. Growing investment in synthetic lubricant mixing facilities in Russia and the Netherlands is also fueling the region's demand for the commodity. However, regulations and standards set by the European Union to safeguard public health and the environment may pose a threat to the market.

Synthetic Lubricants Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report:

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase:

• To gain insightful analyses of the Synthetic Lubricants market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the Synthetic Lubricants market strategies that are being adopted by leading respective organizations.
• To understand the future outlook and prospects for the Synthetic Lubricants market. Besides the standard structure reports, we also provide custom research according to specific requirements.

Research Scope of Synthetic Lubricants Market:

• Historic year: 2018-2022
• Base year: 2023
• Forecast: 2024 to 2031
• Representation of Market revenue in USD Million

Synthetic Lubricants Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: