World Lubricants Market

World Lubricants Market

World demand to rise 2.4% annually through 2017

World demand for lubricants is forecast to increase 2.4 percent per year to 43.6 million metric tons in 2017, driven by strong growth in vehicle ownership and ongoing industrialization in the developing countries of Asia. Above average increases will also occur in South America and in Africa/Mideast. These regions will each experience healthy economic growth, rising manufacturing output, and expanding motor vehicle parks -- all of which will benefit lubricant consumption. In contrast, demand will remain nearly flat in the developed countries of North America and Western Europe. There, efficiency gains will offset new demand from rising economic and industrial output. Although volume growth will be restrained in these regions, lubricant suppliers will benefit from increasing demand for premium, high value products such as synthetic and biobased lubricants.

Motor vehicle aftermarket to remain largest segment

Motor vehicle aftermarket demand will continue to account for the largest share of lubricant consumption globally.

Demand for products such as engine oils and transmission fluids will increase quickly in many developing countries where rising incomes will support rapid growth in the number of cars and trucks in use. However, advances in vehicle technology and lubricant quality, as well as growing acceptance of high performance synthetic oils, will allow for drain intervals to lengthen in all regions. While these effects will not prevent strong growth in countries such as China and India, they will result in ongoing declines in developed economies with saturated vehicle markets such as the United States, Japan, and Western Europe.

Manufacturing market to post healthy gains

Lubricants used in the manufacturing market will expand more rapidly than motor vehicles, driven by rising manufacturing output in developing countries.

Asia, Eastern Europe, South America, and Africa/Mideast will benefit from the continued shift of global manufacturing activity to these regions. This trend will drive healthy growth in manufacturing lubricant demand; however, as is the case for motor vehicle lubricants, improving lubricant efficiency will restrain even stronger gains.

Other markets, including agriculture, construction, and non-motor vehicle transportation, will in aggregate outpace motor vehicle and manufacturing markets through 2017. Healthy economic growth, investment in infrastructure and other construction, and the increasing mechanization in developing countries will result in strong performance in these markets.

Process oils, hydraulic fluids among best growth prospects

Engine oils, including those used in motor vehicle and other applications, constitute the largest product segment. Although growing motor vehicle parks will support gains, engine oils will be subject to downward pressure from lengthening drain intervals, and, as a result, will grow at a below average pace.

The strongest growth will be for process oils, which are less impacted by increasing lubricant efficiency than are other types of products. Hydraulic fluids will also see above average growth, supported by their use in manufacturing and other markets. Like hydraulic fluids, other products such as general industrial oils, gear oils, and greases are widely used in a variety of applications and will benefit from ongoing industrialization worldwide.

Study coverage

This upcoming Freedonia industry study, World Lubricants, is priced at $6300. It presents historical demand data (2002, 2007, 2012) plus forecasts for 2017 and 2022 by formulation, product, market, world region, and for 31 countries. The study also considers market environment factors, evaluates company market share, and profiles industry competitors.
TABLE OF CONTENTS

INTRODUCTION xiii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4

General 4
World Population Outlook 5
World Economic Outlook 7
Recent Historical Trends 7
World Economic Outlook 9
World Manufacturing Outlook 12
World Fixed Investment Overview 14
World Motor Vehicle Outlook 16
World Motor Vehicle Park 17
World Motor Vehicle Production 18
World Hybrid & Electric Vehicle Outlook 20
Motor Vehicle Design Technology 23
Gasoline Engines 23
Diesel Engines 25
Alternative Fuel Technologies 26
World Oil Industry Outlook 28
World Crude Oil & Natural Gas Production 28
World Refined Petroleum Products Production 31
Environmental & Regulatory Trends 33
Lubricant Standards & Testing 35

III. OVERVIEW 38

General 38
World Lubricant Demand by Region 39
World Lubricant Demand by Formulation 45
Petroleum Lubricants 47
Nonconventional Lubricants 49
Synthetic Lubricants 51
Re-Refined Lubricants 53
Bio-Based Lubricants 54
World Lubricant Demand by Product 55
Engine Oils 57
Process Oils 60
Hydraulic Fluids 63
Metalworking Fluids 65
Other Lubricants 68
World Lubricant Demand by Market 70
Motor Vehicle Aftermarket 72
Manufacturing 76
Other 78
World Base Oil Trends 80
Lubricant Production & Trade 83

IV. NORTH AMERICA 85

Economic Overview 85
Markets & Products 88
Market Share 90
United States 92
Canada 101
Mexico 110

V. WESTERN EUROPE 118

Economic Overview 118
Markets & Products 121
Market Share 123
Germany 125
France 133
United Kingdom 140
Italy 148
Spain 155
Other Western Europe 163
Netherlands 169
Belgium 170
All Other Western Europe 170

VI. ASIA/PACIFIC 172

Economic Overview 172
Markets & Products 174
Market Share 177
China 179
India 189
Japan 198
South Korea 206
Indonesia 214
Thailand 221
Australia 229
Taiwan 236
Other Asia/Pacific 242
Malaysia 249
Philippines 250
All Other Asia/Pacific 250

VII. OTHER REGIONS 252

Central & South America 252
Economic Overview 252
Markets & Products 255
Market Share 257
Brazil 258
Other Central & South America 267
Argentina 272
Venezuela 273
All Other Central & South America 274
Eastern Europe 275
Economic Overview 275
Markets & Products 277
Market Share 279
Russia 280
Poland 288
Other Eastern Europe 294
Ukraine 299
All Other Eastern Europe 300
Africa/Mideast 301
Economic Overview 301
Markets & Products 303
Market Share 306
Iran 307
Egypt 315
Turkey 321
Saudi Arabia 326
Other Africa/Mideast 332
South Africa 338
All Other Africa/Mideast 339

VIII. INDUSTRY STRUCTURE 340

General 340
Industry Composition 341
Lubricant Market Share 344
Competitive Strategies 348
Merger & Acquisition Activity 350
Strategic Partnerships 354
Refining & Blending 361
Marketing & Distribution 362
Company Profiles 365
Air BP, see BP
American Agip, See Eni
Anderol Specialty Lubricants, see Chemtura
Aral, see BP
Ashland Incorporated 366
BP plc 371
Burmah Castrol, see BP
Castrol India, see BP
Chemtura Corporation 378
Chevron Corporation 380
Chevron Phillips Chemical, see Chevron and Phillips 66
China National Petroleum Corporation 387
China Petroleum & Chemical Corporation 389
CITGO Petroleum, see Petróleos de Venezuela
ConocoPhillips 391
CPC Corporation 392
CPChem, see Chevron and Phillips 66
Engen Petroleum, see Petroliam Nasional Berhad
Eni SpA 393
Excel Paralubes, see Phillips 66
Exxon Mobil Corporation 395
FUCHS Petrolub AG 402
Gulf Oil Corporation Limited 408
Hatco, see Chemtura
Houghton International, see Gulf Oil
Idemitsu Kosan Company Limited 411
Imperial Oil, see Exxon Mobil
Indian Oil Corporation Limited 414
JSC Gazprom Neft, see OAO Gazprom
JX Holdings Incorporated 416
JX Nippon Oil, see JX Holdings
Lukoil Oil Company 419
Mexicana de Lubricantes, see Petróleos Mexicanos
Motiva Enterprises, see Royal Dutch Shell
NOE, see JX Holdings
Nynäs, see Petróleos de Venezuela
OAO Gazprom 421
OAO NGK Slavneft, see OAO Rosneft
OAO Rosneft 423
OMV AG 425
OPET-FUCHS Madeni Yag Sanayi ve Ticaret A?, see
FUCHS Petrolub
PDVSA, see Petróleos de Venezuela
PEMEX, see Petróleos Mexicanos
Pertamina, see Perusahaan Pertambangan Minyak Dan
Gas Bumi Negara
Perusahaan Pertambangan Minyak Dan Gas
Bumi Negara 428
Petrobras, see Petróleo Brasileiro
Petro-Canada Lubricants, see Suncor Energy
PetroChina Lubricant, see China National Petroleum
Petróleo Brasileiro SA 430
Petróleos de Venezuela SA 432
Petróleos Mexicanos SA 435
Petroliam Nasional Berhad 437
Petromin Corporation 441
PETRONAS Lubricants International, see Petroliam
Nasional Berhad
Phillips 66 Company 442
Repsol SA 446
Royal Dutch Shell plc 449
Ruhr Oel, see BP and OAO Rosneft
Shell Lubricants, see Royal Dutch Shell
Sinopec Lubricant, see China Petroleum & Chemical
SK Innovation Company Limited 457
Suncor Energy Incorporated 460
Total SA 463
Ukrtatnafta AB 468
Valvoline, see Ashland
Vivo Energy, see Royal Dutch Shell
Yushiro Chemical Industry Company Limited 469
Other Companies Mentioned in Study 471



LIST OF TABLES

SECTION I -- EXECUTIVE SUMMARY

Summary Table 3

SECTION II -- MARKET ENVIRONMENT

1 World Population by Region 6
2 World Gross Domestic Product by Region 12
3 World Manufacturing Value Added by Region 14
4 World Gross Fixed Capital Formation by Region 16
5 World Motor Vehicle Park by Region 18
6 World Motor Vehicle Production by Region 20
7 World Hybrid & Electric Vehicle Demand by Region 22
8 World Crude Oil & Natural Gas Production by Region 30
9 World Refined Petroleum Product Production 32

SECTION III -- OVERVIEW

1 World Lubricant Demand by Region 42
2 World Lubricant Demand by Formulation 46
3 World Petroleum Lubricant Demand by Region 49
4 World Nonconventional Lubricant Demand by Region 51
5 World Lubricant Demand by Product 56
6 World Engine Oil Demand by Region 60
7 World Process Oil Demand by Region 62
8 World Hydraulic Fluid Demand by Region 64
9 World Metalworking Fluid Demand by Region 67
10 World Other Lubricants Demand by Region 70
11 World Lubricant Demand by Market 71
12 World Motor Vehicle Aftermarket Lubricant Demand 75
13 World Manufacturing Lubricant Demand 78
14 World Other Markets Lubricant Demand 80
15 World Base Oil Demand 82

SECTION IV -- NORTH AMERICA

1 North America: Key Indicators for Lubricants 87
2 North America: Lubricant Demand 90
3 United States: Key Indicators for Lubricants 94
4 United States: Lubricant Demand by Market 97
5 United States: Lubricant Demand by Product & Formulation 100
6 Canada: Key Indicators for Lubricants 104
7 Canada: Lubricant Demand by Market 106
8 Canada: Lubricant Demand by Product & Formulation 109
9 Mexico: Key Indicators for Lubricants 112
10 Mexico: Lubricant Demand by Market 114
11 Mexico: Lubricant Demand by Product & Formulation 116

SECTION V -- WESTERN EUROPE

1 Western Europe: Key Indicators for Lubricants 120
2 Western Europe: Lubricant Demand 123
3 Germany: Key Indicators for Lubricants 127
4 Germany: Lubricant Demand by Market 130
5 Germany: Lubricant Demand by Product & Formulation 132
6 France: Key Indicators for Lubricants 135
7 France: Lubricant Demand by Market 137
8 France: Lubricant Demand by Product & Formulation 139
9 United Kingdom: Key Indicators for Lubricants 142
10 United Kingdom: Lubricant Demand by Market 144
11 United Kingdom: Lubricant Demand
by Product & Formulation 147
12 Italy: Key Indicators for Lubricants 150
13 Italy: Lubricant Demand by Market 152
14 Italy: Lubricant Demand by Product & Formulation 154
15 Spain: Key Indicators for Lubricants 157
16 Spain: Lubricant Demand by Market 159
17 Spain: Lubricant Demand by Product & Formulation 162
18 Other Western Europe: Key Indicators for Lubricants 165
19 Other Western Europe: Lubricant Demand 168
20 Other Western Europe: Lubricant Demand by Country 169

SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific: Key Indicators for Lubricants 174
2 Asia/Pacific: Lubricant Demand 177
3 China: Key Indicators for Lubricants 182
4 China: Lubricant Demand by Market 185
5 China: Lubricant Demand by Product & Formulation 188
6 India: Key Indicators for Lubricants 191
7 India: Lubricant Demand by Market 194
8 India: Lubricant Demand by Product & Formulation 197
9 Japan: Key Indicators for Lubricants 200
10 Japan: Lubricant Demand by Market 203
11 Japan: Lubricant Demand by Product & Formulation 205
12 South Korea: Key Indicators for Lubricants 208
13 South Korea: Lubricant Demand by Market 210
14 South Korea: Lubricant Demand by Product & Formulation 213
15 Indonesia: Key Indicators for Lubricants 216
16 Indonesia: Lubricant Demand by Market 218
17 Indonesia: Lubricant Demand by Product & Formulation 220
18 Thailand: Key Indicators for Lubricants 224
19 Thailand: Lubricant Demand by Market 226
20 Thailand: Lubricant Demand by Product & Formulation 228
21 Australia: Key Indicators for Lubricants 231
22 Australia: Lubricant Demand by Market 233
23 Australia: Lubricant Demand by Product & Formulation 235
24 Taiwan: Key Indicators for Lubricants 238
25 Taiwan: Lubricant Demand by Market 240
26 Taiwan: Lubricant Demand by Product & Formulation 241
27 Other Asia/Pacific: Key Indicators for Lubricants 244
28 Other Asia/Pacific: Lubricant Demand 248
29 Other Asia/Pacific: Lubricant Demand by Country 249

SECTION VII -- OTHER REGIONS

1 Central & South America: Key Indicators for Lubricants 254
2 Central & South America: Lubricant Demand 256
3 Brazil: Key Indicators for Lubricants 261
4 Brazil: Lubricant Demand by Market 263
5 Brazil: Lubricant Demand by Product & Formulation 266
6 Other Central & South America: Key Indicators
for Lubricants 269
7 Other Central & South America: Lubricant Demand 271
8 Other Central & South America: Lubricant Demand
by Country 272
9 Eastern Europe: Key Indicators for Lubricants 277
10 Eastern Europe: Lubricant Demand 279
11 Russia: Key Indicators for Lubricants 283
12 Russia: Lubricant Demand by Market 285
13 Russia: Lubricant Demand by Product & Formulation 287
14 Poland: Key Indicators for Lubricants 290
15 Poland: Lubricant Demand by Market 291
16 Poland: Lubricant Demand by Product & Formulation 293
17 Other Eastern Europe: Key Indicators for Lubricants 296
18 Other Eastern Europe: Lubricant Demand 298
19 Other Eastern Europe: Lubricant Demand by Country 299
20 Africa/Mideast: Key Indicators for Lubricants 303
21 Africa/Mideast: Lubricant Demand 306
22 Iran: Key Indicators for Lubricants 310
23 Iran: Lubricant Demand by Market 312
24 Iran: Lubricant Demand by Product & Formulation 314
25 Egypt: Key Indicators for Lubricants 317
26 Egypt: Lubricant Demand by Market 319
27 Egypt: Lubricant Demand by Product & Formulation 320
28 Turkey: Key Indicators for Lubricants 323
29 Turkey: Lubricant Demand by Market 324
30 Turkey: Lubricant Demand by Product & Formulation 326
31 Saudi Arabia: Key Indicators for Lubricants 329
32 Saudi Arabia: Lubricant Demand by Market 331
33 Saudi Arabia: Lubricant Demand by Product & Formulation 332
34 Other Africa/Mideast: Key Indicators for Lubricants 335
35 Other Africa/Mideast: Lubricant Demand 337
36 Other Africa/Mideast: Lubricant Demand by Country 338

SECTION VIII -- INDUSTRY STRUCTURE

1 World Lubricant Sales by Company, 2012 342
2 Selected Acquisitions & Divestitures 352
3 Selected Cooperative Agreements 356



LIST OF CHARTS

SECTION III -- OVERVIEW

1 World Lubricant Demand by Region, 2002-2022 43
2 Lubricant Demand per Capita/GDP per Capita Relationship,
2012 44
3 World Lubricant Demand by Product, 2012 57
4 World Lubricant Demand by Market, 2012 72
5 World Share of Base Oil Demand by Type, 2002-2022 83

SECTION IV -- NORTH AMERICA

1 North America: Lubricant Market Share by Company, 2012 91

SECTION V -- WESTERN EUROPE

1 Western Europe: Lubricant Market Share by Company, 2012 124

SECTION VI -- ASIA/PACIFIC

1 Asia/Pacific: Lubricant Market Share by Company, 2012 179

SECTION VII -- OTHER REGIONS

1 Central & South America: Lubricant Market Share
by Company, 2012 258
2 Eastern Europe: Lubricant Market Share by Company, 2012 280
3 Africa/Mideast: Lubricant Market Share by Company, 2012 307

SECTION VIII -- INDUSTRY STRUCTURE

1 World Lubricant Market Share by Company, 2012 344