The grease market was valued at 1,308.51 kiloton in 2020, and the market is projected to register a CAGR of over 1.5% during the forecast period (2021-2026).
The major grease-consuming industries, like automotive, industrial processing (majorly steel mills), aerospace, and food and beverages, were greatly impacted by the COVID-19. Especially, the steel industry was majorly affected by the pandemic. Steel production witnessed a decline in 2020 due to the production halts and decreased demand from various end-user industries because of the COVID-19 crisis. The steel demand is contracted by an estimated 6.4%, dropping to 1,654 million metric ton, according to the World Steel Association.
- In the short term, factors such as the growing manufacturing sector, the growing industrial sector in Asia-Pacific, and increasing adoption of higher performance greases in the wind power and electric vehicle industries are likely to drive the market growth. - The automotive and the transportation segment is the dominating end-user industry for grease. At the same time, consumption of grease in chemical manufacturing is expected to register the highest CAGR through the forecast period. - Asia-Pacific dominated the grease market, followed by North America and Europe across the world, with the largest consumption from countries, such as China, India, the United States, and Germany, among others.
Key Market Trends Automotive and Other Transportation to Dominate the Market
- The demand from the automotive sector contributes significantly to the global grease market. The growing OEM and RMO markets in the automotive industry are expected to have a direct impact on the demand for greases during the forecast period. - According to the National Lubricating Grease Institute (NLGI), NLGI 2 grade grease is widely preferred for automotive applications. - Automotive greases are used to lubricate the chassis, suspension, and steering. Additionally, automotive greases can be classified on the basis of their GC and LB ratings. GC rating can be employed for lubrication of axle and wheel, whereas LB can be used for lubrication of different types of joints, including U-joints and ball joints, tie-rod ends, and control arm-shafts. - The automotive is the largest and fastest-growing end-use industry for grease. Passenger and commercial vehicles are driving the demand for high-performance grease in the automotive industry. - In the automotive industry, grease is used in various auto parts, such as wheel bearings, universal joints, suspensions, gears, switches, and connectors, because of their properties (which include mechanical stability, temperature tolerance, water resistance, and anti-oxidants). The need for high-performance grease is increasing, with the manufacture of machines and equipment for end-user industries. - The growing passenger volumes are expected to drive the need for 44,040 new jets (valued at USD 6.8 trillion) over the next two decades. The global commercial fleet is projected to reach 50,660 airplanes by 2038, with all the new airplanes and the jets that would remain in service taken into account. - Owing to all teh above-mentioned factors, the market is expected to grow at a slow pace during the forecast period.
Asia-Pacific to Dominate the Market
- Asia-Pacific was found to be the major market for the consumption of grease, followed by North America and Europe. China, India, and Indonesia are expected to be leading countries witnessing strong demand for grease consumption during the forecast period. - China is the largest consumer of lubricants and greases in the current scenario. The vast manufacturing activities pertaining to different sectors and the rapid growth in the industrial and automotive sectors have pushed the country to stand among the major consumers and grease producers in the global landscape. - Although China was the first country affected by COVID-19 and its related lockdown, it was the first country to come out of the lockdown. However, the country has been witnessing recurring cases of COVID-19, leading to brief lockdowns occasionally. The manufacturing sector in the country has taken a major hit in Q1 2020, subsequently leading to a 6.8% drop in GDP, the lowest ever witnessed in years. - However, the country has been focusing on several measures, such as tax breaks and other incentives to enhance economic recovery. In Q2 2020, China’s GDP has recorded a growth rate of 3.2%, indicating signs of a V-shaped recovery. Despite lower levels of activity in certain service sectors, industrial production rates have been growing steadily, which is a positive sign for lubricant companies in the region. - Automotive production, off-highway equipment, and steel are the major consumers of grease in the country. - The aforementioned factors are contributing to the increasing demand for grease consumption in the region during the forecast period.
Competitive Landscape The grease market is highly fragmented with the top five players accounting for about 20-30% of the market. The major companies include Royal Dutch Shell PLC, Exxon Mobil Corporation, BP Plc (Castrol), FUCHS, Axel Christiernsson, and China Petrochemical Corporation (Sinopec), among others.
Reasons to Purchase this report: - The market estimate (ME) sheet in Excel format - 3 months of analyst support
Our reports have been used by over 10K customers, including: