Group IV & V Lubricants Market - Forecast(2024 - 2030)
Group IV & V Lubricants Market Overview
The Group IV & V Lubricants Market size is
forecast to reach US$15.4 billion by 2027, after growing at a CAGR of 4%
during the forecast period (2022-2027). Group IV & V lubricants
are synthetic lubricants that are composed of polyalphaolefin, polyalkylene
glycol, polyol esters, and other ester base oil. They can be categorized into a wide range of
product types which include engine oils, gear oils, transmission fluids, hydraulic
oils, turbine oils, and other similar products. In 2020, Martin, American
aerospace, defense corporation, observed the highest revenue improvement of US$
5.6 billion, an increase of 9% during the fourth quarter of 2020, owing to the
increasing production of F-35 combat aircraft. An increase in demand from
aerospace and power generation industries act as the major driver for the
market. On the other hand, limitations associated with the use of Group IV
& V lubricants may act as a major constraint for the market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has significantly reduced automotive, and production activities which in turn has resulted in the country-wise shutdown of automotive sites, shortage of
labor, and the decline of supply and demand chain all over the world, thus,
affecting the market. Studies show that the outbreak of COVID-19 sharply
declined the production of automobiles in 2020 due to a lack of operations
across multiple countries around the world. According to OICA (International
Organization of Motor Vehicle Manufacturers), the production of automobiles
decreased by 16% globally in the year 2020, compared to 2019. However, a slow
recovery in the automotive industry has been witnessed across many countries around
the world since 2021. For instance, recent insights from OICA states that the
total automobile production in 2021 in Europe, America, Asia, and Africa
increased by 25%, 17%, 28%, and 37% respectively in comparison to 2020.
In this way, a steady increase in automotive
production activities is expected to increase the demand for Group IV & V lubricants
since it is primarily used in automotive engines for the smooth functioning of
the engines and other moving components. This indicates a slow and steady recovery
of the market in the upcoming years.
Report Coverage
The “Group IV & V Lubricants Market Report– Forecast (2022-2027)” by IndustryARC covers an in-depth analysis of the following segments of the Group IV & V Lubricants Industry.
By Product Type: Engine Oils, Gear Oils, Heat Transfer
Fluids, Metalworking Fluids, Transmission Fluids, Hydraulic Oils, Turbine Oils, and Others.
By End-Use
Industry:
Automotive, Construction, Aerospace, Power Generation, Marine, and Others.
By Geography: North America (USA, Canada, and
Mexico), Europe (the UK, Germany, France, Italy, Netherlands, Spain, Russia,
Belgium, and the Rest of Europe), Asia-Pacific (China, Japan, India, South
Korea, Australia, and New Zealand, Indonesia, Taiwan, Malaysia, and the Rest of
Asia-Pacific), South America (Brazil, Argentina, Colombia, Chile and the Rest
of South America), the Rest of the World (the Middle East, and Africa).
Key Takeaways
- Engine
oils held the largest share in the Group IV & V Lubricants Market in 2021,
owing to its increasing demand from the automotive sectors across the world. According
to the German Association of the Automotive Industry (VDA), the global
expenditure rose to US$ 51.5 billion in 2020, out of which the German
automotive industry accounts for more than one-third of total global R&D
expenditure in the automotive sector.
- Group IV & V lubricants composed of polyalphaolefin, polyalkylene glycol, polyol esters, and other ester base oil has a wide range of properties which include extreme temperature stability, high viscosity index (VI), excellent oxidation resistance, and detergency which makes them ideal for use in automotive, power generation, and aerospace industries.
- Asia-Pacific dominated the Group IV & V lubricants Market in 2021, owing to the increasing demand for Group IV & V lubricants from the automotive sectors of the region. According to the European Automobile Manufacturers' Association (ACEA), the total passenger car production in Asia-Pacific reached up to 34 million during the fourth quarter of 2020.
Figure: Asia-Pacific Group IV & V Lubricants Market Revenue, 2021-2027 (US$ Billion)
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Group IV & V Lubricants Market Segment Analysis – By Product Type
Engine oils held the largest share in the Group
IV & V Lubricants Market in 2021 and it is expected to grow at a CAGR of
4.1% between 2022 and 2027, owing to its increasing demand from the automotive
sectors across multiple regions. For instance, recent insights from the
European Automobile Manufacturers' Association (ACEA) states that total
passenger car production during the fourth quarter of 2020 reached around 34
million in Asia-Pacific, 14 million in Europe, 1.3 million in the Middle
East/Africa, 1.7 million in South America, and 9.6 million in North America
respectively. In this way, an increase in automotive production in multiple
regions worldwide is expected to increase the demand for Group IV &
V lubricants for use in automotive internal combustion engines required for its
smooth functioning and to protect the engine from the additives in gasoline.
This is anticipated to drive the growth of the market during the forecast
period.
Group IV & V Lubricants Market Segment Analysis – By End-Use Industry
The automotive industry held
the largest share in the Group IV & V Lubricants Market in 2021 and is expected
to grow at a CAGR of 4.3% between 2022 and 2027, owing to an increase in demand
for automotive production across the world. For instance, according to a recent
study published by the German Association of Automotive Industry during the
fourth quarter of 2020, the new registration of motor vehicles reached up to
16,763 units in Europe, 37,467 units in Asia, 3080 units in South America,
17,421 units in North America, 12,733 units in Western Europe, and 5180 units
in other regions worldwide. Likewise, according to the European Automobile
Manufacturers Association (ACEA), the demand for new passenger cars
significantly increased by 25.2% from January-June 2021 in Europe and reached
around 5.4 million units in total.
Group IV & V lubricants composed
of polyalphaolefin, polyalkylene glycol, polyol esters, and other ester base
oil are primarily used in automotive engines to ensure smooth functioning and
enhanced performance of the engines. Thus, an increase in the production of
automobiles is expected to increase the demand for Group IV & V lubricants,
leading to market growth during the forecast period.
Group IV & V Lubricants Market Segment Analysis – By Geography
The Asia Pacific held the largest share in the
Group IV & V Lubricants Market in 2021 up to 28%. The consumption of Group
IV & V Lubricants is particularly high in this region due to its increasing
demand from the automotive and aerospace sectors. For instance, a recent study
published by the OICA (International Organization of Motor Vehicle
Manufacturers) during the fourth quarter of 2020 states that around 25 million,
3.5 million, 8 million, and 3.4 million units of vehicles were produced in
China, South Korea, Japan, and India, respectively, which in turn, contributed
to approx. 50% of the global automobile production during the year 2020.
Likewise, according to the Department of Promotion Industry and Internal Trade
(DPIIT), the Indian Automobiles market invested around US$ 24.5 million worth
of FDI (Foreign Direct Investment) during the year June 2020.
Furthermore, in September 2021, the Indian government acquired 56 Airbus C295 aircraft as a replacement to the Indian Air Force (IAF) AVRO fleet. It involves the full development of a complete industrial system which includes manufacture, assembly, test, qualification, delivery, and maintenance of the complete lifespan of the aircraft. In this way, such increasing production of automobiles and aircraft in the region is expected to increase the demand for Group IV & V lubricants that are primarily used to enhance the performance of automotive engines, along with gas turbines, gear systems, and engines used in aircraft. This is expected to boost the growth of the Group IV & V Lubricants Market during the forecast period.
Group IV & V Lubricants Market – Drivers
An increase in demand from the aerospace industry is most likely to increase demand for the product
According to recent
insights from the International Air Transport Association, Boeing has over 400
737 MAX aircraft in its inventory that is yet to be delivered and it has stated
plans to increase its production of the model to 31 per month by the end of
2022. Similarly, Airbus increased its production of A320s to 45 per month in
2021. Airbus delivered around 460 commercial aircraft while Boeing delivered
230 commercial aircraft in 2021. In January 2021, FedEx Express invested around
US$ 6.6 billion for the production of 24 medium and large Freighters from
Boeing. Furthermore, Martin, American aerospace, defense corporation, observed
the highest revenue improvement of US$ 5.6 billion, an increase of 9% during
the fourth quarter of 2020, owing to the increasing production of F-35 combat aircraft.
Group IV & V lubricants
are primarily used in aircraft engines and gas turbines along with gear systems
in pumps, starters, and more. It plays a significant role in various functions
of the aircraft engines which include lubrication, corrosion protection, cooling, noise reduction, and propeller operations. Hence,
an increase in global aircraft production activities is expected to increase
the demand for Group IV & V lubricants, leading to the growth of the market
in the upcoming years.
An increase in power generation projects is most likely to increase demand for the product
Group IV & V Lubricants composed of polyalphaolefin,
polyalkylene glycol, polyol esters, and other ester base oil are used to
protect and enhance the performance of turbines that are primarily employed in
wind and thermal power generation projects. The use of these lubricants in the turbine
helps prevent the turbine from corrosion, rust, and protects it from deposits.
They help in minimizing sludge and buildup, owing to their high anti-oxidation
reserves and excellent thermal stability at high temperatures.
For instance, the government of the UK
invested around US$ 8.8 billion for an offshore wind power generation project.
The project involves around 165 turbines to be installed in water depths
between 30m and 40m, with heights of 204m and a nominal power of 8,000kW. The
project began in 2019 and is expected to be completed by the end of 2022.
Likewise, the government of UAE invested around US$ 550 million for the construction
of a 1,026.3 MW combined power plant in Al Layyah, Sharjah as a part of the
expansion of the existing 896 MW power plant. The expansion consists of two
thermal energy recovery boilers, two gas turbines, and one steam turbine. The
project is expected to be completed by the fourth quarter of 2022. Furthermore,
the Middle East’s largest wind power project in Saudi Arabia, a 400 MW Dumat Al
Jandal utility-scale wind farm project, is scheduled to be completed by the end
of 2022. Thus,
the increasing wind and thermal power projects are expected to increase the
demand for Group IV & V lubricants for
the efficient functioning of turbines used in such power generation projects. This is likely to propel the growth of the
market in the upcoming years.
Group IV & V Lubricants Market – Challenges
Limitations of Group IV & V lubricants may cause an obstruction to the market growth
Group IV & V lubricants are synthetic
lubricants that have numerous limitations such as high cost, risk of additive
precipitation, and lower fuel economy. These lubricants generally cost around
three to four times higher than conventional lubricants composed of crude oil. Moreover,
Group IV & V lubricants are more prone to additive precipitation during
cold storage conditions. This, in turn, separates certain additives from the
lubricant, which may potentially lead to their full separation. Furthermore, synthetic
lubricants possess a higher risk of incompatibility between the base oil, along
with an incompatibility between the additives. Hence, such limiting factors of Group
IV & V lubricants may confine the growth of the market.
Group IV & V Lubricants Industry Outlook
Technology launches, acquisitions, and R&D
activities are key strategies adopted by players in the Group IV & V
Lubricants Market. Group IV & V Lubricants top 10 companies are:
- British Petroleum Plc
- Chevron
- ConocoPhillips Company
- Exxon Mobil Corporation
- Fuchs Lubricants Co.
- Indian Oil Corporation Ltd.
- Miller Oils Ltd.
- Royal Dutch Shell Plc
- Sinopec Corporation
- Petronas Lubricants International
Recent Developments
- In October 2021, ExxonMobil Lubricants Pvt Ltd launched its upgraded Mobil Super MotoTM range of motorcycle engine oils. These engine oils are formulated with synthetic base oils in order to deliver better engine wear protection and to extend the shelf-life of the engine life.
- In October 2020, Bharat Petroleum
Corporation Limited (BPCL) launched MAK 4T Blaze Synth in India, which is a completely
synthetic engine oil for two-wheelers. The main benefits of MAK 4T Blaze
Synth include faster oil flow during start-up, even in extremely low
temperatures, strong oil film over a wide range of operating temperatures along
with excellent protection against wear and tear of engine components.
- In January 2020, FUCHS Group, a global
company in the lubricants industry acquired Nye Lubricants Inc., a manufacturer
of synthetic lubricants. The main motive of the
acquisition was to further
expand the company’s specialty lubricants product portfolio while offering
solutions across multiple markets to serve new high-end and critical
applications.
Relevant Reports
Asia-Pacific
Base Oil Market – Forecast (2022 - 2027)
Report Code: CMR 0758
Performance
Oil Market – Forecast (2022 - 2027)
Report Code: CMR 0444
Industrial
Gear Oils Market – Forecast (2022 - 2027)
Report Code: CMR 0032
For more Chemicals and Materials Market reports, please click here
LIST OF TABLES
1.Global GLOBAL GROUP IV V LUBRICANTS MARKET, BY PRODUCT TYPE Market 2023-2030 ($M)1.1 GROUP IV LUBRICANTS Market 2023-2030 ($M) - Global Industry Research
1.1.1 demand for Group IV Lubricants, volume and revenue, Market 2023-2030 ($M)
1.2 GROUP V LUBRICANTS Market 2023-2030 ($M) - Global Industry Research
1.2.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
1.3 GROUP V LUBRICANTS Market 2023-2030 ($M) - Global Industry Research
1.3.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
2.Global GLOBAL GROUP IV V LUBRICANTS MARKET, BY PRODUCT TYPE Market 2023-2030 (Volume/Units)
2.1 GROUP IV LUBRICANTS Market 2023-2030 (Volume/Units) - Global Industry Research
2.1.1 demand for Group IV Lubricants, volume and revenue, Market 2023-2030 (Volume/Units)
2.2 GROUP V LUBRICANTS Market 2023-2030 (Volume/Units) - Global Industry Research
2.2.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 (Volume/Units)
2.3 GROUP V LUBRICANTS Market 2023-2030 (Volume/Units) - Global Industry Research
2.3.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 (Volume/Units)
3.North America GLOBAL GROUP IV V LUBRICANTS MARKET, BY PRODUCT TYPE Market 2023-2030 ($M)
3.1 GROUP IV LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
3.1.1 demand for Group IV Lubricants, volume and revenue, Market 2023-2030 ($M)
3.2 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
3.2.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
3.3 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
3.3.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
4.South America GLOBAL GROUP IV V LUBRICANTS MARKET, BY PRODUCT TYPE Market 2023-2030 ($M)
4.1 GROUP IV LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
4.1.1 demand for Group IV Lubricants, volume and revenue, Market 2023-2030 ($M)
4.2 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
4.2.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
4.3 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
4.3.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
5.Europe GLOBAL GROUP IV V LUBRICANTS MARKET, BY PRODUCT TYPE Market 2023-2030 ($M)
5.1 GROUP IV LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
5.1.1 demand for Group IV Lubricants, volume and revenue, Market 2023-2030 ($M)
5.2 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
5.2.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
5.3 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
5.3.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
6.APAC GLOBAL GROUP IV V LUBRICANTS MARKET, BY PRODUCT TYPE Market 2023-2030 ($M)
6.1 GROUP IV LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
6.1.1 demand for Group IV Lubricants, volume and revenue, Market 2023-2030 ($M)
6.2 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
6.2.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
6.3 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
6.3.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
7.MENA GLOBAL GROUP IV V LUBRICANTS MARKET, BY PRODUCT TYPE Market 2023-2030 ($M)
7.1 GROUP IV LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
7.1.1 demand for Group IV Lubricants, volume and revenue, Market 2023-2030 ($M)
7.2 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
7.2.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
7.3 GROUP V LUBRICANTS Market 2023-2030 ($M) - Regional Industry Research
7.3.1 demand for Group V Lubricants, volume and revenue, Market 2023-2030 ($M)
LIST OF FIGURES
1.US Group IV & V Lubricants Market Revenue, 2023-2030 ($M)2.Canada Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
3.Mexico Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
4.Brazil Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
5.Argentina Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
6.Peru Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
7.Colombia Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
8.Chile Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
9.Rest of South America Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
10.UK Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
11.Germany Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
12.France Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
13.Italy Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
14.Spain Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
15.Rest of Europe Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
16.China Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
17.India Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
18.Japan Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
19.South Korea Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
20.South Africa Group IV & V Lubricants Market Revenue, 2023-2030 ($M)
21.North America Group IV & V Lubricants By Application
22.South America Group IV & V Lubricants By Application
23.Europe Group IV & V Lubricants By Application
24.APAC Group IV & V Lubricants By Application
25.MENA Group IV & V Lubricants By Application
26.BRITISH PETROLEUM PLC, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.CHEVRON, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.CONOCOPHILLIPS COMPANY, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.EXXON MOBIL CORPORATION, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.FUCHS LUBRICANTS CO, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.INDIAN OIL CORPORATION LTD., Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.MILLER OILS LTD, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.PANOLIN INTERNATIONAL INC., Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.PETROBRAS, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.PETRONAS LUBRICANTS INTERNATIONAL, Sales /Revenue, 2015-2018 ($Mn/$Bn)
36.ROYAL DUTCH SHELL PLC, Sales /Revenue, 2015-2018 ($Mn/$Bn)
37.SINOPEC CORPORATION, Sales /Revenue, 2015-2018 ($Mn/$Bn)
38.STATOIL LUBRICANTS, Sales /Revenue, 2015-2018 ($Mn/$Bn)
39.TOTAL S.A., Sales /Revenue, 2015-2018 ($Mn/$Bn)
40.VALVOLINE INTERNATIONAL INC., Sales /Revenue, 2015-2018 ($Mn/$Bn)