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Europe and North America Drive Demand for Premium, Sustainable Lubricants to Meet Environmental Regulations Finds Frost & Sullivan - Price-sensitive markets in Asia-Pacific and Rest of the World will account for volume growth
Europe and North America Drive Demand for Premium, Sustainable Lubricants to Meet Environmental Regulations Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2014/02/25 - Price-sensitive markets in Asia-Pacific and Rest of the World will account for volume growth.

   
 
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Rising vehicle production and manufacturing output accompanied by the enforcement of eco-friendly policies have lent momentum to the global lubricant market. Demand will escalate especially in developing countries such as Brazil, Russia, India and China, with the ASEAN (Association of Southeast Asian Nations), the Middle East, South America and Africa also emerging as potential growth markets. While developing regions will account for volume growth in lubricants, Europe and North America will push for high-efficiency, premium products in response to regulatory implications and customer demands.

New analysis from Frost & Sullivan (chemicals.frost.com), Strategic Analysis of the Global Lubricant Market and the Impact of Bio-based Feedstock, finds that the market earned revenues of $123.64 billion in 2013 and estimates this to reach $178.87 billion in 2020. The study analyses lubricants used in the industrial, automotive, marine and aviation sectors.

Stringent environmental regulations, such as the European Commission's framework specifying carbon dioxide emission reduction targets and US regulations governing corporate average fuel economy propel the need for more efficient lubricants.

"Customers, especially in the automotive and industrial segments, too are opting for high-value group II and III lubricants with improved quality and performance, spurring market growth," said Frost & Sullivan Chemicals, Materials and Food Research Analyst Soundarya Shankar. "This transition is more prevalent in Europe and North America, as the markets in Asia-Pacific and Rest of the World (ROW) are extremely price sensitive."

While higher-priced advanced lubricants support market revenues in developed countries, the extended drain intervals of these superior products reduces the number of times the vehicle/equipment needs to be serviced, cutting down on volumes consumed. Growing emphasis on manufacturing parts and materials with improved wear resistance is another factor that diminishes lubricant use.

The economic contraction in Europe has added to the challenge, affecting automotive and industrial sale volumes, in turn, curbing lubricant adoption. Sluggish growth is thus compelling global lubricant manufacturers to move production facilities to the Asia-Pacific and ROW markets to tap immediate opportunities in the automotive and industrial segments and long-term potential in the marine and aviation sectors.

"Establishing strong product lines of both synthetic and bio-based lubricants will be crucial to attract original equipment manufacturers that are focused on equipment/vehicle efficiency and environmental sustainability," advised Shankar. "In the case of bio-based lubricants that are formulated using bio-degradable and renewable feedstock, technological advancements and extensive R&D activities that improve performance will be critical for widespread uptake."

If you are interested in more information on this study, please send an e-mail to Julia Nikishkina, Corporate Communications, at julia.nikishkina[.]frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Strategic Analysis of the Global Lubricant Market and the Impact of Bio-based Feedstock is part of the Chemicals & Materials Growth Partnership Service program. Frost & Sullivan's related studies include: Indian Fuel Additive Market, Light-weighting Role of Performance Plastics in the European Automotive Market, and Mining Lubricant Market in Australia. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

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Strategic Analysis of the Global Lubricant Market and the Impact of Bio-based Feedstock / M9FB-39

 
 
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Europe and North America Drive Demand for Premium, Sustainable Lubricants to Meet Environmental Regulations Finds Frost & Sullivan

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Sustainable Lubricants | Frost & Sullivan
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