Grease Market

Grease Market Overview:

The global grease market size reached US$ 3.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 4.9 Billion by 2032, exhibiting a growth rate (CAGR) of 2.9% during 2024-2032. There are several factors that are driving the market, which include the rising focus on introducing high-quality products, increasing production of two-, three-, and four-wheelers due to rapid urbanization, and integration of advanced technologies for enhanced performance.

Grease Market Analysis:

• Major Market Drivers: One of the key market drivers include the expansion of renewable energy projects. Moreover, there is a rise in the focus on machinery and equipment maintenance, which is acting as another growth-inducing factor.
• Key Market Trends: The increasing need to introduce high-quality products, along with integration of advanced technologies for enhanced performance, are main trends in the market.
• Geographical Trends: Asia Pacific exhibits a clear dominance, accounting for the biggest market share due to various large-scale infrastructure projects.
• Competitive Landscape: Numerous market players in the grease industry are AXEL Christiernsson AB, Carl Bechem GmbH, Chemtool Incorporated (Lubrizol Corporation), ENEOS Holdings Inc, Exxon Mobil Corporation, Fuchs Petrolub SE, Gazpromneft - Lubricants Ltd. (Gazprom Neft PJSC), Harrison Manufacturing Company, Klüber Lubrication (Freudenberg Chemical Specialities SE & Co. KG), LUKOIL, Petromin Corporation (Al Dabbagh Group Holding Company Limited), Royal Dutch Shell PLC., among many others.
• Challenges and Opportunities: The volatility of raw material prices and stringent environmental regulations regarding the disposal and biodegradability of lubricants are key market challenges. Nonetheless, the increasing adoption of bio-based and eco-friendly products, coupled with strategic collaborations and partnerships among players, is projected to overcome these challenges and offer market opportunities.

Grease Market Trends:

Rising Focus on Introducing High-Quality Products

Higher performance grease at a premium price is gaining traction. People are opting for grease with better resistance to corrosion, wear and tear, and high temperatures. Proper grease assists in prolonging the life of equipment and lowering maintenance expenses, which is crucial in industries like heavy machinery, aircraft, and automotive. Besides this, it helps increase the dependability and efficiency of equipment. Companies are focusing on unveiling premium products that can improve user perception of their brands, foster loyalty, as well as increase their grease market sales revenue. For instance, Rykon®, a new overbased calcium sulfonate complex grease, was added by Chevron on February 7, 2024, to its recently updated product lineup. Rykon answers the call for a high-performance grease that increases uptime and helps enhance durability for the next generation of equipment. With its unique formulation, Rykon will round out Chevron’s grease offering with grease formulated for heavy-duty and extreme pressure applications. This calcium sulfonate complex-based grease also provides an alternative option to lithium-based thickeners.

Thriving Automotive Sector

The increasing vehicle production including passenger cars, commercial vehicles, and electric vehicles (EVs) is catalyzing the demand for automotive grease. The shift towards EVs and hybrid vehicles requires specialized grease that can handle the unique requirements of these advanced vehicles. EVs need grease that provides excellent electrical insulation, thermal management, and compatibility with electronic components. Automotive components often operate under high temperatures and heavy loads, which thereby catalyzes the grease demand that can withstand these extreme conditions without breaking down. There is a rise in the demand for high-quality grease that ensures the smooth operation of sensors, actuators, and other precision components due to the incorporation of advanced driver assistance systems (ADAS) and other automated technologies. S&P Global states that approximately 88.3 million new vehicles are anticipated to be sold out across the globe.

Integration of Advanced Technologies

Innovations assist in improving the performance and longevity of formulations and attracting more industries to adopt advanced products, which is offering a favorable grease market outlook. In addition, top players in the market are focusing on developing solutions that provide enhanced user experience. For instance, on 11 March 2024, NSK developed grease degradation diagnosis technology that diagnoses the remaining life of lubricant grease rapidly and accurately. The solution will be made available by the company as a mobile app, allowing users to analyze the lubrication conditions in bearings and linear motion systems while on the spot. This cutting-edge capability will assist businesses in implementing condition-based maintenance strategies by lowering the requirement for grease inspection and replacement expenses.

Grease Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on thickener type, base oil, and end user.

Breakup by Thickener Type:

• Metallic-Soap Thickener
• Non-Soap Thickener
• Inorganic Thickener
• Others
   

Metallic-soap thickener accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the thickener type. This includes metallic-soap thickener, non-soap thickener, inorganic thickener, and others. According to the report, metallic-soap thickener represented the largest segment.

Metallic-soap thickener is grease that utilizes metal soaps like aluminum, calcium, sodium, or lithium. These thickeners aid in the grease's consistency retention and enable it to maintain the intended lubricating qualities. Applications where exposure to moisture is a concern can benefit from the excellent water resistance of grease with metallic-soap thickeners, especially those involving calcium and lithium soaps. Because lithium soaps have a high dropping point, they retain their efficacy and consistency at higher temperatures than other metallic-soap thickeners. This makes them ideal for automotive and industrial applications that involve high heat, thereby increasing grease market growth rate.

Breakup by Base Oil:

• Mineral Oil
• Synthetic Oil
• Bio-based Oil
   

Mineral oil holds the largest share of the industry

A detailed breakup and analysis of the market based on the base oil have also been provided in the report. This includes mineral oil, synthetic oil, and bio-based oil. According to the report, mineral oil accounted for the largest market share.

Petroleum is the source of mineral oil, which is extensively available and easily accessible. This extensive availability ensures a steady and reliable supply for grease production, contributing to business opportunities in the grease market. Comparing mineral oil to synthetic oils and other substitutes, it is comparatively less expensive. Due to this financial benefit, manufacturers and end users can now afford mineral oil-based grease, which encourages broad use. Additionally, mineral oil-based grease offers efficient lubrication that helps to lessen wear and friction in machinery and equipment. On 1 May 2024, The GB super universal tractor oil 15W-30 was introduced, which is a multifunctional oil for farm machinery and developed using the highest quality virgin mineral base oils and enhanced additive systems, for lubricating the working parts of tractors like engines.

Breakup by End User:

• Automotive
• Construction and Off-Highways
• General Manufacturing
• Steel
• Mining
• Others
   

Automotive represents the leading market segment 

The report has provided a detailed breakup and analysis of the market based on the end user. This includes automotive, construction and off-highways, general manufacturing, steel, mining, and others. According to the report, automotive represented the largest segment.

In the automotive sector, grease is essential for lubricating various critical components of vehicles such as wheel bearings, chassis, ball joints, universal joints, and gears. Proper lubrication is crucial for ensuring the smooth operation and longevity of these parts. The automotive industry demands grease that can perform under extreme conditions including high temperatures, heavy loads, and exposure to water and contaminants. Automotive grease is specially formulated to meet these rigorous performance requirements. It also plays a vital role in routine maintenance activities, driving consistent demand from service centers and automotive workshops.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific leads the market, accounting for the largest grease market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represents the largest regional market for grease.

Numerous large-scale infrastructure projects in the Asia Pacific region require heavy machinery and equipment. These projects catalyze the demand for grease used in construction equipment and machinery maintenance. In addition, the Asia Pacific region is home to some of the world’s largest automotive markets, including China, Japan, India, and South Korea. The high production and sales of vehicles in these countries create significant demand for automotive grease used in various vehicle components. For instance, in January 2024, the total production of passenger vehicles, including three-wheelers, two-wheelers, and quadricycles was 23,28,329 units in India, as per India Brand Equity Foundation (IBEF). This increasing number of vehicle units is anticipated to further improve grease market statistics.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the grease industry include AXEL Christiernsson AB, Carl Bechem GmbH, Chemtool Incorporated (Lubrizol Corporation), ENEOS Holdings Inc, Exxon Mobil Corporation, Fuchs Petrolub SE, Gazpromneft - Lubricants Ltd. (Gazprom Neft PJSC), Harrison Manufacturing Company, Klüber Lubrication (Freudenberg Chemical Specialities SE & Co. KG), LUKOIL, Petromin Corporation (Al Dabbagh Group Holding Company Limited), and Royal Dutch Shell PLC.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Top manufacturers in the grease market are investing in research and development (R&D) to develop advanced grease formulations. This includes high-performance grease that can withstand extreme temperatures, high loads, and harsh environmental conditions. They are focusing on creating specialized grease tailored for specific applications such as EVs, aerospace, marine, and food-grade applications. Besides this, companies are providing technical support and after-sales services to users to ensure the optimal use of grease. They are also forming strategic partnerships with other players to develop and supply grease that meet the specific equipment requirements is a common practice and set grease market price trends. For instance, on 18 September 2023, Gazpromneft-Lubricants, a subsidiary of Gazprom Neft, is a leading player in the production and marketing of oils, grease, and technical fluids, announced a strategic partnership with ENSO Oils & Lubricants, a subsidiary of ENSO Global Trading to expand the distribution of lubricant assets across the South Asian region. Under this agreement, ENSO Oils & Lubricants will focus on importing and distributing Gazpromneft Lubricants' diverse range of oils, lubricants, and technical fluids designed to meet the needs of various industries.

Grease Market News:

• 4 March 2024: Shell Indonesia announced its plan to build its first grease manufacturing plant (GMP) in Indonesia. The plant is a new addition that will compliment Shell’s existing Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi, Indonesia. Shell’s new GMP in Indonesia will be capable of producing up to 12 kilotons of grease per year, helping to meet the growing demand for premium grease products in the country. The plant will be built with the latest technology, including a contact reactor, to enhance agility and efficiency.
• 27 February 2023: Lubrizol opened a new grease lab in Navi Mumbai, India, to support the testing and development of calcium sulfonate grease with strong potential in the market. Lubrizol is committed to supplying alternative high-performance and cost-effective industrial grease-thickening solutions to grease manufacturers around the world.

Grease Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the grease industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.