 "Synthetic lubricants market projected to grow to $ 36 billion by 2020")
The global synthetic lubricants market is projected to reach $ 36 billion by 2020 from $ 31 billion in 2014, at a CAGR of 2.5 percent between 2015 and 2020, as per the latest MarketsandMarkets report.
The growth is mainly owed to consumer awareness in developed countries of North America and Western Europe. The majority of the garage owners, technicians, and automotive engineers in these regions are well aware of the high performance benefits offered by synthetic lubricants over conventional mineral oil lubricants. Moreover, strong OEM recommendation to use high performance lubricants coupled with the stringent emission control regulations in these countries is also driving the demand for synthetic lubricants.
The engine oil application segment dominated the synthetic lubricants market, however, the industrial application segment is projected to register the fastest growth rate in the overall market. “The improved standard of living and increasing consumer awareness regarding high performance benefits offered by synthetic lubricants over the conventional mineral oil lubricants in emerging economies are contributing to the growth of the global market,” said the report.
The synthetic lubricants market is dominated by PAO (polyalpha Olefins) because of its improved oxidative property and thermal stability. PAO are most commonly used in engine oils, hydraulic oils, transmission oils, and compressor oils application. Group III (hydro cracking), due to its high cost as compared to conventional base oil group, is expected register slow growth during 2015 and 2020.
Currently, Europe is the largest market for synthetic lubricants. However, Asia-Pacific is the fastest-growing market for synthetic lubricants due to high demand from major markets such as China, India, and Japan. The growing automotive industry in the Asia-Pacific region is also driving the market for synthetic lubricants.
The major factor restraining the growth of the synthetic lubricants market is its high cost compared to conventional mineral oils. The price of synthetic lubricants can be as high as 2-5 times that of mineral oil lubricants; and up to 5-8 times that bio-based lubricants.
