China Industrial Lubricants Market - Forecast(2023 - 2028)

Report Code: CMR 1208 Report Format: PDF + Excel

China Industrial Lubricants Market Overview

China industrial lubricants market size is forecast to reach $17 billion by 2025, after growing at a CAGR of 3.52% during 2020-2025, owing to the rising usage of industrial lubricants in the various end-user applications such as automotive & aerospace, food processing, oil & gas, and more. The demand for industrial lubricants is increasing in varied industries for various applications due to its extensive set of characteristics such as reduce friction, controls temperature, surface separation, heat transfer, control contamination, protection against corrosion, protection against wear, and tear. The major factor driving the growth of the industrial lubricants market in China is the increasing automotive production in the country, for which lubricants are often required for proper functioning of machine. The increasing demand for industrial lubricants for various applications is anticipated to drive the industrial lubricants market substantially in China during the forecast period.

Report Coverage

The report: “China Industrial Lubricants Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the China industrial lubricants Industry. 
By Base Oil: Mineral Base Oils (Paraffinic Base Oils, and Naphthenic Base Oils), Synthetic Base Oils (Polyalphaolefin (PAO), Alkylated Aromatics, Polyglycols, Polybutenes, and Others), Non-Conventional Base Oils, Re-Refined Base Oils, Base Oil Category (Group I, Group II, Group III, Group IV, and Group V), Bio-Based Oils, and Others
By Product Type: Chain Oils, Compressor Oils, Gear Oils, Greases, Hydraulic Fluids, Turbine Oils, and Others
By End-Use Industry: Automotive, Transportation, Chemical, Construction, Food Processing, Industrial, Oil & Gas, Power Generation, Textile, and Others

Key Takeaways

  • According to OICA, the production of light commercial vehicles in China was 1,995,776 in 2018 and increased by 0.3% to reach 2,002,284 in 2019. According to the International Trade Administration (ITA), 4.38 million commercial vehicles were sold in China during the year 2018, an increase of 5.05% from 2017. Thus, increasing automation production in China is anticipated to drive the industrial lubricant market in China during the forecast period.
  • The industrial lubricants are the supporting substances required to run the automotive, aerospace, marine, transportation industries. The industrial lubricant not only reduces the friction between surfaces in mutual contact but also reduces the heat generated. It acts as a cooling agent and ensures that the machinery works properly due to which there is an increasing demand for industrial lubricants.
  • Due to the COVID-19 Pandemic, China has gone under lockdown, due to which operations of various Chinese industries such as automotive has been negatively affected, which is hampering the China industrial lubricants market growth.

By Base Oils – Segment Analysis

The mineral base oils segment held the largest share in the Chinese industrial lubricants market in 2019. The mineral oil-based lubricants are being widely used in various end-use industries as they provide a higher quality of solubility when used with additives and provide a reasonable service life if used properly. Their compatibility with a wide range of seals is excellent and is less expensive than their synthetic-based lubricant counterparts, which is anticipated to boost the demand for mineral oil-based lubricants during the forecast period. However, the demand for synthetic base oils is also increasing due to their ability to outperform mineral oils at high operating temperatures (above 185 degrees F) and low operating temperatures (below 0 degrees F).

By Product Type – Segment Analysis 

The hydraulic fluids application held the largest share in the Chinese industrial lubricants market in 2019, owing to the increasing demand of hydraulic fluids industrial lubricants for various applications such as forklift trucks, log splitters, automotive lifts, wright standers, snowplows, skid steers, air tools, tractors, cruise ships and more. The demand for industrial lubricants is increasing for various applications due to its extensive set of characteristics such as non-compressible, thermally stable, fire resistance, non-corrosive, low tendency to cavitate, constant viscosity, long life, anti-wearing properties, tolerance to water and cost-effective. Thus, these extensive properties of industrial lubricants are driving its demand in various applications, which is anticipated to propel the Chinese industrial lubricants market during the forecast period.

By End-Use Industry – Segment Analysis

The automotive sector held the largest share in the Chinese industrial lubricants market in 2019 and is growing at a CAGR of 3.75%, owing to the increasing demand of industrial lubricants from the automotive industry. The building and mining sector held the second largest share owing to increasing demand from the industries to eliminate downtime and reduce operating costs of industrial machinery equipment used during the construction and mining activities. From bulldozers, dump trucks and draglines to scrapers and shovels, all construction equipment is subject to harsh conditions. Exposure to extreme cold or heat, moisture, dust, and dirt can hurt the industrial machinery equipment and lead to premature equipment failure. Due to which there is an increasing demand for industrial lubricants in the construction and mining industries to reduce friction, heat, and wear. Using the industrial lubricant helps maximize the life of bearings and machinery, therefore saving money, time, and manpower, which is anticipated to propel the Chinese industrial lubricants market in the construction and mining industry during the forecast period.

China Industrial Lubricants Market Drivers

Increasing Automobile & Aerospace Industry

There is an increasing demand for industrial lubricants such as engine oils from the automotive and aviation industry as it cleans the engine and makes it rust-free, which further improves its fuel efficiency and performance, maximize the engine's life and reduce vehicular emissions. According to International Trade Administration (ITA), China continues to be the world’s largest vehicle market with the Chinese government expecting that automobile output will reach 30 million units by 2020 and 35 million by 2025. According to the China Association of Automobile Manufacturers, over 27 million vehicles were sold in 2018. In 2016, according to Boeing, China is estimated to require around 6,810 new commercial aircraft, valued at USD 1 trillion, over the next two decades. By the end of 2018, China had more than 59 airlines and 3,615 civil aircraft (an increase of 10% over 2017). According to China’s 13th Five Year Plan (2016-2020), by 2020, China will have more than 4,500 civil aircraft, and by 2018, the number of Chinese civil airports had grown to 235. Thus, with the increasing automobile and aerospace industry in China, the demand for industrial lubricants will also show a significant increase in its demand, which acts as a driver for the industrial lubricants market in China during the forecast period.

Increasing Building and Construction Activities

The building and construction activities are growing in China owing to the increased initiatives by the government, increasing population and rising per capita income of the individuals. There is an upsurge in the demand of industrial lubricants as it widely used in the building and construction activities to reduce friction between moving parts or surfaces and to enhance the efficiency of the machines used in the construction industry. According to the International Trade Administration (ITA), China is the world’s largest construction market, and the construction value of China in 2018 was USD 893.58 and it is forecasted to reach USD 968.06 by 2019. Also, the Chinese construction industry is forecasted to grow at an annual average of 5% in real terms between 2019 and 2023. China started an initiative One Belt, One Road for forging infrastructure and facilities networks by building efficient transport routes connecting major seaports along the belt and road. Such government initiatives In China are leading to increased building and construction activities in the country, which acts as a driver for the industrial lubricants market in China during the forecast period.

China Industrial Lubricants Market Challenges

Increasing Initiatives for Electric Vehicles Production

In June 2017, Clean Energy Ministerial launched a campaign EV30@30 to accelerate the utilization of electric vehicles and increase the sales share for electric vehicles up to 30% by 2030 among the participating countries. This led to an increased number of electric vehicles in various countries such as China, India, France, Japan, Mexico, and more. Since China and Canada are the leading Clean Energy Ministerial (CEM) member, it is anticipated the manufacturing of electric vehicles will further increase in these countries in the coming years. The electric vehicles do not require lubricants such as engine oil, which may restrain the industrial lubricants market growth during the forecast period. 

Covid-19 Impact on The China Industrial Lubricants Market

The Covid-19 pandemic outbreak has impacted the imports and exports of industrial lubricants such as gear oils, greases, hydraulic fluids, engine oils, and others as the Chinese government has imposed export restrictions which are significantly disrupting with the supplies. Also, due to the nationwide lockdown, there has been a decrease in the number of vehicles running, because of which the demand for industrial lubricants has disruptively fallen, which is affecting the industrial lubricants market negatively.
Market Landscape 

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Chinese industrial lubricants market. In 2019, the market of Chinese industrial lubricants has been consolidated by the top five players accounting for xx% of the share. Major players in the Chinese industrial lubricants market are Sinopec, BP P.l.c, Maoming Haihe Chemical Co, Shandong Yuangen Petrochemical Co. Ltd, PetroChina, Lukoil, and Exxon Mobil Corporation

Acquisitions/Technology Launches

  • In October 2017, Maoming Haihe Chemical Co., opened the first Group I plant in the past 20 yrs and the plant started operation by the end of 2017.
  • In July 2017, Lukoil opened its first subsidiary in China in Urumqi and has announced its plans to further expand its footprint in the country.
1. China Industrial Lubricants Market- Market Overview
    1.1 Definitions and Scope
2. China Industrial Lubricants Market- Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key Trends by Base Oil
    2.3 Key Trends by Product Type 
    2.4 Key Trends by End-Use Industry
3. China Industrial Lubricants Market- Landscape
    3.1 Comparative analysis 
        3.1.1 Market Share Analysis- Top Companies
        3.1.2 Product Benchmarking- Top Companies
        3.1.3 Top 5 Financials Analysis
        3.1.4 Patent Analysis- Top Companies
        3.1.5 Pricing Analysis
4. China Industrial Lubricants Market - Startup companies Scenario Premium Premium  
    4.1 Top startup company Analysis by
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Market Shares
        4.1.4 Market Size and Application Analysis
        4.1.5 Venture Capital and Funding Scenario
5. China Industrial Lubricants Market– Industry Market Entry Scenario Premium Premium  
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing business index
    5.3 Case studies of successful ventures
    5.4 Customer Analysis - Top companies
6. China Industrial Lubricants Market- Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Market Opportunities
    6.4 Porters five force model
        6.4.1 Bargaining power of suppliers
        6.4.2 Bargaining powers of customers
        6.4.3 Threat of new entrants
        6.4.4 Rivalry among existing players
        6.4.5 Threat of substitutes 
7. China Industrial Lubricants Market -Strategic analysis
    7.1 Value chain analysis
    7.2 Opportunities analysis
    7.3 Market life cycle
    7.4 Suppliers and distributors Analysis
8. China Industrial Lubricants Market– By Base Oil (Market Size -$Million)
    8.1 Mineral Base Oils
        8.1.1 Paraffinic Base Oils
        8.1.2 Napthenic Base Oils
    8.2 Synthetic Base Oils
        8.2.1 Polyalphaolefin (PAO)  
        8.2.2 Alkylated Aromatics
        8.2.3 Polyglycols
        8.2.4 Polybutenes
        8.2.5 Others
    8.3 Non Conventional Base Oils
    8.4 Re-Refined Base Oils  
    8.5 Base Oil Categories
        8.5.1 Group I
        8.5.2 Group II
        8.5.3 Group III
        8.5.4 Group IV
        8.5.5 Group V
    8.6 Bio-Based Oils
    8.7 Others
9. China Industrial Lubricants Market– By Product Type (Market Size -$Million)
    9.1 Chain Oils
    9.2 Compressor Oils
    9.3 Gear Oils
    9.4 Greases
    9.5 Hydraulic Fluids
    9.6 Turbine Oils
    9.7 Others
10. China Industrial Lubricants Market– By End-Use Industry (Market Size -$Million)
    10.1 Automotive 
    10.2 Transportation
    10.3 Chemical 
    10.4 Construction
    10.5 Food Processing
    10.6 Oil & Gas
    10.7 Power Generation
    10.8 Textile
    10.9 Others
11. China Industrial Lubricants Market- Entropy
    11.1 New Product Launches
    11.2 M&A’s, Collaborations, JVs and Partnerships
12. Market Share Analysis Premium
    12.1 Market Share by Country- Top companies
    12.2 Market Share by Region- Top companies
    12.3 Market Share by type of Product / Product category- Top companies
    12.4 Market Share at global level- Top companies  
    12.5 Best Practices for companies
13. China Industrial Lubricants Market- List of Key Companies by Country Premium  
14. China Industrial Lubricants Market Company Analysis
    14.1 Market Share, Company Revenue, Products, M&A, Developments
    14.2 Company 1
    14.3 Company 2
    14.4 Company 3
    14.5 Company 4
    14.6 Company 5
    14.7 Company 6
    14.8 Company 7
    14.9 Company 8
    14.10 Company 9
    14.11 Company 10 and more
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