There is a growing use of synthetic lubricants, with continued shifts towards lighter viscosity, according to a report from consultancy Kline & Co. The consumer automotive lubricants segment has the highest penetration of synthetic and semi-synthetic products compared to commercial automotive and industrial lubricants segments.
During a webinar covering the report on Wednesday July 27, 2016, Sushmita Dutta, Project Lead in Kline's Energy/Petroleum Practice, highlighted the three primary lubricant market segments; commercial automotive, consumer automotive and industrial lubricant segments.
According to Dutta, the United States is the largest market for lubes in North America accounting for a total of 2.7 billion gallons of the 11.7 billion gallons global market for lubricants, the base year being 2015. The U.S. significantly leads Canada and Mexico accounting for over 2.2 billion of these 2.7 billion gallons. Industrial oils and fluids are the leading market segment in North America, accounting for 46% of the total volume. The lubricants market in Mexico is almost equally divided among the three segments. Canada and the United States, being more developed and industrialized have larger industrial sectors and hence consume more of industrial lubricants than Mexico. Process oil leads among industrial lubricants in demand while engine oil leads among automotive lubricants in 2015.
The major branded suppliers combined account for 44% of the total North America demand in 2015, lead by Shell, ExxonMobil, Chevron, BP, Phillips 66, Vavoline, Suncor and Mexlub. Notes: Volumes include process oil; ExxonMobil includes sales by Imperial Oil; Shell includes sales by Shell Oil Products USA and Shell Canada; PetroCanada lube sales by Suncor Energy.
Within the U.S. market, Shell leads in automotive segments, while ExxonMobil leads in industrial segment in 2015.
The United States has a huge market for lubricants ranging between 2.2 and 2.3 billion gallons. The U.S. Industrial Lubricant Market accounts for just under 1.1 billion gallons with a CAGR, 2011-15 of 0.4%. The U.S. Commercial Automotive Lubricant Market accounts for approximately 540 million gallons with a CAGR, 2011-15 of 0.4%, with HDDEO oils and specifically the SAE 15W-40 viscosity grade being the larget, while the U.S. Consumer Automotive Lubricant Market accounts for 660 million gallons with a CAGR, 2011-15 of 0.2%, with PCMO and the SAE 5W-30 viscosity grade being the greatest.
Consumer automotive lubricants segment has the highest penetration of synthetic and semi-synthetic products, with the commercial automotive segment the least.
Demand for consumer automotive lubricants is expected to decline marginally with a CAGR, 2015-20 of (0.8%), while demand for consumer automotive lubricants in the installed segment is expected to grow marginally with a CAGR, 2015-20 of 0.6% and demand for consumer automotive lubricants in the retail segment is expected to decline drastically with a CAGR, 2015-20 of (4.3%).
Driven by the OEM recommendations, PCMO market will witness a shift towards 0Ws.
Dutta concluded by stating there is a growing use of synthetic lubricants, with continued shifts towards lighter viscosity. The market continues to shifts towards installed segment; the emergence of Tire, Brake and Muffler stores presents a viable competitor to other installed service providers.
Opportunities in Lubricants, North American Market Analysis is available from Kline for $47,000 but attendees of the presentation can obtain it (through August 17, 2016) for $42,300.