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Global Mineral Oil Market - Outlook and Forecast 2022-2027
The grease market is projected to reach USD 4.5 billion by 2027, growing at a CAGR of 3.57% during the forecast period. Grease is a lubrication product used to reduce friction, minimize wear, extend component life, seal against leakage, and protect against rust. It finds application in various lubrication operations.
The market is evolving as customers demand higher-performing lubricants that offer improved efficiency. Currently, metallic soap-based greases dominate the market, but due to fluctuating raw material prices and government regulations, consumers are shifting towards organic soap greases. Organic thickeners, also known as high-temperature thickeners, are formulated to meet extreme lubrication requirements in long-service applications.
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USD 4 billion in 2020
Type, Base-Oil, End-Use, and Geography
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The global grease market report provides a comprehensive understanding of the market with over 275 pages encompassing 167 tables and 80 exhibits.
In 2021, lithium grease held the largest market share, but the increasing adoption of electric vehicles has led to a surge in lithium demand, driving up the prices of raw materials for lithium grease. Consequently, the market share of lithium grease is expected to decline. Organic polyurea grease is gaining prominence due to its advantages over lithium grease. Additionally, standardization of manufacturing procedures makes polyurea greases a cost-effective alternative to lithium complex grease. Furthermore, polyurea is made from organic components, making it more environmentally friendly than metallic-based greases.
The Asia-Pacific (APAC) region is poised to be the fastest-growing in terms of GDP growth globally. APAC comprises emerging economies such as China, India, Indonesia, Thailand, the Philippines, and Vietnam. Factors driving growth include large and relatively young populations, significant investments in physical and digital infrastructure, low-cost labor, and rising incomes.
APAC is witnessing substantial growth in the automotive, manufacturing, food & beverage, and construction industries. The automotive industry in APAC is one of the largest globally, with China and India emerging as significant markets.
In recent years, increased global warming due to environmental pollution has led many countries to implement strict regulations on the use of chemical materials. Regulatory bodies have also imposed rules on grease due to its environmental impact. Grease typically consists of base oils, thickeners, and additives, with most types being mineral oil-based. Mineral oil-based greases pose a considerable environmental threat due to their high eco-toxicity and low biodegradability.
Proper management of grease is essential as it is not recycled once used. Waste grease should be stored in appropriate containers away from drains to prevent it from mixing with water or sewage, which can lead to pH imbalances, foaming issues, water pollution, harm to aquatic life, and health hazards for humans.
The market is segmented based on various factors, including type, base-oil, end-use, and geography.
Segmentation by Type
Segmentation by Base Oil
Segmentation by End-Use
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain, Russia, Rest of Europe
APAC – China, Japan, India, South Korea, Australia, Rest of APAC
Latin America – Brazil, Mexico, Rest of Latin America
Middle East & Africa – South Africa, Iran, UAE, Rest of MEA
The metallic segment is projected to be the largest segment in the grease market, while the organic grease market is expected to grow at a compound annual growth rate (CAGR) of 5.7% during the forecast period. Currently, metallic soap type thickeners are the most commonly used thickeners worldwide. Metallic soap-based grease can be classified into three types: straight, mixed, and complex, with further sub-categories based on the metals used as thickeners. These metals include lithium, aluminum, calcium, and sodium. The straight metallic soap thickener exhibits different properties depending on the metal used, with lithium soap being dominant and cost-effective. Lithium soap offers excellent water and breakdown resistance, high melting point, and good lubricity. Mixed greases combine two or more metallic soaps to achieve desired properties, while complex soaps are produced through a reaction between alkali and a blend of monobasic and dibasic acids.
Organic thickened grease offers superior long-term stability, corrosion protection, and excellent pumpability. Polyurea is a popular thickener that results from the reaction of di-isocyanate with mono and/or diamines. In the upcoming years, the demand for organic grease is expected to rise due to its environmental friendliness, low toxicity, and suitability for high-temperature applications.
Among base oils, mineral oil-based greases dominate the market, while the bio-based grease market is anticipated to grow at the fastest rate. Mineral oil, a liquid by-product of crude oil refining, is commonly utilized in grease production due to its exceptional lubricating properties. Mineral oil can be easily blended with various additives, enhancing the overall performance of grease. It is also compatible with many grease thickener systems. Additionally, mineral oil is cost-effective compared to synthetic oil.
The automotive industry serves as both the largest and fastest-growing end-user segment in the grease market. Grease finds extensive use in automotive applications, general manufacturing, construction, mining, and other industries. The strong growth of the automotive sector significantly contributes to the global grease market. Automotive grease is employed in various parts such as CV joints, gear assemblies, and electrically operated mechanisms like windows, sunroofs, and seats. With its higher consistency compared to other automotive lubricants like motor oil, grease provides effective protection against friction and wear. Moreover, grease is widely used for maintenance, particularly in older automobiles. Automotive greases safeguard components against wear, oxidation, and rust, thereby extending the lifespan of applications. The properties of grease used in vehicles are also determined by factors such as application, load, and environmental conditions in which the vehicle operates.
The competitive landscape in the global grease market is currently becoming more intense. Vendors are facing challenges due to the constantly fluctuating prices of raw materials, which directly impact their operations. For example, securing a stable supply of lithium, a key component used in the manufacturing of lithium grease, has become increasingly difficult for vendors.
Major multinational players such as Shell plc (UK), ExxonMobil Corporation (US), Chevron Corporation (US), Sinopec Corporation (China), and Total Energies (France) dominate the grease market. These key players prioritize innovation, product diversification, and market expansion as part of their strategies.
The forecast period for the grease market ranges from 2022 to 2027, with the base year being 2021. The market is segmented based on factors such as type, base-oil, end-user, and geography for the specified years. This comprehensive report aims to provide customers with a holistic view of the grease industry, enabling them to analyze the market efficiently.
Key companies profiled in this report include Shell plc, ExxonMobil Corporation, Chevron Corporation, Sinopec Corporation, Axel Christiernsson, BEL-RAY, BHARAT PETROLEUM, CASTROL LIMITED, ENEOS Corporation, ENI, FUCHS, GULF OIL INDIA, HP Lubricants, IDEMITSU KOSAN Co., KLUBER LUBRICATION, LUKOIL, ORLEN OIL, PETRO CANADA, PETRONAS, PHILLIPS 66, PT PERTAMINA, ROSNEFT LUBRICANTS, SKF, Valvoline.
Key Questions Answered
What is the projected market size and growth rate of the global grease market by 2027?
The global grease market is expected to reach a market size of USD 4.5 billion by 2027, with a compound annual growth rate (CAGR) of 3.57% during the forecast period.
What are the key driving factors in the global grease market?
The global grease market is primarily driven by factors such as the growing industrial sector in the Asia Pacific region, increased automation in industries, the rise in sustainability standards, and the rising demand for polyurea grease.
Which type of grease is expected to be in demand in 2027?
Lithium grease currently holds a dominant market share of over 70% in the global grease market. However, due to the increasing prices of raw materials, there might be a decline in the market share of lithium grease. On the other hand, polyurea grease, being organic and offering several advantages over lithium grease, is gaining importance and is expected to see increased demand in 2027.
Who are the major players in the global grease market?
The major players in the global grease market include Shell PLC, ExxonMobil Corporation, Chevron Corporation, and Sinopec Corporation. These companies play significant roles in driving market growth and innovation in the industry.
What is the growth rate of the Lithium Grease market?
According to the research, the lithium grease market is projected to grow at a CAGR of 4.9% during the period of 2022-2027.