Asia-Pacific is one of the fastest growing lubricants markets in the world. But how long will it continue to see sustainable growth?
Goldstein Research Analyst forecast Asia-Pacific automotive lubricants market is anticipated to reach USD 42.2 billion by 2025 at a CAGR of 8.1% over the forecast period.
The Asia-Pacific is anticipated to witness a significant upsurge in demand in the coming years. It is mostly because of the growing number of new automobiles sales, especially in China and India.
Further, the rapid growth of the economy of this region and its intensifying consumer markets are the key. These factors had already resulted in larger volumes of goods being transported around the region, cumulative the need for supply chain solutions.
The trend is expected to drive the sales of commercial vehicles in the region and will augment the demand for automotive lubricants in the region.
Earlier, at the F&L Week 2015 Conference in Singapore, Apu Gosalia, head of global competitive intelligence and chief sustainability officer at Fuchs Petrolub SE, discussed how the landscape has changed in recent years.
“The markets in Asia-Pacific aren’t only emerging markets,” Gosalia said, “They are also mature markets.”
On a global level, the past 20 years saw Asia-Pacific eclipsing the Americas and Europe in terms of market demand by volume.
20 years back, Asia -Pacific, the Americas, and Europe each made up roughly 30% of global lubricants demand, with Africa and the Middle East making up the rest of the worlds.
In the middle, By 2014, Asia-Pacific and the rest of the worlds made up 53% of global demand.
The automotive sector pushed up Asia-Pacific’s global lubricant market share over the past decade and a half. Recently, it is seeing glimpses of a similar to that Americas and Europe, with higher quality lube products potentially tempering volume demand.
Not surprisingly, lubricants demand in China, India, Japan, South Korea, and Indonesia are yet to explore how lubricant demand correlates with other factors, such as steel production, car production, mineral oil demand and gross domestic product (GDP) in each country.