Asia-Pacific is one of the fastest growing lubricants markets in the world. This market is anticipated to reach USD 42.2 billion by 2025 at a CAGR of 8.1% over the forecast period.
It is anticipated to witness a significant upsurge in demand in the coming years mostly because of the growing number of new automobiles sales, especially in China and India. China dominated this market with about 42% market share of it.
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.
The automotive sector pushed up Asia-Pacific 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.
However, the Lubricants demand in Japan, South Korea, and Indonesia are yet to explore the lubricant demand for steel production, car production, and mineral oil demand.
More than 16.8 million tons of lubricants were consumed around the Asia-Pacific region in 2016.
About 68% of this volume accounted for automotive lubricants, 20% for industrial lubricants, including related specialities, 4% marine oils, and 8% process oils.
Last ten years, for this market, the top 15 lubricants manufacturers had to share two-thirds of its total market, while the remaining of more than 700 manufacturers share the other half.
However, in the coming years, the upsurge in electric vehicles may impact the growth and demand for automotive lubricants by some extent.
Investments in R&D activities to develop innovative synthetic lubricants are probable opportunities for future growth.