5 Key Insights on US$ 7 Billion Opportunity in Global Grease Market: Ken Research
Driven by the Surging Automotive and Transport Industry, Rising Demand for Electric vehicles, and Increasing Use of Grease in Multiple Industries. The Global Grease is forecasted at approximately US$ 7 Bn by 2028 says Ken Research Study.
Grease is a solid or semisolid liquid lubrication. Lubricating grease consists of 65 to 95% base oil, 3 to 30% thickener, and 0 to 10% additives. The main function of grease is to provide lubrication without leaking and contacting the material. The functional properties of grease include better performance than oil, solid sealant, prevents leakage, and uncontrollable fluid level. Grease is used in multiple industries such as automotive and transport, chemical, food processing, wind generation, heavy equipment, steel, mining, general manufacturing, and others.
According to Ken Research estimates, the Global Grease Market – which grew from approximately US$4 Billion in 2017 to approximately US$5 Billion in 2022 – is forecasted to grow further into approximately US$7 Billion opportunity by 2028. Ken Research shares 5 key insights on this high opportunity market from its latest research study.
1. Rapid Growth in Manufacturing, Automotive and Construction Sectors drives the Global Grease Market.
The Global Grease Market is expected to witness significant growth during the forecast period, due to the increasing industrial, automotive and construction sectors in the Asia Pacific region. Some of the major countries in the region include China, India, Indonesia, Thailand, and Singapore. The manufacturing, automotive, food and beverages, and construction industries are rising in the Asia Pacific region. For instance, in September 2021, the Indian government approved a PLI scheme worth US$3.53 billion for the auto industry and drone industry to boost India’s manufacturing standings. Thus, advancements in the manufacturing industry is likely to have a positive impact on the growth of the grease market.
2. Usage of Non-Soap Thickener in Automotive and Power Generation Industry is Likely to Drive the Global Grease Market.
Increasing adoption of higher efficient grease in electric vehicles, wind power, steel mill, snatch bearing, car wheel bearings, air conditioner compressor, and water pumps are some of the major driving factors for polyurea grease under the non-soap segment.
For Instance, various competitors are launching specialist electric vehicle grease to accommodate the rising demand from the market. For instance, in June 2021, Castrol Ltd., one of the leading players in lubrication industry, announced the launch of Castrol On, a range of advanced e-fluids for improved electric vehicle performance. Castrol On advanced eGrease protects the electric motor from overheating and provides higher efficiency and long-lasting lubrication.
FUSCH one of the leading players in the grease market established a new plant in Kaiserslautern, Germany which will produce custom-made polyurea greases for e-mobility and wind power. US$15.5 million was invested in the 3 German sites in Mannheim, Keil, and Kaiserslautern.
3. Strict Rules for over Production of Chemical in Plants, is Hampering the Growth of Grease Market.
United States have various regulatory bodies that supervise the chemical reporting, waste water discharge from facility, oil spills and hazardous substance releases and various others regulations. Section 313 of the Emergency Planning and Community Rights-to-know-Act (EPCRA) created the Toxic Release Inventory (TRI) program. Under the requirement of EPCRA, all U.S. facilities that meet TRI reporting criteria must submit TRI data to Environmental Protection Agency (EPA) and the relevant state government by 1st July of each year. EPA investigates the cases of EPCRA non-compliances leads to civil penalties, including monetary fines.
4. Mineral Oil Dominates the Market, Accounting for a Major Chunk of the Revenue share in 2021, and is Likely to Maintain Dominance During the Forecast Period
Mineral oil is extracted through moderate refining of base oil. Mineral oil is soluble with a wide range of additives, along with compatibility with various grease thickener systems, and has a lower cost, which is driving the growth of the mineral oil segment. According to Enerdata, an energy intelligence company, stated in a report that in 2021, the US crude oil production (17% of global output) increased by 1.3%. Increased production of crude oil is likely to propel the growth for mineral oil.
5. Asia Pacific Accounts for the Largest Market Share and is forecasted to be the Fastest Growing Region in the Global Grease Market.
Asia Pacific is expected to be the largest and fastest-growing region among others. This is because of the large presence of lubricating companies. According to the Indian Brand Equity Foundation (IBEF), a semi-government trust formulated by the department of commerce mention that an investment of US$107 billon is forecasted in the Indian chemicals and petrochemicals sector by 2025, the demand for chemicals is expected to widen by 9% per annum by 2025.
Europe is expected to be the 2nd fastest growing region during the forecasted period because of its rising demand for electric vehicles arising after the COVID-19 pandemic. RAVE, a news website with emphasis on electric vehicle and wind energy, stated that in 2021 Germany has accounted for 10.2% of total EV sales, the UK has accounted for 4.8%, France has accounted for 4.7%, Norway has accounted for 2.3%, and Italy has accounted for 2.1%. Electric vehicles required dedicated lubrication for multiple usage such as lower noise, lower heat, and others. Thus, increasing sales of electric vehicles is likely to drive the grease market.
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