U.S. demand for lubricants is projected to increase 0.7 percent per year to 2.4 billion gallons in 2022, according to new data from ResearchandMarkets. The research firm says growth will be impacted by lengthening fill intervals arising from the improved performance of currently available lubricants. However, demand will be supported by increases in motor vehicle production and vehicle miles traveled.
Key Findings
Engine Oils to Remain the Largest Product Type Through 2022
Engine oils are expected to remain the largest product category for lubricants, supported by increases in vehicle miles traveled – particularly by the transportation industry – and motor vehicle production. The introduction of new engine regulations and standards will boost demand for high-value engine oils, primarily synthetic formulations, says ResearchandMarkets. The increasing penetration of hybrid and electric vehicles, and improvements in both lubricants and engines will restrain stronger growth.
Commercial & Industrial Markets to Provide the Best Opportunities
Continued growth in construction expenditures, as well as a recovery in the number of active oil and gas rigs, will drive demand for lubricants – in particular engine oils and transmission fluids. The transportation equipment market also is forecast to provide good opportunities, with growth in the production of heavy trucks and buses.
Non-conventional Basestocks Will See the Fastest Growth
Petroleum basestocks will remain the largest segment, with gains restrained by slow growth in the overall finished lubricants market and ongoing competition from non-conventional basestocks, including synthetic basestocks. Environmental and safety regulations, as well as consumer demand for “greener” products, will drive demand for products made from biobased basestocks, while re-refined basestocks will benefit from projected growth in oil prices. However, both bio-based and re-refined basestocks will remain niche segments.
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