Forecast Period | 2026-2030 |
Market Size (2024) | USD 7.25 Billion |
CAGR (2025-2030) | 4.28% |
Fastest Growing Segment | Metal Working Fluid |
Largest Market | West India |
Market Size (2030) | USD 9.22 Billion |
Market Overview
India Industrial Lubricant Market was valued at USD 7.25 Billion in 2024 and
is expected to reach USD 9.22 Billion by 2030 with a CAGR of 4.28% during the forecast period. Industrial lubricants are essential for
minimizing friction, wear, and corrosion between moving parts in machinery and
equipment. They play a pivotal role in ensuring the efficiency and longevity of
industrial systems. These lubricants come in various forms to meet different
operational needs. Oils, for example, can be mineral-based, synthetic, or
semi-synthetic, each offering distinct benefits depending on the application.
Greases, which blend oils with a thickening agent like soap, provide
long-lasting lubrication in scenarios where oils alone might not adhere
effectively. Solid lubricants, such as graphite or molybdenum disulfide, are
used in environments where liquid lubricants are unsuitable. Hydraulic fluids
are crucial for transferring power and lubricating hydraulic systems,
maintaining their effectiveness under high pressure and temperature conditions.
The growth in manufacturing and heavy
industries significantly drives the demand for high-quality lubricants. As
production facilities expand and infrastructure projects increase, the need for
reliable lubricants to maintain machinery performance becomes more pronounced.
Government initiatives like Make in India and investments in infrastructure are
contributing to the expansion of the industrial sector, thereby indirectly
boosting the demand for lubricants. However, fluctuations in raw material
prices, such as crude oil, can impact lubricant pricing, affecting market
stability and profitability.
The
rise of bio-based and synthetic lubricants presents competition to traditional
mineral oils, compelling existing players to innovate and adapt. Despite these
challenges, the Indian industrial lubricant market is expected to continue its
growth trajectory. This growth will be driven by ongoing industrial
development, technological advancements, and a shift toward more sustainable
and efficient lubricants. Government support for industrialization is likely to
further shape the future dynamics of the market.
Key Market Drivers
Growth of Automotive Sector
As
the automotive sector grows, vehicle production encompassing both passenger and
commercial vehicles rises accordingly. This expansion drives increased demand
for a range of lubricants, such as engine oils, transmission fluids, and other
automotive fluids essential for vehicle assembly and maintenance. According
to Invest India, from April 2023 to March 2024, the automotive sector produced
28.43 million vehicles, including passenger cars, commercial vehicles,
three-wheelers, two-wheelers, and quadricycles.
Modern
vehicles, equipped with advanced technologies, require high-performance
lubricants to ensure optimal functionality. The automotive industry's emphasis
on enhancing fuel efficiency, reducing emissions, and improving performance
further fuels the demand for specialized and high-quality lubricants.
Additionally, the growing vehicle fleet boosts demand for automotive lubricants
in the aftermarket segment, as regular maintenance and servicing rely on a
steady supply of engine oils, brake fluids, and coolants.
The
introduction of new technologies, such as electric and hybrid vehicles,
necessitates the development of advanced lubricants tailored to these systems.
Government incentives and subsidies designed to support the automotive
industry, including those for electric vehicles and manufacturing hubs, drive
sector growth and subsequently increase the demand for automotive lubricants.
For instance, Phase II of the FAME India Scheme has allocated USD 693
million in subsidies to electric vehicle manufacturers, facilitating the sale
of 1,341,459 electric vehicles. Additionally, rising disposable incomes
allow more consumers to purchase vehicles, which expands the vehicle fleet and
leads to higher lubricant consumption for both new and existing vehicles.
Growth of Manufacturing and
Heavy Industries
As
manufacturing and heavy industries expand, there is a growing need for
machinery and equipment, which in turn drives up the demand for industrial
lubricants essential for ensuring the smooth operation and durability of these
assets. According to IBEF, India's manufacturing sector is projected to
reach USD 1 trillion by 2025-26, with Gujarat, Maharashtra, and Tamil Nadu
leading this growth due to investments in the automotive, electronics, and
textile industries.
The
development of new manufacturing plants and heavy industry facilities requires
a substantial increase in lubricants for the installation, maintenance, and
operation of machinery and production lines. The Ministry of Heavy
Industries (MHI) has introduced several strategic initiatives to establish
India as a global supplier of Original Equipment Manufacturers (OEMs). The
Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component
Industry, with a budget of USD 3.11 billion, supports the production of
Advanced Automotive Technologies (AAT), including electric vehicles and their
components.
Under
the Atmanirbhar Bharat Initiative, five positive indigenization lists totaling
509 products have been issued by the Department of Military Affairs and the
Ministry of Defence to encourage domestic manufacturing for the defense sector.
The growth in manufacturing and heavy industries also drives significant
infrastructure development, such as new factories, warehouses, and transport
facilities, increasing the demand for lubricants used in these construction and
infrastructure projects. As industrial activities expand, the need for regular
maintenance and servicing of machinery becomes more crucial, thereby boosting
demand for a variety of industrial lubricants used for cooling, lubrication,
and protection.
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Key Market Challenges
Price Fluctuations
The
primary raw materials for many industrial lubricants come from crude oil and
other petrochemicals. Variations in crude oil prices can lead to unpredictable
raw material costs, which directly influence lubricant production expenses.
Sharp increases in these raw material prices can result in higher lubricant
costs, affecting the overall financial structure for industries. Manufacturers
often face challenges in maintaining profit margins during periods of price
volatility. They may need to either absorb these extra costs, which can reduce
profit margins, or pass them on to customers, potentially making their products
less competitive.
Price
volatility can also disrupt supply chains, impacting both the availability and
cost of lubricants. This volatility can spark price wars among suppliers, which
might erode profit margins and create market instability. Companies with
long-term contracts or pricing agreements may struggle to adjust terms in
response to fluctuating raw material costs, potentially leading to financial
imbalances for both suppliers and buyers. Overall, price fluctuations
contribute to market volatility, complicating demand forecasting, pricing
strategies, and future growth planning, and may deter investment and strategic
initiatives in the lubricant sector.
Infrastructure and Logistical
Inefficiencies
Inadequate
infrastructure, including insufficient road networks and transportation
facilities, can cause delays in lubricant deliveries. These delays disrupt the
supply chain and affect the timely availability of products, which in turn
impacts manufacturing and operational schedules for end-users. Logistical
inefficiencies and poor infrastructure often result in higher transportation
and storage costs, which can drive up lubricant prices. This increase can
reduce market competitiveness and negatively affect profit margins for both
suppliers and consumers.
Poor
infrastructure can also create bottlenecks in the supply chain, leading to
inventory shortages and challenges in meeting market demand. This can result in
missed sales opportunities and strained customer relationships. Issues such as
unreliable transportation services and limited warehousing capabilities can
hinder the smooth operation of lubricant distribution, reducing efficiency and
complicating supply chain management.
Inefficiencies
in infrastructure and logistics can lead to longer delivery times for
lubricants, disrupting production schedules for industries that depend on
timely supplies. Furthermore, inadequate infrastructure can limit access to
emerging and expanding markets within India, preventing companies from
leveraging growth opportunities in new regions.
Key Market Trends
Shift Towards Synthetic and
Bio-Based Lubricants
There
is a growing trend towards synthetic and bio-based lubricants due to their
superior performance and environmental benefits. Synthetic lubricants are
preferred for their enhanced high-temperature stability, extended service life,
and improved efficiency over traditional mineral oils. Bio-based lubricants are
becoming popular for their eco-friendly properties and biodegradability. For
example, in April 2024, Savsol Lubricants launched Savsol Ester 5, a
biodegradable lubricant aimed at high-end applications in the automotive and
railway sectors. This product is derived from edible oil fatty acids and
features proprietary molecules developed in-house.
The
market is also embracing advanced lubrication technologies to meet the needs of
modern machinery. This includes high-performance lubricants tailored for
specific applications, such as those operating in extreme temperatures or
precision environments. Uno Minda released its BS VI compliant automotive
engine oils in 2023. The PerfoMaxx range includes mineral oils for 100cc –
125cc bikes and scooters, Purosynth semi-synthetic oil for 125cc – 150cc bikes,
and Ultimo fully synthetic oil for bikes over 150cc.
There
is an increasing focus on energy-efficient lubricants designed to reduce
friction and enhance the overall efficiency of industrial equipment. This trend
supports broader industry goals of improving operational efficiency and cutting
energy consumption. For instance, In June 2023, Shell introduced new
synthetic engine oils in India, including Helix HX6 5W-30 and Shell Helix SUV
5W-30. These oils offer Active Cleansing Technology to provide advanced engine
protection, reduce wear and tear, and prevent sludge and deposit build-up.
There
is a rising demand for lubricants that extend service intervals and provide
better protection against wear and tear. This trend is driven by industries
aiming to lower maintenance costs and reduce downtime. These developments
reflect a dynamic and evolving industrial lubricant market in India, influenced
by technological advancements, regulatory changes, and shifting consumer
preferences.
Segmental Insights
Product Type Insights
Based
on Product Type, the Industrial Engine Oil emerged as
the dominating segment in the Indian market for Industrial Lubricant in
2024. Industrial
engine oils are utilized across a broad spectrum of machinery and equipment in
sectors such as automotive, manufacturing, construction, and agriculture. Their
versatility and critical role in ensuring the performance and longevity of
engines contribute significantly to their market leadership. The automotive
sector is a major consumer of these oils. As vehicle production and sales
increase, so does the need for engine oils to maintain both new and existing
vehicles. These oils are vital for lubrication, cooling, and protection against
wear, making them essential in this industry. Regular lubrication of industrial
engines is necessary for their efficient and reliable operation, driving
ongoing demand for engine oils. For instance, in 2023, Gulf Oil Lubricants
India Ltd. expanded its offerings in the Indian market by introducing the S-OIL
SEVEN range through a strategic alliance. Gulf Oil will oversee the production,
distribution, and marketing of this premium range, which includes fully
synthetic, semi-synthetic, and high-performance lubricants, through the KIA
India dealer network. The widespread availability of engine oils through
established distribution channels further supports their market dominance, as
consumers can easily obtain and replace these crucial lubricants.
End User Insights
Based
on End User, Automotive emerged as the dominating segment in the Indian market
for Industrial Lubricant in 2024. The automotive sector consistently
requires lubricants due to the ongoing need for vehicle maintenance and
servicing. Engine oils, transmission fluids, and other automotive lubricants
are crucial for ensuring the smooth operation and longevity of both passenger
and commercial vehicles. India’s vehicle fleet is large and expanding,
encompassing cars, trucks, motorcycles, and commercial vehicles. This growth
ensures a constant demand for automotive lubricants to maintain optimal vehicle
performance. According to Invest India, the truck market in India is
projected to grow over fourfold by 2050, with the number of trucks expected to
increase from 4 million in 2022 to approximately 17 million by 2050. The rise
in vehicle production and sales drives the need for lubricants, both for new
vehicles and as replacements for existing ones. The expansion of automotive
infrastructure, including service centers, dealerships, and maintenance
facilities, further fuels the demand for automotive lubricants by creating more
sales and distribution opportunities. Additionally, advancements in vehicle
technology, such as new engine types and higher performance standards,
necessitate the use of specialized and high-quality lubricants. Efforts to
improve fuel efficiency and reduce emissions have also increased the demand for
advanced lubricants in the automotive sector.
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Regional Insights
Based
on Region, West India emerged as the dominant region in the Indian market for Industrial Lubricant in 2024. Maharashtra and Gujarat are among India’s most
industrialized states, hosting a wide array of industries such as automotive,
chemicals, textiles, and machinery, all of which require significant amounts of
industrial lubricants. Gujarat has become a major industrial hub, with thriving
sectors like petrochemicals, textiles, and manufacturing. The state's
supportive policies and infrastructure development contribute to its robust
industrial activity. In April 2024,
Gujarat Gas (GGL) and Indian Oil Corporation (IOCL) signed a non-binding
memorandum of understanding (MoU) to enhance energy solutions for consumers.
Under this MoU, IOCL will supply liquid fuels and automotive lubricants,
greases, and specialty products at GGL outlets. Additionally, IOCL will
establish a CNG facility at its COCO outlets, while GGL will set up a CNG
mother facility at IOCL locations.
Mumbai,
India’s financial capital, and Pune are prominent industrial centers with
significant automotive manufacturing, electronics, and machinery industries.
Pune is noted for its automotive and engineering sectors. In 2023, Toyo
Engineering India Pvt. Ltd., a subsidiary of Toyo Engineering Corporation,
secured a contract from ExxonMobil Lubricants Private Limited (EMLPL) for the
engineering, procurement, construction, and commissioning of a 159,000 KL/annum
lubricant manufacturing plant in Isambe, Maharashtra. This plant is anticipated
to commence commercial operations by late 2025.
The
West region benefits from well-established industrial zones and economic
corridors. The robust logistics and transportation infrastructure, including
highways and rail networks, facilitate the efficient distribution of industrial
lubricants. Gujarat’s strong petrochemical sector further drives the demand for
specialized lubricants used in processing and manufacturing. Known for its
business-friendly environment and favorable industrial climate, the West
region, particularly Gujarat, attracts companies and supports growth in the
lubricants market.
Recent Development
- In
July 2024, Lubrizol India Private Limited (LIPL) revealed plans to establish
India’s largest industrial lubricant manufacturing facility in the Bidkin
industrial area, part of the DMIC extension in Chhatrapati Sambhajinagar. The
investment for this project is set at USD 238.84 Million, with an anticipated
creation of around 900 jobs. Production is projected to begin by 2028.
- In
May 2024, Klüber Lubrication, a leading global provider of specialty
lubricants, announced a major investment of USD 16.96 Million to expand its
operations in Mysore. This expansion highlights the company’s support for the
"Make in India" initiative by enhancing local production
capabilities. Scheduled for completion by early 2027, the project will
introduce a cutting-edge production facility featuring advanced technology
tailored to Klüber Lubrication’s specialized requirements. The expansion will
also facilitate the attainment of new certifications, including IATF for
automotive customers and ISO 21469 for food-grade lubricants.
- In
April 2024, Shell Lubricants India unveiled its enhanced range of Shell Advance
motorcycle oils. The new lineup is showcased in limited-edition packaging
featuring brand ambassador Shahid Kapoor. The latest Advance AX7 synthetic
technology oil incorporates innovative flexi molecule technology, delivering an
exceptionally smooth ride by optimizing power transfer from the engine to the
wheels.
Key Market Players
- Gulf
Oil Lubricants India Limited
- Hindustan
Petroleum Corporation Limited
- Castrol
India Limited
- SAVITA
OIL TECHNOLOGIES LIMITED
- Shell
Energy India Private Limited
- Tide
Water Oil Co. (India) Ltd.
- Indian
Oil Corporation Limited
- Valvoline
Cummins Private Limited
- TotalEnergies
Marketing India Private Limited.
- Bharat
Petroleum Corporation Limited
|
By
Product Type
|
By
Application
|
By
End User
|
By Region
|
- Metal Working
Fluid
- Industrial Engine
Oil
- Hydraulic Oil
- Grease
- Gear Oil
- Compressor Oil
- Bearing Oil
- Others
|
- Machining
- Hydraulics
- Gear
- Bearing
- Turbine
- Air Compressor
- Others
|
- Power and Oil & Gas
- Construction & Mining
- Automotive
- Metallurgy
- Chemical
- Others
|
- West India
- North India
- South India
- East India
|
Report Scope:
In this report, the India Industrial Lubricant
Market has been segmented into the following categories, in addition to the
industry trends which have also been detailed below:
- India Industrial Lubricant Market, By Product Type:
o Metal Working Fluid
o Industrial Engine Oil
o Hydraulic Oil
o Grease
o Gear Oil
o Compressor Oil
o Bearing Oil
o Others
- India Industrial Lubricant Market, By Application:
o Machining
o Hydraulics
o Gear
o Bearing
o Turbine
o Air Compressor
o Others
·
India Industrial
Lubricant Market, By End
User:
o Power and Oil & Gas
o Construction & Mining
o Automotive
o Metallurgy
o Chemical
o Others
- India Industrial Lubricant Market, By Region:
o West India
o North India
o South India
o East India
Competitive Landscape
Company Profiles: Detailed analysis of the major companies presents in the India Industrial
Lubricant Market.
Available Customizations:
India Industrial Lubricant Market report with the
given market data, Tech Sci Research offers customizations according to a
company's specific needs. The following customization options are available for
the report:
Company Information
- Detailed analysis and profiling of additional
market players (up to five).
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Lubricant Market is an upcoming report to be released soon. If you wish an
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