Some interesting recent research from Transparency Market Research has looked into the main drivers behind the industrial lubricant market. It found that increased demand from new markets along with the need for and investment in innovation in the automotive industry from significant players has led to increased demand for the use of industrial lubricants and coolants in the manufacturing process and has been a key driver of the industry.
The market globally for independent manufacturers is expected to be worth around $8.6 bn by 2010, with the automotive lubricant sector expecting to see particular growth. Dividing the lubricant market into two sections, industrial and automotive, the research pulls out that whilst previously the ‘industrial’ lubricant has led the market, now we’re seeing the emergence of the automotive market increasing demand and leading to the most growth within the independent lubricant manufacturing sector.
The increase of the sales of cars in both established and emerging markets has naturally been attributed to an increase in turn of disposable income in a number of markets around the world. The research also notes the value of the increased demand for bio based alternatives to typical lubricant options as being behind some of the increase of demand within the independent manufacturers sector in particular.
There are warnings however that the increasingly volatility of the price of mineral oil will act as a restraining factor on the market. Although the development of specialist water-based fluids for some processes and sectors might make the market more resilient to this instability. Similar restrictions to the growth of the market are projected to be the high price of producing bio-based lubricants, despite the demand for them. The report does highlight as well though, that ‘new agreements with independent lubricant manufacturers by OEM car manufacturers is expected to create new opportunities in the market.
More information about the research can be found here.