European Lubricants-Market and Technology Forecast

Lubricants are used to decrease friction and promote the smooth functioning of both automotive as well as industrial parts. The B2B applications of this product and its overall demand across Europe would be studied in the report, “European Lubricants-Market and Technology forecast to 2029”.

Lubricants are essentially composed of base oils and lubricant additives. The percentage base oil within lubricants varies between 70-90% depending on the application. On studying the current market condition for base oils it is seen that the Base oils vertical within Europe is considered to be a self-contained market. The intra-regional supply is greater within Europe. Therefore, the trade dynamics within the country are highly indigenous.

The European Lubricants Market attained a market value of USD 36 Billion in the year 2020 and the market is expected to reach USD 38.7 Billion by the year 2029. The European lubricants vertical is anticipated to grow with a CAGR of 0.7% during the forecast period 2021-2029. On making a comparative analysis across the geographic landscape for Europe it is seen that Western Europe accounts for 61% of the total revenue generated. Key Economies within these regions have been studied in the country analysis section for this report. Quantitative analysis for the EXIM Data across base oils and lubricant additives has been provided across countries including France, Germany, Italy, Poland, the UK Czechia, Spain, and Slovakia.

One of the key factors that impact intra-regional trade within Europe is the BREXIT. The impact of this strategic decision on the market condition has been covered briefly.

The Eastern and Western Europe Market is further segmented by End-Users as Aftermarket and OEM. The Aftermarket segment accounts for roughly 57-58% of the market value generated from the European Lubricants Sector. This is predominantly due to the high market share for IC engine-based vehicles within Europe. Moreover, industrial maintenance also calls for optimization of existing in-plant systems for smooth functioning.

The OEM sector is further bifurcated by Automotive and Industrial segments. The OEM-based value chain from Western European accounts for a larger market share as opposed to Eastern Europe. This is mainly due to the presence of the countries-France, Germany, the UK, Italy, and Spain. These countries cumulatively account for 50% of the total lubricants demand within Europe. The Western European Market is majorly governed by the industrial Lubricants sector that accounts for 68% of the market revenue generated by this vertical. The expanding food and beverage industry within Western Europe is anticipated to further boost the growth trends across this vertical.

The burgeoning fleet for EVs within Europe is expected to be a key market restraint for the European Lubricants sector. The inclusion of regulations like the European Green Deal is poised to change the fuel economy associated with this market. The impact of these regulations on the current market condition for this mature lubricants market in Europe has been studied in this market research report.

The European Lubricants Market can be segmented by form into Lubricants and Greases. The Lubricants segment accounts for a majority share of this market with a value of USD 25.2 Billion in the year 2020. On studying the packaging segment for lubricants, segments including barrels and drums, injection-molded rigid packaging, as well as Bag-in-Box, were observed to contribute to 51% of the total lubricants packaging revenue.

On making a holistic study of the market it is observed that the demand for lubricants resurfaced in the year 2021 within Europe. The plummet in demand for 2020 was majorly due to the COVID-19 pandemic. The Lubricants market is reliant on the petroleum economy for Europe. Therefore, the reduced operational throughput for downstream processing of crude oil led to a reduced supply. The refiners functioned at lower production rates owing to the supply glut caused within the European market as a result of the national lockdown. The current market conditions are majorly unfavorable for the European Lubricants Market owing to the imposition of regulations. Moreover, the increased adoption of green energy has led to refiners reducing their capital investment within this sector.

SCOPE:

The report on, “European Lubricants-Market and Technology Forecast to 2029” is expected to grow with a CAGR of 0.7% to attain a market value of USD 38.7 Billion by the year 2029. The total market is segmented by Region into Western and Eastern Europe and By form into Lubricants and Greases.

This report is aimed at:

• Key market trends based on historic data for the Lubricants Market were derived and studied.
• Impact of the COVID-19 pandemic and the economic downturn on the supply-demand curve.
• The drivers, restraints, and challenges for this market have been studied extensively.
• The EXIM Data across the key economies in Western and Eastern Europe have been provided.
• A Country Analysis was performed based on the import and export of base oils as well as lubricant additives.
• A detailed market forecast was performed for both Eastern and Western European Lubricants Market.
• A PEST Analysis was performed to study the strategic mapping across this sector.