Grease Market Size 2024-2028

The grease market is projected to grow by USD 1.27 billion, with a compound annual growth rate (CAGR) of 3.77% from 2023 to 2028. This growth is driven by key factors such as the expansion of the shipbuilding sector, rising rail trading and logistics operations, and the booming automotive industry in the Asia-Pacific (APAC) region. These factors collectively fuel the demand for transportation and infrastructure development, creating substantial opportunities across various sectors. The growth in maritime trade, the expansion of rail networks, and the automotive industry's manufacturing capabilities in APAC contribute significantly to this market's expansion.

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Market Definition

Grease is a thick, oily lubricant consisting of base oil, thickener, and additives. It is used to lubricate moving surfaces, prevent leakage, and protect machinery or applications from corrosive contaminants and foreign materials.

Market Segmentation

End-user Analysis

• Automotive: The automotive segment remains a significant contributor to the grease market. Automotive grease is used in various applications, including commercial vehicles, passenger vehicles, aerospace, and heavy-duty commercial vehicles such as trucks and loaders. It ensures the proper functioning of engine components, reduces emissions, and protects engines from wear and tear.
• Construction and Off-highway
• Metal Production
• General Manufacturing
• Power Generation
• Other Industries

Source Analysis

• Mineral Oil: Known for its cost-effectiveness, surface protection, and versatility in applications, mineral oil is widely used in bearings grease, chains, gears, and slides. Leading companies like DuPont, ExxonMobil, and Shell supply mineral oils for various industrial applications.
• Synthetic Oil
• Bio-based Oil

Regional Market Trends

• Asia-Pacific (APAC)

  • China
  • India

• North America:

  • United States
  • Canada

• Europe:

  • United Kingdom
  • Germany
  • France
  • Rest of Europe

• South America:

  • Chile
  • Brazil
  • Argentina

• Middle East & Africa:

  • Saudi Arabia
  • South Africa
  • Rest of the Middle East & Africa

Market Dynamics

Key Drivers

One of the primary drivers of the grease market is the increase in rail trading and logistics activities. Rail transport plays a vital role in the global economy, being a cost-effective means of transporting goods, raw materials, and people. In 2023, APAC dominated rail passenger transport, contributing to the growing demand for passenger trains and the consumption of grease in the rail industry. The region's significant rise in the goods transported by rail reflects local economic activities, which further increases the demand for grease.

Significant Trends

A key market trend is the inauguration of new plants for grease production. For instance:

• October 2023: The Sintec Group expanded its grease plant in Russia, increasing production capacity by 12,000 metric tons per year to cater to metallurgy, mining, and agricultural sectors.
• December 2020: Shell began constructing its largest grease manufacturing plant globally in Zhuhai, Guangdong Province, China.

Such investments in production facilities are expected to positively influence market growth during the forecast period.

Major Challenge

A significant challenge in the market is the fluctuation in oil prices, which can impact grease prices. The volatility in crude oil prices has been a persistent issue. For example:

• April 2020: Crude oil prices dipped to USD 21.04 per barrel.
• November 2021: Prices peaked at USD 82.06 per barrel.
• February 2022: Due to the Russia-Ukraine war, crude oil prices surged to USD 105.08 per barrel.

Fluctuations in oil prices lead to variations in base oil costs, which directly affect grease prices, thereby impacting consumption and market expansion.

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Key Companies

The key players in the grease market include:

• Balmer Lawrie and Co. Ltd.
• Berkshire Hathaway Inc.
• Chevron Corp.
• DuPont de Nemours Inc.
• ENEOS Holdings Inc.
• Exxon Mobil Corp.
• Freudenberg and Co. KG
• FUCHS PETROLUB SE
• Indian Oil Corp. Ltd.
• MOL Group
• Morris Lubricants
• Normet Group Oy
• PJSC LUKOIL
• Shell plc
• Sinopec Shanghai Petrochemical Co. Ltd.
• Sintek Group JSC
• SK Innovation Co. Ltd.
• SKF
• TotalEnergies SE

These companies are implementing various market growth strategies, including geographical expansion, product launches, and strategic partnerships, to enhance their presence in the market.

Market Analyst Overview

The grease market is undergoing a significant transformation driven by advancements in technology, process automation, and the rise of e-commerce. Grease manufacturers are adapting to challenges such as the lithium supply shortage and fluctuating oil prices by investing in online campaigns and digital platforms to directly connect with OEMs and RMOs. Innovations in synthetic oils are gaining traction, addressing supply chain disruptions and evolving environmental regulations. As a result, the grease market continues to expand across sectors ranging from steel mills to wind power and aerospace, with significant growth potential in emerging markets.