Grease Market Overview
Grease is defined as a semi-solid compound formed by the deposition of thickening agent in the liquid lubricant. It is a chemical combination of thickener, oil, and additives. The behavior of grease is majorly defined by the composition of base oil & additives in the formulations. Additives in the grease are used to enhance desirable properties, suppress undesirable properties, or to add new properties to increase its working efficiency. Grease facilitates various excellent properties such as water resistance, lubrication to the moving surface under gravity, pressure, or centrifugal action. It also prevents contamination, any wear tear loss, and reduces noise and power consumption. Grease is used by various end user industries such as mining, general manufacturing, automotive, construction, railways, and others. Rising product application scope in industries such as wind turbines is projected to accelerate the market growth during the forecast period (2019-2027).
Market Size and Forecast
The grease market is anticipated to record a CAGR of around 5.65% over the forecast period. The market is segmented by type into metallic-soap, non-soap, inorganic, & others; by end user into automotive, construction & off-highways, general manufacturing, steel, mining, & others. Metallic-soap segment is projected to capture the largest market share owing to multifunctional properties that makes it suitable for automotive, construction & off-highways and general manufacturing industries. Also, it has higher capability of maintaining excellent stability at higher temperature along with the other favorable properties such as load bearing, water resistance, shear stability and rust protection. CLICK TO DOWNLOAD FREE SAMPLE
Grease's low viscosity attributes make it beneficial for bushings, bearing axles and moving parts of machinery and automobiles. Further, it has the ability to retain its properties at any temperature. It is useful in commercial and manufacturing industry owing to its properties such as contamination prevention, protection against rust and corrosion and withstanding high & low temperature. The product is popularly used across various industries such as automobile, railway, construction, pharmaceutical, food & beverage, mining and numerous others. Increasing product application scope in industries such as wind turbines is projected to fuel the demand for low viscosity lubricating oils in the coming years. Demand for low viscosity fluids in automobile industry shall extend the market opportunities over the forecast period.
Rise in Shipbuilding Business
A key factor driving the growth of the market is the growing shipbuilding business. The marine sector is one of the major end user of the global grease market. The shipbuilding business in the marine industry consumes the highest volume of grease. With the growing shipbuilding business, the inflow of global foreign direct investment (FDI), seaborne trade and business expansions of multinational companies has triggered the rapid market growth. Therefore, a high increase in the production of ships and growing repair and maintenance activities of old ships and boats will act as a driving factor for the growth of the global grease market.
Rising popularity of bio-based grease
The eco-friendly products are gaining popularity across numerous industries and the grease market is no exception to it. The emergence and application of bio-based grease, which is produced from renewable feedstock including plant-based oil and sugar through ultrafiltration, fermentation, and crystallization techniques is increasing. Moreover, the use of eco-friendly grease helps in maintaining the ecological balance in the environment, as it reduces Volatile Organic Compounds (VOCs) and the toxicity of gases from nearby industries. Therefore, the growing popularity of bio based grease products will derive the market growth.
Rise in crude oil prices
Crude oil prices have been fluctuating for the past many years and are likely to be volatile during the forecast period as well. The increase in price of base oil will also affect the price of grease which can negatively affect consumption in the industry. This, in turn, may obstruct the growth of global grease market.
Our-in depth analysis of the grease market includes the following segments:
By End User
On the basis of regional analysis, the grease market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Asia Pacific market is anticipated to capture the largest market share in the grease market owing to increase demand from the various end users such as automotive, general manufacturing etc. and high expenditure in strategic developments such as R&D activities and expansion in the region. Further, the major factor driving the grease market in the region is the rising demand of metallic soap thickener from the end users and technological improvements in the quality of grease. With rapid growth in the automotive industries, Asia Pacific region is expected to hold a significant revenue share by 2027.
The grease market is further classified on the basis of region as follows:
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