Segmentation by Type (Metallic-Soap, Non-Soap, Inorganic, & Others) and End User (Automotive, Construction & Off-Highways, General Manufacturing, Steel, Mining, & Others); By Region–Global Demand Analysis & Opportunity Outlook 2027
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Growing Industrialization
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.
Restraints
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.
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.
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Our-in depth analysis of the grease market includes the following segments:
By Type
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:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
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