High Temperature Grease Market - Regional Analysis
APAC Market Insights
Asia Pacific high temperature grease market is expected to account for the largest revenue share of 38% during the analysis timeline. In its early phases of development, the global automobile industry was primarily centered in established countries like the U.S. and Germany. However, as companies became more standardized, the manufacturing base for most major automobile corporations shifted from developed nations to emerging high temperature grease markets. Due to lower labor costs, standardization has made it feasible to establish production in underdeveloped countries. This shift explains why, in today's world, APAC countries such as China and India have become the primary manufacturing hubs for many global automobile companies.
Southeast Asia (ASEAN) plays a significant role in the global automotive market, with key countries including Malaysia, Indonesia, the Philippines, Thailand, Singapore, and Vietnam, contributing to the region’s economic growth. The automotive market in ASEAN is poised for steady growth, driven by rising demand for private vehicles and favorable economic conditions. Thailand is identified as the primary auto hub, with key investments from China-based OEMs such as Great Wall Motor and BYD. The country aims to produce 725,000 electric vehicles (EVs) annually by 2030. Indonesia is well-known for its copious nickel resources and has attracted substantial investments in EV production. Key projects constitute BYD’s USD 1.3 billion factory and Hyundai’s battery cell facility in Karawang. Vietnam's local brand, VinFast, led battery electric vehicle (BEV) sales in 2023, reflecting the country’s growing focus on EV adoption.
China, once considered a niche industry and previously referred to as “ppt造车” (a term for companies with ambitious visions and presentations but lacking in mass production), electric vehicles (EVs) have now achieved widespread acceptance in the country. This rapid growth in the China high temperature grease market was fueled by the Made in China 2025 strategy, which identified key sectors for industrial expansion. Since 2009, the government has heavily subsidized the new energy vehicle (NEV) sector, with support amounting to an unprecedented USD 21 billion in 2022, significantly accelerating the growth trajectory of China’s NEVs.
The growth has been both rapid and intense. By 2022, global NEV sales soared to 10.824 million units, representing a 61.6% year-on-year increase. China played a dominant role in this high temperature grease market, with its NEV sales, which accounted for an impressive 63.6% of the global market share. According to the IMD, of the total EV sales volume in 2022, 42% came from internally incubated subsidies by domestic automotive manufacturers, 30% originated from new companies, and 28% were from joint ventures.
North America Market Insights
The high temperature grease market in North America is projected to hold the second-largest share during the forecast period. North America has a diverse and robust industrial sector, including manufacturing, automotive, aerospace, and energy, which drives the demand for high-temperature greases in various applications. North America is a leading hub for automotive research and innovation, resulting in the development of advanced vehicles that require high-temperature greases to withstand extreme operating conditions. The aerospace and defense sectors in North America receive substantial investments, leading to increased demand for high-temperature greases in aviation, defense, and space applications.
U.S. is the second largest manufacturing country after China. In 2023, the sector contributed USD 2.3 trillion to the GDP, amounting to 10.2 % of cumulative GDP, as per the National Institute of Standards and Technology (NIST). Direct and indirect value addition was 17.1 % of GDP. The U.S.'s 6th ranking (2023 Ipsos National Brands Index) as a brand suggests its dominant positioning. The producer prices for all manufacturing surged by 33.4% between 2020 and 2022.
