India Industrial Lubricant Market By Product Type (Metal Working Fluid, Industrial Engine Oil, Hydraulic Oil, Grease, Gear Oil, Compressor Oil, Bearing Oil and Others), By Application (Machining, Hydraulics, Gear, Bearing, Turbine, Air Compressor and Others), By End User (Power and Oil & Gas, Construction & Mining, Automotive, Metallurgy, Chemical, and Others), By Region, Competition, Forecast and
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationIndia Industrial Lubricant Market By Product Type (Metal Working Fluid, Industrial Engine Oil, Hydraulic Oil, Grease, Gear Oil, Compressor Oil, Bearing Oil and Others), By Application (Machining, Hydraulics, Gear, Bearing, Turbine, Air Compressor and Others), By End User (Power and Oil & Gas, Construction & Mining, Automotive, Metallurgy, Chemical, and Others), By Region, Competition, Forecast and
| Forecast Period | 2026-2030 |
| Market Size (2024) | USD 7.25 Billion |
| CAGR (2025-2030) | 4.28% |
| Fastest Growing Segment | Metal Working Fluid |
| Largest Market | West India |
| Market Size (2030) | USD 9.22 Billion |
Market Overview
India Industrial Lubricant Market
The growth in manufacturing and heavy industries significantly drives the demand for high-quality lubricants. As production facilities expand and infrastructure projects increase, the need for reliable lubricants to maintain machinery performance becomes more pronounced. Government initiatives like Make in India and investments in infrastructure are contributing to the expansion of the industrial sector, thereby indirectly boosting the demand for lubricants. However, fluctuations in raw material prices, such as crude oil, can impact lubricant pricing, affecting market stability and profitability.
Key Market Drivers
Growth of Automotive Sector
According to Invest India, from April 2023 to March 2024, the automotive sector produced 28.43 million vehicles, including passenger cars, commercial vehicles, three-wheelers, two-wheelers, and quadricycles.
Phase II of the FAME India Scheme has allocated USD 693 million in subsidies to electric vehicle manufacturers, facilitating the sale of 1,341,459 electric vehicles.
Growth of Manufacturing and Heavy Industries
According to IBEF, India's manufacturing sector is projected to reach USD 1 trillion by 2025-26, with Gujarat, Maharashtra, and Tamil Nadu leading this growth due to investments in the automotive, electronics, and textile industries.
The Ministry of Heavy Industries (MHI) has launched several strategic initiatives to establish India as a global supplier of Original Equipment Manufacturers (OEMs). The Production Linked Incentive (PLI) Scheme for the Automobile and Auto Component Industry, with a budget of USD 3.11 billion, supports the production of Advanced Automotive Technologies (AAT), including electric vehicles and their components.
Under the Atmanirbhar Bharat Initiative, five positive indigenization lists totaling 509 products have been issued by the Department of Military Affairs and the Ministry of Defence to encourage domestic manufacturing for the defense sector. The growth in manufacturing and heavy industries also drives significant infrastructure development, such as new factories, warehouses, and transport facilities, increasing the demand for lubricants used in these construction and infrastructure projects. As industrial activities expand, the need for regular maintenance and servicing of machinery becomes more crucial, thereby boosting demand for a variety of industrial lubricants used for cooling, lubrication, and protection.
Key Market Challenges
Price Fluctuations
The primary raw materials for many industrial lubricants come from crude oil and other petrochemicals. Variations in crude oil prices can lead to unpredictable raw material costs, which directly influence lubricant production expenses. Sharp increases in these raw material prices can result in higher lubricant costs, affecting the overall financial structure for industries. Manufacturers often face challenges in maintaining profit margins during periods of price volatility. They may need to either absorb these extra costs, which can reduce profit margins, or pass them on to customers, potentially making their products less competitive.
Price volatility can also disrupt supply chains, impacting both the availability and cost of lubricants. This volatility can spark price wars among suppliers, which might erode profit margins and create market instability. Companies with long-term contracts or pricing agreements may struggle to adjust terms in response to fluctuating raw material costs, potentially leading to financial imbalances for both suppliers and buyers. Overall, price fluctuations contribute to market volatility, complicating demand forecasting, pricing strategies, and future growth planning, and may deter investment and strategic initiatives in the lubricant sector.
Infrastructure and Logistical Inefficiencies
Inadequate infrastructure, including insufficient road networks and transportation facilities, can cause delays in lubricant deliveries. These delays disrupt the supply chain and affect the timely availability of products, which in turn impacts manufacturing and operational schedules for end-users. Logistical inefficiencies and poor infrastructure often result in higher transportation and storage costs, which can drive up lubricant prices. This increase can reduce market competitiveness and negatively affect profit margins for both suppliers and consumers.
Poor infrastructure can also create bottlenecks in the supply chain, leading to inventory shortages and challenges in meeting market demand. This can result in missed sales opportunities and strained customer relationships. Issues such as unreliable transportation services and limited warehousing capabilities can hinder the smooth operation of lubricant distribution, reducing efficiency and complicating supply chain management.
Inefficiencies in infrastructure and logistics can lead to longer delivery times for lubricants, disrupting production schedules for industries that depend on timely supplies. Furthermore, inadequate infrastructure can limit access to emerging and expanding markets within India, preventing companies from leveraging growth opportunities in new regions.
Key Market Trends
Shift Towards Synthetic and Bio-Based Lubricants
in April 2024, Savsol Lubricants launched Savsol Ester 5, a biodegradable lubricant aimed at high-end applications in the automotive and railway sectors. This product is derived from edible oil fatty acids and features proprietary molecules developed in-house.
Uno Minda released its BS VI compliant automotive engine oils in 2023. The PerfoMaxx range includes mineral oils for 100cc – 125cc bikes and scooters, Purosynth semi-synthetic oil for 125cc – 150cc bikes, and Ultimo fully synthetic oil for bikes over 150cc.
In June 2023, Shell launched new synthetic engine oils in India, including Helix HX6 5W-30 and Shell Helix SUV 5W-30. These oils offer Active Cleansing Technology to provide advanced engine protection, reduce wear and tear, and prevent sludge and deposit build-up.
There is a rising demand for lubricants that extend service intervals and provide better protection against wear and tear. This trend is driven by industries aiming to lower maintenance costs and reduce downtime. These developments reflect a dynamic and evolving industrial lubricant market in India, influenced by technological advancements, regulatory changes, and shifting consumer preferences.
Segmental Insights
Product Type Insights
Based on Product Type, the Industrial Engine Oil emerged as the dominating segment in the Indian market for Industrial Lubricant in 2024.
End User Insights
Based on End User, Automotive emerged as the dominating segment in the Indian market for Industrial Lubricant in 2024. The automotive sector consistently requires lubricants due to the ongoing need for vehicle maintenance and servicing. Engine oils, transmission fluids, and other automotive lubricants are crucial for ensuring the smooth operation and longevity of both passenger and commercial vehicles. India’s vehicle fleet is large and expanding, encompassing cars, trucks, motorcycles, and commercial vehicles. This growth ensures a constant demand for automotive lubricants to maintain optimal vehicle performance. According to Invest India, the truck market in India is projected to grow over fourfold by 2050, with the number of trucks expected to increase from 4 million in 2022 to approximately 17 million by 2050. The rise in vehicle production and sales drives the need for lubricants, both for new vehicles and as replacements for existing ones. The expansion of automotive infrastructure, including service centers, dealerships, and maintenance facilities, further fuels the demand for automotive lubricants by creating more sales and distribution opportunities. Additionally, advancements in vehicle technology, such as new engine types and higher performance standards, necessitate the use of specialized and high-quality lubricants. Efforts to improve fuel efficiency and reduce emissions have also increased the demand for advanced lubricants in the automotive sector.
Regional Insights
In April 2024, Gujarat Gas (GGL) and Indian Oil Corporation (IOCL) signed a non-binding memorandum of understanding (MoU) to enhance energy solutions for consumers. Under this MoU, IOCL will supply liquid fuels and automotive lubricants, greases, and specialty products at GGL outlets. Additionally, IOCL will establish a CNG facility at its COCO outlets, while GGL will set up a CNG mother facility at IOCL locations.
In 2023, Toyo Engineering India Pvt. Ltd., a subsidiary of Toyo Engineering Corporation, secured a contract from ExxonMobil Lubricants Private Limited (EMLPL) for the engineering, procurement, construction, and commissioning of a 159,000 KL/annum lubricant manufacturing plant in Isambe, Maharashtra. This plant is anticipated to commence commercial operations by late 2025.
The West region benefits from well-established industrial zones and economic corridors. The robust logistics and transportation infrastructure, including highways and rail networks, facilitate the efficient distribution of industrial lubricants. Gujarat’s strong petrochemical sector further drives the demand for specialized lubricants used in processing and manufacturing. Known for its business-friendly environment and favorable industrial climate, the West region, particularly Gujarat, attracts companies and supports growth in the lubricants market.
Recent Development
- InJuly 2024, Lubrizol India Private Limited (LIPL) revealed plans to establishIndia’s largest industrial lubricant manufacturing facility in the Bidkinindustrial area, part of the DMIC extension in Chhatrapati Sambhajinagar. Theinvestment for this project is set at USD 238.84 Million, with an anticipatedcreation of around 900 jobs. Production is projected to begin by 2028.
- InMay 2024, Klüber Lubrication, a leading global provider of specialtylubricants, announced a major investment of USD 16.96 Million to expand itsoperations in Mysore. This expansion highlights the company’s support for the"Make in India" initiative by enhancing local productioncapabilities. Scheduled for completion by early 2027, the project willintroduce a cutting-edge production facility featuring advanced technologytailored to Klüber Lubrication’s specialized requirements. The expansion willalso facilitate the attainment of new certifications, including IATF forautomotive customers and ISO 21469 for food-grade lubricants.
- InApril 2024, Shell Lubricants India unveiled its enhanced range of Shell Advancemotorcycle oils. The new lineup is showcased in limited-edition packagingfeaturing brand ambassador Shahid Kapoor. The latest Advance AX7 synthetictechnology oil incorporates innovative flexi molecule technology, delivering anexceptionally smooth ride by optimizing power transfer from the engine to thewheels.
Key Market Players
- GulfOil Lubricants India Limited
- HindustanPetroleum Corporation Limited
- CastrolIndia Limited
- SAVITAOIL TECHNOLOGIES LIMITED
- ShellEnergy India Private Limited
- TideWater Oil Co. (India) Ltd.
- IndianOil Corporation Limited
- ValvolineCummins Private Limited
- TotalEnergiesMarketing India Private Limited.
- BharatPetroleum Corporation Limited
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