Top 5 Innovations Transforming the Lubricants Market

Lubricants are known to be responsible in terms of providing efficient lubrication for automotive parts which play a role in reducing any friction that is caused in the vehicles. Not only this, but automotive lubrication also serves many secondary functions such as cleaning and cooling down the engine parts, by the prevention of rust and corrosion buildings. These automotive lubricants are known to be solid, oil-based, plastic, or a combination of all three. Oil and grease are the most common lubricants.

The major factor driving the market of automotive lubricants is the advancements in technology which are leading towards the development of new lubricants that are efficient and capable of withstanding high temperatures along with higher pressures that are propelling the market growth. In this regard, one of the imperative advancements in lubricant technology is their advanced ability to withstand higher temperatures and pressure enabling the effective use of lubricants in high-performance applications where the conventional lubricants are failing or require frequent replacement.

The Top 5 Innovations Transforming Lubricants Market are:

1. The Efficient Usage of Lubricants in the Automotive Segment

Lubricants are considered extremely important when it comes to their use and effectiveness in the smooth functioning of vehicles. They also serve multiple purposes such as corrosion reduction, along with the maintenance of running temperature which can turn out to be vital in increasing the life of various engine components.

Different types of lubricants are used in the automotive segment such as motor oil or engine oil. Engine oils are efficiently used for the lubrication of internal combustion engines in different types of automobiles. They are also used in various other applications such as corrosion protection, and wear reduction and even effectively play a role in ensuring the smooth operation of the engine internals.

In the European region, Germany is expected to hold a prominent share in the automobile manufacturing industry as it hosts major car-making brands such as Audi, BMW, Volkswagen, Mercedes-Benz, Porsche, etc. With such major hosts in car making, the country and region have been investing exceedingly in research and development activities which is further resulting in the increasing automotive production in the country. According to the Germany Trade and Invest (GTAI), German automobile manufacturers initiated the production of over 15.6 million vehicles in 2021, making Germany the European car production leader with the production of 3.1 million passenger cars, and 351,000 commercial vehicles which were further manufactured in the German plant. Furthermore, there has been a decrease in general car sales in the country and an increase in electric vehicle registrations which is further supported by the government’s push towards all-electric cars by 2024.

Furthermore, since the year 2020, the global light vehicle production trend has also been witnessing an increase which is further acting as a growth driver for the lubricant market. For instance, in the year 2020, the light vehicle production trend was at 70 million units, and by 2025 it is expected to reach 98.9 million units.

Figure 1:  Global Light Vehicle Production Trend, in Million Units, 2020 to 2025

Source: Germany Trade and Invest

Additionally, various other factors are driving the growth of the automotive lubricant market in the APAC region such as the rising population which is resulting in the rising production and sales of vehicles, particularly passenger vehicles. China in this regard is known to be the largest automotive lubricant consumer in APAC by playing a pivotal role in its increasing production and sale of vehicles. According to the data provided by the OICA, in the year 2023, China resulted in the production of total 26,123,767 cars out of which 4,037,209 were commercial vehicles. India accounted for the production of a total of 4,783,628 cars out of which 1,067,878 are commercial vehicles.

2. Key Developments in the Lubricant Market

Strategic key developments in the market are playing an efficient role in the growth of the market. Innovation and technology are regarded to be the most significant factors that drive companies to come up with strategies for the expansion of the business ultimately resulting in market growth. A few such key developments are:

1. In July 2022, an announcement was made by Shell USA Incorporation and Shell Midstream Partners L.P towards an agreement and a plan of merger under which Shell USA will acquire all the common units with the representation of limited partner interests in SHLX with a total value of approximately USD 1.96 billion.
2. In August 2022, an announcement was made by Valvoline about the agreement for the sale of the global products business for $2.65 billion in cash. This agreement and transaction will be efficient in completing the separation of global products and retail services businesses in transforming Valvoline into a pure-play automotive service that has a target of 20% + earnings per share growth.
3. In May 2023, ExxonMobil which is known to be a major company in the automotive lubricant market announced its plan to make the final investment in India’s future in the presence of Deputy Chief Minister Devendra Fadnavis to build a lubricant-manufacturing plant in Maharashtra, India. This plan will incorporate the investment of INR 900 crore (US$ 110 million) and will have the capability to potentially manufacture 159,000 kiloliters of finished lubricants a year which will further begin its operations at the end of 2025.
4. In July 2024, TotalEnergies acquired Tecoil which is regarded to be a Finnish company with a specialization in the production of Re-Refined Base Oils (RRBOs). Tecoil currently operates a production facility of 50,000 tons of RRBOs per year in Haminia and the integration of Tecoil in TotalEnergies will allow for the acceleration of the use of RRB0s in the production of high-end lubricants to meet the growing customers for increasingly high-performance environmentally friendly products.

3. Nanotechnology as Lubricant Additives

The interposition of three solid, liquid, and gaseous substances in between the surfaces of two materials is known to be the process of lubrication which is imperative in minimizing friction and wear. All commercial lubricants are known to be equipped with additives present in the formulation, which enhances certain oil properties like friction reduction, corrosion, wear reduction or just inhabitation, viscosity improvement, and pressure resistance. In this regard, nanoparticles are widely used as additives.  Thus, with the introduction of nanotechnology, the use of nanoparticles as additives in lubricants is resulting in the achievement of better tribological properties which are gaining much attention in recent times.

A nanoparticle is regarded as a tiny particle ranging from 1 to 100 nanometers in size, undetectable by the human eye. Furthermore, they interpret significantly different chemical and physical properties in comparision to their larger material counterparts. They are made through different manufacturing methods which can be seen from the figure below.

Various types of lubrication mechanisms also come into play such as:

1. Ball Bearing Effect: Nanoparticles come in different sizes such as spherical nanoparticles which act as nanometric ball-bearings that are efficient in changing the nature of the friction phenomena, rolling between the shearing surfaces while also providing modification from the sliding process to a mix of sliding and rolling friction.
2. Protective Film Formation: A thin protecting film on the surface is formed by the nanoparticles wherein several studies and researches have shown friction as well as wear reduction through the mechanism of protective film formation.
3. Mending Effect of Self-Healing Effect: This mending effect is referred to as the process where the nanoparticles deposit on the interacting surfaces further compensating for the loss of mass. In terms of the lubricating oil, nanoparticles can fill scars and grooves of the friction surface. A lot of research studies have also been conducted indicating a mending effect that used EDX analysis for the confirmation of the deposition of nanoparticles on the rubbing surface.
4. Polishing Effect: In terms of roughness on the lubricating surface, there is a need for the polishing effect which plays an imperative role in reducing the roughness by nanoparticle-assisted abrasion. In a lot of different studies, this polishing effect is commonly termed a smoothing effect where the reduction of surface roughness highly contributes to less friction resulting in less wear.

4. Strategic Revolutionizing Megatrends

To maintain the longevity of industrial equipment and for smooth operation, lubricants are considered to be important as they are regarded to be the driving force behind industrial growth. For instance, when it comes to the automotive industry, advanced lubrication is placed on importance when it comes to the transition to electric vehicles mainly to ensure that each of the mechanical components operates efficiently, seamlessly, and with minimal friction. For the manufacturing segment, metal and mining industry as well as even for highway construction equipment, lubricants play an efficient role.

There are a few strategic revolutionizing megatrends that are involved in the lubricants industry such as the growth or the rise of lubrication-as-a-service (LaaS). The LaaS model is considered to be imperative as it supports the transformation of how companies are approaching machinery lubrication through the process of offering service-based solutions in opposition to a traditional product-driven approach. Lubrication-as-a-Service is imperative in making sure that lubrication is provided precisely when and where it is needed with continuous monitoring, aiming towards the optimization of equipment performance which further results in the reduction of downtime.

In terms of disruptive technologies, three main factors are imperative in the lubricant market.

1. Innovations in Lubricant-Free Polymer Bearings: Polymer bearings are emerging as game changers in the lubricant market with the presence of companies such as igus GmbH which is offering maintenance-free bearings that are equipped with the feature of self-lubrication and can also function in dry conditions. These innovations in lubricant-free polymer bearings allow for the prevention of dirt buildup by reducing maintenance costs while providing an efficient and clean alternative.
2. Driving the EV Transformation with eFluids: In recent times, the sale and the demand for EVs have been growing and in the forecast period it is further expected to grow. According to the International Energy Agency, the electric car market witnessed a growth in sales which reached nearly 14 million in 2023. Throughout 2024, EV sales are further expected to increase wherein approximately over 3 million electric cars were sold in the same period last year. By the end of 2024, around 17 million sales are expected which will further represent more than 20% year-on-year increase with new purchases accelerating. This increase in EVs is expected to drive the development of “EV-compatible” fluids or fluids. With the innovation of different types of lubricants such as brake fluid, transmission fluid, engine oil, hydraulic fluid, and even greases, the market of electric vehicles will be efficiently served as these lubricants and their type will play a key role.

Figure 2:  Electric Vehicle Sales, in Million, 2021 to 2024

Source: IEA

5. Automated Lubrication Systems

Lubrication is considered to be vital for machine components like gears, bearings, pins, chains, or bushings. To perform well, all of these require efficient lubrication for their optimal performance. The automated lubrication system plays an important role in lubrication where it is difficult for manual lubrication to play its part. Automated lubrication systems have brought about new opportunities that are aimed towards increasing profitability as a result of the reduction in costs to operate machinery, improving safety as well as reliability along with the extension of service interval by full optimization of manpower resources.

There are several advantages of automated lubrication systems such as:

1. Cost Effectiveness: Automated lubrication systems are associated with cost-saving aspects. They eliminate the labor costs that come with manual lubrication as some machinery can be serviced while running operations and or from a distance without the need for a technician. The precise delivery of lubricants also minimizes waste, as smaller, more frequent applications help maintain lubricant freshness and effectiveness. In addition, it cuts down on the expenses of materials as well as the power since machines do not struggle with resistance when properly lubricated.
2. Safety and Security: Another important factor that makes people embrace automated lubrication systems is safety. One disadvantage of manual lubrication is that it is timed and a worker has to go to the areas that are difficult to reach or are dangerous. When implemented, it eliminates risks involved in instances where personnel may be required to enter the hazard regions thus enhancing the safety of the workplace environment. Also, in these systems, advanced monitoring systems have been incorporated to enable the monitoring of lubrication processes in real time to boost safety and operational reliability. The latter considers that the demand for automated lubrication systems will continue to rise in the future due to the increasing degrees of industrial automatization and increasing tendency in the necessity of efficiency of maintenance work. Appreciable advancements in technology of late include programmable controllers in addition to compact designs that enhance the usability of these systems. Such players as Graco have pioneered in advancing systems that not only enhance the efficiency of the lubrication process but also make it possible to gather diagnostic information concerning lubrication tasks through the use of mobile applications.