GBI Research: Developing markets to lead future lubricants growth

Emerging economies in the Asia-Pacific area are witnessing encouraging growth in the lubricants industry, while recent economic crises have seen developed U.S. and European economies lose market share, says business intelligence firm GBI Research.
According to the new report, “Lubricants Industry to 2017 – Developing Markets Expected to Lead Future Demand Growth,” the Asia-Pacific region is the largest and fastest growing regional lubricants market worldwide thanks to increasing consumption in emerging economies such as China and India, accounting for a 42% share (15.37 million tons) of global lubricants demand in 2012, while the developed nations of Europe and North America held shares of only 19% each.
By 2017, GBI Research forecasts that Europe and North America will see their shares sink to 16.7% each, while the Asia-Pacific region is expected to account for 46% (17 million tons).
Foreign lubricant marketers, base stock manufacturers and additive suppliers are establishing operations in Asia, encouraged by this steady growth rate. Shell Lubricants, the leading global lubricants supplier in 2012, has recently announced several strategic investment plans to construct new production plants in South Korea, Indonesia and China.
Motor vehicles represent a major end-use market for lubricants, accounting for almost 56% of global lubricants purchased last year. During 2012, Asia produced 43.7 million of the global motor vehicle production total of 84.1 million units, or more than 50%. Thailand alone increased its vehicle output at an incredible 70.3% growth rate over 2011 levels.
However, changing consumption patterns may temper growth in the lubricants market. A shift towards higher quality lubricants has caused a decline in global demand over the past year, as longer-lasting lubricants equates to a gradual decline in lubricant consumption by volume. The consumption of higher grade lubricants is already prevailing in mature lubricants markets such as North America and Europe, where environmental and regulatory measures are strictly adhered to, and it may only be a matter of time before developing Asian economies adopt this trend.
(May 2, 3013)