CLEVELAND, Feb. 13, 2017 /PRNewswire/ -- Engine oils will be the powerhouse of the synthetic lubricants and functional fluids market as evolving vehicle technology and energy efficiency standards raise performance standards. Engine oils comprised about one-third of the market in 2015, a proportion that will grow to nearly 40 percent in 2020 due to the steady growth and large size of the engine oil segment. All major product types, with the exception of engine coolants, will record growth over the forecast period. Slower growth will generally occur among products where synthetics penetration is higher and thus more mature, such as heat transfer fluids. These and other trends are presented in Synthetic Lubricants & Functional Fluids Market in the US, 5th Edition, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Demand for fully synthetic engine oils is forecast to grow 5.0 percent per year to 148 million gallons, with a market value of $2.2 billion. Fully synthetic products comprised 11 percent of engine oil demand in 2015, with nearly all for the automotive market. Increasing penetration of synthetics into the engine oils market will allow demand for synthetic products to continue growing, despite overall flatness in engine oil demand.
Despite the advantages of synthetics, conventional engine oils will continue to dominate the market through 2025. According to analyst Minor Cline, "Synthetics can cost more than twice as much as conventional products, and the benefits conferred by synthetics may be unclear to consumers or not worth the expense." Because all lubricants must be licensed as meeting the performance requirements needed for use, even the lowest cost conventional oils are certified to protect engines from wear.
More information about the study is available at http://www.freedoniagroup.com/industry-study/synthetic-lubricants-functional-fluids-market-in-the-us-by-product-material-and-market-5th-edition-3478.htm
About The Freedonia Group – The Freedonia Group, a division of MarketResearch.com, is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players. Additional Chemicals studies can be purchased at www.freedoniagroup.com and are also available on www.marketresearch.com and www.profound.com.
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SOURCE The Freedonia Group