LONDON, March 31, 2014 /PRNewswire/ -- The rapid pace of technology evolution across industries is stoking demand for improved performance and reliability, boosting the market for high-performance industrial greases. Manufacturers and distributors of industrial greases, especially synthetic and semi-synthetic oil-based industrial greases, are striving to meet evolving customer requirements to stay relevant in an intensely competitive market.
New analysis from Frost & Sullivan, Analysis of Industrial Greases Market and Opportunities for Bio-based Materials, finds that the market earned revenues of $1.22 billion in 2013 and estimates this to reach $1.82 billion in 2019. The automotive industry constitutes the largest application segment of mineral and synthetic greases. Other segments include pulp and paper, aerospace, mining, food processing, and power generation.
"Continuous technological improvements and innovative solutions in industrial greases will attract business from new industry sectors," said Frost & Sullivan Chemicals, Materials & Food Industry Analyst Anna Jarosik. "Further, close and active cooperation among grease designers, manufacturers and end users will support the production of highly customized grease systems, creating opportunities of market participants in a wider range of industries."
As a result of continuous R&D, there are likely to be changes in base oil types used in the production of industrial greases. These, in turn, are expected to result in various formulation changes that will be beneficial to some additive families, such as those used as oxidation and rust inhibitors.
Stricter regulations and environment standards, engine hardware changes, and extension of oil drain intervals will place additional pressure on industrial grease manufacturers to increase product performance, durability and robustness. Moreover, the harsher mechanical equipment operating conditions make a strong case for better performing industrial greases.
There is also considerable potential for environment-friendly industrial greases due to the rising environment consciousness all around the world. However, for this market to take off, manufacturers have to engage in promotions and be backed by government policies that mandate the use of bio-lubricants in key areas such as hydro power plants.
The industrial grease market is heavily reliant on the stability of the economy. The strong fluctuations in recent times have had a telling effect on its end-user industries such as heavy industries, automotive, and machinery, and this reduction in demand has rippled into the industrial greases market. The market is also restrained by high entry barriers erected by strong competition and the high conversion costs due to low grease compatibility.
In addition, the popularity of the new environment-friendly greases is proving to be double-edged, as they enable end users to reduce the frequency of change of industrial greases. However, their higher safety profile and biodegradability will give a leg up to the sales of 'green' industrial greases.
"The advantages of bio-lubricants are anticipated to tilt customer preferences toward industrial greases instead of lubricating oils or alternative products," noted Jarosik. "Therefore, increasing legislative pressure will go a long way in aiding the growth of the industrial greases market."
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Analysis of Industrial Greases Market and Opportunities for Bio-based Materials is part of the Chemicals & Materials (http://www.chemicals.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Lubricant Market and the Impact of Bio-based Feedstock, Thermoset Resins Market in South Africa and Kenya, Indian Fuel Additive Market, and Light-weighting Role of Performance Plastics in the European Automotive Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Analysis of Industrial Greases Market and Opportunities for Bio-based Materials
SOURCE Frost & Sullivan