Indian Lubricants Market on a Slow but Promising Path to Growth, sees Kline
PARSIPPANY, N.J., April 1, 2014 /PRNewswire/ -- The global lubricants market is rapidly changing. Ranking third after the United States and China, India is one of the most important markets. Kline's recently published Opportunities in Lubricants: India Market Analysis is a comprehensive analysis of the Indian lubricants market, focusing on key trends, developments, challenges, business opportunities, and major suppliers.
With a GDP of USD 1,825 billion in 2012, India is the third-largest economy in Asia, after China and Japan. Historically, India has been one of the fastest growing major economies. However, since 2010, the economic growth rate has successively dropped from 9.3% in 2010–2011 to about 5.3% in 2013–2014.
Automobile production in India has experienced a strong growth of 14% from 2007–2008 to 2012–2013. India, like most Asian countries, has a large percentage of two-wheelers, accounting for more than three-fourths of the total automobile production in 2012–2013. India is the world's second-largest manufacturer of two-wheelers and exported 12% of them in 2012–2013. Consequently, motorcycle oil is the largest product category in the consumer automotive lubricants segment, accounting for about 60% of the consumer automotive lubricants consumed. Overall, consumer automotive lubricants account for 13% of the total market.
The market for commercial automotive lubricants declined in 2013 due to the retarded economic growth, as well as its impact on such sectors as logistics, construction, mining, and agriculture. In India, more than half of the commercial automotive lubricant market is controlled by nationalized oil companies.
Industrial lubricant is the largest market segment in India, accounting for over 54% of the total market. Power generation, chemicals, automotive and other manufacturing, railways, marine, and metals are the leading end-use industries, together accounting for nearly 80% of the industrial lubricant consumption.
India is a huge market for process oils as well, accounting for 53% of the overall industrial lubricant demand. Rapid expansion of the power generation and distribution infrastructure has created a strong demand for transformer oils in India. Industrial engine oils (including marine and railroad), metalworking fluids, and hydraulic fluids are other important product categories.
The per capita lubricant consumption in India is quite low compared to developed countries. However, even a comparison with other developing countries like China and Indonesia reveals that there is a significant potential for growth in lubricant consumption in India.
Kline projects that the overall lubricant consumption in India will grow at an annual rate of 2.5% over the next five years. The consumer segment will grow the fastest at a projected 6.6% per year. The commercial and industrial lubricant segments will exhibit a moderate growth of 2.3% and 1.6% per year, respectively. In general, the overall subdued economic growth of the Indian economy will continue to affect the growth of commercial automotive lubricants, although economic growth is expected to pick up after 2015.
Kline expects that the next five years will be very different from the previous five. Learn more about recent findings from Kline's Opportunities in Lubricants: India Market Analysis, which offers a comprehensive assessment of the Indian market for finished lubricants and the suppliers that participate in them.
About Kline & Company:
Kline is a worldwide consulting and research firm dedicated to providing the kind of insight and knowledge that helps companies find a clear path to success. The firm has served the management consulting and market research needs of organizations in the chemicals, materials, energy, life sciences, and consumer products industries for over 50 years. For more information, visit www.KlineGroup.com.
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SOURCE Kline & Company