India is the second biggest lubricant consumer in the region and stands third in the world after the US and China. India is the fourth biggest producer of commercial vehicles and sixth in passenger cars. India’s automotive industry holds for approx. 7.1% of the country’s GDP, and in that the two-wheeler segments account for a share of almost 81%, owing to the growing younger and middle-class population. Moreover, the government’s initiatives like the Make in India Campaign are also helping the local and state-owned manufacturers to get their products to consumers and give stiff competition to the international players. On the other hand in the grease industry, India stands on the third rank and is anticipating a steady growth in its demand in the upcoming years. The growing manufacturing sector in India shows opportunities to promote grease consumption; whereas the growth of potential varies with grease type as every type has different advantages.
In India the growing demand for vehicles, numerous automakers have started investing largely in different segments of the industry. Moreover, the government has been rolling out initiatives to attract FDI in the automotive industry, allowing 100% FDI under the automatic route. The government has also planned on introducing a new green urban transport scheme with central assistance of about INR 250 billion, to push the growth of urban transport, with the low-carbon path, with a goal to decrease air pollution substantially.
Status of the Lubricant and Petrochemical Market
Automobiles and other transport have dominated the lubricant market in the year 2018 due to the high production of vehicles in India, therefore products such as Engine oil dominated the market in the year 2018. The growing automobile industry and industrial growth in the country are also expected to push the demand for hydraulic fluids, during the forecasted the year 2019-2024. Presently 41 million metric tons of lubricants are produced globally. The market is expected to rise by 2% yearly, Asia-pacific is considered as one of the largest consumers of lubricants that shares approx. 14MMT yearly in which Asia 4 MMT is shared by China and 2.4 MMT is shared by India.
Related Video:- Petroleum based products
- Talking about the petrochemical market size, it was anticipated at USD 441.0 billion in the year 2019 and is expected to witness a CAGR of 5.0% over the forecasted period. The increasing market for petrochemicals will be driven by increasing demand for downstream products from end-use industries and capacity additions in the basic chemical industry.
- The industry of petrochemical is an important component of a lot of industrial processes as it gives raw materials for an increasing array of products that find application in automotive, construction, and manufacturing. A few of the products derived from petrochemicals are tires, detergents, industrial oil, fertilizers, plastics, medical devices. The derived, basic chemicals and plastic from the petrochemicals works as a building block for different nondurable and durable consumer goods.
Related Books:- Petroleum, Greases, Lubricants, Petro Chemicals, Wax, Polishes And Petro Products Formulation And Technology
Market Overview of the Lubricant Industry
The Indian Industry of the lubricants market is anticipated to record a CAGR of almost 3%, in the forecasted period. The major factor pushing the growth of the market is the growing usage of high-performance synthetic lubricants. Whereas, the growing industry of new technologies depending on feedstocks like light crude and mixed crude is anticipated to impact positively on the petrochemical industry. The adoption of crude oil chemical technology from manufacturers is anticipated to increase popularity as it gives high yields in the range of 40% to 45% industrial complexes with COTC development of these technologies will allow companies to manufacture chemicals on a refinery scale.
Related Projects:- Petroleum and Petroleum Products
Conclusion
The market for grease, petrochemical, and lubricants is huge and has a lot of major components in it. NPCS has written a book on “Modern Technology of Petroleum, Greases, Lubricants & Petro Chemicals (Lubricating Oils, Cutting Oil, Additives, Refining, Bitumen, Waxes with Process and Formulations) 3rd Revised Edition” to help those who are connected to this industry as the book covers all the major aspects that entrepreneurs, existing units, professionals, institutions, etc. needs.
Noo_Art20