Russia Lubricants Market - 2022-2029

Market Overview

Russia Lubricants Market reached US$ YY million in 2021 and is expected to record significant growth by reaching up to US$ YY million by 2029, growing at a CAGR of 2.6% during the forecast period (2022-2029).

Lubrication reduces friction and wears by introducing a friction-reducing coating between moving surfaces in contact. The substance utilized as a lubricant can be liquid, solid or plastic. A surface can be lubricated using a wide variety of chemicals. The most prevalent are oils and greases. Oil is what lubricates and grease is made up of oil and a thickening ingredient to give it consistency. Oils can be made from synthetic materials, plants, minerals or a combination.

Which base oil should be used depends on the application. Synthetic oils may be useful in extreme circumstances. Vegetable base oils can be used in environments where the environment is a concern. Oil additives are used in lubricants to improve, add or reduce basic oil qualities. The quantity of additives depends upon the type of oil and the intended purpose.

Market Dynamics

The increased demand for renewables and the expanding need for lubricants in the metalworking industry are two main reasons driving the Russia lubricants market. However, the rising demand for electric vehicles may restrain market expansion.

Expanding need for renewables

Russia is known to be a country with enormous energy resources, both renewables and non-renewables. Much of the country's effort toward energy generation has been on the development of the non-renewables over the years. The power industry is a large consumer of industrial lubricants, ranging from the turbine to transformer oil.

Lubricants are used in various operations. The renewable energy industry is a prospective sub-segment of the power generation industry. According to the World Wind Energy Association, wind power was growing at a healthy rate of 10% and reached a capacity of 596,556 megawatts in 2018. Wind turbines require lubricants for optimum operability.

The metalworking industry's expanding requirement for lubricants

A major segment of the Russia lubricant market is metalworking fluids. Over time, the category has remained stable with few significant changes. A minor portion of the market is occupied by small businesses that make cheap, low-quality metalworking fluids for use in locally made machinery. Typically, the suppliers are situated close to major hubs for base stock, such as Cheboksary and Ufa. A significant player in the premium market is LUKOIL.

Other significant local players include Rikos, Oleokam, Volgokhimneft and Rosneft. Recently, Gazpromneft-Lubricants unveiled its line of metalworking fluids. Henkel and Quaker Houghton are two of the most important overseas suppliers. Due to all the factors, it is projected that the Russia lubricants market will expand.

The rising demand for electric vehicles hampers the market growth

A tiny internal combustion engine (ICE) and an electric motor are used in hybrid cars to maximize power efficiency and lower pollution. A car's ICE requires lubricants, primarily transmission fluid and engine oil. Russia's EV market is still emerging. Only 687 vehicles were sold in 2020 and there are currently only 11,000 registered EVs in the world's fleet of 46 million passenger cars.

The Russia Government adopted the Concept of Developing the Production and Utilization of Electric Road Transport in Russia through 2030 in August 2021. The factor will cause the global lubricants market's size to decline, together with rising battery parity. Electric car batteries are relatively expensive, but as technology advances, the price is coming down and the driving range per charge is rising. The variables significantly affect lubricant use.

COVID-19 Impact Analysis

The COVID-19 pandemic epidemic has severely impacted the Russia lubricants market. According to Russia, the COVID-19 pandemic's effects on the world's oil and oil-related goods consumption could endure until 2023 or 2024. Despite the pandemic, which caused lockdowns, halted 80% of air traffic and 25% of road traffic at its height and reduced fuel consumption, the world's production of oil and liquid fuels declined in 2020 to 94.25 million barrels per day (bpd) from 100.61 million bpd in 2019.

As per the OPEC- Organization of the Petroleum Exporting Countries' base case scenario, oil demand will increase by 5.6 million barrels per day in 2021. Alexander Novak, deputy minister of energy for Russia, has predicted a similar development. Rosneft already suffered a loss of US$2.1 billion in the first quarter of 2020 and anticipates a 10% drop in oil production. Rosneft, constrained by long-term supply commitments on prepayment contracts with China, will experience significant suffering from oil curtailment and well conservation. Many Russia brownfields are over flooded and 50% of them may never recover production after they are shut down; choosing which wells to stop is very difficult. The epidemic will have long-term effects, but market recovery is anticipated to be gradual.

Segment Analysis

By end-user, the Russia lubricants market is segmented into automotive & transportation, chemical manufacturing, food & beverage, heavy equipment, metallurgy & metalworking, power generation and others (packaging, oil & gas, drilling fluids).

High lubricant usage in automobiles and transportation

Over the past 20 years, the Russia automotive market has gone through peaks and troughs in distinct four-year cycles. Without counting off-highway vehicles, there were 52 million vehicles in Russia at the beginning of 2019, with 81% of those being passenger automobiles, 8% were light commercials, 7% were HCVs and 4% were motorbikes. More than three million cars can be produced in Russia each year. Russia has enormous oil and natural gas reserves, but U.S.-led sanctions have prevented them from fully exploiting, delaying growth in this industry because it requires significant investment.

Since 2016, Russia imports of lubricants for vehicles and transportation have remained largely steady, with a recent growth of around 270 Kilo Tons annually. Mobil, Castrol, ZIC, Total Elf, LiquiMoly and more are available. Shell also imports various base oils and completed goods. Most lube additives are imported, leaving local companies like Qualitet and Lukoil's Naftan refinery with a limited range of products and technological capabilities. Russia's strong automotive industry is anticipated to fuel the segment's expansion.

Competitive Landscape

The market's top companies own a healthy share of the Russia lubricants market share. In December 2021, ExxonMobil Corporation acquired Garvey Corporation to help develop its industrial process automation capabilities.

Major Russia lubricants market companies include BP PLC (Castrol), DelfinGroup, ExxonMobil Corporation, FUCHS, Gazpromneft - Lubricants, Ltd., Liqui Moly, Lukoil, Obninskorgsintez (SINTEC GROUP), Royal Dutch Shell Plc and Rosneft.

Gazpromneft - Lubricants, Ltd.

Overview: A worldwide energy company with a majority governmental ownership in Russia is called Gazprom. The business started as a gas distributor in the North West of England. It was first known as Pennine Gas, then as Gazprom Energy and is currently known as SEFE Energy. Its name was changed to SEFE Energy on July 29, 2022. Since April 4th, 2022, SEFE and its affiliates have been in the custody of the German regulatory body, Bundesnetzagentur (BNetzA). It provides the energy required by more than 50,000 businesses so they can continue to offer the goods and services utilized by millions of people in UK, France and Netherlands.

Product Portfolio: Modern engine and transmission oils, greases, antifreeze and special fluids for cars and light commercial vehicles are covered under the Gazpromneft brand. Gazpromneft-Lubricants manufactures engine oils under the premium brand G-Energy in its facilities in Bari, Italy.

Key Development: The agreement for marine lubricants was extended between Gazpromneft-Lubricants and the FESCO Transport Group (FESCO, the Group) on March 20, 2021. Following the contract conditions, Gazpromneft-Lubricants will deliver engine, gear, compressor, turbine oils, lubricants and technical fluids to the FESCO fleet.

Why Purchase the Report?

• Visualize the composition of the Russia lubricants market segmentation by base stock, group, product and end-user, highlighting the critical commercial assets and players.
• Identify commercial opportunities in the Russia lubricants market by analyzing trends and co-development deals.
• Excel data sheet with thousands of Russia lubricants market-level 4/5 segmentation points.
• Pdf report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
• Product mapping in excel for the key product of all major market players.

The Russia lubricants market report would provide access to an approx. 42 market data table, 43 figures and 202 pages.

Target Audience 2022

• Chemical Providers/ Buyers
• Industry Investors/Investment Bankers
• Heavy Equipment & Research Institutes
• Emerging Companies
• Lubricant Manufacturers