Market Research Report
Global Grease Market - Forecasts from 2022 to 2027
|Global Grease Market - Forecasts from 2022 to 2027|
Published: May 19, 2022
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Content info: 150 Pages
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The global grease market is projected to grow at a CAGR of 1.67% during the forecast period to reach US$2,752.596 million by 2027, from US$2,451.974 million in 2020. Grease is a semi-solid lubricant used to prevent corrosion, strain, and wear on vessels, machinery, automobiles, and their parts. It comprises additives that improve performance, as well as lubricating fluids and thickeners. It's made from rendered fat from waste animal parts, inedible lard, and synthetic oil, or it might be petroleum-based. The market is expected to increase due to factors such as the increasing manufacturing sector, rapid industrialization, and the increasing acceptance of better performance greases in the power and electric vehicle industries. In addition, the market is expected to increase due to the implementation of various government efforts to encourage the use of bio-based grease and rising product demand in the industrial sector.
Drivers of the Global Grease Market There is growing demand from the automotive and manufacturing sectors.
The global grease market is mostly fueled by demand from the automobile industry. During the projection period, the rising OEM and RMO markets in the automobile industry are likely to have a direct influence on grease consumption. Moreover, increasing government initiatives and investments in the automotive industry will also boost the demand for the global grease market in the coming years. For instance, in March 2022, LG Energy Solution and automaker Stellantis partnered to create Windsor's first large-scale electric vehicle (EV) battery production factory, with backing from the Ontario, federal, and municipal governments. The partnership between LG Energy Solution, Ltd. (LGES) and Stellantis N.V. will fund more than CDN $5 billion (USD 4.1 billion) in Windsor to develop a factory to produce batteries for electric vehicles, which will be the province's biggest auto manufacturing project. Similarly, in September 2021, the Indian government published a notification for the Production Linked Incentive (PLI) Scheme for Automobiles and Automobile Components. This scheme aims to alleviate the industry's cost constraints so that advanced automotive technology goods can be manufactured in India. Additionally, it is expected to result in new investments of over Rs 42,500 crore, an incremental output of over Rs 2.3 lakh crore, and extra employment prospects of over 7.5 lakh jobs.
Furthermore, the growing manufacturing industry around the world will also propel demand for grease in the market. For example, as per the data by the Federal Reserve, in February 2022, manufacturing production in the United States increased 7.4% year over year, the largest annual growth in seven months. Similarly, according to the Federal Statistical Office, manufacturing production in Germany increased 0.22 percent in January 2022 compared to the same month the previous year.
Increased development by key players is also expected to propel growth in the grease market.
Grease firms are making significant investments to supply the growing demand for grease. Rhenus Lub GmbH & Co. KG, for example, launched a highly resistant and durable grease in June 2020 that has the potential to lower long-term overall machine costs by drastically lowering the re-lubrication interval time. It was created for use in a variety of difficult situations, including electric motors, casting facilities, steelworks, and hot-gas ventilators. Furthermore, major product launches by significant companies will also aid in the expansion of the grease market during the projected timeframe. For instance, in November 2021, Sandvik announced the launch of its new BIO Tool Grease product that offers a "greener option" to plant machinery care, assisting customers in cultivating more ecologically responsible ways of operation. The high-performance grease is the first solution in Sandvik's new Green Range, which was particularly developed to be more environmentally friendly. The lithium complex thickened BIO Tool Grease is made out of recyclable esters and PAO, as well as corrosion inhibitors, antioxidants, and EP/AW additives, made with bismuth technology.
During the projected period, Asia Pacific is expected to hold a significant proportion of the global grease market.
Increased growth in the automotive and manufacturing industries in this region, particularly India and China, is anticipated to be a major factor for the market growth during the forecast period. According to the China Association of Automobile Manufacturers (CAAM), car sales in the country are expected to increase by 5.4 percent to 27.5 million in 2022. Similarly, as per the OICA data, India's automotive production grew by 30% in 2021. The government's supportive policies, such as the PLI schemes for the auto and auto component sectors, the innovative chemistry cell, the continuation of the FAME-II scheme until 2024, and the announcement of a PLI scheme worth Rs 76,000 crore for semiconductor manufacturing, are expected to drive growth in the grease market in the country. Covid-19 Insights
The COVID-19 pandemic had a negative impact on the global grease market. This is because the outbreak had a significant impact on key grease-consuming industries such as automotive, industrials, and others. Steel output fell in 2020 as a result of production halts and lower demand from a variety of end-user industries as a result of the COVID-19 pandemic. Steel demand fell by 6.4 percent, to 1,654 million metric tonnes, according to the World Steel Association.
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