Expansion in both the functional fluids and global lubes and grease markets are set to expand over the next five years according to two new reports.
The Global Industry Analysts reports state that the functional fluids market is set to reach $19.7bn worldwide, while lubricant oils and greases will rise to just under 11bn gallons as global GDP regains momentum and industry starts to recover accordingly.
The GIA Functional Fluids Market Report claims that changes in global regulations and standards, particularly with the environment in mind, will be the key market drivers - particularly for biosynthetics. Functional fluids - machine fluids that enable smooth functioning of machines, according the official definition - are set for steady growth in manufacturing and automotive.
Synthetics, providing lower viscosity, fire resistance and longer drain intervals clearly tick a number of environmental and financial boxes and, certainly in the automotive sector, will be the key area for growth. According to the report, marketing strategies will play a critical role in this sector with oil producers looking to brand awareness campaigns as key to increasing sales. Amongst hydraulic fluids, bio-fluids are expected to see strong growth, according to GIA.
In a complementary report, Lubricating Oils and Greases Market recovering economies and growth in manufacturing driven by the resulting increase in commodity demand. While developed markets have reached maturity, according to the report, the developing markets are set to drive the lubes industry, although China and other export-oriented contries will have to look to their domestic markets to drive growth.
Again, GIA sees biolubes as a key area of expansion and demand, whilst innovation in lubes and greases generally will be required to match developments in the equipment and machinery industry, particularly as a result of higher temperature operating to meet increased output demand. Perhaps unsurprisingly, the main area of uncertainty is the European market due to continued economic, and thus industrial, volatility.