The global market for Group IV and V lubricants features the presence of several regional as well as international companies, rendering the market largely competitive, observes Transparency Market Research in a recent report. While the market has been massively held back in the recent years due to concerns pertaining to the presence of volatile organic compounds (VOCs) in a number of industry grade synthetic lubricants, the market has survived owing to steady demand across key application areas such as heavy machineries and automotive. The market has also benefitted from the increased focus of leading vendors on the development of cleaner products in the face of strict environment-protection regulations.
Some of the leading companies in the market are British Petroleum Plc., Exxon Mobil Corporation, Chevron, Conocophillips, Total S.A., and Indian Oil Corporation Ltd.
Accroding to the report, the global Group IV and V lubricants market is expected to rise to a valuation of 752.9 kilo tons in terms of volume by 2018
Europe Accounts for Dominant Share in Global Market
Of the key varieties of Group IV and V lubricants examined in the report, the segment of polyalphaolefin lubricants accounted for a lion’s share of nearly 67% at the beginning of the forecast period. The demand for polyalkylene glycol has also witnessed a massive rise over the years and the segment is expected to rise to a valuation of 184.1 kilo tons by the end of 2018.
Geographically, the market for Group IV and V lubricants is dominated by the market in Europe. Monetary and regulatory support from government bodies to research and development activities aimed at the development of excellent synthetic lubricants without VOCs is the key factor that has worked in favor of the regional market. The market in Asia Pacific has also witnessed steady expansion over the recent years owing to the thriving automotive industry.
Rising Demand for Heavy Machineries Globally to Drive Market
Some of the key factors working favorably for the global Group IV and V lubricants market is the excellent mechanical and physical features of synthetic lubricants as compared to mineral lubricants and the use of synthetic lubricants for industrial applications requiring low friction and excellent thermal stability. High consumer awareness regarding the benefits of these products in terms of effective working and enhanced lifetime of the end-use machinery is also a key factor working favorably for the global Group IV and V lubricants market. A key area of application of synthetic lubricants is their usage in heat exchangers and heavy machinery as heat transfer fluids. With the thriving industrial sector in Asia Pacific, the demand for heavy machineries has increased. This is expected to work well for the market for Group IV and V lubricants.
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The market is also expected to be driven due to the rising investment towards research and development activities by leading manufacturers with the aim of developing improved grades of synthetic lubricants. However, the low costs of mineral oils could encourage cost-conscious consumers to choose minerals oils over synthetic lubricants, thus hindering the market for the latter. Nevertheless, vast technological improvements in the areas of flow and anti-slip properties of these products could provide healthy growth prospects.