Transparency Market Research estimates that the global independent manufacturers market will reach a valuation of US$9,454.04 mn by the end of 2025 increasing from US$6,800.79 mn in 2016, at a CAGR of 3.80% between 2017 and 2025.
In 2016, the mineral lubricants product segment led the market holding a massive 60.8% share. However, the segment is expected to witness a nominal decline over the forecast period, on account of a notable rise of the synthetic lubricants product segment.
On the basis of geography, in 2016, Asia Pacific led the global independent lubricant manufacturers market in terms of revenue share, followed by North America.
The global independent lubricant manufacturers market features a combined vendor landscape, wherein leading four companies collectively held almost 58% market share in 2016, as per a recent report by Transparency Market Research.
Of them, Germany-based FUCHS alone contributed nearly 37% revenue generated in the overall market for independent lubricant manufacturers in 2016, pointing towards the stronghold of the company in the global market.
Despite the stronghold of top vendors, the presence of a large number of small players hardens competition in the global independent lubricant manufacturers market.
Product pricing, innovative product offerings, and distribution channels are the key aspects in this market compete to garner larger market share.
Furthermore, penetration into high-growth emerging economies and development of environmentally sustainable products could be the most rewarding strategies for companies contending to establish their presence in the global independent lubricant manufacturers market.
Some of the key factors driving the growth of the global independent lubricant manufacturers market are the healthy growth of the automotive industry and immense demand for bio-based lubricants.
The significant expansion of the automotive industry, which is one of the key end users of lubricants, predominantly in emerging economies due to a rapidly growing middle-class population and strengthening financial conditions is majorly fueling the market’s growth.
On the flip side, however, fluctuating raw material prices is posing as a deterrent to the growth of independent lubricant manufacturers market.
This is because fluctuations in feedstock prices inevitably affect pricing models and mostly lead to declined profit margins. Price related fluctuations mostly impact cost-sensitive regional markets, wherein consumers easily shift to cheaper alternatives.