A new report from Research and Markets predicts developed markets will decline as emerging markets grow.
The global consulting and research firm has released its latest report examining future global growth trends for the lubricants industry. The research claims that the Asia-Pacific region, led by rapid growth from China, will be the largest and fastest growing regional lubricants market by 2017.
In 2012, the region accounted for 42% of the global lubes market, a figure that is set to increase to 46% at 17m tons within the next four years. Growth experienced in the region is expected to exceed that of anywhere else in the world.
Foreign lubricants makers looking to increase global sales should observe the increase in consumption from emerging economies, such as India and China, and would do well to establish operations in these areas, the report advises.
Much of the growth will come from a robust auto industry in the Asia-Pacific region, where the auto sector accounts for 56% of total lubes consumption. While China and India will contribute steady growth to the region, other areas, such as Thailand, where vehicle output has increased by 70% year-on-year, also offer potentially lucrative markets.
As the Asia-Pacific region grows, debt-burdened and cash-strapped Western economies will struggle to find growth. Western Europe, where tens of refineries are already being closed down, will be particularly hard hit the report states.