A new report on commercial lubricants opportunity shows little joy for producers over the next few years.
The research: Opportunities in Lubricants, 2011-2013: North American Market Analysis - Volume I: Commercial Automotive from industry analysts, Kline, shows expectations of just 0.4% to 1% compound growth between now and 2016 in North America's commercial lubes market.
The limited increase is a result of longer drain intervals, greater synthetics penetration, improved oil analysis and a general mechanical efficiency improvement in the commercial vehicle sector. Despite an expected 3% increase in private fleet haulage volumes over the next few years and signs of some recovery in the construction sector, lubes growth is set to remain marginal over the period. Although demand is suppressed, the increased use of synthetics does enhance market value, however.
There is also little encouragement for the re-refining industry, according to the report. Although re-refined engine oils are gradually entering the commercial auto market, most consumers - including in the agricultural sector - remain sceptical about re-refined products. Some perceive them as inferior quality to standard lubricants, while others voiced concern over warranty issues and availability.
There was more encouraging news for the implementation of the PC-11 HDMO standard which will come into force by 2016. According to Kline, there is an increasing awareness of PC-11, with commercial consumers stating their intention to comply with OEM recommendations as appropriate.