Global lube demand is set to rise steadily over the next four years, according to the latest report from Freedonia Group Inc.
The US-based research group is predicting a consistent 2.6% annual growth in global demand to a level of 41.7m metric tons by 2015. The report, World Lubricants, states that continued economic recovery, particularly in Asia, Africa and the Middle East, will help to drive demand. The Asia/Pacific region is predicted to show 4% annual growth over the next four years, with Western Europe delivering just 0.8%.
Although the automotive sector will continue to head the lubricants market - unsurprising lifted by the massive expansion of vehicle sales in India and China - the most significant growth will come from manufacturing. Again, China and the Asia/Pacific region will push demand as its manufacturing-led economies continue to flourish, although Latin America and Africa will also provide significant markets.
Although vehicle lube demands look likely to fall in Europe and North America as drain intervals increase, engine oils are still set to take the greatest share of the lubes market to 2015. The most rapid growth, however, is predicted to come from the hydraulics sector. This supports the findings of a report from GIA earlier this year which valued the global functional fluids market at $18bn by 2015.