Attend our live presentation led by Kunal Mahajan, Project Manager in Kline’s Energy/Petroleum Practice, on Thursday, May 2, 2019 to gain an understanding of the rubber process oil industry in terms of the key markets, end-use industries, growth drivers, and opportunities. This webinar based on our recently published report Global Rubber Process Oils: Market Analysis and Opportunities
Category Archives: Energy
Upcoming Webinar – Assessing Opportunities in the HDMO Industry
This webinar is based on Kline’s appraisal of the evolving HDMO market in context of the electrification of commercial fleets and independent assessment of the HDMO market in context of the diverging fluid specifications, published in 1st Quarter 2019. It will help you gain a general understanding of the current trends and opportunities in the HDMO market and the perspective on OEM genuine oil products and programsContinue reading
Bio Rubber Process Oil to Grow Three Times Faster than the Global RPO Demand
The global rubber consumption is expected to slow down in the next five to 10 years due to slower tire demand. Since tires are the major consumer of rubber and rubber process oil (RPO), the demand for RPO is expected to grow slower during this period. However, demand for other rubber goods, such as shoes, toys, tubes, hoses, and belts, among others, is expected to grow and drive growth in the RPO market, which is estimated at close to 3.3 million tons globally in 2018.
Wind Turbine Lubricants – an Important Segment of the Industry
Wind turbine lubricants play a critical role in wind turbine operation, maintenance, and reliability. In a wind turbine, there are several lubrication points, including gear box, open gear, pitch gear, pitch bearing, rotor shaft, yaw bearing, yaw gear, hydraulic systems, and generator bearings, that require various lubricants.
Factors Driving Growth
The most significant lubricant demand driver is growth in wind power capacity. Although the growth rate was lower in 2017 than in previous years, according to Global Wind Energy Council, it is still much faster than global industrial lubricant demand growth or lubricant demand growth in other end-use industries.Continue reading
A Modest but Steady Recovery Expected in the Latin American and Caribbean Finished Lubricants Market
The finished lubricants market in Latin America and the Caribbean was negatively affected by the adverse effects of external and internal turbulence, leading to a severe regional economic downturn from 2014 to 2016.
The region entered a new post-recession cycle in 2017 due to the reactivation of commodity production, a key driver of Latin America’s economy. Recovering debt levels, mineral prices, and election results in Brazil and Colombia are also factors; all have significantly contributed to sustaining growth momentum in 2018 and most likely through 2019.Continue reading
Disruptive Forces Redefining Commercial Vehicles – A Look Into the HDMO Market’s Future
Heavy duty motor oil (HDMO) demand is projected to grow steadily over the next few years as the commercial vehicle market continues to expand. Factors such as technological development accelerated by (or associated with) the online retail boom as well as the implementation of strict air-quality regulations is promoting the use of electric vehicles (EVs) in the commercial vehicle (CV) segment. Large metropolitan areas around the world are increasingly incorporating EVs into their bus fleets. However, unlike in the passenger vehicle segment, Kline foresees more modest penetration of EVs in the CV population for a variety of reasons.Continue reading
High Quality Grease Market in India Expected to Grow
India, the third largest grease consumer, is expected to witness slow but steady growth in its grease demand in the future, despite facing challenges, such as the growing use of greases filled-for-life and elongating service intervals. The expanding manufacturing sector in India offers opportunities to promote grease consumption; however, the growth potential varies with grease type as each type has distinct advantages and disadvantages.
As India continues to expand its manufacturing sector, many new factories and plants are being set up with the latest technology equipment from international original equipment manufacturers (OEMs). As a result, demand for high quality grease is expected to grow. Overall, the Indian grease market is expected to grow at a compound annual growth rate of 1.3% through 2023Continue reading
Bright opportunities for polyisobutylenes due to finished lubricant quality upgrade and potential brightstock substitution
Kline estimates that the total polyisobutylene (PIB) capacity in 2018 is around 1,100–1,200 kilotonnes. Global PIB supply is expected to grow gradually over the forecast period between 2018 and 2028, according to Kline’s just-published Business Outlook for Polyisobutylenes: Global Market Analysis and Opportunities report. Only a handful of suppliers are catering to the PIB market with around 75% of the global PIB capacity accounted for by the top five suppliers—BASF, Daelim, TPC, Lubrizol, and Infineum. To take a closer look at the key findings from the study, REGISTER for our upcoming webinar.Continue reading
How Re-refining Will Remain the Mainstay of the Industry
Written by Milind Phadke, Director, Energy
Since the recession of 2008, global lubricant basestocks supply and demand have been on divergent paths. Demand growth, beyond the recovery to pre-recession levels, has stalled, but supply growth continues. All the new supply coming to the market is primarily high-performance Group II, III, and IV basestocks. As a result, the global basestocks market has become a buyers’ market. Lubricant blenders, especially independent blenders, can select basestock suppliers and products that best suit their business needs (reducing blending costs, product performance, reducing supply chain complexity, and other such objectives).Continue reading
Online Sales and Heavy Trucks Set to Drive the HDMO Market in China through 2022
Demand for heavy duty motor oil (HDMO) in trucks in China is estimated to increase at a compound annual growth rate (CAGR) of 0.6% through 2022 based on the most likely scenario of the recently published Heavy-Duty Motor Oil: China Channel Dynamics and Opportunities for Trucks, Buses, and Construction Vehicles report. In particular, the heavy trucks population, estimated to have 5% to 7% annual growth through 2022, will drive the demand.