2018 Lubricants Industry and Most Crucial Trends

Innovation, differentiation, and flexibility are the key to succeeding in the constantly evolving baseoils and lubricants industry. The industry is likely to see fundamental changes in how industry participants do business as a result of changing technology, regulations, lubricant quality and specifications, supply chain, and consumer behavior. In 2018, Kline published many reports covering these new topics in addition to our well-recognized report titles to help clients keep tabs on the industry.

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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

Polyisobutylenes Market

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

Used oils

How Re-refining Will Remain the Mainstay of the Industry

Written by Milind Phadke, Vice President, 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

HDMO Market in China

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.

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Market Analysis and Opportunities

Upcoming Webinar: Global Marine Lubricants: Market Analysis and Opportunities

The global shipping industry faces a period of immense economic and technological challenges. The industry continues to suffer from overcapacity and poor profitability. At the same time, emission limits are set to tighten in the coming years. Engine OEMs, ship owners, oil refiners, and bunker fuel suppliers all face difficult strategic decisions for complying with the new emission regulations while enhancing profitability.

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Autonomous Vehicle

Where Can an Autonomous Vehicle Get an Oil Change These Days?

As the autonomous vehicle (AV) space continues to evolve and vehicle OEMs and mobility providers make announcements about million and billion dollar investments and initiatives, it is important to understand from a commercial perspective just where/how/why/when these vehicles will be serviced and the impact on suppliers of branded aftermarket engine oil and related lubricants.

Waymo, a business unit of Alphabet, announced on December 5, 2018 that it is launching a commercial self-driving, ride-hailing service in Phoenix, Arizona called Waymo One.

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Synthetic Lubes Market

A Retail Giant Set to Shake Up Synthetic Lubes Market

The latest edition of Kline & Company’s Global Synthetic Lubricants Report reveals that the growing synthetic lubricants market is attracting attention from an unexpected newcomer.

Report Manager David Tsui explains why current industry players should be concerned about the growing number of premium private label (PPL) branded products that are coming into the market.Continue reading

Base Oils & Lubricants Presentation

Attend our presentation at the 2018 European Base Oils & Lubricants Interactive Summit in Italy

ABOUT THE PRESENTATION

Effect of Evolving Mobility Patterns on the Long Term PCMO Demand Outlook

The emergence of disrupting forces such as electric vehicles and ride-sharing has the potential to significantly reduce the consumption of PCMO. This presentation will examine all the possible scenarios in the context of evolving mobility patterns and the degree of impact in the long term PCMO demand outlook.

Kline’s Project Manager, Energy, Sharbel Luzuriaga, is presenting based on Kline’s recently published study The PCMO Market in 2040. Contact Sharbel Luzuriaga to discuss the issue and your business needs.