What is Grease?
Grease is a solid or semi-solid lubricant formed as a dispersion of thickening agents in a liquid lubricant mainly consisting of soap emulsifies with mineral or vegetable oil. Grease helps to minimize friction and wear by preparing a friction-reducing film between two moving surfaces. Grease is made from thickeners and base oils like mineral oil, conventional oil, and synthetic oil. Inorganic thickener and metallic soap thickener are two types of grease thickeners majorly used in the market. Grease is used in many end-use industries like automotive, construction, general manufacturing, metal, mining, food and beverage, and power industry. The rise in automation of various companies and increasing demand in the automotive sector will drive market growth. Stringent government rules on the use of grease and volatile prices of raw materials are likely to hinder the market growth.
Here are some of the driving factors that are increasing opportunities for the Grease market growth:
Expansion of the Automobile Industry:
According to the Indian Brand Equity Foundation, India’s annual production of automobiles in FY22 was 22.93 million vehicles. The growing demand in the automobile industry is boosting the grease market. The rising income of the middle class and the increased youth population is rapidly increasing the use of private vehicles. Increasing the use of private vehicles rise the demand for more Grease. Automotive grease helps the vehicle parts to protect from friction and increase their lifespan. Hence, the expansion of the automobile industry is likely to boost the Grease market.
Introduction of Automatic Equipment in the Industry:
Rapid urbanization and industrialization are boosting automation in the industries. Heavy-load equipment is used in various end-use industries like construction, manufacturing, and mining industry. Hence, the demand for of regular lubrication for safety and wearing is a must in such industries. The usage of grease in new plant equipment increases the lifespan of the equipment and therefore decreases the costs of operation. Hence, the increasing need for grease in automation drives the Grease Market.
Here are some of the restraining factors that are increasing opportunities for Grease market growth:
Volatile prices of raw materials:
The grease is basically made from mineral oil which is extracted from the crude oils for its lubricating properties. Grease consists of about 90% of oils. The prices of crude oil are constantly varying. Hence, the varying prices of crude oil ultimately affect the grease prices. The fluctuating prices of grease affect manufacturing industries. Hence, volatile prices of raw materials in grease hinder market growth.
Conclusion:
Mineral oil is majorly used in the preparation of grease. The use of greases in the types of equipment increases the lifespan of equipment. Shell PLC, Chevron Corporation, BP p.l.c., FUCHS, Dow, and Indian Oil Corporation Ltd., are some of the key players in the Grease Market. Increasing automation as well as increasing demand from end-use industries is driving the market. Volatile prices of raw material used for grease manufacturing is the restraining factor in the growth of the Grease Market.
Author's Detail:
Sonali Shinde /
LinkedIn
Working as a research analyst in the Chemical & Materials domain. I gained experience in formulating strategic insights, trend analysis, market estimations, competitive landscapes, M&A analysis, DRO, report writing, secondary research, and quantitative research. I also have experience in using a range of statistical and analytical tools to analyze data.
