Aircraft Lubricant Market Report

Market Insights

"The global aircraft lubricants market size was estimated at USD 1.2 billion in 2019 and is likely to grow at a CAGR of 4.3% during 2020-2025 to reach USD 1.48 billion by 2025."

Wish to get a free sample? Register Here

Lubricants represent a diminutive share of the aerospace industry but play a crucial role in the smooth operation of many components/systems, especially rotating ones. Furthermore, ongoing advancements in many sections of aircraft compelled lubricant suppliers to advance their products better addressing the market requirements. For example, aircraft engines are getting hotter and hotter day-by-day and require advancements in lubrication technology. Turbine oils are now being exposed to temperature ranges from -73oC to 200oC. SAE AS5780 is the engine oil specification developed for next-generation engines. Higher thermal stress in new engines leads to the requirement for lubricants with enhanced oxidation performance and load-carrying without damaging elastomers and seals.

Market Dynamics

Market Drivers

The long-term outlook seems vigorous for the aerospace industry including the lubricant market with attractive growth opportunities for the market participants in years to come. Both Boeing and Airbus are still optimistic about the future and have orchestrated positive business in their business outlook. Both are projecting that the global commercial aircraft fleet would more than double in the next ten years. Boeing Outlook: 50,660 commercial and regional aircraft fleet by 2038 from 25,830 units in 2018, growing at a CAGR of 3.4%. Similar forecast for Airbus: 44,862 commercial and regional aircraft in 2038, from 20,870 units in 2018. Increasing demand for fuel-efficient aircraft and increasing share of high-performance capability (HPC) turbine oils are further likely to boost the demand for aircraft lubricants in the coming five years.

Challenges

The year 2019 was challenging for the aerospace industry, especially for commercial aerospace, with several setbacks, compelled the industry giants to reconfigure their strategies. Grounding of B737 Max, P&W 1100G engine series failure (A320neo), delayed deliveries of upcoming aircraft programs such as B777X, and revised production rates of key aircraft programs; A350XWB and B787 due to cancellation of Boeing’s orders from China and other parts of the world are some of the burning challenges of the industry, negatively impacting the entire supply chain including the demand for lubricants, especially at OE level in the North America region.

COVID-19 Impact

The concerns of the industry seem to be graver in 2020 as coronavirus is severely affecting the industry. As per recent impact assessment of IATA, there will be a loss of US$ 63 billion in 2020, which is equivalent to 11% of the passenger revenues in the ‘Limited Spread’ scenario and a loss of US$ 113 billion of revenues in 2020, which is equivalent to 19% of the total passenger revenues in the ‘Extensive Spread’ scenario. However, as of now, the assessment of the real impact of coronavirus on the industry is next to impossible – need to have a close watch on the various country’s directives.

Segments' Analysis

By Lubricant Type

"The engine oil segment accounted for the largest market share."

Stratview has firstly segmented the aircraft lubricants market based on the lubricant type as hydraulic fluid, engine oil, grease, and special lubricants & additives. Engine oil is expected to remain the dominant and fastest-growing lubricant type during the forecast period. Engine oil is widely used in large volumes at regular operational intervals of the aircraft engine, which has led to its dominance in the market. Improved temperature resistance, higher thermal stress, improved oxidation performance, and sealing material compatibility are the modern engine oil requirements. Modern commercial aircraft programs also require hydraulic fluids with the fire-resistant property. There has also been a shift from traditional mineral-based hydraulic fluids to synthetic hydraulic fluids.

By Technology Type

"The synthetic lubricants segment accounted for the largest market share."

Our analysis on another market segmentation, which is based on technology type, includes mineral-based lubricants and synthetic lubricants. Synthetic lubricant is likely to remain the larger and the faster-growing segment of the market during the forecast period. Key growth drivers of synthetic lubricants are stable viscosity, less formation of deposits, less wear on parts, optimized fuel consumption, and do not require frequent oil changes.

By Aircraft Type

"The commercial aircraft segment accounted for the largest market share."

The market is broadly segmented as commercial aircraft, military aircraft, regional aircraft, general aviation, and helicopter. Commercial aircraft is expected to remain the largest and the fastest-growing segment of the aircraft lubricants market during the forecast period. The year 2020 seems to be tough, owing to a host of factors such as the grounding of the B737max, the impact of the coronavirus outbreak leading to the grounding of flights and halt of production in China, and US-china trade war. However, the long-term outlook still seems positive with a plethora of opportunities for the market participants. Major players are advancing their lubricant products in compliance with the modern commercial aircraft engine requirements. HPC turbine oils have been developed with a focus to improve high-temperature resistance, oxidation-reduction, low coking, and elastomer integrity.

By End-User Type

"The aftermarket segment accounted for the largest market share."

The market is segmented as OE and aftermarket. The aftermarket is expected to remain the larger segment of the global aircraft lubricants market during the forecast period. Increasing air passenger traffic and fleet size to drive the segment (air passenger traffic and aircraft fleet growth rates during 2018-2038 are 4.6% and 3.4%, as per Boeing's latest market outlook).

By Application Type

"The engine segment accounted for the largest market share."

Analogously, the study’s outcome on different application types evince that engine is the most dominant and fastest-growing application among engine, landing gear, airframe, and others. Hydraulic fluids and greases are widely used in airframe applications. Key lubricants used in engine are Eastman Turbo Oil 2380™ and 2197™; Mobil Jet™ Oil II and Mobil Jet Oil 387; AeroShell Ascender, Turbine Oil 500, and Turbine Oil 560. Some of the key airframe application areas are flight control actuators, leading-edge slats, flaps, ailerons, rudder, and elevator linkages. 

Regional Insights

"North America accounted for the largest market share."

North America is projected to remain the largest market during the forecast period, whereas Asia-Pacific is expected to remain the fastest-growing market during the same period. Short-term market demand is challenging in the Asia-pacific region with China and South Korea being severely impacted by the coronavirus outbreaks: Airbus has temporarily closed its A320 and A330 completion centers of Tianjin, China. Based on IATA estimates, Airlines in the Asia-Pacific region are likely to lose more than US$ 27 billion in revenues in 2020. Airlines in China would be most affected with an estimated US$ 12.8 billion lost in their domestic market alone. However, the long-term market outlook seems promising. As per Boeing’s latest estimations (2019-2038), China will need 8,090 commercial aircraft in the next twenty years, 5.2% higher than the company’s last-year forecast.

Key Players

The supply chain of this market comprises raw material suppliers, lubricant manufacturers, distributors, and OEMs/Airlines.

The key aircraft lubricant manufacturers are-

• Exxon Mobil Corporation
• Eastman Chemical Company
• Royal Dutch Shell Plc
• NYCO
• Total S.A.
• The Phillips 66 Company
• BP Plc
• Lanxess AG
• FUCHS Petrolub SE
• PJSC Lukoil Oil Company.

Want to know the company profile of key players? Register here

Some of the Key Mergers & Acquisitions and Strategic Alliances: The market’s attractiveness has led to a series of acquisitions by big players, acquiring small fishes, ultimately pushing the market towards greater consolidation.

• In 2014, Eastman Chemical Company acquired BP Plc’s global aviation turbine engine oil business for agreed price value of US$ 283 Million. This is one of the biggest acquisitions in the aircraft lubricants market. The acquisition led the company to gain a significant share of the aviation turbine oil market.
• In 2016, LanXess AG acquired Chemtura for agreed price value of US$ 2.5 Billion. The acquisition has strengthened the company’s additive business as a whole including lubricant additives.
• On January 2020, Fuchs Group acquired Nye Lubricants Inc., which is a high-performance specialty synthetic lubricant manufacturer. The acquisition has strengthened specialty synthetic lubricant's business portfolio and is likely to enhance the company’s footprint in the North American market.

Research Methodology

For calculating the market size, our analysts follow either Top-Bottom or Bottom-Top approach or both, depending upon the complexity or availability of the data points. Our reports offer high-quality insights and are the outcome of detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders and validation and triangulation with Stratview Research’s internal database and statistical tools. We leverage multitude of authenticated secondary sources, such as company annual reports, government sources, trade associations, journals, investor presentation, white papers, and articles to gather the data. More than 10 detailed primary interviews with the market players across the value chain in all four regions and industry experts are usually executed to obtain both qualitative and quantitative insights.

Report Features

The strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s aircraft lubricants market realities and future market possibilities for the forecast period of 2020 to 2025. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for the market participants as well as investors in the identification of low-hanging fruits available in the market as well as formulate growth strategies.

What Deliverables Will You Get in this Report?

The aircraft lubricant market is segmented into the following categories.

By Lubricant Type

• Hydraulic Fluid
• Engine Oil
• Grease
• Special Lubricants & Additives

By Technology Type

• Mineral-based Lubricants
• Synthetic Lubricants

By Aircraft Type

• Commercial Aircraft
• Military Aircraft
• Regional Aircraft
• General Aviation
• Helicopter

By End-User Type

• OE
• Aftermarket

By Application Type

• Engine
  • (Lubricant Type Analysis: Engine Oil, Grease, and Special Lubricants & Additives)
• Landing Gear
  • (Lubricant Type Analysis: Hydraulic Fluid, Grease, and Special Lubricants & Additives)
• Airframe
  • (Lubricant Type Analysis: Hydraulic Fluid, Grease, and Special Lubricants & Additives)
• Others
  • (Lubricant Type Analysis: Hydraulic Fluid, Grease, and Special Lubricants & Additives)

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Italy, Russia, and Rest of Europe)
• Asia-Pacific (Country Analysis: Japan, China, South Korea, India and Rest of Asia-Pacific)
• Rest of the World (Latin America, The Middle East, and Others)

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to 3 players)
• SWOT analysis of key players (up to 3 players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry at [email protected].