Market Overview
The global aviation lubricants market size was valued at USD 1,946 million in 2021, envisioned to reach USD 3,221 million in 2030, expanding at a CAGR of 6.5% during the forecast period.
Lubricants are utilized in aircraft to lessen the amount of friction and wear that occurs between two moving parts or surfaces. Lubricants in aviation mitigate the effects of rust and corrosion on various components, including engines, hydraulic systems, landing gears, and airframes. In addition, the kind of aircraft affects the quality, type, and grade of lubricants utilized. Lubrication is an integral aspect of the safe operation of any aircraft and must be changed frequently as part of the maintenance process. Moreover, the usage of lubricants permits airplanes to function at peak performance and efficiency.
The market for aviation lubricants is being pushed for several reasons, including an increase in the number of airports, an increase in the number of airline passengers, an increase in the amount of disposable income people have, and an increase in the consumption of synthetic lubricants. However, contamination of lubricants hinders market expansion. In addition, the rise in demand for low-density lubricants to lower aircraft weight and the development of eco-friendly and safe aviation lubricants present lucrative potential opportunities for the market.
Market Dynamics
Market Drivers
The Increasing Number of Airline Passengers, along with an Increase in Disposable Income
Air travel is the most popular choice for travelers worldwide since it is the safest, quickest, and most reliable transportation compared to other conventional modes of transportation such as road and sea travel. This makes air travel more reliable than different kinds of transportation and provides passengers with a pleasant experience during the flight. Due to the surge in disposable money, consumers choose air travel, despite its high cost. In addition, the International Civil Aviation Organization (ICAO) reported that 4.3 billion passengers were transported by airlines in 2018. In addition, the number of airline passengers is anticipated to surpass 10 billion by 2040, necessitating the demand for additional aircraft to transport people. This consequently leads to an upsurge in the number of aircraft fleets and the frequency of flights, both of which require frequent maintenance services. This, in turn, would drive the growth of the global market for aviation lubricants.
Increased Synthetic Lubricants Consumption
As a result of synthetic lubricants' thermal stability, higher energy economy, superior performance in harsh situations, and resistance to oxidation, the global aviation lubricants market has been expanding rapidly. Additionally, synthetic lubricants give better resistance to the frictional wear of costly aircraft components and a longer lubricant service life, all of which contribute to expanding the global aviation lubricants market.
Market Restraints
Lubricants Contamination
Different aircraft types have varied lubrication standards and requirements to guarantee aircraft's smooth and safe functioning. Due to the presence of sand, dirt, or metallic particles in lubricants below acceptable quality standards, contamination of aviation lubricants can result in engine service failure. It may cause excessive wear and metallic abrasion, damaging aircraft components and leading to tragedy. According to data released by the Shell Company, 70% of all aviation engine failures were attributable to pollution, with 50% resulting from metallic abrasion and wear issues. Consequently, contamination of aviation lubricants is anticipated to impede market expansion.
Key Market Opportunities
The Increasing Demand for Low-Density Lubricants
Weight is a crucial consideration for airlines because it directly affects the stability and performance of aircraft. Always seeking to minimize an aircraft's total weight, manufacturers attempt to select materials and components that are both lightweight and sufficiently durable. Aircraft weight is also affected by lubricants. Therefore, there is an increase in the demand for low-density lubricants among aircraft makers, which contributes to further weight reduction. In turn, this increases the performance of an aircraft, which is likely to generate growth prospects for key players functioning in the global aviation lubricants market.
Regional Analysis
The region-wise segmentation of the global aviation lubricants market includes North America, Europe, Asia-Pacific, and LAMEA.
The Asia Pacific and North America Will Dominate the Regional Market
The Asia Pacific will command the market with the largest share while expanding at a CAGR of 5%. Asia-Pacific has experienced a rapid increase in air traffic, raising the demand for new airports and the modernization of existing ones. In addition, most of the region's countries now permit domestic flights, which fuels the expansion of the global market. Also, the increase in air passenger traffic has resulted in the entrance of new companies, which has led to the rise in the number of aircraft deployments, which is predicted to stimulate the market in this region simultaneously. As passenger airplane and cargo aircraft traffic increases, the Asia-Pacific aviation lubricants market is expected to have the most significant development. According to the International Civil Aviation Organization, Asia-Pacific has emerged as one of the world's leading areas in terms of air traffic.
North America will advance at a CAGR of 6.1% and hold USD 840 million. The United States dominates the aviation lubricants market share in the region compared to Canada and Mexico because it has the highest number of aircraft. Nonetheless, Mexico is anticipated to develop at a higher CAGR throughout the projected period due to increased demand for aircraft and an increase in air passengers. In addition, airlines in this region introduce new routes annually, contributing to the region's growing connectivity. Also, the air transport industry supports 8.8 million employments in North America. Moreover, air transportation contributes around USD 1.1 trillion to economic activities in North America. These elements contribute to expanding the market for aviation lubricants in North America.
Segmental Analysis
The global aviation lubricants market is classified based on type, technology, application, end-user, platform, and region.
By Type Analysis
Based on type, the fragments are hydraulic fluid, engine oil, grease, and special lubricants & additives.
The engine oil segment is projected to expand at a CAGR of 6.2% and hold the largest market share. Oils are used to lubricate aviation turbines and jet engines to operate more smoothly. Due to their operations, engine oil becomes polluted with gasoline, moisture, acids, dirt, carbon, and metallic particles. It is advised that airlines replenish engine oil every 50 hours or four months, whichever comes first, to ensure good engine performance, which promotes the aviation lubricants market growth.
The grease segment will hold the second-largest share. Grease is a solid or semi-solid substance used to preserve, seal, and lubricate aircraft components. Base oil, thickeners, and additives are the three principal components of grease. Thickener gives grease a firm or semi-solid texture to prevent it from settling and provide lubrication, driving market expansion. Moreover, multipurpose, corrosion-inhibiting grease is advantageous for market development.
By Technology Analysis
Based on technology, the fragments are mineral-based lubricants and synthetic lubricants.
The synthetic lubricants segment is projected to expand at a CAGR of 6% and hold the largest market share. Synthetic aviation lubricants consist of chemical substances that are synthesized in a laboratory. Synthetic aviation lubricants are produced utilizing chemically altered petroleum compounds or other synthesized basic materials, as opposed to crude oil. Unlike other forms of lubricants, synthetic lubricants are more resistant to severe temperatures and deterioration, driving market growth. Introducing cheaper synthetic lubricants presents many options for market leaders in the aviation lubricants market.
The mineral-based lubricants will hold the second-largest share. Mineral lubricants are manufactured from highly refined, purified, and processed petroleum. Mineral-based lubricants offer low cost, improved solubility with additives, and improved compatibility with seals, which drives the expansion of aviation lubricants.
By End User Analysis
Based on the end-user, the fragments are OEM and aftermarket.
The aftermarket segment is projected to expand at a CAGR of 6.2% and hold the largest market share. The aftermarket category comprises companies or organizations involved in aircraft maintenance, repair, and overhaul services (MRO). Currently, the aftermarket aviation lubricant segment is the market leader because of the large number of operational aircraft (parked aircraft). It is anticipated that the global growth in air passengers would increase the number of flights, which is advantageous for critical participants in the worldwide aviation lubricants market.
The OEM segment will hold the second-largest share. Original equipment manufacturers are the purchasers of aviation lubricants by aircraft manufacturers like Boeing, Airbus, Embraer, Bombardier, Comac, Mitsubishi Aircraft Corporation (MAC), UAC, Aviastar-SP, AgustaWestland, Bell Helicopter, Sikorsky, and Helicopters. Various aircraft and helicopter manufacturers have a high demand for lubricants like engine oil, grease, hydraulic fluids, and specific lubricants & additives, which drives the aviation lubricants market's expansion. Considering the anticipated growth in air travelers in the future, the demand for aircraft is expected to rise, which is favorable for expanding the aviation lubricant market.
By Application Analysis
Based on application, the fragments include hydraulic systems, engines, landing gear, airframes, and others.
The engine segment is projected to expand at a CAGR of 5.3% and hold the largest market share. This segment examines different lubricants used in aviation engines, such as engine oil. Lubricating oils are crucial in an engine's life, as a lack of sufficient engine lubrication will result in engine failure within minutes. Engine oil supports various functions, including corrosion prevention, cooling, lubrication, cleaning, noise reduction, and sealing, which drives market expansion.
The hydraulic systems segment will hold the second-largest share. A hydraulic system employs fluid that is maintained under pressure to facilitate the movement of mechanical components. Presently, hydraulically powered elements are significantly more prevalent in aviation, particularly on newer aircraft. The hydraulic system supports the easy and precise operation of mechanical or industrial components of an airplane, hence driving market expansion.
By Platform Analysis
Based on the platform, the fragments are commercial aviation, military aviation, and business & general aviation.
The commercial aviation segment is projected to expand at a CAGR of 5.7% and hold the largest market share. Commercial aviation is included in civil aviation, which excludes private aviation. Commercial aviation contributes significantly to economic growth because it not only delivers passengers and freight from one location to another but also employs millions worldwide, thereby driving market expansion. In addition, airlines facilitate international commerce and tourism, contributing to the development of aviation lubricants.
The military aviation segment will hold the second-largest share. "military aviation" refers to aircraft flown by legal or rebel armed forces. Military aircraft can be utilized for offensive and defensive objectives, protecting the nation from foreign enemies/threats, and driving the market growth.
