The global aviation lubricants industry generated a revenue of $2.24 billion in 2019 and is expected to reach $2.84 billion by 2027, witnessing a CAGR of 6.2% from 2020 to 2027.
The research firms report -'Aviation Lubricants Market analysed by type (hydraulic fluid, engine oil, grease, and special lubricants & additives), technology (mineral-based, and synthetic), end user (OEM and aftermarket), application (hydraulic systems, engine, landing gear, airframe, and others), and by platform (commercial aviation, military aviation, and business & general aviation).
According to the report, the prime determinants of growth include an increased number of airline passengers, a rise in consumption of synthetic lubricants, and a surge in the number of airports. However, contamination in lubricants hinders the growth of the market. On the other hand, demand for low-density lubricants and the development of safe and eco-friendly lubricants create new growth opportunities.
COVID-19 Scenario
The demand for aviation lubricants reduced significantly as the aerospace industry became one of the worst-hit industries due to the COVID-19 pandemic. The ban on domestic as well as international flight has been imposed in many countries by governments.
The lockdown imposed by governments led to a halt in the manufacturing activities of lubricants. Moreover, disruptions in the supply chain led to a shortage of raw materials.
As governments have been allowing domestic and international travel, the demand would grow gradually as domestic and international flights rise.
Engine oil segment to dominate
Based on type, the engine oil segment accounted for the largest share in 2019, holding nearly half of the global aviation lubricants market, and is expected to maintain its leadership status throughout the forecast period. This is due to engine oils being replaced every 50 hours or four months to ensure optimum engine performance. However, the special lubricants & additives segment is estimated to grow at the highest CAGR of 8.2% from 2020 to 2027, owing to excellent lubrication provided against friction and wear, the report indicated.
Synthetic segment
Based on technology, the synthetic segment contributed to the highest share in 2019, accounting for more than half of the total share of the global aviation lubricants market, and is expected to continue its highest contribution by 2027. It is attributed to high tolerance to extreme temperatures and ageing and the development of cost-effective synthetic lubricants. However, the mineral-based segment is projected to witness the highest CAGR of 6.8% during the forecast period. This is due to good solubility with additives, low cost, and enhanced compatibility with seals.
Asia-Pacific, followed by North America, to continue its dominant share by 2027
Based on region, Asia-Pacific, followed by North America, held the largest share in terms of revenue, accounting for nearly one-third of the global aviation lubricants market share in 2019, and will continue its dominant share during the forecast period. This is due to growth in air traffic rate, the introduction of new airlines, and an increase in domestic flights. However, LAMEA is projected to portray the highest CAGR of 8.0% from 2020 to 2027, owing to rise in the construction of new airports in the region, the report added.
NB: Photo is representational. Courtesy: Shell.