Aviation Lubricants Market

Aviation Lubricants Market Outlook (2022-2032)

The aviation lubricants market is likely to register a CAGR of 5% across the 2022-2032 forecast period. By 2021-end, sales reached US$ 859.8 Million, following extensive applications across large commercial jets, in the wake of a resumption in passenger air travel. By 2022, the market is expected to close at US$ 902.79 Million. As per the report, preference for semi-synthetic and synthetic oils will be dominant, yielding US$ 900 Million by 2032.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 859.8 Million
Expected Market Value (2022)	US$ 902.79 Million
Projected Forecast Value (2032)	US$ 1.4 Billion
Global Growth Rate (2022-2032)	5% CAGR
Expected Market Share of the U.S. Market (2032)	6.5%
Anticipated Market Value of Europe (2022-2032)	34%
Major Aviation Lubricants Service Providers	Royal Dutch Shell Plc. ExxonMobil Corporation Total Group NYCO Lalizas Italia S.r.L Eastman Chemical Company The Chemours Company Phillips 66 Company Nye Lubricants Inc.

Demand Analysis of Aviation Lubricants from 2017-2021 Vs Market Outlook 2022-2032

As per Fact.MR – market research and competitive intelligence provider, during the historic period of 2017 to 2021, registering a CAGR worth 4%. Increased frequency of air traffic in the past few years have led to prolific developments in the global aviation industry, especially with regard to aircraft fleet and airport infrastructure.

During the COVID-19 pandemic, demand for aviation lubricants experienced a major setback, attributed to contractions in the global air travel industry in general. Data from the International Civil Aviation Organization (ICAO) concludes that an overall reduction of 50% in terms of seat offering, 2,699 million reduction in passengers opting for air travel and an approximate loss of US$ 371 billion of gross passenger operating revenues were experienced throughout 2020.

As a result, maintenance cycles of aircrafts reduced significantly, leading to reduced demand for aviation lubricants. However, with the onset of 2021, a gradual resurgence is expected, with lockdowns lifting across most parts of the world. Maximum demand push is anticipated from China, clocking a CAGR of 5%, attributed to the rapid pace of airport infrastructure revamps. From 2022 to 2032, the overall market is likely to reach US$ 1.4 Billion in value terms, expanding 1.6x.

Aviation Lubricants Sales to Surge on the back of Surging Air Traffic?

Soaring demand for air travel and cargo operations will almost certainly result in a sufficient spike

Rising demand for air travel and cargo activities are most likely to create a sufficient surge in demand for aviation lubricants. According to ICAO’s preliminary compilation of annual global statistics, the total number of passengers carried on scheduled services rose to 4.3 billion in 2018, which is 6.4 percent higher than the previous year, while the number of departures reached 37.8 million in 2018, a 3.5 percent increase.

Furthermore, quick urbanization and industrialization have witnessed the surge in air travel in the past few years and anticipate following the same trend during the forecast period. Mounting interest of governments in advancing policies regarding open skies, immigration, and visa are projected to facilitate numerous market opportunities for aviation lubricants.

Countries such as India and China have taken such initiatives, which are primarily government-driven, to boost air travel, which is likely to surge the demand for aviation lubricants. The utilization of aviation lubricants for commercial, military, and general applications is more likely to create significant demand for manufacturers.

Burgeoning Airport Infrastructure Investments to Act as a Beacon for Aviation Lubricants Expansion?

As the population rises, there is a greater necessity for additional airports, which drives up market demand

A global increase in population is creating demand for additional airports to facilitate ease of air transportation, which drives the market growth. This is leading to large investments in the aviation industry in order to cater to the needs of new airports, especially in developing countries/regions. For instance, the U.S. government is in the limelight for its increasing investments towards expanding old airports and developing new ones to handle this increase in air traffic and air freight transport.

In April 2021, the U.S. Government announced its plans to invest $25 billion into Airport Infrastructure. U.S President Joseph Biden introduced a new American Jobs Plan containing $25 billion in funding to support and develop its airport infrastructure.

This plan would help the industry continue to focus on safe and efficient air travel by supporting terminal renovations and multimodal connections that would provide affordable access for passengers and workers. With the focus on modernizing America’s airport infrastructure, the demand for aviation lubricants is projected to bolster across the country.

In addition to this, many developing countries are working on opening new airports to facilitate air transportation within and across countries. For instance, as a part of its vision to reach a US$ 5 trillion economy by end of 2025, India is planning to open additional 100 airports by the end of 2024. Considering the aforementioned factors, the demand for aviation lubricants is projected to expand at a significant rate.

What are the Challenges Faced by the Aviation Lubricants Market?

Stringent Emission Regulations are expected To Limit Future Growth

Aviation lubricants must meet substantially higher performance standards than general lubricants used in other industries. As an outcome, aviation lubricant makers and consumers must consult the relevant technical specifications for the grade of oil endorsed to be used in an engine to target their product portfolio to a wider range of customers.

Stringent emission regulations are predicted to have an impact on market participants' current product portfolios, pushing them to invest significant financial and technical resources in developing excellent-performance aviation lubricants that not only meet operational standards but also arising emission norms.

Comparative View of Aviation Lubricants Markets

Aviation Lubricants Market :

Attributes	Aviation Lubricants Market
CAGR (2022-2032)	5%
Market Value (2032)	US$ 1.4 Billion
Growth Factor	The government's growing interest in progressing open skies, immigration, and visa policies is expected to provide a slew of new market opportunities for aviation lubricants.
Opportunity	The use of aviation lubricants for commercial, military, and general applications is more likely to generate significant demand for industry players.

Automotive Lubricants Market :

Attributes	Automotive Lubricants Market
CAGR (2022-2032)	3.1%
Market Value (2032)	US$ 108 Billion
Growth Factor	Characteristics such as high thermal stability, low freezing point, and high boiling point contribute to the engine's overall performance. These are the factors that are likely to drive the automotive lubricants market in the coming years.
Opportunity	The use of these automotive lubricants results in longer engine life by using lighter viscosity grades of high-performance lubricants. Furthermore, less viscous and premium synthetic lubricants enhance engine fuel economy to a larger extent.

Which Regional Market is the Most Profitable for Aviation Lubricants Manufacturers?

In 2022, North America is estimated to be the leading aviation lubricant market, followed by Asia Pacific and Europe. This is due to low oil prices and enhanced aircraft operations reliability, which are boosting the expansion of the North American aviation sector.

Furthermore, numerous airline companies, along with American Airlines, Delta Air Lines, Southwest Airlines, Air Canada, and WestJet, are focusing on high profits by developing optimal use of their aircraft fleets. The increment in operating hours of various airlines' commercial aircraft fleets and the advancement of aircraft fleets of different nations in the region are also fueling the global North American aviation lubricants market.

However, the Asia Pacific region is growing the fastest, with a value CAGR of 5.9%. Surging air traffic and cargo operations can be attributed to the expansion of this regional market, which is opening up a wide range of opportunities. for stakeholders in the aviation lubricants industry. In Asia Pacific, China is a wildly profitable market for aviation lubricants.

As the aircraft industry evolves, so does air traffic, resulting in a rise in demand for new aircraft and maintenance of the existing fleet. This enhanced passenger traffic results in a significant increment in aircraft demand in Europe, where rapid expansion is expected. Furthermore, the increase in air passenger traffic is expected to accelerate the expansion of this region's aviation lubricants market. Air transportation has long been a necessary mode of transportation for both travel and facilities.

Country-Wise Analysis

How Opportunistic will the Market for Aviation Lubricants be across the U.S?

The United States has the highest demand for aviation lubricants

According to Fact.MR, the North American region, specifically the U.S., accounts for the highest demand for aviation lubricants due to the presence of a large number of manufacturers and consumers. This is majorly attributed to the surging volume of air traffic in recent years.

According to the U.S Department of Transportation, around 32 million people were transported between the U.S and rest of the world, both by domestic and international carriers, as of March 2021. Likewise, 11 million tons of freight were carried to and from the country in the past year, representing a 1% increase from the preceding 12-month period.

Some prominent aviation lubricants manufacturers include ExxonMobil, KrytoxTM Lubricants and Eastman Chemical Company. According to projections put forward by Fact.MR, the market for aviation lubricants across the U.S is likely to exhibit a CAGR of 6.5% from 2022 to 2032.

Flourishing Aviation Infrastructure to Broaden Outreach of Lubricants in China?

The Chinese market remains the aviation lubricant's growth engine

The Chinese market remains the growth epicenter for aviation lubricants, amid the government’s strong push towards developing urbanization and industrialization, which will lead to giving a positive impact on air travel, will directly influence the aviation lubricants sales.

As per government estimates, since China unveiled its 14th Five Year Plan in 2021, one of the core strategies is to augment the country’s civil aviation sector. It is expected that China will inaugurate 30 new civil airports, increasing air traffic handling capacity by 43% to 2 billion passenger trips. As of the conclusion of the 13th Five Year Plan (2016-20), a total of 241 certificated airports with a capacity to transport 1.4 billion passengers was recorded.

Furthermore, a series of airport expansion projects, such as the Shanghai Pudong International Airport, Guangzhou Baiyun International Airport and Shenzen Bao 'an International Airport, will prompt increased procurement of aircraft, prompting an increase in the number of aviation lubricant sales in the long run. A CAGR worth 5% is expected for the market in China.

Country-wise Forecast CAGRs for the Aviation Lubricants Industry

Country	CAGR
China	5%
U.S.	6.5%
Australia	4%
France	4.6%

Category-wise Insights

Why is Demand for Semi-Synthetic & Synthetic Oils Increasing?

This segment is projected to account for half of the global consumption of aviation lubricants

According to Fact.MR, demand for semi-synthetic & synthetic oils is likely to surpass the US$ 900 Million mark by the end of 2032. This segment accounts for half of the aviation lubricants demand globally.

Synthetic lubricant fluids provide lubricating properties, including improved thermal and oxidative stability, more desirable viscosity-temperature characteristics, superior volatility and enhanced service life among others. These synthetic oils are also effective in preventing the onset of rust and corrosion on unused fleet.

Aviation Lubricants for Large Commercial Jets to Capture Maximum Share?

With global incidence of air travel increasing the Large Commercial Jets segment is growing

With global incidence of air travel increasing at an exponential rate, demand for high-quality aircraft maintenance, particularly for large commercial airliners, has kept pace. Rising concerns regarding metal fatigue and wear & tear is prompting high usage of lubricants. A CAGR worth 6% is anticipated for this segment until 2032.

A series of product launches have peppered the commercial jets landscape. In 2017, Shell Aviation partnered with engine manufacturer BRP-Rotax to introduce the AeroShell Oil Sports Plus 4 multi-grade aviation oil, helping prevent sludge problems when operating with leaded fuels.

Likewise, ExxonMobil’s Aviation Grease SHCTM 100 provides up to 6 years of shelf life to inventory value, offers maximum protection to wheels and bearings with its specialized complex polyalphaolefin (PAO) synthetic grease formation, and helps resist environmental deterioration in extreme weather conditions.

Competitive Landscape

Front Runners are emphasizing capacity enhancements and global footprint expansion to leverage lucrative prospects in developing economies. Partner training and development programs are being undertaken by multinationals to ensure the quality and consistency of services.

• In September 2021, Royal Dutch Shell announced its plans to start producing low-carbon jet fuel at scale by 2025, in an attempt to encourage the world’s airlines to reduce greenhouse gas emissions. The company said that it is aiming to produce 2 million tons of sustainable aviation fuel (SAF) by 2025, a ten-fold increase from today’s total global output.
• In July 2021, ExxonMobil and Avelo Airlines announced that ExxonMobil will be the sole aviation lubricants supplier for Avelo’s growing fleet. Avelo, the first new mainline U.S. carrier to launch in nearly 15 years, selected ExxonMobil based on trust in the company’s products and legacy in the aviation industry.
• Xeriant, Inc., a Florida-based developer of commercial aerospace technological advances, announced a collaboration with Xeriant Europe s.r.o. in January 2021 to introduce eco-friendly metal conditioners and lubricants under the brand names XERI-MC and XERI-L.
• Mesa Airlines signed a five-year agreement with Boeing Distribution Inc. (formerly Aviall) in April 2022 to acquire ExxonMobil aviation lubricants, specifically Mobil JetTM Oil II and MobilTM HyJetTM IV-Aplus, for its entire fleet of over 160 aircraft.

Key Segments Covered

• By Product :

  • Aviation Engine Oils
    • Turbine Engine Oils
    • Piston Engine Oils
  • Aviation Hydraulic Fluids
  • Aviation Greases
  • Other

• By Aircraft :

  • Business Jets & Turboprop Planes
  • Large Commercial Jets
  • Piston Engine Aircraft
  • Helicopters
  • Other Aircraft

• By Type :

  • Mineral Oil
  • Semi-synthetic & Synthetic Oil
  • Bio-based Oil
  • Other

• By Sales Channel :

  • Sales via OEMs
  • Sales via MROs

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa