Dublin, Dec. 19, 2023 (GLOBE NEWSWIRE) -- The "UK Lubricant Market Outlook to 2027" report has been added to ResearchAndMarkets.com's offering.
The lubricant market in the UK has undergone significant changes and transformations over time. As of 2022, the market is relatively stable, but there is a growing focus on sustainability and eco-friendly approaches to lubricant manufacturing. In the first half of the 20th century, Castrol Classic oils played a pivotal role in transforming the use of lubricants in the UK. This era also saw the emergence of several new players who were actively exploring advanced technologies, which became key drivers of market growth.
However, the market experienced a decline due to the adverse effects of the Covid-19 pandemic on the supply chain and a negative growth rate in the automobile manufacturing sector. The pandemic-induced restrictions and reduced economic activity directly impacted the lubricant market, leading to a decrease in demand.
At present, the lubricant market in the UK is established, but there is an expectation of growth as the market recovers from the Covid-19 impact and explores new opportunities, particularly in the electric vehicle (EV) market. The market is projected to shift its focus towards sustainability and maintainability in order to preserve its market share.
Consequently, there is anticipated growth in terms of new lubricant products that prioritize sustainability and eco-friendliness. Lubricant manufacturers are likely to invest in research and development to create environmentally friendly lubricants with reduced impact. Additionally, there will be a need for a new product portfolio tailored specifically for electric vehicles, which have distinct lubrication requirements compared to traditional combustion engine vehicles.
Key Trends by Market Segment:
- By Distribution Channel: Due to their knowledgeable and skilled staff, OEM workshops are the preferred choice among customers when it comes to buying lubricants. Commercial vehicle manufacturers like JCB often establish their own distribution networks, which not only offer vehicle servicing but also cater to the needs of their commercial vehicle customers. The online channel experienced a surge in sales during 2020 primarily due to the COVID-19 pandemic and the subsequent lockdowns and restrictions.
- By End User: The construction sector in the United Kingdom saw growth in 2022 as opposed to 2021. This growth can be attributed to an increase in both new construction projects and repair/maintenance work. The demand for construction equipment is primarily influenced by the growing construction activities taking place in the UK region.
Competitive Landscape:
In the UK's lubricants market, Shell, BP Plc (Castrol), and ExxonMobil are dominant players, collectively holding more than 50% market share. The market has experienced increased demand post-pandemic, driven by the expansion of public infrastructure and commercial buildings. Competition among major players revolves around product portfolio, distribution network, pricing, and quality.
As the market grows, companies are focused on innovation and research to meet evolving customer demands. These major players serve renowned OEMs like Ford, Jaguar, Renault, BMW, Mercedes, Ferrari, and Maserati, highlighting their strong client base. Intense competition based on product offerings, distribution capabilities, pricing, and quality standards characterizes the UK's lubricants market, which is poised for further growth.
Future Outlook:
The future lubricants market in UK is expected to grow with a CAGR of 1.5% (2022-2027) as the demand rises for industrial lubricants along with synthetic lubricants in the sector.
In the United Kingdom, manufacturers have fully embraced the Fourth Industrial Revolution, adopting advanced and cutting-edge manufacturing processes. This transition has contributed to significant growth in the industrial sector and has opened up new opportunities for the utilization of industrial lubricants.
A lot of the lubricant used will be through automotive dealerships (Ford, Mercedes for example and called OEM workshops. This also includes outlets like Kwik Fit and other franchised service chains. Setting up canopy tents to promote lubricants in the industrial hubs of the country can assist the manufacturers in reaching out to final consumers of the products.
Long term tie-ups with the increasing number of transportation sector players are expected to fuel the UK Lubricant market revenue.
A selection of companies mentioned in this report includes
- BP Plc (Castrol)
- Royal Dutch Shell Plc
- Exol Lubricants Limited
- ExxonMobil Corporation
- FUCHS Lubricants (UK) Plc
- Total Energies
- Morris Lubricants
- Opus Lubricants
- Brit-lube Ltd
- Rock Oil
- GB Lubricants
- Ironsides Lubricants Ltd
- Pennine Lubricants
For more information about this report visit https://www.researchandmarkets.com/r/xxxju0
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