Greasing the gears: Revenue decline to give way to growth as oil prices stabilize

While the Lubricant Oil Manufacturing industry experienced financial hardships postrecession, and suffered revenue contractions over the past five years, the industry shows signs of turning around and experiencing growth moving forward. The industry's troubles over the past five years can primarily be attributed to the significant tumble in the price of crude oil, a crucial input for industry products. The volatile, decreasing price of crude oil hindered industry revenue, reducing demand and tempering the price operators could charge for industry products...read more.

Industry Statistics & Market Size
Revenue
$21bn
Annual Growth 12-17
-5.2%
Forecast Growth 17-22
Profit
Employment
14,567
Businesses
438
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Industry Threats & Opportunities

  • As crude oil prices begin to normalize, demand for lubricants is forecast to show strong growth
  • Declining revenue led operators to maintain smaller staff levels to reduce operating expenses
  • Synthetic oil offers better mechanical protection and lasts longer than conventional oil
  • Industry Report - Industry Products Chapter

    Automotive lubricantsAccounting for an estimated 55.1% of industry revenue in 2017, automotive lubricants keep various parts of motor vehicle bodies and engines running smoothly by cushioning adjacent metal pieces, oiling moving parts and keeping dirt out of the combustion chambers. The four main product types are motor oil, transmission and axle lubricants, fluids for hydraulic torque converters and fluid couplings used in automatic transmissions. Each category has subdivisions based on viscosity or resistance to molecular rearrangement or flow. Since the early recovery, the automotive lubricants segment, particularly the light vehicle segment, has continued to decline as vehicle efficiency has increased the amount of time before lubricant changes. Thi...purchase to read more.

    Additional Insights for the Lubricant Oil Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Lubricant Oil Manufacturing Industry are

  • Ability to alter goods and services produced in favor of market conditions
  • Guaranteed supply of key inputs
  • Involvement of all stakeholders
  • IBISWorld analysts also discuss how external factors such as World price of crude oil and Per capita disposable income in the Lubricant Oil Manufacturing industry impact industry performance..

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    What is the Lubricant Oil Manufacturing Industry?

    Operators in this industry manufacture petroleum products (except for asphalt-paving, roofing and saturated materials), such as blended motor oils, brake fluids, lubricating grease and other oil-based additives. Key buyers include downstream automobile manufacturers, wholesalers and automotive retail chains.

    Industry Products
  • Consumer automotive lubricants
  • Commercial automotive lubricants
  • Industrial lubricants
  • Industry Activities
  • Manufacturing lubricating oils and greases made from refined petroleum
  • Manufacturing brake fluids made from refined petroleum
  • Manufacturing petroleum jelly made from refined petroleum
  • Manufacturing petroleum waxes made from refined petroleum
  • Re-refining used petroleum lubricating oils
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of crude oil
  • Per capita disposable income
  • Industrial production index
  • Number of motor vehicle registrations
  • Trade-weighted index

  • Current Performance
  • Domestic crude discount disappears
  • Operational trends
  • Specialization
  • Chart: Revenue Growth

  • Industry Outlook
  • A complete recovery
  • Operational environment
  • Table: Lubricant Oil Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Lubricant Oil Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Iron & Steel Manufacturing
  • Auto Parts Stores
  • Local Freight Trucking
  • Long-Distance Freight Trucking

  • Key Selling Industries
  • Animal Food Production
  • Inorganic Chemical Manufacturing
  • Metal Can & Container Manufacturing
  • Oil Drilling & Gas Extraction
  • Petrochemical Manufacturing
  • Plastic Film, Sheet & Bag Manufacturing

  • Products & Services
  • Industrial lubricants
  • Consumer automotive lubricants
  • Commercial automotive lubricants
  • Other
  • Chart: Lubricant Oil Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers
  • Other
  • Retailers
  • Chart: Major Market Segmentation for the Lubricant Oil Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Lubricant Oil Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Lubricant Oil Manufacturing Industry

  • Industry Globalization
    Exxon Mobil Corp.Royal Dutch Shell PLCAshland Inc.
  • Table: Exxon Mobil Corp. - financial performance
  • Table: Royal Dutch Shell PLC - financial performance
  • Table: Ashland Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Lubricant Oil Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Lubricant Oil Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • World price of crude oil (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Grease
  • A thick oil used to lubricate machinery.
  • Lubricant
  • A substance, such as grease or oil, that reduces friction when applied as a surface coating to moving parts.
  • Synthetic Oil
  • A substance created in the laboratory with crude oil products that has similar properties to conventional lubricant oil.
  • Why buy this report?

    IBISWorld’s Lubricant Oil Manufacturing Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Lubricant Oil Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Lubricant Oil Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Lubricant Oil Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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