The Industrial lubricants industry in India is estimated to be USD 59.40 billion in 2025. The industry will expand at a CAGR of 3.8% and is anticipated to acquire a market valuation of USD 86.88 billion by 2035. In 2024, the Indian industrial lubricants industry experienced consistent growth driven by various factors. The automotive sector is one of the major consumers of lubricants and continues to grow with higher vehicle production and sales.
The growth was surged by state initiatives for industrialization and manufacturing growth. Additionally, the integration of advanced technology in the manufacturing industry created the need for top-quality lubricants to facilitate running efficiency and equipment longevity.
Global trends towards the use of ecologically friendly products created an upsurge in demand for bio-based and synthetic lubricants. However, some barriers, including volatility of raw material costs, affect profit margins in the manufacturing business. Despite these challenges, strategic investments in research and development made it possible to introduce innovative lubricant solutions to meet changing industrial needs.
India's industrial lubricants industry is projected to grow further through the upcoming decade. The expansion of the automotive and industrial sectors is anticipated to fuel lubricant consumption even more.
Further, Advances in equipment and machinery technologies are also likely to augment the need for specialized lubricants to achieve the best performance and conformance with environmental standards. Focus on sustainability is expected to drive the creation and use of sustainable lubricant alternatives.
| Metrics | Values |
|---|---|
| Industry Size (2025E) | USD 59.40 billion |
| Industry Value (2035F) | USD 86.88 billion |
| CAGR | 3.8% |
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Future Market Insights conducted a recent survey of key players in the Indian industrial lubricants industry, such as manufacturers, suppliers, and end-users. The survey showed that more than 60% of the respondents recognized cost-effectiveness and performance efficiency as the key drivers for the selection of lubricants.
Industrial players were quick to highlight the increasing demand for high-performance lubricants that maximize the longevity of machinery and lower maintenance expenses. In addition, stakeholders observed an increasing trend toward synthetic and bio-based lubricants, fuelled by environmental regulations and corporate sustainability efforts.
The survey also brought to light the growing importance of digitalization and predictive maintenance in lubricant management. Approximately 45% of the respondents stated that data-driven solutions and IoT-based monitoring systems are becoming essential for optimizing lubricant usage.
Automotive, manufacturing, and energy industries are quickly embracing smart lubrication practices to reduce downtime and enhance operational efficiency. Additionally, stakeholders recognized the pain of volatile raw material prices, which ongoingly affect cost structures and profit margins.
| Regulation/Certification | Description and Impact |
|---|---|
| Lubricating Oils and Greases (Processing, Supply, and Distribution Regulation) Order, 1987 | This regulation mandates that businesses involved in the processing, manufacturing, blending, packaging, refining, or sale of lubricating oils and greases obtain a LUBE License. The license ensures adherence to quality and safety standards, and compliance is enforced by the Ministry of Petroleum and Natural Gas. |
| Bureau of Indian Standards (BIS) Certification | The BIS, established under the BIS Act, 2016, is the National Standards Body of India responsible for developing and implementing standards for various products, including industrial lubricants. Compliance with BIS standards ensures product quality and safety, facilitating consumer trust and market access. |
| ISO Certifications | While not mandatory, obtaining ISO certifications such as ISO 9001:2015 (Quality Management System) and ISO 14001:2015 (Environmental Management System) can enhance a company's credibility and demonstrate commitment to quality and environmental sustainability. These certifications are often pursued by lubricant manufacturers to meet international standards and improve market competitiveness. |
| Extended Producer Responsibility (EPR) for Used Oils | Effective from April 1, 2024, India has expanded the scope of Extended Producer Responsibility to include used oils. This policy holds producers accountable for the collection and environmentally sound disposal of used lubricants, promoting recycling and reducing environmental pollution. Compliance with EPR regulations is mandatory for lubricant manufacturers and importers. |
The industrial lubricants industry in North India is estimated to grow at a Compound Annual Growth Rate (CAGR) of about 3.6% from 2025 to 2035, matching the national average. This development is mainly attributed to the strong industrial base of the region, including automotive production, heavy machinery, and construction. The other states, including Haryana, Uttar Pradesh, and Punjab, have experienced rapid industrialization over the years.
This results in increasing demand for high-performance lubricants in order to enhance the operational efficiency and durability of machines. The expansion of industry is also on surge due to the presence of some major industrial corridors and national capital.
Furthermore, the government's initiatives for infrastructure development and the advent of new industrial zones are anticipated to create profitable opportunities for lubricant manufacturers & suppliers in the region.
FMI opines that North India industrial lubricant sales will grow at nearly 3.6% CAGR through 2025 to 2035.
The South India industrial lubricants sector is anticipated to expand at a CAGR of 4.0% during the forecast period between 2025 and 2035. The growth of the sector is driven by several factors, such as the region’s industrial landscape, information technology, automotive textiles, and petrochemicals, among others.
Some states including Tamil Nadu, Karnataka, and Andhra Pradesh, have transformed into manufacturing and technology capitals, attracting large amounts of investment in such sectors. Tamil Nadu has witnessed a tremendous growth in the automotive industry, leading to an improved demand for specialty lubricants.
Additionally, the increasing number of renewable energy projects planned or underway in the region (including wind and solar farms) will require specialized lubricants for maintenance, which will, in turn, drive the industry for lubricants.
FMI opines that South India industrial lubricant sales will grow at nearly 4.0% CAGR through 2025 to 2035.
The East India industrial lubricants industry is expected to grow at a CAGR of over 3.5% during the period 2025 to 2035. States such as West Bengal, Odisha, and Jharkhand are key players in the industrial activities of the region, which are mostly dominated by mining, steel, and heavy engineering. The availability of natural resources has led to the establishment of mining and metal processing industries that require major quantities of industrial lubricants for equipment maintenance.
Further, governmental actions to support industrialization infrastructure development across the eastern states are also expected to drive lubricant consumption. However, challenges such as poor infrastructure and logistical constraints in this region can hinder the industry's growth potential.
FMI opines that East India industrial lubricant sales will grow at nearly 3.5% CAGR through 2025 to 2035.
The industrial lubricants sector in the Western India is poised to surge substantially at a CAGR of approx. 4.2% over the next decade. The economic portfolio in the region comprises potently strong industries like petrochemicals, textiles, pharmaceuticals, and automotive manufacturing. States such as Gujarat and Maharashtra are leading the way, with Gujarat becoming a petrochemical powerhouse and Maharashtra being home to a large number of automotive and manufacturing units.
The establishment of dedicated industrial zones and special economic zones (SEZs) has attracted both domestic and foreign investments, thus driving the demand for industrial lubricants. The e-commerce sector has benefited from the industry growth due to the well-established infrastructure in these states, as well as their geographical advantages with their ports.
FMI opines that West India industrial lubricant sales will grow at nearly 4.2% CAGR through 2025 to 2035.
Hydraulic fluids are likely to remain vital in industrial applications. They ensure smooth machinery operations in construction equipment, mining machines, and manufacturing machines. As the industry emphasised efficiency and equipment longevity, the demand for high-performance formulations with anti-wear properties will surge. However, several environmental concerns will also lead to the adoption of biodegradable hydraulic fluids.
Metalworking fluids will witness a steady growth, driven by increasing automation and precision engineering. Industries will seek advanced formulations that enhance machinery efficiency while reducing operation costs.
The water-soluble and semi-synthetic oils provide environment-friendly synergies while also enhancing cooling efficacy and will gain significant traction.
The automotive and heavy machinery industries will generate the highest demand for gear oil. Products with a higher viscosity index will take the driver’s seat due to better lubrication and longevity on track. The evolution and trend of moving to more energy-efficient solutions will force producers to develop gear oils that minimize friction and improve mechanical performance.
Power Generation and Manufacturing will drive the growing adoption of compressor oil. With the industries gradually heading towards cost-effective maintenance solutions, it further increases the demand for advanced synthetic formulations that promise thermal stability and extended drain intervals.
Grease will play a key role in high-load applications across automotive, mining, and heavy machinery sectors. The focus on long-lasting, high-performance greases with water resistance and extreme pressure protection will drive industry growth.
More turbine oil will be used in power plants and renewable energy projects. Formulations with oxidation stability will be required to produce energy efficiently with minimum risk.
With modernized power infrastructure, Transformer oil will gain significant traction. The gradual shift toward biodegradable and fire-retardant variants aligns with industry efforts to emphasize safety aspects and environmental compliance.
The demand for refrigeration oil will increase in the HVAC, food processing, and industrial cooling applications. The transition to green refrigerants impacts lubricant formulations to adhere to new regulatory standards.
Textile machinery lubricants will continue to play a vital role in ensuring smooth operations in the spinning, weaving, and dyeing processes. With the increase in automation in textile manufacturing, the demand for high-speed and long-lasting lubricants will grow.
Mineral oil will remain the primary source of industrial lubricants due to its relatively low cost and wide availability. Besides, industries will demand better formulations that include improved additives to enhance performance and reduce maintenance costs. Regulatory pressure could slowly drive a transition to synthetic substitutes.
In addition, as industries focus on enhanced lubrication performance and equipment longevity, synthetic oil applications will continue to expand. With all these qualities, synthetic oils will be adopted in automotive, aerospace, and power generation sectors for their superior thermal stability, oxidation resistance, and efficiency in extreme conditions. Higher initial costs will be recouped from extended service life and reduced downtime.
The bio-based oil industry will expand due to mounting environmental concerns and regulatory backing. Sectors such as food processing, agriculture, and marine applications will need biodegradable substitutes to fulfill sustainability objectives. Progression in bio-lubricant formulations will enhance efficiency, rendering them suitable alternatives for conventional lubricants. This transition to greener options will only increase as businesses strive for carbon neutrality.
Construction will surge the demand for lubricants with the increasing demand for infrastructure projects. Heavy machinery, including excavators and bulldozers, will require high-performance lubricants to enhance durability and efficiency. Synthetic oils will gain traction for their extended service life in harsh conditions.
The metal and mining industries will remain the demand-side industries, which require advanced lubricants to reduce wear in high-load equipment. Demand for specialty greases and hydraulic fluids will grow as automation and safety upgrades are adopted.
Durable lubricants are required for the crushers, kilns, and conveyors used in cement production. High-temperature resistant oils will be crucial for maximizing production and reducing unscheduled maintenance.
Lubricant consumption is expected to increase in power generation as well, particularly in wind and hydroelectric plants. High oxidation stability turbine and transformer oils will be essential to continuous energy production.
Lubricant innovation will continue to be driven by automotive manufacturing and servicing. The trend toward electrification will move demand to more specialized greases and cooling fluids and away from engine oils.
Chemical production will necessitate high-performance lubricants that resist harsh chemicals and extreme temperatures. Specialty formulations will ensure equipment longevity and operational efficiency. The oil and gas industries will depend on industrial lubricants for drilling, refining, and transport.
Textile production will need specialty lubricants for high-speed spinning, weaving, and dyeing processes. The growth of automation will generate an increasing demand for long-life, low-residue lubricants.
The increasing requirement for compliance with safety regulations will lead to the intensified use of food-grade lubricants in food processing. Demand for NSF-certified and bio-based alternatives will ensure the cleanliness of the production process.
Agriculture will require multipurpose lubricants for mechanized farm machinery. The demand for efficient, low-maintenance solutions will lead to the deployment of synthetic and bio-based lubricants.
Moisture-resistant lubricants must be considered in order to maintain the service life and reliability required to keep the pulp and paper industries running. That focus on energy efficiency will increase the need for high-performance hydraulic fluids and greases.
Marine use will demand lubricants that can resist corrosion and improve fuel efficiency. Tighter emissions regulations will cause a shift toward biodegradable and more environmentally friendly substitutes.
| 2020 to 2024 | 2025 to 2035 |
|---|---|
| The industry saw steady growth, driven by industrial recovery post-pandemic. Economic slowdowns in 2020 impacted demand, but government initiatives in infrastructure and manufacturing revived the sector. | The industry is expected to grow steadily, with a shift toward high-performance and environmentally friendly lubricants. Increasing industrial automation will drive demand for synthetic and specialty lubricants. |
| Supply chain disruptions due to COVID-19 led to raw material shortages, impacting production and pricing. The industry gradually stabilized by 2022, with rising investments in domestic manufacturing. | Advancements in lubricant technology will improve product efficiency and reduce maintenance costs. Companies will invest in sustainable, bio-based, and low-emission lubricant solutions. |
| Sectors like construction, automotive, and mining were key demand drivers. Automotive lubricants faced a temporary decline due to reduced vehicle sales but recovered with increased production in 2023 to 2024. | The rise of electric vehicles (EVs) will reduce traditional lubricant consumption while increasing the demand for specialty greases and thermal management fluids. The construction and power sectors will remain the dominant consumers. |
| Regulatory compliance became stricter, pushing companies toward low-sulfur and biodegradable lubricants. Sustainability initiatives gained traction, but adoption remained limited due to cost concerns. | Stricter environmental regulations will accelerate the transition to bio-based and synthetic lubricants. Companies will focus on R&D for innovative, high-performance formulations to meet evolving industry standards. |
| Competitive pricing and strong distributor networks played a critical role in industry expansion. The industry remained fragmented, with both domestic and international players competing. | Market consolidation is expected, with key players investing in technological advancements and sustainable manufacturing. Strategic partnerships and mergers will define industry growth. |
The Indian industrial lubricants industry belongs to the specialty chemicals sector, closely related to manufacturing, infrastructure growth, and industrial automation. It is a cyclical industry, driven by macroeconomic trends, including GDP growth, industrial production, energy consumption, and regulatory policy.
During 2020 to 2024, India's economic rebound from the COVID-19 pandemic contributed immensely to driving industrial activity, leading to the demand for lubricants in major sectors such as construction, mining, power generation, and automobile manufacturing. Policies such as "Make in India" and the Production-Linked Incentive (PLI) scheme supported domestic production, which had a positive effect on lubricant consumption.
Between 2025 and 2035, urbanization, infrastructure development, and industrial automation will drive industry expansion. The growth of electric vehicles could hamper the requirement for traditional lubrication, but it will also bring in new niches for specialty greases and refrigeration fluids. More stringent eco-regulations will encourage manufacturers to go for bio-based and synthetic lubricants, whereas volatile crude oil prices could affect raw material prices.
The sector will also be boosted by India's high foreign direct investment (FDI) inflows in manufacturing and energy, causing higher lubricant consumption. But supply chain shocks, trade tensions, and geopolitics may add industry volatility. Firms with investments in R&D, sustainable formulations, and cutting-edge manufacturing will have a competitive advantage.
The Indian industrial lubricant industry offers high growth prospects, especially in synthetic and bio-based lubricants, with increased emphasis on environmental regulations and high-performance product demand. Low-emission lubricants designed for sectors such as power generation, EV production, and heavy equipment should be developed by stakeholders to gain industry share.
Adding regional production clusters will dampen supply chain vulnerabilities, while local procurement of raw materials can minimize cost instability associated with crude oil prices. Joint ventures with OEMs in cars and industrial machinery will guarantee direct product integration, guaranteeing long-term contracts.
R&D investment in sector-specific lubricants, like electric vehicle thermal management fluids or transformer fire-resistant oils, will address new industrial requirements. Digital lubricant distribution, with IoT-based monitoring for predictive maintenance, can become an industrial value-add.
Firms must also synchronize with the government incentives of the Make in India and the PLI schemes to become the prime vendors in India's emerging industrial setup.
Top players in the Indian industrial lubricants industry compete on price strategies, innovation, strategic alliances, and geographic penetration. While local players concentrate on cost-competitiveness and extensive distribution networks, multinationals differentiate through high-performance synthetic lubricants and eco-friendly formulations. The drive for bio-based lubricants and low-emission solutions is gaining momentum as regulatory systems become stringent.
Growth initiatives encompass capacity increases, R&D expenditure, and OEM partnerships for the incorporation of cutting-edge lubricants into industrial equipment. Firms are also joining forces with distributors and online retailers to increase industry penetration. Mergers and joint ventures with local operators assist global giants in bolstering their presence. Moreover, digitalization is picking up pace, with top companies implementing IoT-based lubrication tracking systems to provide predictive maintenance offerings.
The Indian industrial lubricant market is dominated by major contributions from both public sector undertakings (PSUs) and private players. The market remains quite consolidated in 2023, with the largest five players accounting for nearly 67.13% of the market share.
Indian Oil Corporation Limited (IOCL), being a top PSU, controls a major industry share in the lubricants industry, which indicates its vast distribution network and brand value. Likewise, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL), being state-owned companies, have captured major shares of the industry, established platforms, and trustworthiness among customers.
In the private industry, Castrol India, a subsidiary of the multinational BP, is a major player. In 2023, Castrol India is the second-largest industrial and automotive lubricant manufacturer in the Indian industry, with approximately 20% of the total Indian lubricant industry. Gulf Oil Lubricants India Ltd. is also a significant player, with an industry capitalization value of almost 31 billion Indian rupees in 2023.
Recent Key Developments
April 2024 - Gujarat Gas Limited (GGL) & Indian Oil Corporation Limited (IOCL) signed a non-binding MoU to enhance energy solutions for industrial applications.
February 2024 - Gulf Oil Lubricants India partnered with SCHWING Stetter India to cater to the construction equipment sector.
Ongoing Trend - More companies are focusing on strategic partnerships and collaborations to expand market reach, enhance product innovation, and cater to evolving industrial demands.
Rising industrialization, infrastructure projects, and demand for high-performance lubricants.
Construction, power generation, metalworking, automotive, and manufacturing sectors.
Stricter environmental norms are pushing companies toward bio-based and low-emission lubricants.
Advancements in synthetic formulations, energy-efficient solutions, and predictive maintenance technologies.
Traditional lubricant demand is declining, but specialty greases and thermal management fluids are gaining traction.
Hydraulic fluids, Metalworking fluids, Gear Oils, Compressor Oil, Grease, Turbine Oil, Transformer Oil, Refrigeration Oil, Textile Machinery Lubricants, and Others
Mineral Oil, Synthetic Oil, and Bio-based Oil
Construction, Metal and Mining, Cement Production, Power Generation, Automotive, Chemical Production, Oil and Gas, Textile Manufacturing, Food Processing, Agriculture, Pulp and Paper, Marine Application, and others
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