Lubricants have gradually been transformed into general consumer products for consumer products used in conjunction with automobiles. Now that the level of mechanization has increased, the development of the lubricating oil industry has also risen. The higher the degree of mechanization, the higher the rate of use of lubricants and the prospects are bright. The development of the lubricant industry market will tend to grow steadily.

Lubricant industry market will tend to grow steadily

Industry analysts pointed out: China has a huge oil market. The rapid growth of domestic demand for vehicle oil and the upsizing of automotive oil will push the automotive lubricants industry into a period of rapid development. It is expected that the demand for lubricants in the Chinese market will double by 2020, and consumption will likely exceed that of the United States. The rapid growth in the demand for vehicle oil and the gentrification of vehicle oil will push the automotive lubricant industry into a period of rapid development.

In the face of a huge demand market, lubricant manufacturers have laid out one after another. With the increasingly fierce market competition, the market structure is undergoing major changes. Foreign companies have been stationed in an attempt to compete for the domestic market with their brand influence. Foreign brands continue to infiltrate into the Chinese market, and many lubricating oil plants that were originally on the edge of large-scale manufacturing companies have joined hands with overseas giants. Large-scale private enterprises are not to be outdone, and they have increased investment in R&D, relying on their advantages in cost and price to compete with foreign countries. Local brands have already broken the dominance of international oil giants and domestic monopolies.

At the same time, the optimization of resource allocation in the domestic lubricants market has not been fully realized. It is manifested in the aspects of base oil, scientific research strength, and material procurement. In addition, due to the relatively limited size of enterprises and profitability, financial budgeting systems are usually not implemented, and the completion of profits seems very passive. Therefore, there is still a lot of work to be done to make full use of resources and further optimization. In order to enhance the brand image and increase the proportion of high-grade oil, it is necessary to change the existing market operation methods and strengthen integration and monitoring.

The “2014-2018 China Lubricant Industry Analysis and Market Development Research Report” released shows: The domestic lubricants market has a good development trend. The supply and demand pattern of the base oil in the industry has been broken, and at the same time, the customer demand has grown to a high-grade, personalized development. The degree of homogenization and fierce competition are fierce. In the future development of the lubricant industry, it will adapt to the development trend of energy-saving, high-efficiency and high-end internal combustion engine oils.