Process oil demand to grow fastest in Africa/Mideast region

CLEVELAND—Global process oil demand will grow 1.4 percent per year to 7.2 million metric tons in 2021, according to a new report by the Freedonia Group.

Global Industrial Lubricants by Product, Market and Formulation looks at historical demand data and forecasts for 2021, evaluates market share and analyzes suppliers including BP, Chevron, Exxon Mobil, Shell and Total, according to the Freedonia Group.

The rate of growth for process oil demand will be lower than the global average in North America and Western Europe, where manufacturing will be the slowest, and higher than average in all other regions.

Growth of demand will be fastest in the Africa and Mideast region due to expected above-average increases in African manufacturing, according to the study. While the Asia and Pacific region is home to India, the country expected to undergo the biggest growth, countries with mature manufacturing markets, such as Japan and South Korea will limit aggregate regional growth outlook.

The study also covers other factors driving the market. An increase in world rubber consumption is forecast to accelerate, particularly in developing countries because of expanding vehicle parks. Fast population growth in developing regions will boost the level of food and beverage manufacturing. And mature manufacturing industries and offshoring of operations to utilize cheaper labor costs will limit process oil requirements in developed areas of the world.

Global demand for all types of industrial lubricants is expected to increase 1.6 percent per year through 2021, with major driving factors of increased manufacturing activity particularly in developing regions, a heightened level of global trade and a growing level of energy consumption.

The study, $5,900 for an individual license and $8,500 for a corporate license, is available at freedoniagroup.com .