South & Central America Lubricating Grease Market Forecast to 2030 - Regional Analysis - by Base Oil [Mineral Oil, Synthetic Oil, and Bio-based], Thickener Type, and End-Use Industry

The South & Central America lubricating grease market was valued at US$ 116.30 million in 2022 and is expected to reach US$ 144.16 million by 2030; it is estimated to register a CAGR of 2.7% from 2022 to 2030.

Advancements in Grease Development Fuel South & Central America Lubricating Grease Market

The continuous advancements in grease development are transforming the landscape of lubrication solutions, offering improved performance, sustainability, and versatility. Advancements in grease development, particularly the utilization of innovative thickeners such as polyurea and calcium sulfonate, are playing a pivotal role in driving the lubricating grease market. Polyurea thickeners have gained prominence in recent years due to their exceptional properties. They offer high-temperature stability, water resistance, and mechanical stability, making them suitable for demanding applications in automotive, industrial manufacturing, and aerospace industries.

Polyurea-thickened greases provide extended lubrication intervals, reducing maintenance frequency and increasing equipment operation efficiency. Calcium sulfonate thickeners represent another significant advancement in grease development. These thickeners exhibit excellent extreme pressure and anti-wear properties, which makes them suitable for heavy-duty applications in mining, construction, and steel manufacturing industries. Calcium sulfonate greases also provide enhanced corrosion protection, extending the life of components used in harsh operating conditions.

The versatility of calcium sulfonate and polyurea allows manufacturers to formulate greases that meet specific industry requirements. Polyurea-thickened greases, for example, excel in high-speed applications, where conventional greases might experience limitations. In contrast, calcium sulfonate greases are well-suited for extreme pressure and heavy-load conditions, making them indispensable in rugged industrial settings. Moreover, these advancements address environmental concerns and regulatory requirements. Polyurea and calcium sulfonate thickeners can be formulated to meet stringent environmental standards, including biodegradability and reduced toxicity.

As sustainability becomes a key consideration across industries, the development of greases with environmentally friendly thickeners is expected to support the market growth. The adoption of these advanced thickeners also contributes to the expansion of niche markets. For instance, in the food processing industry, where strict hygiene standards are paramount, polyurea-based food-grade greases provide lubrication solutions that comply with industry regulations.

Similarly, calcium sulfonate greases find applications in marine environments due to their resistance to water washout and corrosion protection properties. Thus, the integration of innovative thickeners such as polyurea and calcium sulfonate is expected to drive the lubrication grease market growth. These advancements offer enhanced performance, extended lubrication intervals, and environmental sustainability, contributing to increased demand across diverse industrial sectors. Thus, the constant advancements in grease development are poised to fuel the market expansion.

South & Central America Lubricating Grease Market Overview

The South & Central America lubricating grease market growth is attributed to the surging industrial activities across the region, ranging from manufacturing to mining, necessitating effective lubrication solutions to ensure the smooth operation and longevity of machinery and equipment. According to the International Organisation Internationale des Constructeurs d'Automobiles (OICA), the total number of vehicles manufactured in South & Central America grew from ~2.72 million in 2021 to ~2.96 million in 2022, registering an increase of 9%. In addition, rising car ownership due to increased spending power and higher living standards fuel the market for automotive maintenance.

Moreover, major market players in the automotive sector have strategized development and expansion of their operational capacities in South & Central America to tap the lucrative automotive market. In 2022, Audi AG invested US$ 19.2 million to restart production at its plant in Parana, Brazil, registering a capacity of 4,000 vehicles per year. The region's automotive industry, which relies mainly on import and export revenue generation, considerably creates lucrative opportunities for lubricating grease. The rise in passenger car sales is the prime factor driving the lubricating grease market in the region. The diverse climates and geographical conditions in the region pose challenges to machinery maintenance.

Lubricating grease becomes crucial in protecting against corrosion, rust, and extreme temperatures. Industries operating in sectors such as agriculture, where machinery is exposed to varied environmental conditions, rely on grease to ensure uninterrupted performance. In South & Central America, "Jubarte Offshore Oil Field Development" and "Pre-Salt Submarine Fiber Optic Cable Network" are a few of the major ongoing infrastructure projects. Governments of various countries in this region focus on supporting the development of more infrastructure projects to catch up with the pace of urbanization. Thus, constant infrastructure development efforts have surged the demand for construction machinery and equipment, thereby positively favoring the lubricating grease market.

South & Central America Lubricating Grease Market Revenue and Forecast to 2030 (US$ Million)

South & Central America Lubricating Grease Market Segmentation

The South & Central America lubricating grease market is categorized into base oil, thickener type, end-use industry, and country.

Based on base oil, the South & Central America lubricating grease market is segmented mineral oil, synthetic oil, and bio-based. The mineral oil segment held the largest market share in 2022. The synthetic oil segment is further sub segmented into polyalkylene glycol, polyalphaolefin, and esters.

In terms of thickener type, the South & Central America lubricating grease market is categorized into lithium, lithium complex, polyurea, calcium sulfonate, anhydrous calcium, aluminum complex, and others. The lithium segment held the largest market share in 2022.

By end-use industry, the South & Central America lubricating grease market is segmented into conventional vehicles, electric vehicles, building & construction, mining, marine, food, energy & power, and others. The conventional vehicles segment held the largest market share in 2022.

By country, the South & Central America lubricating grease market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America lubricating grease market share in 2022.

BP Plc, Chevron Corp, Exxon Mobil Corp, Fuchs SE, Kluber Lubrication GmbH & Co KG, Petroliam Nasional Bhd, Shell Plc, TotalEnergies SE, and Valvoline Inc are some of the leading companies operating in the South & Central America lubricating grease market.