UK Lubricants Market (2022-2027)

Rising Construction Activities Benefitting UK Lubricants Market

The construction industry in the UK experienced an increase of 5.6% in 2022 when compared to 2021. The increase was due to a rise in new work, which grew by 3.8%, and repair and maintenance, which increased by 8.5%. Demand for construction equipment is driven by rising building activities in the UK region. The number of new construction projects initiated annually rose by 7% in 2022 and an additional 6% in 2023. Residential construction activities saw a significant surge, with new home constructions increasing by 10% each year. Commercial projects also experienced growth, with a 6% increase annually. Infrastructure development received substantial investments, leading to a 9% increase in infrastructure construction activities in 2022. Repair and maintenance activities in the UK construction sector also witnessed growth, with expenditures increasing by 8.5% in 2022 compared to 2021. This rise in repair and maintenance spending reflects ongoing efforts to improve the condition and longevity of existing infrastructure and buildings. The 2023 UK National Infrastructure and Construction Pipeline comprises 660 projects, programs, and other investments across a wider range of infrastructure types than ever. Over the next two years to 2025, the total value of planned public and private investment is £164 billion, an average of £82 billion per annum. This growth in the construction sector directly translates into increased demand for lubricants. The demand for construction equipment and machinery, requiring efficient lubrication, saw a corresponding rise, driving sales volumes in the lubricants market.

Synthetic Lubricants a Game Changer in UK Lubricants Market

The market for synthetic oils is expected to grow with a CAGR of 2.8% from 2022 to 2027, in contrast to mineral oil, which is projected to experience a negative CAGR of -3.6% during the same period. The reason for this trend is that synthetic oils are purer, offer better flow characteristics, and are longer-lasting. In the marine sector, synthetic lubricants accounted for 50% of total lubricant sales in 2021, compared to 35% in 2019. Similarly, in the aviation industry, synthetic lubricants saw a 15% increase in adoption from 2019 to 2023. Synthetic lubricants are estimated to reduce carbon emissions by up to 25% compared to conventional mineral-based lubricants. This environmental benefit has led to increased adoption, with 80% of businesses prioritizing sustainability when selecting lubricants. Synthetic lubricants have steadily gained market share from conventional mineral-based lubricants over the past five years. In 2019, synthetic lubricants held a market share of 35%, which increased to 50% by 2023. Surveys indicate that 70% of consumers now prefer synthetic lubricants for their vehicles, citing improved engine performance and longevity as the primary reasons for their preference. This impact of synthetic lubricants on the UK lubricants market underscores their increasing adoption across various industries and their environmental and performance benefits.

Increased Focus on Sustainability Driving Growth of UK Lubricants Market

Several key players in the UK lubricants market have implemented specific measures to reduce their environmental impact. BP Castrol introduced its "NEXCEL" system, a closed-loop oil change system that reduces waste by up to 50%. This innovation, implemented in 2021, has not only helped reduce the environmental footprint of oil changes but has also resulted in significant cost savings for customers. Shell has also made strides in sustainability by launching its "Shell Eco-Marathon" program, aimed at promoting energy efficiency and innovation in transportation. As part of this initiative, Shell introduced its "Shell Helix Ultra with PurePlus Technology" lubricant in 2022, which is made from natural gas and offers improved fuel economy by up to 3%. Similarly, ExxonMobil has focused on reducing emissions by introducing its "Mobil SHC" range of synthetic lubricants, which are formulated to offer extended drain intervals, resulting in reduced waste oil generation. This initiative, implemented in 2023, has led to a 20% reduction in carbon emissions associated with lubricant changes. These sustainability measures have not only contributed to the environmental goals of these companies but have also resonated with consumers and businesses seeking greener alternatives. As a result, these initiatives have played a significant role in driving the growth of sustainable lubricants in the UK market, with sales volumes of environmentally friendly lubricants witnessing a steady increase year on year.