Friday, March 30, 2012

Continued Growth Projected for Synthetics

The Freedonia Group projects higher equipment performance requirements and increasingly stringent environmental standards will cause U.S. demand for synthetic lubricants to grow by more than 8 percent annually to $7.4 billion in 2015. Buoyed by an increased number of vehicles on the road and the latest motor oil specifications, synthetic motor oil demand is expected to grow the quickest, increasing 12.4 percent per year to $3.2 billion in 2015. Demand for synthetic transmission oil and hydraulic fluids is expected to increase 11.5 percent annually to $955 million by 2015.

“Aftermarket sales of synthetic engine oils will be promoted by ongoing consumer education about the benefits of synthetic products and manufacturers’ recommendations for synthetic oils as part of regular maintenance,” said Freedonia analyst Bridget McMurtrie.