US demand for synthetic lubricants and functional fluids will expand 3.2 percent annually through 2013. Engine oils and hydraulic and transmission fluids will grow the fastest as synthetics finally begin to penetrate the medium- and heavy-duty truck market and expand market share in the light vehicle segment.

This study analyzes the $4.1 billion US synthetic lubricant and functional fluid industry. It presents historical demand data (1998, 2003, 2008) and forecasts for 2013 and 2018 by fluid type (e.g., engine oils, heat transfer, hydraulic and transmission, metalworking, dielectric), material (e.g., glycols, polyalphaolefins, group III base oils) and market (e.g., vehicles and equipment, metal fabrication, energy/power generation).

The study also considers market environment factors, details industry structure, evaluates company market share and profiles 25 industry competitors, including Exxon Mobil, Shell and Ashland.

				    TABLE OF CONTENTS

     SECTION									    PAGE

		Introduction							      ix

	I.	Executive Summary						       1

	II.	Market Environment						       4
		General								       4
		Macroeconomic Outlook						       5
		Demographic Trends						       9
		Consumer Spending Trends					      12
		Manufacturing Trends						      14
		Competitive Products						      17
		Environmental & Regulatory Issues				      19
		   Recycling & Re-Refining					      21
		   Engine Oil Specifications					      22
		Pricing Trends							      24
		Foreign Trade & International Activity				      27

	III.	Products							      30
		General								      30
		Engine Oils							      32
		   Gasoline Engine Oils						      36
		   Diesel Engine Oils						      40
		   Oils for Other Engines					      44
		Heat Transfer Fluids						      47
		   Low Temperature						      50
		   High Temperature						      54
		Hydraulic & Transmission Fluids					      58
		   Transmission Fluids						      60
		      Product Characteristics					      60
		      Demand							      62
		   Hydraulic Fluids						      62
		Metalworking Fluids						      64
		   Product Characteristics					      65
		   Demand							      66
		      Metal Removal Fluids					      69
		      Metal Forming Fluids					      71
		      Other Metalworking Fluids					      73
		Dielectric Fluids						      75
		Other								      78
		   Compressor Lubricants					      80
		   Turbine Lubricants						      81
		   Gear Lubricants						      82
		   All Other							      84

	IV.	Materials							      87
		General								      87
		Glycols								      89
		Polyalphaolefins						      92
		Group III Base Oils						      95
		Esters								      98
		Silicone Fluids							     101
		Aromatics							     104
		Other								     107

	V.	Markets								     112
		General								     112
		Vehicles & Equipment						     114
		   Motor Vehicle & Industrial Equipment Outlook			     115
		   Synthetic Lubricant & Functional Fluid Demand		     118
		      Light Vehicles						     120
		      Aircraft/Aerospace					     122
		      Medium & Heavy Duty Vehicles & Buses			     124
		      Industrial Machinery					     127
		      Off-Highway Vehicles					     130
		      Construction Equipment					     132
                      Mining Equipment	                                             133
                      Agricultural Equipment	                                     133
		      Other							     134
		Metal Fabrication						     137
		   Metal Fabrication Industry Outlook				     137
		   Synthetic Lubricant & Functional Fluid Demand		     138
		Energy/Power Generation						     140
		   Energy/Power Generation Industry Outlook			     141
		   Synthetic Lubricant & Functional Fluid Demand		     144
		Process Industries						     146
		   Process Manufacturing Industry Outlook			     147
		   Synthetic Lubricant & Functional Fluid Demand		     149
		HVAC/Refrigeration Systems					     153
		   HVAC/Refrigeration Industry Outlook				     153
		   Synthetic Lubricant & Functional Fluid Demand		     154
		Other								     156

	VI.	Industry Structure						     159
		General								     159
		Market Share							     163
		Competitive Strategies						     167
		   Research & Development					     167
		   Chemical Management Services					     169
		Merger & Acquisition Activity					     170
		Manufacturing							     172
		Marketing							     174
		   Synthetic Engine Oil						     174
		      Brand Name Recognition					     176
		      Sports Sponsorship					     177
		   Antifreeze							     178
		   Other Synthetic Fluids Marketing Strategies			     179
		Distribution							     180
		Company Profiles						     183
		   AMSOIL Incorporated						     184
		   Anderol Incorporated, see Chemtura
		   Ashland Incorporated						     187
		   BASF SE							     190
		   BP plc							     192
		   Castrol Limited, see BP
		   Chemtura Corporation						     196
		   Chevron Corporation						     199
		   Chevron Phillips Chemical Company LLC			     202
		   CIMCOOL Industrial Fluids, see Milacron
		   CITGO Petroleum Corporation, see Petroleos de Venezuela SA
		   CLC Lubricants Company					     203
		   Coastal Unilube Incorporated, see Warren Oil
		   Cognis Deutschland GmbH & Company KG				     205
		   ConocoPhillips						     207
		   CPI Engineering Services Incorporated, see Lubrizol
		   Dow Chemical Company						     211
		   Dow Corning Corporation					     214
		   DuPont (EI) de Nemours					     215
		   Dylon Industries Incorporated, see FUCHS Petrolub
		   Exxon Mobil Corporation					     217
		   FUCHS Petrolub AG						     221
		   Hatco Corporation, see Chemtura
		   Hercules Incorporated, see Ashland
		   Honeywell International Incorporated				     224
		   Houghton International Incorporated				     225
		   Lubrizol Corporation						     226
		   Milacron LLC							     229
		   Motiva Enterprises LLC, see Royal Dutch Shell
		   MS Fluid Technologies Incorporated, see FUCHS Petrolub
		   Petroleos de Venezuela SA					     231
		   Quaker Chemical Corporation					     234
		   Royal Dutch Shell plc					     236
		   Royal Purple Incorporated					     240
		   Shell Chemicals LP, see Royal Dutch Shell
		   Total SA							     243
		   Valvoline Company, see Ashland
		   Warren Oil Company Incorporated				     247
		Additional Companies Mentioned in the Study			     249


				      LIST OF TABLES

    TABLE NUMBER								    PAGE


		SECTION I -- Executive Summary
		Summary Table	                                                       3

		SECTION II -- Market Environment
	1	Macroeconomic Indicators					       9
	2	Population & Households						      12
	3	Personal Consumption Expenditures				      14
	4	Manufacturers’ Shipments					      17
	5	Synthetic Functional Fluid Pricing Trends			      26
	6	Synthetic Functional Fluid Foreign Trade			      29

		SECTION III -- Products
	1	Synthetic Lubricant & Functional Fluid Demand by Product	      31
	2	Synthetic Engine Oil Demand by Engine Type			      36
	3	Synthetic Gasoline Engine Oil Demand by Chemical & Market	      40
	4	Synthetic Diesel Engine Oil Demand by Chemical & Market		      44
	5	Other Synthetic Engine Oil Demand by Chemical & Market		      47
	6	Synthetic Heat Transfer Fluid Demand				      50
	7	Synthetic Low Temperature Heat Transfer Fluid Demand 
		   by Chemical & Market						      54
	8	Synthetic High Temperature Heat Transfer Fluid Demand		      57
	9	Synthetic Hydraulic & Transmission Fluid Demand 
		   by Product, Chemical & Market				      59
	10	Synthetic Metalworking Fluid Demand				      69
	11	Synthetic Metal Removal Fluid Demand				      71
	12	Synthetic Metal Forming Fluid Demand				      73
	13	Other Synthetic Metalworking Fluids Demand			      75
	14	Synthetic Dielectric Fluid Demand				      78
	15	Other Synthetic Lubricants & Functional Fluids Demand		      79

		SECTION IV -- Materials
	1	Synthetic Lubricant & Functional Fluid Demand by Material	      88
	2	Glycol-Based Synthetic Lubricant & Functional Fluid Demand	      92
	3	Polyalphaolefin-Based Synthetic Lubricant 
		   & Functional Fluid Demand					      95
	4	Group III Base Oil-Based Synthetic Lubricant 
		   & Functional Fluid Demand					      98
	5	Ester-Based Synthetic Lubricant & Functional Fluid Demand	     101
	6	Silicone-Based Synthetic Lubricant 
		   & Functional Fluid Demand					     104
	7	Aromatics-Based Synthetic Lubricant 
		   & Functional Fluid Demand					     107
	8	Other Synthetic Lubricants, Fluids, Additives 
		   & Blending Components Demand					     111

		SECTION V -- Markets
	1	Synthetic Lubricant & Functional Fluid Demand by Market		     113
	2	Vehicle & Equipment Indicators					     118
	3	Vehicle & Equipment Market for Synthetic Lubricants 
		   & Functional Fluids						     119
	4	Light Vehicle Market for Synthetic Lubricants 
		   & Functional Fluids						     122
	5	Aircraft/Aerospace Market for Synthetic Lubricants 
		   & Functional Fluids						     124
	6	Medium & Heavy Duty Vehicle Market for 
		   Synthetic Lubricants & Functional Fluids			     127
	7	Industrial Machinery Market for Synthetic Lubricants 
		   & Functional Fluids						     130
	8	Off-Highway Vehicle Market for Synthetic Lubricants 
		   & Functional Fluids						     132
	9	Other Vehicle & Equipment Markets for 
		   Synthetic Lubricants & Functional Fluids			     136
	10	Metal Fabrication Industry Shipments				     138
	11	Metal Fabrication Market for Synthetic Lubricants 
		   & Functional Fluids						     140
	12	Energy/Power Generation Indicators				     144
	13	Energy/Power Generation Market for Synthetic Lubricants 
		   & Functional Fluids						     146
	14	Process Manufacturers’ Shipments				     149
	15	Process Industries Market for Synthetic Lubricants 
		   & Functional Fluids						     152
	16	HVAC/Refrigeration Industry Outlook				     154
	17	HVAC/Refrigeration Market for Synthetic Lubricants 
		   & Functional Fluids						     156
	18	Synthetic Functional Fluids Demand in Other Markets		     158

		SECTION VI -- Industry Structure
	1	Synthetic Lubricant & Functional Fluid Sales 
		   by Company, 2008						     161
	2	Research & Development Spending Patterns: 
		   Selected Synthetic Fluids Companies				     169
	3	Selected Acquisitions & Divestitures				     171


				      LIST OF CHARTS

    CHART NUMBER								    PAGE

		SECTION I -- Executive Summary

		SECTION II -- Market Environment
	1	Synthetic Lubricant & Functional Fluid Pricing Volatility 
		   by Product							      27

		SECTION III -- Products
	1	Synthetic Lubricant & Functional Fluid Demand 
		   by Product, 2008						      32

		SECTION IV -- Materials
	1	Synthetic Lubricant & Functional Fluid Demand 
		   by Material, 2008						      89

		SECTION V -- Markets
	1	Synthetic Lubricant & Functional Fluid Demand 
		   by Market, 2008						     114
	2	Vehicle & Equipment Market for Synthetic Lubricants 
		   & Functional Fluids, 2008					     120

		SECTION VI -- Industry Structure
	1	Synthetic Lubricant & Functional Fluid Market Share, 2008	     163