Construction Lubricants Market dynamics and growth are shaped by many market factors. Global construction boom is a major factor. Construction lubricants demand rises with global urbanization and infrastructure development. These lubricants keep construction machines running smoothly, improving efficiency and longevity. The construction lubricants market was worth over USD 13 million in 2018 and might rise over 4% between 2022 and 2030.
Another major element influencing the Construction Lubricants Market is changing regulations. Governments and environmental organizations are tightening laws to address environmental issues and promote sustainability. The building sector now prioritizes eco-friendly and biodegradable lubricants. As rules change, market participants are creating lubricants that meet environmental criteria while meeting construction machinery performance needs.
These price fluctuations affect the sector, thus manufacturers must modify their pricing strategy. Lubricant formulation and technology advances can affect market dynamics. Continuous research and development produces high-performance lubricants with improved wear resistance, temperature stability, and equipment life.
Geopolitical developments affect the Construction Lubricants Market. Political instability and trade conflicts can disrupt the supply chain, influencing lubricant raw material availability and pricing. Construction lubricant manufacturers must overcome these geopolitical issues to maintain a reliable supply chain.
Economic conditions in major regions impact the Construction Lubricants Market. Economic development and stability affect infrastructure building and investments. Construction may halt during economic downturns, reducing demand for construction lubricants. In times of economic boom, construction projects boost lubricant demand.
Innovation and product differentiation also drive market dynamics. Research and development of new formulas or lubricants gives companies an edge. This builds brand loyalty among construction machinery buyers seeking high-performance solutions.
Finally, equipment maintenance knowledge and the need of excellent lubricants in construction operations drive market expansion. Operators and contractors are switching to higher-quality lubricants due of their long-term benefits. The total cost of ownership, which includes lubricants' initial cost and effects on equipment longevity and operational efficiency, frequently raises awareness.
The Construction Lubricants Market is dynamic and shaped by several variables. These key elements shape the sector, from global construction patterns and environmental regulations to economic conditions and technical advances. Companies in this market must be aware of these impacts to make educated decisions and change their strategies to compete in this changing sector.
The construction lubricants market was worth a little over USD 13 million in 2018 and could record a growth rate of more than 4% between 2022 and 2030.
The construction lubricants market is primarily fueled by the soaring construction sector in Asia Pacific and the Middle East & Africa. Given the strong industrial growth in Asia over the years, several countries in the region are attracting large-scale investments in the cement, construction, energy, and steel industries. The increasing robustness of the construction sector in the Middle East is due to the surging purchasing prowess of the consumers, which will raise the demand for construction lubricants. This has led to higher real estate transactions in the region, especially in Dubai and Abu Dhabi where the focus on construction activities is significantly high. Qatar can expect to be the fastest-emerging country within the construction industry, thereby emerging as a promising market for construction lubricants.
Restraints
Technological Advances to Work Against the Construction Lubricants Market
Compact and portable machinery is increasingly being used in the construction industry. In view of reduced hydraulic and gearbox equipment size and the long drain intervals, the consumption of lubricants in construction has decreased.
Construction industries are increasingly deploying new technologies such as optimizing the re-lube interval, proactive lubricant life extension, reducing package waste and reducing leakage for minimized use of lubricants Such technological innovations in construction could mean a decline in the demand and use of lubricants.
Opportunities
Product Innovation
The market demand is high due to the booming sales of construction lubricants that are low priced and cater to all the standards mandated worldwide. Construction equipment are constantly exposed to dust and high temperature, therefore; end-users are looking for long lasting quality lubricants. Hence, the soaring demand for innovative products will mean a rise in product innovation, which will offer attractive opportunities in the next few years.
Asia-Pacific accounted for the largest market share of the construction lubricants market in 2022 due to the increasing infrastructural activities in the developing economies, such as India and South-East Asian countries such as Vietnam, Thailand, Malaysia, and Indonesia. Also, the booming construction equipment market in the region is expected to fuel the demand for the product in the region.
North America is also expected to be the prominent market for construction lubricants, owing to the expanding construction industry in the region and increasing mining activities, especially in Canada.
The European market is expected to witness moderate growth during the forecast period owing to the increasing construction activities in the Eastern European countries.
The Middle East & Africa market is expected to grow substantially owing to the increasing construction activities in the region. Also, with a proposed investment of USD 2,700 billion across the GCC nations by 2030 is also expected to contribute to the growth of the regional market during the forecast period. The Latin American market is expected to witness healthy growth during the forecast period owing to rapid urbanization and industrialization in the region.
Key Players
PetroChina Company Ltd (China), Sinopec Corporation (China), Fuchs Petrolub SE (Germany), Phillips 66 Company (US), Lucas Oil Products, Amsoil Inc (US), Valvoline Inc (US),Clariant (Switzerland), Quaker Chemical Corporation (US), Calumet Specialty Products Partners, L.P (US), Chevron Corporation (US), BP PLC (UK), Exxon Mobil Corporation (US), Royal Dutch Shell PLC (Netherlands), Total (France), Lukoil (Russia), Petronas (Malaysia), Yushiro Chemical Industry (Japan), Morris Lubricants (UK), Rock Valley Oil and Chemical Co (US), Indian Oil Corporation Limited (India) and Gulf Oil India (India) are some of the key players operating in the global market.
Market Synopsis
Lubricants or lube oils are indispensable to the proper functioning of machinery since they reduce the wear and tear of moving parts. They also reduce the downtime of operations, thereby increasing the overall productivity of machines. Construction lubricants exhibit superior characteristics such as corrosion resistance, demulsibility and provide prolonged life to the construction equipment.
The global demand for construction lubricants is attributed towards the growing construction activities across the globe and subsequent addition of construction equipment to the existing fleet. Lubricants like gear oil, hydraulic oil, engine oil, and grease help in the smooth functioning of the construction equipment and extend their life by eliminating wear and tear, and corrosion. The rise in the construction and mining activities across the globe, especially in the developing economies is expected to propel the demand for construction lubricants. For instance, to cope with the rising population and rapid urbanization, especially, in the emerging economies, new infrastructural developments are being carried out across the globe, for instance, initiatives taken by the Indian government such as Smart Cities Mission, Green Corridor, the building of ports and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for infrastructure development have led to a rapid increase in construction activities, which is expected to augment the demand for construction lubricants.
In addition, the global construction equipment market is projected to exhibit a CAGR of over 6% during the forecast period. The global construction equipment market stood at over USD 190 billion in 2018, with increasing automation in the construction and mining industries, which is expected to further drive the demand for construction lubricants.
Product trends such as high adoption of synthetic lubricants are further driving the demand. Synthetic lubricants, commonly known as synlubes, consist of base oils and additives and enhance the overall performance of engines. Comparatively, synthetic oils offer superior performance, reduce maintenance costs, and address the environmental challenges posed by using the traditional mineral oil-based lubricants. Thus, the increasing scrutiny on emissions and growing awareness among consumers regarding the perks of synthetic lubes have led to the substantial demand for synthetic lubricants, which is adding to the revenue growth of the global construction lubricants market.
However, the increasing scrutiny on the disposal and recycling of traditional lubricants is expected to hamper the growth of the global market.
Global Construction Lubricants Market Share, by Base Oil, 2018 (%) Â Â Source: MRFR Analysis
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Segmentation
The global construction lubricants market has been segmented based on base oil, type, application, and region.
Based on base oil, the global market has been divided into mineral oil, synthetic oil, and bio-based oil.
By type, the global market has been classified into hydraulic oil, engine oil, gear oil, automatic transmission fluid, compressor oil, grease, and others.
On the basis of application, the global market has been segregated into earthmoving equipment, material handling equipment, heavy construction vehicles, and others.
The global market, by region, has been segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
Recent Development
March 2022
Schwing Stetter India is now a part of two MoUs with HPCL and Gulf Oil for the launch of a line of oils for construction equipment. The partnership with HPCL and Gulf Oil will bring to the market a series of products including hydraulic oil, axle oil, engine oil, high-end synthetic gear oil and gear oil for batching plant, concrete pump, self-loading mixer, concrete mixture and the complete range of construction equipment.
Intended Audience
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