Agricultural Lubricant Market by Product Type (Engine Oil, UTTO, Coolant, Grease), Category (Mineral Oil-Based, Synthetic Oil-Based, Bio-Based), Farm Equipment (Tractors, Combines, Implements), Sales Channel, and Region - Global Forecast to 2028
Updated on : April 15, 2024
Agricultural Lubricant Market
The global agricultural lubricant market was valued at USD 6.3 billion in 2023 and is projected to reach USD 7.7 billion by 2028, growing at 3.9% cagr from 2023 to 2028. Industrial and agricultural sectors are driving the growth in agricultural lubricant market The industrial application of agricultural lubricants, particularly engine oils, is essential for maintaining the performance and longevity of heavy-duty farming machinery. Agricultural lubricants offer several benefits in the agriculture sector, including increased equipment reliability, increased yield and higher profits and reduced maintenance costs,. These benefits make agricultural lubricants an essential component in maintaining the smooth and efficient functioning of agricultural machinery, ensuring operational reliability, and increasing equipment uptime, regardless of the weather conditions or terrain.
Attractive Opportunities in the Agricultural Lubricant Market
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Agricultural Lubricant Market Dynamics
Driver: increasing mechanization in agriculture
The growing adoption of advanced farming techniques and equipment is driving the demand for lubricants to maintain and operate agricultural machinery efficiently. As the agricultural sector continues to evolve and embrace mechanization, the demand for high-performance lubricants, including engine oils, is expected to rise. The increasing sophistication of farming equipment has resulted in a significant rise in the demand for these lubricants. The robust growth of the agricultural sector, coupled with the rising adoption of advanced farming machinery, is expected to play a key role in driving the demand for agricultural lubricants, particularly engine oils. These oils are designed to endure the harsh circumstances of agricultural work, such as exposure to dust, debris, and large loads, and are vital for ensuring engines' longevity and smooth operation by reducing dissipating heat, and preventing wear and tear. The agricultural lubricant market is likely to be significantly influenced by the growing preference for lubricant in the mentioned earlier and other industries.
Restraints:Volatile crude oil prices
Volatile crude oil prices is one of the major restraint for the agricultural lubricant market due to the close connection between the crude oil market and production of lubricants. Variations in crude oil prices have a notable and immediate effect on production expenses, which include the processing ,extraction, and refinement of base oils used in the manufacturing of lubricants.As a result, the agricultural lubricant market may experience fluctuations in valuation and growth , depending on the volatility of crude oil prices These factors will hamper the development of the agricultural lubricant market.
Opportunity:Rising demand of bio-based lubricant
The increasing demand for bio-based lubricants presents a significant opportunity for the agricultural lubricant market. As there is a growing awareness and emphasis on sustainable and environmentally friendly practices, bio-based lubricants align with these trends. Agriculture is an industry where environmental considerations are increasingly important, and bio-based lubricants offer several advantages: environmental sustainability, biodegradability and reduced carbon footprint.Due to which their demand is expected to increase, and this further gives an opportunity to the development of the agricultural lubricant market.
Challenge: emergence of electric tractor
The emergence of e-tractors is a challenge for the agricultural lubricant market. E-tractors are electric-powered tractors that are becoming increasingly popular in the agricultural sector due to their environmental benefits and cost-effectiveness.As e-tractors do not require traditional lubricants, the demand for agricultural lubricants may decrease, which could negatively impact the market Therefore, the emergence of electric tractors in is anticipated to pose a challenge to the expansion of the agricultural lubricant market.
Agricultural Lubricant Market Ecosystem
Prominent companies in this market include well-established, and financially stable manufacturers of agricultural lubricant market. These companies have been operating in the market for several years and possess a diversified product portfolio and strong global sales and marketing networks. Prominent companies in this market include Shell PLC (UK), Exxon Mobil Corporation (US),Total Energies (France),BP p.l.c (UK) ,Chevron Corporation (US).
"UTTO, by category, is estimated to account for the highest CAGR during the forecast period."
In the Agricultural Lubricants Market, UTTO emerge as the highest CAGR, propelled by several pivotal factors. Agricultural machinery, characterized by intricate gear systems and transmissions, demands high-performance lubricants to ensure optimal functionality and longevity. Stringent regulations emphasizing environmental sustainability have spurred technological advancements in lubricant formulations, enhancing their efficiency and reducing environmental impact. As farmers and agricultural enterprises prioritize equipment reliability and efficiency, the demand for specialized UTTO lubricants has seen a substantial increase. This dominance underscores the critical role these lubricants play in enhancing the overall performance and lifespan of agricultural machinery, positioning UTTO lubricants as the cornerstone of the Agricultural Lubricants Market
"Aftermarket, by Sales Channel, is estimated to account for the highest CAGR during the forecast period."
The aftermarket segment leads the agricultural lubricant market due to its offline distribution channels. This dominance is fueled by the rising demand for lubricants crucial for farm machinery and the preference for cost-effective and versatile mineral oil-based lubricants. Government initiatives and investments supporting the agricultural sector contribute to this segment's prominence. In essence, the aftermarket's success is driven by distribution channels, demand, lubricant types, and governmental measures
"Bio-Based Lubricant, by product type, is estimated to account for the highest CAGR during the forecast period."
Bio-Based Lubricant is accounted as the highest CAGR, signifying their enduring significance. This growth can be attributed to their excellent lubrication, effectively reducing friction and wear on machinery components. Additionally, their low friction coefficients contribute to enhanced efficiency in farming machinery. With a low evaporation rate, bio-based lubricants ensure consistent lubrication, minimizing the need for frequent top-ups. Moreover, evolving agricultural practices and equipment innovations necessitate agricultural lubricants that provide robust protection and operational reliability, further contributing to the sustained growth of Bio-Based Lubricant in the Agricultural Lubricants Market.
"Asia Pacific is estimated to account for the highest CAGR during the forecast period."
The Asia Pacific region leads in agricultural lubricant market growth due to factors like high food demand, substantial agricultural sectors in countries like China and India, government initiatives, and the adoption of modern farming techniques. The region's large population, with over half relying on agriculture, further drives the demand for efficient lubricants.
Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis
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Agricultural Lubricant Market Players
Major companies in the agricultural lubricant market include include Shell PLC (UK), Exxon Mobil Corporation (US),Total Energies (France),BP p.l.c (UK) ,Chevron Corporation (US) and others. A total of 29 major players have been covered. These players have adopted product launches, agreements, joint ventures, investments, acquisitions, mergers, and expansions as the major strategies to consolidate their position in the market.
Read More: Agricultural Lubricant Companies
Agricultural Lubricant Market Report Scope
|
Report Metric |
Details |
|
Market Size Available for Years |
2018–2028 |
|
Base Year Considered |
2022 |
|
Forecast Period |
2023–2028 |
|
Forecast Units |
Value (USD Million/Billion) and Volume (Million Litres) |
|
Segments Covered |
Product Type, Categary, Sales Channel, Farm Equipment, and Region |
|
Geographies Covered |
Asia Pacific, Europe, North America, the Middle East & Africa, and South America |
|
Companies Covered |
The major market players include Shell PLC (UK), Exxon Mobil Corporation (US),Total Energies (France),BP p.l.c (UK) ,Chevron Corporation (US) ,Phillips 66 (US) , FUCHS (Germany), Sinopec Lubricant Company (Singapore) ,Petronas Lubricants International (Malaysia),Gulf Oil Lubricants India Limited (India),Valvoline (Kentucky),Bharat Petroleum Corporation Limited (India),Indian Oil Corporation Ltd (India),Hindustan Petroleum Corporation Limited (India) ,Claas KGaa mbH (Germany),ENI(Italy) ,Repsol S.A. (Spain),Eneos corporation (Japan),Kyoto Japan Tire Corporation Ltd (Japan),Rymax Lubricants (Neitherlands),Schaeffer Manufacturing Co.(US),Lukoil Lubricants Company (Russia) ,Rosneft (Russia),Exol Lubricants Limited (UK) and other players. |
This research report categorizes the agriculture lubricant market based on Product Type, Category Type, Sales Channel Type, Farm Equipment type, and Region.
Based on Product Type, the agriculture lubricant market has been segmented as follows:
- Engine oil
- UTTO (transmission & hydraulic oil)
- Coolant
- Grease
Based on Category Type, the agriculture lubricant market has been segmented as follows:
- Mineral oil-based lubricants
- Synthetic oil-based lubricants
- Bio oil-based lubricants
Based on Sales Channel, the agriculture lubricant market has been segmented as follows:
- Aftermarket
- OEM’s
Based on Farm Eqipment, the agriculture lubricant market has been segmented as follows:
- Tractors
- Combines
- Implements
Based on Region, the agriculture lubricant market has been segmented as follows:
- Asia Pacific
- Europe
- North America
- Middle East & Africa
- South America
Recent Developments
- In Nov 2022, Shell expanded its Marunda Lubricants Oil Blending Plant (LOBP) in Bekasi, Indonesia to meet the growing demand for premium lubricant products in Indonesia.
- In March 2023, ExxonMobil plans to build a lubricant manufacturing plant in India, which will be the company's first greenfield investment in the country.
- In January 2024, Sinopec and BP have signed a Memorandum of Understanding (MoU) to strengthen cooperation in various areas, including fuel retailing, oil and gas trading, lubricant and marine fuel sales, and upstream activities.
Frequently Asked Questions (FAQ):
What is the key driver for the agricultural lubricants market?
The increasing use of modern farming methods and machinery is fueling the need for lubricants to ensure the efficient operation and maintenance of agricultural equipment.
Which region is expected to register the highest CAGR in the agricultural lubricants market during the forecast period?
The agricultural lubricant market in Asia Pacific is estimated to register the highest CAGR during the forecast period.
What is the major product type of agricultural lubricant?
The mineral oil-based lubricant is the major end-use of agricultural lubricant. Due to the their their low cost and versatility and rising farm mechanization, adoption of modern farming techniques and equipment will surge demand for mineral oil based lubricant.
Who are the major players of the agricultural lubricant market?
The key players operating in the market include include Shell PLC (UK), Exxon Mobil Corporation (US),Total Energies (France),BP p.l.c (UK) ,Chevron Corporation (US)
What is the total CAGR expected to record for the agricultural lubricant market during 2023-2028?
The market is expected to record a CAGR of 3.9 % from 2023-2028. .
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The study involved four major activities in estimating the current size of the Agriculture Lubricant market. Exhaustive secondary research was done to collect information on the market, peer markets, and parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across the Agriculture Lubricant value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study include annual reports, press releases, and investor presentations of companies; white papers; certified publications; and articles by recognized authors; gold- and silver-standard websites; Agriculture Lubricant manufacturing companies, regulatory bodies, trade directories, and databases. The secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level and regional markets. It has also been used to obtain information about key developments from a market-oriented perspective.
Primary Research
The Agriculture Lubricant market comprises several stakeholders, such as such as raw material suppliers, technology support providers, Agriculture Lubricant manufacturers, and regulatory organizations in the supply chain. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Primary sources from the supply side included industry experts such as Chief Executive Officers (CEOs), vice presidents, marketing directors, technology and innovation directors, and related key executives from various key companies and organizations operating in the Agriculture Lubricant market . Primary sources from the demand side included directors, marketing heads, and purchase managers from various sourcing industries. Following is the breakdown of the primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the Agriculture Lubricant market. These approaches have also been used extensively to estimate the size of various dependent subsegments of the market. The research methodology used to estimate the market size included the following:
The following segments provide details about the overall market size estimation process employed in this study
- The key players in the market were identified through secondary research.
- The market shares in the respective regions were identified through primary and secondary research.
- The value chain and market size of the Agriculture Lubricant market, in terms of value, and volume were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of annual and financial reports of the top market players and interviews with industry experts, such as CEOs, VPs, directors, sales managers, and marketing executives, for key insights, both quantitative and qualitative.
Global Agriculture Lubricant market Size: Bottom-Up Approach
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Global Agriculture Lubricant market Size: Top-Down Approach
Data Triangulation
After arriving at the overall market size using the market size estimation processes as explained above, the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the oil & gas sector.
Market Definition
Agricultural lubricants are essential materials designed to minimize friction among the moving components of farm equipment, including two-wheel and four-wheel drive tractors, silage harvesters, combine harvesters, haying implements, and planting/fertilizing equipment. They are applied in engines, transmissions, gears, and various machine parts to enhance lubrication, reduce wear and tear, and extend equipment lifespan. This global market study focuses on four types of agricultural lubricants: engine oil, UTTO (transmission and hydraulic oil), coolant, and grease. These lubricants are further categorized as mineral oil-based, synthetic oil-based, and bio-based, offering benefits such as reduced maintenance and optimized operational costs for agricultural and farm equipment.
Key Stakeholders
- Raw material manufacturers
- Technology support providers
- Manufacturers of Agriculture Lubricant
- Traders, distributors, and suppliers
- Regulatory Bodies and Government Agencies
- Research & Development (R&D) Institutions
- Product Type
- Consulting Firms, Trade Associations, and Industry Bodies
- Investment Banks and Private Equity Firms
Report Objectives
- To analyze and forecast the market size of Agriculture Lubricant market in terms of value and volume
- To provide detailed information regarding the major factors (drivers, restraints, challenges, and opportunities) influencing the regional market
- To analyze and forecast the global Agriculture Lubricant market on the basis of farm equipment,sales channel,catogory type, product type, and region
- To analyze the opportunities in the market for stakeholders and provide details of a competitive landscape for market leaders
- To forecast the size of various market segments based on four major regions: North America, Europe, Asia Pacific, South America, and the Middle East & Africa, along with their respective key countries
- To track and analyze the competitive developments, such as acquisitions, partnerships, collaborations, agreements and expansions in the market
- To strategically profile the key players and comprehensively analyze their market shares and core competencies
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the client-specific needs.
The following customization options are available for the report:
- Additional country-level analysis of the Agriculture Lubricant market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which gives a detailed comparison of the product portfolio of each company.
Growth opportunities and latent adjacency in Agricultural Lubricant Market