Construction Lubricants Market by Base Oil (Mineral Oil, Synthetic Oil), Type (Hydraulic Fluid, Engine Oil, Gear Oil, ATF, Grease, Compressor Oil), Equipment (Earthmoving, Material Handling, Heavy Construction), and Region - Global Forecast to 2027
The construction lubricants market is projected to grow from USD 9.0 billion in 2022 to USD 10.6 billion by 2027 at a CAGR of 3.3%. Over the world, the construction lubricants market is expanding significantly, and during the forecast period, a similar trend is anticipated. The extensive use of construction lubricants and growing demand for high-quality lubricants has raised the demand for construction lubricants worldwide. Rapid industrialization in the Asia Pacific and the Middle East & Africa regions post-COVID-19, coupled with the rise in process automation in the construction industry and the gradual increase in construction equipment, are key factors expected to drive the global construction lubricants industry during the forecast period. Furthermore, leveraging the E-commerce industry to increase customer reach and development of zinc-free (ashless) lubricants is an opportunity for market growth. However, rising raw material prices and maintaining product quality, and stringent environmental norms by the government are the major challenges in the construction lubricants market.
Attractive Opportunities in Construction Lubricants Market
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Construction Lubricants Market Dynamics
Driver: Rise in automation in the construction industry
Automation is the use of construction equipment and technology to automate production processes or systems to boost efficiency by reducing manual labor. As automation increases, mechanical parts of the construction equipment are constantly under motion and load, which asks for a high lubrication requirement for the equipment to work efficiently and properly without any failures. The construction industry uses numerous heavy-load equipment that requires regular lubrication. The increasing cost of workforce and safety requirements is also driving the demand for process automation. Hence, most companies are automating their operations which is driving the construction lubricants market.
Restraints: Technological Advancements
Portable and compact machinery has been introduced in the construction industry, which is gaining popularity. Due to reduced gearbox & hydraulic equipment size and extended drain intervals, lubricant consumption in the construction industry has decreased. Construction industries are using new ideas and technologies like proactive lubricant life extension, optimizing the relube interval, reducing package waste (avoiding the bulk purchase of lubricants to reduce the wastage of unused lubricants), and reducing leakage to minimize the use of lubricants. Such technological advancements in the construction industry are expected to hamper the demand for construction lubricants.
Opportunities: Leveraging the E-commerce industry to increase customer reach
E-commerce is an internet platform where manufacturers and sellers can directly sell their construction lubricants without involving any shop, dealer, or distributor. This platform helps the manufacturers of construction lubricants to cut down the value chain and improve their margins. Several construction lubricants manufacturing companies also started to leverage this revolutionary virtual marketplace to gain a customer base using digital market techniques and online campaigns.
Challenges: Rising raw material prices
The construction lubricants market is significantly influenced by the variation in the crude oil market. In 2021 and 2022, the overall market enjoyed profits as prices of WTI and Brent crude oil covered and went to a high of 84.65 and 123.70 WTI crude oil and for the Brent crude oil 85.76 and 133.18 USD per barrel. As a result, such volatile crude oil prices affected the margins of construction lubricant manufacturing companies in the past three years. The majority of the lubricant products are mineral oil-based, which is sourced from crude oil. Therefore, the prices of lubricant products depend on crude oil prices. The price change has a huge impact on the lubricants market.
Construction Lubricants Market Ecosystem
Prominent companies in construction lubricants market include financially stable and well-established manufacturers of construction lubricants. These key players have been operating in the market for several years and possess state-of-the-art technologies, a diversified product portfolio, and strong worldwide marketing and sales networks. Prominent companies in this market include Shell Plc (UK), ExxonMobil Corporation (US), BP p.l.c. (UK), Chevron Corporation (US), and TotalEnergies SE (France).
Based on base oil, the mineral oil segment is estimated to account for the largest market share of the construction lubricants market
Based on base oil, the mineral oil segment is estimated to account for the largest market share. This is attributed to its lower price and widespread availability compared to synthetic oil. However, synthetic oil is anticipated to grow at the highest CAGR during the forecast period because of its superior qualities.
Based on type, the engine oil segment is anticipated to dominate the market
Engine oil segment dominated the global construction lubricants market. This high growth is mainly driven by the frequent replacement of engine oil in various construction equipment and off-road vehicles. Engine oil is mainly used in crankcases and lubrication in various heavy-load equipment in the construction industry. This drives the consumption of engine oil in the construction industry.
The Asia Pacific market is projected to contribute the largest share of the construction lubricant market
Asia Pacific is projected to hold the largest share of the global construction lubricants market throughout the forecast period, in terms of value and volume. According to projections, the region will be a prime location for the construction lubricants business attributed to rise in construction activities, expanding industrial investment, growing population, and the development of its infrastructure in the developing markets of China, Japan, and India.
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Key Market Players
The key market players profiled in the Report include Shell plc (UK), Exxon Mobil Corporation (US), BP p.l.c. (UK), Chevron Corporation (US), TotalEnergies SE (France), Sinopec Corp. (China), FUCHS Petrolub SE (Germany), LUKOIL (Russia), Indian Oil Corporation Limited (India), Petronas (Malaysia), among others.
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Report Metric |
Details |
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Market size available for years |
2017-2027 |
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Base Year Considered |
2021 |
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Forecast period |
2022–2027 |
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Forecast units |
Value (USD Million), Volume (Kiloton) |
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Segments Covered |
Base oil, Type, Equipment, and Region |
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Geographies covered |
Asia Pacific, North America, Europe, Middle East & Africa, and South America |
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Companies covered |
Shell plc (UK), ExxonMobil Corporation (US), BP p.l.c. (UK), Chevron Corporation (US), TotalEnergies SE (France), Sinopec Corp. (China), FUCHS Petrolub SE (Germany), India Oil Corporation Limited (India), LUKOIL (Russia), Petronas (Malaysia), and others |
The study categorizes the construction lubricants market based on Base Oil, Type, Equipment, and Region.
By Base Oil
- Mineral Oil
- Synthetic Oil
- PAO
- PAG
- Esters
- Group III (Hydrocracking)
By Type
- Hydraulic Fluid
- Engine Oil
- Gear Oil
- Automatic Transmission Fluid
- Grease
- Compressor Oil
- Others
By Equipment
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Earthmoving Equipment
- Excavators
- Loaders
- Crawler Dozers
- Motor Graders
- Others
- Material Handling Equipment
- Heavy Construction Vehicles
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Others
- Compactors and Road Rollers
- Pavers/Asphalt Finishers
- Other Equipment and Machinery
By Region
- Asia Pacific
- North America
- Europe
- Middle East & Arica
- South America
Recent Development
- In December 2021, TotalEnergies Marketing & Services Australia, a subsidiary of TotalEnergies SE, announced a new partnership with Mitsubishi Motors Australia Limited to launch the latest Mitsubishi Genuine Oil Program. The partnership is based on common goals and provides integrated solutions with a focus on innovation, advanced technology, sustainability, and customer experience.
- In October 2021, TotalEnergies Specialties USA, a subsidiary of TotalEnergies SE, partnered with Hyperfuels to market the full range of TotalEnergies' automotive lubricants nationwide.
- In June 2021, BP p.l.c. has set up a digital hub in Pune, India. This expansion helped them to grow their digital expertise and meet the changing demands by providing sustainable solutions.
- In March 2020, Shell plc announced its investment to double the capacity of the Indonesian lubricants oil blending plant to meet the growing domestic demand. After completion, the plant will be capable of producing up to 300 million liters of finished lubricants annually.
Frequently Asked Questions (FAQ):
What are the drivers and opportunities for the construction lubricants market?
Factors such as high growth in the construction industry in the Asia Pacific and Middle East & African region, growing demand for high-quality lubricants, and rise in automation in the construction industry drive the market growth. Moreover, the development of zinc-free (ashless) lubricants and leveraging the E-commerce industry to increase customer reach creates an opportunity for the construction lubricants market.
Who are the major players in the construction lubricants market?
The key market players are Shell plc (UK), ExxonMobil Corporation (US), BP p.l.c. (UK), Chevron Corporation (US), and TotalEnergies SE (France).
What is the emerging type of construction lubricants?
The engine oil segment is the emerging type of construction lubricant during the forecast period.
What are the major factors restraining market growth during the forecast period?
Technological advancements are the major restraint for the construction lubricants market growth.
What will be the impact of Climate Control Change and other initiatives on the growth of the global industry?
Due to rising environmental concerns, the construction lubricants industry is closely monitored by environmental regulatory bodies. This has resulted in its slow growth, specifically in developed regions. .
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The study involved four major activities in estimating the current size of the construction lubricants market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources referred to for this research study include financial statements of companies offering construction lubricants and information from various trade, business, and professional associations. The secondary data was collected and analyzed to arrive at the overall size of the construction lubricants industry, which was validated by primary respondents.
Primary Research
Extensive primary research was conducted after obtaining information regarding the construction lubricants market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand and supply sides across major countries of North America, Europe, Asia Pacific, the Middle East & Africa and South America. Primary data was collected through questionnaires, emails, and telephonic interviews. The primary sources from the supply side included various industry experts, such as Chief X Officers (CXOs), Vice Presidents (VPs), Directors from business development, marketing, product development/innovation teams, and related key executives from construction lubricants vendors; system integrators; component providers; distributors; and key opinion leaders.
Primary interviews were conducted to gather insights such as market statistics, data on revenue collected from the products and services, market breakdowns, market size estimations, market forecasting, and data triangulation. Primary research also helped in understanding the various trends related to technology, application, vertical, and region. Stakeholders from the demand side, such as CIOs, CTOs, CSOs, and installation teams of the customer/end users who are using construction lubricants, were interviewed to understand the buyer’s perspective on the suppliers, products, component providers, and their current usage of construction lubricants and future outlook of their business which will affect the overall market.
The Breakdown of Primary Research
Note: Tier 1, Tier 2, and Tier 3 companies are classified based on their market revenue in 2021 available in the public domain, product portfolios, and geographical presence.
Other designations include consultants and sales, marketing, and procurement managers.
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COMPANY NAME |
DESIGNATION |
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Shell plc |
Vice-President |
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ExxonMobil Corporation |
Director |
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BP p.l.c. |
Project Manager |
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Chevron Corporation |
Sales Manager |
Market Size Estimation
The top-down and bottom-up approaches have been used to estimate and validate the size of the construction lubricants market.
- The key players in the industry have been identified through extensive secondary research.
- The supply chain of the industry has been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of the key market players, along with extensive interviews for opinions with leaders such as directors and marketing executives.
Global Construction Lubricants Market Size: Bottum Up Approach
Source: MarketsandMarkets Analysis
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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 subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, 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 of construction lubricants.
Market Definition
Construction lubricants are materials applied to decrease the friction between moving surfaces and parts. Construction lubricants help improve the efficiency of the equipment and machines used in the construction industry. These lubricants tend to have different viscosity applied on different equipment across building and construction industries.
Key Stakeholders
- Senior Management
- End User
- Finance/Procurement Department
- R&D Department
Report Objectives
- To define, describe, segment, and forecast the size of the construction lubricants market based on base oil, type, equipment, and region
- To forecast the market size of segments with respect to various regions, including North America, Europe, Asia Pacific, South America, Middle East & Africa, along with major countries in each region
- To identify and analyze key drivers, restraints, opportunities, and challenges influencing the growth of the construction lubricants market
- To analyze technological advancements and product launches in the market
- To strategically analyze micro markets, with respect to their growth trends, prospects, and their contribution to the market
- To identify financial positions, key products, and key developments of leading companies in the market
- To provide a detailed competitive landscape of the market, along with market share analysis
- To provide a comprehensive analysis of business and corporate strategies adopted by the key players in the market
- To strategically profile key players in the market and comprehensively analyze their core competencies
Available Customizations
MarketsandMarkets offers the following customizations for this market report:
- Additional country-level analysis of the construction lubricants market
- Profiling of additional market players (up to 5)
Product Analysis
- Product matrix, which provides a detailed comparison of the product portfolio of each company in the construction lubricants market
Generating Response ...
Growth opportunities and latent adjacency in Construction Lubricants Market