Global Agricultural Lubricant Market is segmented By Type (Greases, Engine Oil, Round-Baler Chain Oils, HM/HV Hydraulic Fluids, Gardening Oils, Mineral Oil, Synthetic Oil, Gearbox Oil, Others), By Viscosity Grade (10W-30, 10W-40, 15W-40, 20W-50, Others), By Application (Engines, Hydraulics, Gears & Transmission, Grease, Implements, Others), End-User (Tractors, Harvesters, Shedders, Balers, Verge cutters, Heavy-duty vehicles, Fodder mixers, Farm Equipments & Machinery, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Agricultural Lubricant Market Overview
The Global Agricultural Lubricant Market is expected to grow at a CAGR of 5% during the forecast period (2024-2031).
Agricultural lubricant is used to ensure the smooth working & maintenance of the equipment. It helps to bring ease and comfort in the use of farm equipment and machinery. The agriculture lubricant is essential for the equipment that works on demanding terrain in changing weather. Agriculture lubricant has several benefits such as it protects equipment, enhancing temperature control, improving the life span of the machinery, enhances efficiency and reliability of machinery, reduces the downtime and costs associated with maintenance and repair.
Agricultural Lubricant Market Dynamics
The global agricultural lubricant is driven by the rising demand for growing eco-friendly chemicals with the surge in the investment chemical industry.
Growing demand for nutritious foods with growing the agriculture sector machinery and equipment for performing farming operations
The market is driven by rising demand for agriculture sector machinery and equipment for performing farming operations. This farming equipment needs lubrication for better performance high efficiency reducing labour cost, protects surfaces against rust & corrosion from water or other corrosive substances etc. According to the European Agricultural Machinery Association (CEMA), the European countries such as Germany, Italy, France, the United Kingdom and the Netherlands has the largest producer of agricultural machinery whereas total Europe’s production of agricultural machinery is worth around the US $ 45 billion in 2017 increased by 6.4% as compared to 2016.
Rising demand for food with a growing global population has propelled the agricultural lubricant market
Increasing demand for food around the globe with the surge in the global population, As per the Food and Agricultural Organization of United Nations in 2018, the global population reached around 7.2 billion and is projected to reach 9 billion by 2050 which require a huge amount of the cultivation. It can be fulfilled by using efficient farming equipment which ultimately boosts the demand for agriculture lubricant for efficient working and operations.
Growing launching of the advanced technology equipment for farming with stricter requirements and relegations for CO2 emissions may create huge opportunities and challenges for this market
Growing adoption and launching of the advanced technology farming equipment to avoid the heavy agricultural operations by the leading players may create a huge opportunity for the growth of the agricultural lubricant market. For instance, on 6th July 2020, John Deere, the world one of the leading Agriculture equipment manufacturers launched a brand-new range of technology-powered tractors, harvesters and implements in India. These new equipment are launched with improved farm efficiency by catering to a wide variety of agro-climatic zones, crop types and implementing usage practices. It created a massive demand for agricultural lubricants around the globe.
Covid-19 Impact Analysis
The global agricultural lubricant market has been slightly down during the Covid-19 pandemic due to several manufacturing facilities being closed. The agricultural lubricant demand has been increased since June 2020, several leading countries have opened manufacturing facilities and retail outlets.
The demand is continuously growing due to government initiatives schemes and fundings for the development of the agricultural sector. For instance in India, on 15th May 2020, Government has launched the Covid-19 economic package for agricultural and allied sectors aimed at strengthening infrastructure, logistics and capacity building. It created a massive demand for agricultural equipment in this region. The further market may increase as soon as the pandemic will over,
Agricultural Lubricant Market Segment Analysis
The global agricultural lubricant market is segmented based on type, viscosity grade, application, end-user and region.
Rising launching of multigrade engine oils by the leading players
In terms of type, the global agricultural lubricant market is grease, engine oil, round-baler chain oils, HM/HV hydraulic fluids, gardening oils, mineral oil, synthetic oil, gearbox oil, hydraulic oil and others. Among these, engine oils have the highest market share in 2019, owing to their properties cold start-up temperatures down as low as -35o C, high temperature up to 1850 C and low temperature pumping viscosity. For instance, on 11th Nov 2018, Exol Lubricant launched Dexos2 approved Optima LSGM 5W-30 multigrade next generation of fully synthetic engine oil which reduces fuel consumption while ensuring maximum engine protection.
Similarly, grease, round-baler chain oils, HM/HV hydraulic fluids, gardening oils, mineral oil, synthetic oil, gearbox oil, hydraulic oil segments are also growing due to increasing adoption of the oil for the efficient performance of the farming equipment as well as several leading players are launching biodegradable a synthetic oil for better performance. For instance, on 23rd October 2020, Alhamrani-Fuchs Petroleum Saudi Arabia Ltd (AFPSAL) launched innovative and advanced super GT Oil for greater engine efficiency. It has several properties like oxidation sedimentation, facilitating protection for valve-moving units and improving fuel consumption.
Viscosity grade of 10W-40 segment has the highest demand due to adoption and launching by the leading players for commercial heavy farming equipment
In terms of viscosity grades, the global agricultural lubricant market is classified as 10W-30, 10W-40, 15W-40 20W-50 and others. Among these, 10W-40 viscosity grade has the highest market share in 2019, this is primarily due to the launching of this grade synthetic engine oil by the leading players. For instance, on 7th May 2019, Shell India has launched Rimula R5 LE 10W40 and R5 LE 10W30 synthetic engine oils designed for heavy-duty trucks in India. It provides enhanced engine protection and oxidation control as it is developed with CK4 technology as per the latest BS-VI emission norms.
Rising sale of the farming heavy-duty vehicles and equipment such as tractors, harvesters, planting, seeding and tillage equipment has impelled the engine segmental growth
Based on application, the global agricultural lubricant market is divided into engines, hydraulics, gears & transmission, grease, implements and others. Among these, the engine segment has the highest contribution owing to the rising production and sale of heavy-duty farming equipment and vehicles around the globe.
Growing agricultural cultivation for high yielding using advanced equipment and vehicles has impelled the growth of tractor segmental growth around the globe
Based on the end-user, the global agricultural lubricant is segmented into Tractors, Harvesters, Shedders, Balers, Verge cutters, Heavy-duty vehicles, Fodder mixers and others. Among these, the tractors segment has the highest market share in 2019, due to the rising sale of tractors for land cultivation around the globe and several leading players are launching small and compact size tractors which ultimately propelled the demand for the agricultural lubricant market. For instance on 17th August 2017, Mahindra launched'JIVO' new small tractor with an engine power of 24HP and power of 22HP. It created a massive demand for agricultural lubricant oil required for mini tractors.
Agricultural Lubricant Market Geographical Share
Asia-Pacific region holds the largest market share global Agricultural Lubricant market
Asia-Pacific region is dominating the global Agricultural Lubricant market and accounted for the largest market share in 2019, due to the presence of agricultural land and rising government support and initiative funding for farmers followed by North America and Europe. As of 2019, India and China accounted for the highest share of the agriculture lubricant market.
Similarly, North America is also growing at a faster pace owing to the presence of advanced technology devices adoption and rising utilization of heavy farming machinery followed by Europe. As per the National Renewable Energy Laboratory (NREL), the United States has around 75% of domestic agricultural equipment manufactures which contributed nearly US$ 40 billion in total value-added of the gross domestic product.
Agricultural Lubricant Market Players and Competitive Landscape
The Agricultural Lubricant market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Pennine Lubricant Limited, Cougar Lubricant International Ltd, Frontier Performance Lubricant, Inc, Exxon Mobil Corporation, Exol Lubricant Limited, Witham Oil & Paint Ltd Rymax Lubricant, Repsol SA, Royal Dutch Shell Plc, Chevron Corporation, Total SA, BP plc, FUCHS PETROLUB SE, Phillips 66, Unil Lubricant, Schaeffer Manufacturing Co. and among others.
The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, which are contributing to the growth of the Agricultural Lubricant market globally. For instance, on 23rd October 2020, Fuchs and BASF have partnered to develop a holistic real fact-based sustainability assessment of hydraulic fluids. This hydraulic oil is specially designed with a multigrade high viscosity index (VI) with cradle-to-grave analysis.
Phillips 66
Overview: Phillips 66 was founded in 2012 and is based in Houston, Texas, United States. The Company manufactures energy products such as gasoline, diesel, jet fuel and lubricant, natural gas and natural gas liquids (NGL) for powering businesses, heating homes, cooking and electricity; and manufacture petrochemicals, polymers and plastics found in cars, electronics and other everyday goods.
Product Portfolio: The Company has a diverse product portfolio of Agricultural Lubricant including:
- DYNALIFE CG: Phillips 66 Dynalife CG is a high performance, a polymer containing, extreme pressure (EP), lithium grease developed for use in grease lubricated flexible couplings, such as those commonly found in mining & agriculture equipment, power plants, manufacturing plants and chemical plants. It is resistant to oil separation subjected to the high centrifugal forces typically encountered with medium and high-speed gear, metallic grid and chain couplings.
- Extra Duty Gear Oil: Premium extreme-pressure industrial gear oil; formulated with "clean gear" additive technology
- Firebird Aw Hydraulic Oil: Antiwear hydraulic oil formulated with re-refined base stocks
Key Developments:
- On 5th October 2020, Phillips 66 Lubricant launched next-generation turbine oils. It is premium quality mineral-based turbine oil specifically designed for non-geared steam, gas and combined-cycle turbine applications
- Further on 3rd Sept 2019, FUCHS in collaboration with OPET Petrolcülük has invested around US$ 28 million for setting up a new plant in Izmir, Turkey. It can facilitate production capacity of 60,000 tons of lubricant in one shift per year
