Construction Lubricants Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Construction Lubricants Market is Segmented By Base Oil (Mineral Oil, Synthetic Oil), By Lubricant (Engine Oil, Gear Oil, Automatic Transmission Fluid, Hydraulic Fluid, Compressor Oil, Grease), By Equipment (Earthmoving Equipment, Mining Equipment, Heavy Construction Vehicle, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030 

Construction Lubricants Market Size

The Global Construction Lubricants Market reached USD 9.1 billion in 2022 and is expected to reach USD 10.5 billion by 2030, growing with a CAGR of 3.5% during the forecast period 2023-2030. One of the main factors driving the growth of the Global Construction Lubricants Market is the rapid expansion of the construction industry.

The demand for high-quality lubricants is increasing across several construction-related activities. Synthetic oil-based lubricants are becoming increasingly common because of their beneficial features, such as water solubility.

During the forecast period of 2023–2030, hydraulic fluid is expected to make up around 30% of the Global Construction Fluids Market. Several causes, such as the growing construction industry, the rising need for effective construction equipment and developments in hydraulic technology, contribute to the demand for hydraulic fluids in the construction lubricants market. 

Construction Lubricants Market Scope

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Construction Lubricants Market Dynamics

Rising Government Initiatives in Commercial Sector

To boost economic growth and improve public infrastructure, governments worldwide are implementing infrastructure development plans. Construction of office buildings, retail stores, hotels and industrial facilities is a part of the initiatives. The demand for oils for the machinery and equipment used for the projects drives the need for construction lubricants.

Construction lubricants' ability to reduce friction and corrosion while increasing the life of machine movable parts drives their fast growth in the commercial sector. As government investment in the retail industry rises, so does the demand for construction lubricants. 

For instance, Japan's second-busiest airport, Kansai International Airport, would invest nearly US$911 million by 2025 to modernize the main terminal to make additional space for international flights.

Growing Demand for Residential Infrastructure

The usage of construction lubricants in residential areas has significantly increased. Construction lubricants are required for the diversity of equipment utilized in the residential sector to prevent malfunctions and reduce friction. 

In addition, people are remodeling their homes to keep up with fashion to improve the visual appeal of their houses. The market for construction lubricants for the residential industry is expanding due to numerous attributes and urbanization. 

In the first three quarters of 2021, the residential industry's value added climbed by 37.1 percent, according to the National Institute of Statistics and Censuses (INDEC). Thus, the demand for the construction lubricants industry is expected to increase during the forecast period, given the strong growth of construction lubricants in the residential market.

Technological Advances in Construction Equipment

The majority of construction machinery is large and very expensive. Numerous moving parts of the machinery need to be lubricated and serviced regularly. Construction and infrastructure development companies expend many resources. The owners are looking for ways to lower operational costs. Advanced technology that is more compact and smaller is currently making its way into the market.

Utilizing modern technology has resulted in smaller sizes and longer service intervals, which have reduced operational costs. Other actions are also being taken, including proactive lubricant life extension, lubricant recycling and an upsurge in using self-lubricating parts in construction machinery. A significant barrier to the expansion of this market is the technical advancements in construction equipment that are intended to lower operating costs and lubricant use.

Construction Lubricants Market Segment Analysis

The Global Construction Lubricants Market is segmented based on base oil, lubricant, equipment and region.

Improved Performance of Synthetic Oil

As synthetic oil offers a wide range of advantages over other base oil types, including mineral oil and bio-based oil, it will continue to account for more than one-fourth of the global construction lubricants market during the forecast period. The basic oils and additives in synthetic oils boost an engine's overall effectiveness. 

Synthetic oils provide better performance, cheaper maintenance costs and a solution to environmental issues as compared to conventional mineral oil-based lubricants. There is a high demand for synthetic oils due to the increased attention on emissions and growing consumer awareness of the benefits of synthetic oils, which is boosting the revenue growth of the global construction lubricants market size.

Source: DataM Intelligence Analysis (2023)

Global Construction Lubricants Market Geographical Share

Upsurge in Construction Activities in Asia-Pacific

Asia-Pacific has witnessed significant growth and popularity, covering more than 1/3rd share of the Global Construction Lubricants Market in 2022. Construction lubricant demand and development are affected by the rising construction activities in Asia-Pacific. 

Due to significant advancements in infrastructure projects, an emphasis on affordable housing units and the use of modular building technologies, the building and construction industry is expanding rapidly. 

Between April 2000 and December 2021, foreign direct investment (FDI) in India's construction activity and development sectors reached USD 26.17 billion and USD 26.30 billion, respectively, according to the Department for Promotion of Industry and Internal Trade (DPIIT). 13% of the total FDI inflows or USD 81.72 billion, were made up of infrastructure operations in 2021.

Source: DataM Intelligence Analysis (2023)

Construction Lubricants Market Companies 

The major global players include TotalEnergies, Royal Dutch Shell PLC, Exxon Mobil Corporation, BP PLC, FUCHS Petrolub SE, Valvoline Inc., Repsol S.A., China National Petroleum Corporation, Kluber Lubrication GmBH and Chevron Corporation.

COVID-19 Impact on Construction Lubricants Market

COVID Impact

During the pandemic, the construction sector temporarily slowed down due to lockdown, supply chain problems and reduced construction activity. Due to this, there was a reduction in demand for construction lubricants, which are utilized in machinery and equipment used in building projects.

The market for construction lubricants depends on a global supply chain for the distribution of finished goods and the sourcing of raw materials. The epidemic affected Supply systems, making it difficult to get raw materials and transport lubricants. Construction lubricants were less readily available and were delivered later than expected due to factory closures, shipping limitations and labor difficulties.

Russia- Ukraine War Impact 

Since the Russia-Ukraine conflict began in February 2022, supply chain disruptions—which already impacted the construction business during COVID-19—have mostly continued. Oil and gas, crucial raw resources for lubricant manufacture, are produced and exported in significant quantities by Russia and Ukraine. The availability and price of construction lubricants was impacted internationally by any disruption in the supply of these materials. 

Some businesses diversified their supply chains in reaction to the war and lessened their dependency on Russia or Ukraine for construction lubricants. It caused trading to be redirected, giving other nations that make lubricants an opportunity to increase their market share. The global construction lubricants market may change as a result of heightened competition and changes in sourcing tactics. 

By Base Oil

• Mineral Oil
• Synthetic Oil

By Lubricant

• Engine Oil
• Gear Oil
• Automatic Transmission Fluid
• Hydraulic Fluid
• Compressor Oil
• Grease

By Equipment

• Earthmoving Equipment
• Mining Equipment
• Heavy Construction Vehicle
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• BPCL launched four new MAK lubricating products in March 2022. Each item aims to increase customer dependability, performance and durability.
• To satisfy the unique and cutting-edge demands of the construction equipment sector, Gulf Oil Lubricants India and Larsen & Toubro (L&T-CMB) teamed to create a range of authentic lubricants in October 2021.
• To address the increasing demand for lubricants in South Asia and the Middle East, Total Energies announced the capacity expansion of its lubricants blending plant in Dubai in January 2020.

Why Purchase the Report?

• To visualize the Global Construction Lubricants Market segmentation based on base oil, lubricant, equipment and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous construction lubricants market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Construction Lubricants Market Report Would Provide Approximately 61 Tables, 60 Figures And 203 Pages.

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