North America Agricultural Lubricants Market Overview
The North America Agricultural Lubricants Market size reached USD 817.9 million in 2022 and is expected to reach USD 1,317.8 million by 2030 growing with a CAGR of 6.2% during the forecast period 2023-2030. The North America agriculture lubricants market growth is driven by factors such as the growing adoption of advanced agricultural machinery, the need for better fuel efficiency and reduced maintenance costs, and the increasing focus on sustainable farming practices. Additionally, stringent environmental regulations and the demand for bio-based lubricants have also influenced market trends.
The North America agriculture lubricants market comprises several established companies, including multinational corporations and regional players. The key players such as Exxon Mobil Corporation, Royal Dutch Shell PLC, Chevron Corporation, TotalEnergies SE, and BP plc, is the major revenue builder in the region covering more than 70% of the region. These companies are engaged in manufacturing and supplying lubricants tailored for agricultural applications globally.
North America Agricultural Lubricants Market Scope
Metrics |
Details |
CAGR |
6.2% |
Size Available for Years |
2021-2030 |
Forecast Period |
2023-2030 |
Data Availability |
Value (US$) |
Segments Covered |
Type, Viscosity Grade, Application, End-User and Region |
Regions Covered |
North America, Europe, Asia-Pacific, South America and Middle East & Africa |
Fastest Growing Region |
Asia-Pacific |
Largest Region |
Asia-Pacific |
Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
North America Agricultural Lubricants Market Dynamics
Growing Mechanization
The North America agricultural sector is experiencing a significant shift towards mechanization, with farmers increasingly using advanced machinery and equipment to improve efficiency and productivity. Mechanized farming offers significant improvements in efficiency and productivity compared to traditional manual labor. Machines can perform tasks at a faster rate and with higher precision, resulting in increased output and reduced production time.
Many regions, especially in rapidly developing countries such as the U.S. and Canada, are experiencing a shortage of agricultural labor as younger generations migrate to urban areas in search of non-agricultural employment opportunities. The scarcity of labor has prompted farmers to invest in mechanized solutions to compensate for the lack of manual labor and to increase operational efficiency.
Furthermore, the government of the region is also providing support and incentives to promote the adoption of mechanization in agriculture. The initiatives can include subsidies for machinery purchases, tax benefits, and training programs. Government support acts as a catalyst for farmers to invest in mechanized solutions and accelerates the overall rate of mechanization.
Technological Advancements
The growing demand for environmentally friendly solutions has driven the development of bio-based lubricants. Technological advancements have enabled the production of lubricants from renewable resources such as plant oils, animal fats, and other bio-based feedstocks. These lubricants provide excellent lubrication properties while offering reduced environmental impact and improved biodegradability.
Furthermore, nanotechnology has found its application in agriculture lubricants, leading to the development of nano-lubricants. Nano-lubricants use nanoparticles to enhance lubrication performance, reduce friction, and improve wear resistance. They provide better protection to machinery components, reduce energy consumption, and increase overall equipment efficiency. Developed regions like North America are investing heavily in these advanced technologies leading to drive regional market growth.
Price Fluctuation
Price fluctuations in raw materials used in lubricant manufacturing can impact the overall cost of agricultural lubricants. Furthermore, price fluctuations in agriculture lubricants can have a direct impact on farmers and their purchasing decisions. Agriculture is an industry with thin profit margins, and farmers are often price-sensitive when it comes to input costs.
Thus, to mitigate the impact of price fluctuations, lubricant manufacturers are exploring strategies such as hedging raw material costs, optimizing supply chain management, developing alternative sourcing options, and fostering strong relationships with suppliers. Additionally, developing cost-effective formulations and offering value-added services can help manufacturers differentiate their products and maintain competitiveness despite price changes.
North America Agricultural Lubricants Market Segment Analysis
The North America agriculture lubricant market is segmented based on type, viscosity grade, application, end-user and region.
Increasing Demand For Excellent Protection To Agricultural Machinery, Equipment, And Components in the Region
The greases segment is expected to show significant growth in the North America agriculture lubricants market over the forecast period. The segmental growth is predominantly due to the associated benefits of grease. Furthermore, environmental consciousness and sustainability have become important considerations in the agricultural sector. Grease lubricant manufacturers are focusing on developing eco-friendly and biodegradable grease formulations to align with sustainable practices.
Recent developments include the introduction of environmentally friendly greases that are free from harmful substances and have reduced environmental impact. These greases not only offer effective lubrication but also contribute to minimizing the ecological footprint associated with agricultural activities. Companies are also investing in adopting eco-friendly and biodegradable greases.
For instance, on July 20, 2022, Chevron Marine Lubricants announced the release of Clarity Synthetic EA Grease 0, anhydrous calcium-thickened lubricating grease based on biodegradable synthetic esters that satisfy the requirements laid out in the 2013 VGP rules for environmentally acceptable lubricants issued by the U.S. Environmental Protection Agency (EPA).
Source: DataM Intelligence Analysis (2023)
North America Agricultural Lubricants Market Geographical Penetration
New Innovative Agricultural Equipment Launches Will Augment Market Growth in the U.S.
The U.S. accounts for nearly two-thirds of the North American agricultural lubricants market. The U.S. has utilized favorable climatic conditions along with advanced farming techniques to become a global agricultural powerhouse. The country is a leading producer of corn, soybeans, wheat, cotton, rice and various fruits and vegetables. It also ranks among the major producers of beef, poultry, pork, dairy products, and eggs.
The U.S. agricultural industry receives support through government programs, subsidies, and agricultural policies. The measures aim to enhance farm income stability, promote rural development, and ensure food security. Programs include crop insurance, commodity price supports, research funding, and conservation initiatives. For instance, in January 2023, the U.S. department of agriculture (USDA) announced a USD 7.5 million grant for researching new innovations in agricultural production.
The U.S. is the main hub in North America for new and innovative agricultural equipment launches. In November 2022, Monarch, a U.S.-based electric vehicle manufacturer, launched MK-V, all-electric, driver-optional heavy-duty tractor. Furthermore, in May 2023, Hyundai, the multinational automotive conglomerate, launched the Xcient, a hydrogen-fuel cell based tractor for the U.S. market. The launch of new and innovative agricultural machinery will further boost demand for agricultural lubricants in the U.S.
Source: DataM Intelligence Analysis (2023)
North America Agricultural Lubricants Market Players
The major global players include Exxon Mobil Corporation, Total SA, Chevron Corporation, Shell Global, BP plc, Repsol SA, Valvoline, Lucas Oil Products, Inc., Frontier Performance Lubricants, Inc. and Triax Lubricants LLC.
COVID-19 Impact on North America Agricultural Lubricants Market
COVID Impact Analysis
Farmers in North America faced various challenges during the pandemic such as supply chain disruptions, labor shortages and reduced farm incomes, which influenced their purchasing decisions. Uncertainty and financial constraints led to a fluctuating demand for agricultural lubricants during the pandemic. Demand remained nearly constant from major agricultural conglomerates, but experienced a sharp reduction among small, independent farmers.
Furthermore, the pandemic necessitated adjustments in farming practices to comply with evolving health and safety guidelines. It affected agricultural operations, including machinery usage and maintenance. Big farms increased reliance on machinery to compensate for labor shortages, thus leading to an increased demand for agricultural lubricants.
Russia- Ukraine War Impact Analysis
The war between Ukraine and Russia has created several new opportunities for the North American agricultural lubricants market. Disruptions in export of key agricultural commodities such as wheat, corn and sunflower oil from Ukraine has led to North American agricultural conglomerates, mainly those based in the U.S. and Canada to fill the gap in global exports. The increase in agricultural production is likely to generate a short-term rise in demand for agricultural lubricants.
Furthermore, European producers of agricultural lubricants are facing high production costs as sanctions imposed by the EU on Russia led to disruptions in reliable energy supplies. It has created an opportunity for North American lubricant manufacturers to increase their exports to Europe by taking advantage of increased oil and gas production in the U.S., Mexico and Canada.
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
- Implements
By End-User
- Tractors
- Harvesters
- Shedders
- Balers
- Verge cutters
- Heavy-duty vehicles
- Fodder mixers
- Farm Equipments & Machinery
- Others
By Country
- The U.S.
- Canada
- Mexico
Key Developments
- In October, 2022, TYM, a South-Korea based multinational agricultural equipment manufacturer announced that its Bio THF 400 bio-based transmission oil has been certified by the U.S. department of agriculture (USDA) under its “BioPreferred Program,”. The certification will allow TYM to commence exports to the U.S. market.
- In November 2022, Valvoline and Cummins Inc. jointly launched the Valvoline All Fleet Turbo Plus for heavy-use high horsepower tractors used in road and agricultural operations.
- In January 2023, TotalEnergies, a French multionational conglomerate, exhibited its range of lubricants for heavy-duty trucks and agricultural machinery at the Heavy Duty Automotive Week 2023 expo in Grapevine, Texas, U.S.
Why Purchase the Report?
- To visualize the North America agricultural lubricants market segmentation based on type, viscosity grade, application, end-user and country, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of waste management market-level 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 North America agricultural lubricants market report would provide approximately 52 tables, 69 figures and 141 Pages.
Target Audience 2023
- Farm Equipment Manufacturers
- Agricultural Machinery Distributors
- Petrochemicals Companies
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies