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The industrial gear oil market size is forecast to increase by 351.06 thousand t, at a CAGR of 2.95% between 2022 and 2027.
The market's expansion is contingent upon various factors, notably the growth of the global construction industry, the rise in plant automation, and the ongoing trends of urbanization and industrialization worldwide. These factors collectively drive demand for products and services within the market, as construction projects require a range of tools, equipment, and materials. Additionally, the push for automation in industrial settings necessitates specialized solutions to optimize efficiency and productivity. Furthermore, urbanization and industrialization fuel the need for infrastructure development and technological advancements, creating opportunities for growth and innovation within the market. As these trends continue to shape the landscape, the market evolves to meet evolving demands and capitalize on emerging opportunities. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Electricity consumption and Heat are essential factors that can impact the performance of industrial gear oils, making it necessary to choose the right oil for specific applications. The Synthetic nature of some industrial gear oils makes them ideal for high-temperature applications, while others may be more suitable for low-temperature environments. In conclusion, the Industrial Gear Oil Market is a vital sector in the lubricants industry, with a growing demand for high-performance and efficient gear oils to meet the needs of various industries and applications
The market is a significant sector in the lubricants industry, focusing on the production and distribution of gear oils specifically designed for industrial applications. These oils play a crucial role in the smooth operation of machinery in various industries, including manufacturing, power generation, and mining. Turbocharges, Manifolds, and Performances are essential components in industrial machinery that require the use of high-quality gear oils. The Consumption of these oils is on the rise due to the increasing demand for efficient and productive machinery. The Maintenance of industrial equipment is a critical concern for businesses, and the use of appropriate gear oils can help extend the life of these assets. The Gearentry Systems in industrial machinery require the use of specific gear oils to ensure optimal performance and prevent wear and tear. Additives such as Extolicity Agents, Detergents, and Anti-wear Agents are commonly used in industrial gear oils to enhance their performance and provide additional benefits. The Availability of a wide range of industrial gear oils catering to different applications and specifications makes it a dynamic and competitive market. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Driver
Global urbanization and industrialization are key factors driving the growth of the global market. Global urbanization and industrialization are always on the growing side, with some of the co-mediators having a consistent demand for commodities such as iron in ferroalloy metals, bauxite in non-ferrous metals, gold and silver in precious metals, gypsum and talc in industrial minerals, and coal in energy or mineral fuels. These commodities are an essential part of many day-to-day household and construction industry requirements. In addition, there are a few other mineral types, such as lithium, that are slowly gaining pace. In the coming years, these minerals can be one of the leading drivers of the metal and mining industry.
The market is experiencing significant growth due to the increased demand for gears in various sectors. The wear and tear of gears in construction, mining, metal production, cement production, food processing, oil & gas, paper, and wood industries generate high heat, leading to the need for industrial gear oils to ensure longevity and productivity. As expenditure on machinery maintenance increases, so do the consumption volumes of gear oils. Base oil suppliers face challenges in meeting the demand as drain intervals become shorter. Volume information is crucial for both suppliers and consumers, including independent workshops, garages, and construction sites, to optimize their inventory and operational efficiency.
Moreover, with the increasing global mineral production, the need for minerals will remain high in the coming years as well. This demand for minerals is in tandem with the growth of the manufacturing, construction, energy, and chemical industries worldwide. The growth in the mineral mining industry will drive the demand for mining equipment and machinery, thus, contributing to the growth of the global industrial lubricants market during the forecast period.
Significant Trend
The increasing demand from the marine industry is the primary trend in the global market growth. Global seaborne trade has witnessed a gradual increase, despite the challenges in the past decade due to the adverse effects of the global recession and demand-supply disparities in manufactured goods and commodities. The growth in seaborne trade is expected to drive the demand for ships, which, in turn, will create the need for industrial gear oil for marine engines and other parts of ships during the forecast period.
The market caters to the demand for specialized lubricants used in various industries to reduce wear and tear on gears, particularly those subjected to high heat. Companies supplying these oils can be categorized into two groups: those providing generic products and those manufacturing industry-specific solutions. In recent times, there has been a significant focus on the production of mining gear oils. Major players, such as Shell plc and Exxon Mobil Corp., have adapted their businesses to meet the unique requirements of industries like construction, mining, metal production, cement production, food processing, oil & gas, paper, and wood. These suppliers offer comprehensive lubricant solutions, including base oils, to enhance equipment life and productivity, optimize drain intervals, and provide volume information to manage consumption volumes. Despite the benefits, challenges persist for both suppliers and independent workshops/garages in ensuring the appropriate use and disposal of these oils.
Seaborne trade also has a key role in economic development and growth in countries and various regions. Major emerging economies such as China and India have become crucial hubs for manufacturing a range of goods and commodities. Sea transportation accounts for a major chunk of the transportation of these goods and commodities from these countries to other parts of the world. Goods such as oil and grain are transported in container ships in bulk as bulk cargo. This could generate new business opportunities for shipping companies and ports and will drive the growth of the marine industry during the forecast period.
Major Challenge
The increasing adoption of automatic lubrication systems is a major challenge to the growth of the global market. Advances in technology are increasing automation, which, in turn, is increasing manufacturing competitiveness, creating a competitive global manufacturing landscape. The rise in competition has led to the adoption of high-speed machinery, high-volume production, and the requirement for machinery to run for longer periods. Therefore, the appropriate and adequate amount of lubricants is needed to ensure safe operation, and reduce unscheduled downtime, and wear and tear. Each manufacturing facility will have several hundred to thousands of lubricant points, depending on the size of the establishment. Lubrication is still done using manual labor, which can be impractical in an increasingly automated process industry.
The market has faced considerable challenges due to the decline in various sectors' expenditures on maintenance and replacement, particularly in industries reliant on gears such as mining, construction, metal production, cement production, food processing, oil & gas, paper, and wood. The increased wear and tear on gears, coupled with exposure to high heat, significantly impacts their life and productivity. Despite these challenges, the demand for gear oil remains essential to ensure the smooth operation and longevity of gears. Base oil suppliers play a crucial role in catering to the market's needs, supplying volume information and consumption volumes to independent workshops, garages, and construction sites. The mining and manufacturing sectors, which have historically been significant consumers, have seen a decline in demand due to weak economies and decreased production volumes. The Gear Oil Market's current state presents opportunities for suppliers to innovate and offer solutions that increase efficiency, reduce costs, and extend drain intervals. The stable economies of countries like India, with high government spending in infrastructure and manufacturing, offer potential growth opportunities.
Moreover, increasing the adoption of automatic lubrication systems will reduce the amount of lubricant required, impacting the growth of the market. Major damage can delay the refurbishing for up to eight months. Such delays are causing the end-user to find an alternate route for better maintenance and servicing. All these factors will pose a challenge to the growth of the global industrial lubricants market during the forecast period.
The report includes the adoption lifecycle of the industrial lubricants market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industrial lubricants market
BP Plc: The company offers industrial gear oil such as Energol GR-XP. Also, under this segment, the company comprises regions with upstream activities that predominantly produce crude oil.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market research and growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. In market growth analysis, data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market encompasses the production, sale, and use of gear oils designed specifically for industrial applications. These oils play a crucial role in the proper functioning of machinery, particularly in heavy industries such as manufacturing, mining, and power generation. The key components include extreme pressure additives, anti-wear agents, and rust and oxidation inhibitors. The market is driven by the increasing demand for reliable and efficient machinery in various industries. Additionally, the growing trend towards the use of eco-friendly and biodegradable lubricants is expected to provide significant opportunities for market growth. The major players in the market include Chevron Oronite, Shell, ExxonMobil, and Lubricant Company. The market is expected to grow at a steady pace over the next few years due to the increasing demand for industrial machinery and the need for efficient and reliable lubrication solutions.
The market share growth by the manufacturing segment will be significant during the forecast period. The manufacturing industry is regarded as essential to both social and economic progress. A nation overall, and particularly its economic development, depends heavily on its manufacturing sector. A nation's economic strength is determined by the growth of its manufacturing sectors. The share of manufacturing in GDP is, therefore, a basic indicator of the significance of the sector in a country's economy. Thus, growth in the manufacturing sector will spur the growth of the market in focus during the forecast period.
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The manufacturing segment was valued at 806.79 thousand t in 2017 and continued to grow by 2021. Most machinery used in the manufacturing sector contains a gearbox. The shafts on which the gears are mounted are supported and rotated by rolling element bearings. The gearbox is used to increase torque while lowering speed and uses mechanical means to transmit energy from one device to another. The gearbox is a vital component of many industrial applications. These devices play a crucial role in mechanical power transmission and motor speed factor modification. Lubrication is essential to the efficiency of gearboxes, which is necessary for them to perform their tasks correctly. The blood system of an industrial gearbox is lubricating oil. The Gear Oil Market caters to the industrial sector, supplying gear oils for various applications. This oil is essential for lubricating gears in machinery, reducing wear and tear, and managing heat to enhance life and productivity. Industrial gear oil is primarily used in heavy-duty enclosed gear drives with splash and circulation systems, as well as for plain bearings, sliding surfaces, and chain drives in industries like construction, mining, metal production, cement production, food processing, oil & gas, paper, and wood. Consumption volumes depend on drain intervals and equipment specifications. Base oil types include synthetic and mineral. Challenges in the market include price fluctuations, increasing environmental concerns, and competition from alternative lubricants. Suppliers cater to independent workshops, garages, and original equipment manufacturers. Gear oil expenditure is a significant consideration for industries aiming to optimize production and minimize downtime.
The gearbox is liable to malfunction if the oil levels drop too low. Failure of the gearbox can result in costly repairs that could be avoided. In addition to increased costs from replacement or repair, costs from a loss of production may be high. Thus, for the effective and efficient operations of machinery, gear oil is an important component. Such factors will increase segment growth during the forecast period.
By Product
The Gear Oils Market encompasses various types of lubricants used in power generation, vehicle production, construction activities, and machinery transmission. Mineral oils, derived from petroleum, are commonly used due to their affordability and wide availability. However, for extreme temperature and pressure conditions, synthetic gear oils, such as those based on Poly-alpha-olefin (PAO), Polyalkylene Glycol (PAG), and Esters, offer superior performance. Synthetic gear oils find extensive applications in wind turbines' main gearboxes, where high viscosity and temperature resistance are essential. Performance additives enhance their properties further. In contrast, mineral oils are suitable for manual gearboxes and axle oils in automobiles, marine, railway, aviation, and manufacturing hubs.
The Gear Oils Market value chain includes production sites, localization rates, and company strengths and weaknesses. Product launch and innovation in bio-based lubricants and IoT-based automatic lubrication systems are ongoing trends. Synthetic gear oils cater to power generation, including wind power generation, and various industries, such as automotive, marine, railway, aviation, and manufacturing. Environmental pollution concerns have led to the development of eco-friendly lubricants. Market players focus on value chain optimization and company strengths to address competition and product demand.
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APAC is estimated to contribute 55% to the growth of the global industrial lubricants market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market is experiencing robust growth due to escalating manufacturing activities, particularly in the wind power generation sector. The main gearbox of wind turbines requires Synthetic Gear Oils fortified with Performance Additives for optimal functionality. Construction activities, a significant contributor to APAC's status as a manufacturing hub, also drive the demand for lubricants like Industrial Gear Oils. Localization rates in manufacturing sites enhance production capacities, strengthening company positions. Key industries, including vehicle production and power generation, utilize various types of Gear Oils, such as Manual Gearbox and Axle Oils, for Transmission systems in Automobiles, Marine, Railway, and Aviation applications.
The market values IoT-based applications and Automatic Lubrication Systems for enhancing efficiency and reducing environmental pollution. The market encompasses a wide range of applications, including PAO, PAG, Esters, and Bio-based lubricants, catering to diverse industries and applications. Product launches, company strengths, and weaknesses, as well as the use of innovative machinery, shape the Gear Oils Market landscape. The growth of the market in APAC is high due to an increase in manufacturing activities. This, in turn, is propelling the demand for general machinery, thereby driving the need for industrial gear oil. APAC is a successful global manufacturing hub, and the region registers significant investments in all its major industries. The increase in the number of large construction projects in the renewable energy sector to meet energy demand and population growth will contribute to the growth of the market in APAC.
The report forecasts market growth by revenue at global, regional & country levels and provides a market research report analysis of the latest market trends and analysis and growth opportunities from 2017 to 2027.
The market is influenced by stringent government regulations, pushing for energy-efficient and eco-friendly solutions. The demand for cost-effective and reliable gear oils is rising, especially in heavy-duty vehicles and transmissions, contributing to economic activity and providing sustainable transportation solutions.The market plays a significant role in the manufacturing sector, particularly in the operation of heavy machinery and equipment. The Producers and Suppliers of these oils ensure the smooth functioning of gears in various industries, including Capacities, Components, and Challenges. The Sites require high-performance oils to meet stringent strength requirements and ensure longevity. The Cities and Companies rely on these oils to maintain productivity and efficiency. The capacities of industrial gear oils vary, with some designed for high-temperature applications and others for low-temperature environments. The Mining industry, for instance, requires oils that can withstand extreme conditions. The Metal industry, on the other hand, demands oils that can handle high loads and pressures. The Paper industry requires oils that can operate in high-speed applications. Challenges in the market include the need for eco-friendly and cost-effective solutions. The Suppliers and Producers continue to innovate to meet these demands and provide solutions that meet the specific needs of various industries.
The emphasis on energy-efficient transmissions aligns with efforts to reduce carbon emissions and address environmental concerns. The oil market plays a vital role in various sectors, including commercial vehicles, machinery, manufacturing units, food and beverage, marine, transportation, and oil and gas industries. Companies like Addinol Lube Oil are at the forefront, offering specialty lubricants that enhance the performance of machinery, contributing to energy savings and aligning with the evolving landscape of the industrial production sector. Amidst concerns about raw materials and profit margins, the industry is focusing on innovations to combat technological obsolescence and create a more sustainable future.
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.95% |
Market growth 2023-2027 |
351.06 thousand t |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.61 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 55% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ADVANCED LUBRICATION SPECIALTIES, AMALIE OIL CO., BASF SE, BP Plc, Chevron Corp., China Petrochemical Corp., Croda International Plc, Dyade Lubricants B.V., Exxon Mobil Corp., FUCHS PETROLUB SE, Hinduja Group Ltd., Petromin Corp., Shell plc, TotalEnergies SE, United Grease and Lubricants, Valvoline Inc., Apar Industries Ltd., Gandhar Oil Refinery India Ltd., Petroleos de Venezuela SA, and PJSC LUKOIL |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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