Enjoy complimentary customisation on priority with our Enterprise License!
The industrial gear oil market size is forecast to increase by USD 112.5 million and estimated to grow at a CAGR of 2.98% between 2023 and 2028. 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.
For More Highlights About this Report, Download Free Sample in a Minute
The market is driven by the increasing demand in various industries such as mining, construction, energy, oil & gas, chemicals, food & beverage, and machineries. The primary components of gear oils are base oils and additives. Base oils can be synthetic or mineral-based, with synthetic oils gaining popularity due to their superior performance in high-heat and high-stress applications. The mining industry is a significant consumer due to the heavy usage of gear-based machines in mining operations.
Similarly, the construction industry also relies heavily on gear oils for the smooth functioning of cranes, bulldozers, and other heavy machinery. In the energy sector, gear oils are used extensively in power generation and oil & gas exploration. The production rate of gear oils is influenced by the economic growth and international transport. The supply chain of gear oils involves the procurement of raw materials such as base oils and additives. The production process involves blending and refining these raw materials to produce high-quality gear oils. Gear oils are essential for the smooth functioning of moving parts in gearboxes, reducing friction and heat build-up. They are used in various applications, including gears, bearings, chains, and other moving parts in industries such as agriculture, steel, and manufacturing. The demand is expected to grow due to the increasing usage of gear-based machines in various industries.
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.
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 market growth analysis 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 market research and growth period.
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 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 market growth and forecasting period.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market growth and trends 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 market forecasting 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 market forecast period.
Get a glance at the market contribution of various segments Download PDF Sample
The manufacturing segment was valued at 256.1 million in 2018. 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 market analysis and report 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.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 38% to the growth of the global 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 caters to the lubrication needs of various moving parts, including gears, bearings, and chains, in diverse sectors such as agriculture, power generation, and construction. Friction and heat build-up are primary concerns in these applications, necessitating the use of specialized formulations.
Further, in agriculture, gear oils are utilized in tractor main gearboxes and gear motor components. In power generation, they are essential for wind turbines and hydroelectric systems, where high temperatures, load weights, and oxidation are prevalent. Rust inhibitors are crucial additives to prevent corrosion in offshore applications and localization rates are increasing in manufacturing hubs like China and India. The thermal, hydro, nuclear, and renewables segments drive demand for gear oils in the power generation sector. Synthetic gear oils offer superior performance over mineral-based counterparts due to their ability to withstand extreme conditions and provide better load-carrying capacity and viscosities. Performance additives enhance the lubrication properties, ensuring longer gear life and reduced bearing wear. The automotive sector also consumes significant quantities of gear oils for automotive applications. Electricity consumption in power generation and construction activities, driven by a rising population, further fuels the demand for industrial gear oils.
The market research report includes the adoption lifecycle of the 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.
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 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 research report also includes detailed analyses of the competitive landscape of the market and information about Key companies, including:
Qualitative and quantitative 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. 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 is driven by the increasing usage of gear oils in various industries such as mining, construction, energy, oil & gas, chemicals, food & beverage, and machineries. The demand for high-performance gear oils is on the rise due to the need for better operational performance, corrosion, and oxidation resistance in high-heat and high-stress applications. Base oils used in the production of gear oils include mineral and synthetic types. Additives are added to enhance the properties of the base oil, such as improving the gear oil's performance in extreme temperatures and increasing its resistance to wear and tear. The economic growth in urbanization and population increase in various regions is leading to an increase in business activities, resulting in a surge in demand for gear oils.
However, the international transport sector and supply chain disruptions due to the lockdown have affected the production rate of gear oils. The mining, wind energy, and manufacturing sectors are significant consumers of gear oils due to the heavy usage of gearbased machines in these industries. Synthetic-based gear oils are gaining popularity due to their superior performance and environmental impact reduction compared to mineral-based lubricants. The manufacturing centers in Asia Pacific, Europe, and North America are the major investment pockets for the industrial gear oil market. The transportation technology sector is also expected to witness significant growth due to the increasing adoption of electric and hybrid vehicles, which require high-performance gear oils.
In conclusion, the industrial gear oil market is expected to grow significantly due to the increasing demand for high-performance gear oils in various industries and the shift towards synthetic-based lubricants. However, the supply chain disruptions and raw material availability issues may pose challenges to the market growth.
|
Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
186 |
|
Base year |
2023 |
|
Historic period |
2018 - 2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 2.98% |
|
Market growth 2024-2028 |
USD 112.5 million |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
2.57 |
|
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
|
Performing market contribution |
APAC at 38% |
|
Key countries |
China, US, Japan, Germany, and India |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
ADVANCED LUBRICATION SPECIALTIES, AMALIE OIL CO., Apar Industries Ltd., BASF SE, BP Plc, Chevron Corp., China Petrochemical Corp., Croda International Plc, Dyade Lubricants B.V., Exxon Mobil Corp., FUCHS PETROLUB SE, Gandhar Oil Refinery India Ltd., Hinduja Group Ltd., Petroleos de Venezuela SA, Petromin Corp., PJSC LUKOIL, Shell plc, TotalEnergies SE, United Grease and Lubricants, and Valvoline Inc. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID --19 impact and recovery analysis and future consumer dynamics, Market condition analysis for 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
Get the report (PDF) sent to your email within minutes.