The global construction lubricants market size was worth US$ XX Million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
A lubricant is a substance used to reduce friction between two surfaces that are in mutual contact. The purpose of lubricants is to reduce friction, prevent corrosion and overheating to ensure components' long operating life. A good lubricant must have high boiling and low freezing point, good thermal stability, high viscosity, and high oxidation resistance.
Various fluids are required for the smooth functioning of the construction equipment. Transmission oil is used to lubricate the vehicle's transmission to ensure optimum performance. Brake fluid is a type of hydraulic fluid used for the braking system. The fluid transmits pressure on the brake pedal to the brakes and amplifies the braking force. Synthetic grease is used for lubricating various moving mechanical components such as ball bearings.
Source: DataM Intelligence Analysis (2022)
The demand for the construction lubricants market is driven by the global increase in infrastructure and construction activities. It is one of the most important drivers for the market. The technological advances in construction equipment reduce the demand for lubricants and are a key challenge for the global construction lubricants market.
Increase in infrastructural and construction activities
Rapid urbanization, especially in emerging countries including India and China, and migration of massive populace from rural to urban in search of better opportunities has led to increased urbanization. Better infrastructure is required to cater rising population in urban areas. Strong economic growth in the past decade has led to better socio-economic outcomes and rising disposable income in developing countries. Ease of financing and increased government investment have led to the residential and commercial construction boom.
New residential complexes, commercial office spaces, recreational centers, stadiums, bridges, tunnels and mass transit systems are the most prioritized infrastructure investment from both private parties and the government. The rise in construction activities is a major driver for the global construction lubricants market.
Technological advances in construction equipment
Construction equipment is generally massive in size and extremely expensive. The machinery has hundreds of moving parts that require regular lubrication and maintenance. Construction and infrastructure development companies incur significant expenses. The operators are looking for ways to reduce operating expenses. Smaller and compact equipment with advanced technologies is now entering the industry.
The incorporation of new technology has reduced size and extended service intervals, reducing operating costs. Other measures such as proactive lubricant life extension, recycling of lubricants, and increasing the usage of self-lubricating components in construction equipment are also being undertaken. The technological advances in construction equipment are designed to reduce operating costs and lubricant usage, thereby reducing demand for lubricants and thus, presenting a key challenge for the growth of this market.
The COVID-19 pandemic had a significant impact on the construction lubricants market. Governments around the world imposed lockdowns to slow the spread of the pandemic. Except for a few critical projects, the global building and construction industry came to a halt due to the lockdowns, causing construction equipment to idle. China, the world's largest infrastructure and construction market and thus the largest consumer of construction lubricants, emerged from lockdowns relatively quickly and generated a significant amount of demand, despite the rest of the world experiencing a massive increase in COVID-19 cases.
The pandemic hampered the production of lubricants, mainly due to companies reducing production rates in response to reduced demand. The supply and trading of petroleum, which is the base for many lubricants, severely impacted the pandemic and virtually stopped through much of 2020. Global production is expected to recover by early to mid-2021. The pandemic will have a negligible impact on the medium to long-term growth of the global construction lubricants market since companies are expected to gradually ramp up capacity utilization as construction activities resume and demand returns to pre-pandemic levels. The demand for construction lubricants remains strong, especially in the emerging markets, and is expected to grow significantly in the coming years.
The construction lubricants market is segmented into base oil, lubricant, equipment, and region. The global construction lubricants market is segmented into engine oil, gear oil, automatic transmission fluid, compressor oil, and grease based on lubricant. Engine oil is leading in this segment since it is the most frequently replaced lubricant.
The engine oil is subjected to high pressures and temperatures inside the engine and thus requires replacing at regular intervals. Gear oils and automatic transmission fluids are used in the transmission and have high stability; thus, they require fewer replacements. Compressor oil also has to be replaced at regular intervals. Grease is used for lubricating moving parts such as ball bearings. Grease is extremely durable and requires very little replenishing and replacement over the operating lifetime of the machinery.
Source: DataM Intelligence Analysis (2022)
Asia-Pacific is leading in the global construction lubricants market. The region accounts for the largest market share, primarily due to major emerging markets such as China, India, Indonesia, Malaysia, Thailand, and Vietnam and developed markets such as Japan and South Korea.
China has the largest construction industry globally and is expected to increase global construction output by US$ 1.2 trillion by 2030. Civilian construction has driven this growth, owing primarily to the Chinese government's push to make housing more affordable and widespread infrastructure investment. China has the largest construction industry globally and is expected to increase global construction output by US$ 1.2 trillion by 2030. Civilian construction has driven this growth, owing primarily to the Chinese government's push to make housing more affordable and widespread infrastructure investment. The Belt and Road Initiative (BRI), a global infrastructure investment strategy by China, is another factor driving growth in this region.
BRI is currently funding public infrastructure projects such as the construction of ports, highways, industrial zones in emerging markets such as Bangladesh, Sri Lanka, Malaysia, Indonesia, Thailand, and South Korea. India is another significant emerging market that is investing heavily in public infrastructures such as metro rail, highways, and bridges. The Asia-Pacific construction boom generates significant demand for construction equipment, and thus Asia-Pacific is expected to retain the largest market share.
Source: DataM Intelligence Analysis (2022)
The global construction lubricants market is highly competitive due to the availability of different types of proprietary lubricants for various construction machinery. Some of the major players contributing to the growth in the segment are 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. The major players adopt several growth strategies such as new product launches, joint ventures and collaborations, contributing to global growth in the industry. The major players are also undertaking broad-based changes regarding growing environmental consciousness and sustainability.
Overview: TotalEnergies is a multinational integrated oil and gas company. The company's business ranges from crude oil and natural gas exploration and production to refining, marketing, commodity trading and power generation. TotalEnergies has oil production and refining sites in more than 50 countries globally. TotalEnergies was founded in 1924 and is headquartered in Paris, France.
The global construction lubricants market report would provide access to an approx.: 66 market data tables, 64 figures and 214 pages.
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