Agricultural lubricants exhibit superior properties, including reducing friction, wear & tear, and temperature control, and help improve efficiency, the life span, and reliability of the tractor and other agriculture equipment engine components. The demand for agricultural lubricants in developing economies like India, Vietnam, China, and Brazil will expand due to the increased use of farm tractors.
China is the largest market for agriculture lubricant consumption in the Asia Pacific region in terms of volume and revenue. China is a key market leader in farm output; the country produces commodities such as rice, tomato, cotton, soybean, tea, and wheat. Improved regulation policies have helped China be an independent and self-supporting country in agriculture commodities production.
Government bodies across several nations provide subsidies to farm equipment such as tractors, harvesters, power sprayers, and threshers. Increasing farm mechanization adoption rates in developing economies is a significant factor driving the market growth.
KEY HIGHLIGHTS:
Rising mechanization in the agricultural sector and the development of new & innovative products are expected to dominate the engine oil market
In 2021, Canadian tractor sales increased by 19.4% compared to 2020. Surging sales of below 40 HP tractors increased by 42.1 percent in July 2020 compared to July 2019. These factors mentioned above have positively influenced the Canadian agriculture lubricants market.
In 2020, the farmers and landlords managed 71% of the U.K.'s land to safeguard the environment, animals, and plants. The agriculture sector is highly affected by a change in temperature. Therefore, the government is focusing on adapting stringent measures for climate neutralization and net zero emissions by 2050 to initiate sustainability and agricultural activities.
The growing need for biobased lubricants is one of the emerging trends in the market
Bio-based lubricants offer various advantages such as non-toxicity, carbon-neutral, renewable, and environment-friendly, resulting in increased demand for bio-lubricants across the globe. Growth-inducing aspect is the rising demand for agriculture lubricants with superior product qualities, such as biodegradability, high flash points, constant viscosity, and lower emission levels. The global depletion of crude oil reserves and rising crude oil costs have significantly increased the demand for bio-based products. Other factors such as expanding R&D initiatives, technological innovation, growing environmental concerns, and stringent government regulations on synthetic lubricants will likely propel the bio-based lubricant market forward in the coming years.
Europe will dominate the bio-based oil market owing to stringent mandatory regulations on the consumption of this product. European regulations make it obligatory to consume oils with EOCLABEL specifications. The EU-Ecolabel products have certain advantages such as the reduced impact on the aquatic environment and soil, reduced carbon dioxide emission, high percentage of renewable raw materials, and limited use of hazardous substances.
Government subsidies for the agricultural industry to create growth opportunities
The global countries came up with several Government subsidies, which brought enormous growth to the agriculture industry. United States invested around the U.S. $48 billion in the agricultural sector; the law's primary goals include maintaining fair food prices for farmers and consumers, protecting & sustain the country's vital natural resources, and supporting adequate food commodities supply. These factors promote the consumption of agriculture equipment and lubricant market demand. The Chinese government subsidizes rural farmers while also boosting the production of specific crops to lessen dependency on imported goods like U.S. soybeans, increasing the massive cultivation of this crop field. These factors promote the consumption of agriculture machinery usage and the rise of demand for agriculture lubricants.
Volatility in crude oil prices impacts the industry
Crude oil prices are subject to periodic demand and supply fluctuations. The covid-19 pandemic, which resulted in a decline in demand, recently influenced crude oil prices. While the economy is improving, global uncertainties continue to affect oil prices. In 2020, the prices of greases and hydraulic fluids saw a considerable increase. The primary reason for the hike is that the massive demand for base oil supplies has simultaneously increased the costs of additives, packaging, and other resources. Because of the pandemic, the stakeholders, including lubricant manufacturers, face an acute shortage of base oils and additives. Disruptions in supply and value chains have adversely affected businesses with higher operating costs and have influenced the demand and supply of oils.
Mineral-based lubricants' market size crossed 1.3 billion in 2021
In 2021, Mineral based lubricants dominated the market with a value of USD 1.3 billion. Mineral-based lubricants are manufactured by crude distillation and cracking process. The Group I, Group II, and Group III base oils obtained from crude oil are used to manufacture mineral-based lubricants. This lubricant provides superior properties, including better solubility with additives, enhanced seal compatibility, and low production cost. This factor mentioned above has created a positive influence on the market.
The synthetic lubricant market is expected to be the second-largest segment, with a CAGR of 2.45% during the forecast period. Synthetic-based oils exhibit better viscosity index, better chemical & shear stability, and resistance to oxidation & thermal breakdown. In addition, this product provides better lubrication during extreme weather conditions. Synthetic lubricants have proper stability, enabling reduced wear and tear on machines due to oil breakdown. Synthetic oils are cost-efficient as they save costs spent on maintenance. These factors promote the consumption of synthetic-based-oil lubricants market.
Engine oil is the largest segment in the agriculture lubricant market
Engine oil is the dominant product type segment and is expected to witness exponential growth during the forecast period. Engine oils are primarily used to protect engines from wear and tear when subjected to varying temperatures and pressures. Engine lubrication is critical for safeguarding the engine and reducing the risk of damage and failure; therefore, selecting a high-quality lube should be significant.
Key Questions Answered 1. What is the Future Market Value of the Agricultural Lubricant Market? 2. What is the Growth Rate of the Agricultural Lubricants Market? 3. How Many Units of Agricultural Lubricants Will Be Sold in 2027? 4. What Was the Market Value of the Mineral-Based Lubricant Industry? 5. What is the Growth Rate of the Synthetic Agricultural Lubricant Industry? 6. Who Are the Major Vendors in the Global Agricultural Lubricants Industry?
Key Topics Covered:
1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage 4.1 Market Definition 4.1.1 Inclusions 4.1.2 Exclusions 4.1.3 Market Estimation Caveats 4.2 Base Year 4.3 Scope of the Study 4.3.1 Market by Geography
7 Introduction 7.1 Overview 7.2 Evolution of Lubricants 7.3 Types of Lubricants 7.4 Functions of Agricultural Lubricants
8 Value Chain Analysis 8.1 Raw Material 8.2 Manufacturers 8.2.1 Sedimentation 8.2.2 Fractionating 8.2.3 Filtering and Solvent Extraction 8.2.4 Additives, Inspection, and Packaging 8.3 Retail & Distribution 8.4 End-User 8.5 Impact of Covid-19 8.5.1 Supply Side 8.5.2 Demand Side
9 Market Opportunities & Trends 9.1 Growing Need for Bio-Based Lubricants 9.2 Advancements in Agricultural Technology 9.3 Packaging Insights of Lubricants
10 Market Growth Enablers 10.1 Soaring Demand for Farm Mechanization 10.2 Government Subsidies for the Agriculture Industry 10.3 Increasing Demand for Emission Reductions
12 Market Landscape 12.1 Market Overview 12.2 Market Size & Forecast 12.3 Five Forces Analysis 12.3.1 Threat of New Entrants 12.3.2 Bargaining Power of Suppliers 12.3.3 Bargaining Power of Buyers 12.3.4 Threat of Substitutes 12.3.5 Competitive Rivalry
13 Type 13.1 Market Snapshot & Growth Engine (Value) 13.2 Market Snapshot & Growth Engine (Volume) 13.3 Market Overview 13.4 Mineral Oil Based 13.4.1 Market Overview 13.4.2 Market Size & Forecast 13.4.3 Market by Geography 13.5 Synthetic Oil Based 13.5.1 Market Overview 13.5.2 Market Size & Forecast 13.5.3 Market by Geography 13.6 Bio-Based 13.6.1 Market Overview 13.6.2 Market Size & Forecast 13.6.3 Market by Geography
