Agriculture Lubricants Market Size
| Study Period | 2018 - 2028 |
| Market Volume (2023) | 1.52 Million tons |
| Market Volume (2028) | 1.77 Million tons |
| CAGR (2023 - 2028) | 3.13 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Agriculture Lubricants Market Analysis
The Agriculture Lubricants Market size is expected to grow from 1.52 million tons in 2023 to 1.77 million tons by 2028, at a CAGR of 3.13% during the forecast period (2023-2028).
In the year 2020, the market was affected negatively due to the breakdown of Covid-19. However, in 2021 and 2022, the opening up of economies helped the market to gain momentum and reach pre-pandemic levels.
- Factors such as the provision of subsidies for farm machinery by the Indian and Chinese governments, increasing farm mechanization rates in developing countries, and increasing cost of farm labor are driving the market.
- However, the high cost of synthetic and bio-based lubricants will likely hinder market growth during the forecast period.
- Asia-Pacific is expected to dominate the global market during the forecast period.
- The growing prominence of biodegradable lubricants will act as an opportunity for market growth during the forecast period.
Agriculture Lubricants Market Trends
Engine Oil to Dominate the Market
- Engine or motor oils are widely used for lubricating internal combustion engines and are mainly composed of 75% to 90% base oils and 10% to 25% additives. They protect the engines from corrosion and keep them cool while in use.
- Engine oils are majorly used for applications such as corrosion protection, wear reduction, and smooth operation of engine internals. They function by creating a thin film between the moving parts to enhance heat transfer and reduce tension during the contact of parts.
- In the agricultural sector, engine oils are used in tractors, harvesters, and forage equipment to reduce maintenance, enhance wear and corrosion protection, improve engine reliability, and improve fuel efficiency.
- Total, Royal Dutch Shell Plc, Chevron Lubricants, CONDAT Group, and Schaeffer Manufacturing Co. are some of the major lubricant manufacturers offering various types of engine oils for agricultural equipment.
- Several leading vendors are investing in research and development to develop innovative equipment and maintain a strong tractor market foothold. Companies like Case IH and New Holland launched new autonomous tractors. Deere & Company, AGCO, and Versatile are some manufacturers in this segment.
- In the coming years, all the factors mentioned above are projected to impact the market for engine oil in the agriculture industry.
Asia-Pacific to witness Fastest Growth
- China is the largest lubricant consumer in Asia-Pacific and globally. China accounts for around 7% of the overall agricultural acreage globally, thus feeding 22% of the world population.
- The country is the largest producer of various crops, including rice, cotton, potatoes, and others. Hence, the demand for various types of agricultural machinery is rapidly increasing owing to the large-scale agricultural activities in the country.
- The increasing area under cultivation enhanced the demand for agricultural machinery in China. For instance, corn acreage in China rose to 5% in 2022, and the output rose to 4.6%.
- India is the second-largest lubricant consumer in the region and the third-largest globally, after the United States and China.
- India is one of the economies that are largely dependent on agriculture. Agriculture is still the primary source of livelihood for more than 55% of the population.
- In 2022, tractor exports from India increased by 6%, reaching 131,850 units. It is the highest annual export in Indian history, up from 124,901 units in 2021. India accounts for nearly 2.1% of global tractor sales.
- The Japanese government plans to increase agricultural production to 54 million tons by 2025, from 50 million tons in 2013. Additionally, the government plans to increase the producer income from USD 29 billion to USD 35 billion, an increase of approximately 21% over the same period, by enhancing agricultural output quantity and revenue and cutting costs.
- Such trends in the agriculture industry are expected to drive market growth for agricultural lubricants over the forecast period.
Agriculture Lubricants Industry Overview
The agricultural lubricants market is partially consolidated in nature. Some of the major players (not in any particular order) in the market studied include Shell plc, Fuchs, Exxon Mobil Corporation, TotalEnergies SE, and BP p.l.c., among others.
Agriculture Lubricants Market Leaders
Shell plc
Fuchs
Exxon Mobil Corporation
TotalEnergies SE
BP p.l.c.
*Disclaimer: Major Players sorted in no particular order
Agriculture Lubricants Market News
- August 2022: Phillips 66 announced that it had submitted a non-binding proposal to the board of directors of DCP Midstream’s general partner, offering to buy all publicly held common units of DCP Midstream for cash. Phillips 66 is proposing USD 34.75 in compensation for each outstanding publicly-held common unit of DCP Midstream. It is part of a deal structured as a merger of DCP Midstream with an indirect subsidiary of Phillips 66, with DCP Midstream surviving.
- March 2022: HollyFrontier Corporation and Holly Energy created HF Sinclair Corporation, followed by the acquisition of Sinclair Oil Corporation and Sinclair Transportation Company. It will enhance the company’s lubricants business and strengthen its presence in the competitive market.
Agricultural Lubricants Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Provision of Subsidy for Farm Machinery by the Indian and Chinese Governments
4.1.2 Increasing Farm Mechanization Rates in Developing Countries
4.1.3 Increasing Cost of Farm Labor
4.2 Restraints
4.2.1 High Cost of Synthetic and Bio-based Lubricants
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 Product Type
5.1.1 Engine Oil
5.1.2 Transmission and Hydraulic Fluid
5.1.3 Grease
5.1.4 Other Product Types
5.2 Geography
5.2.1 Asia-Pacific
5.2.1.1 China
5.2.1.2 India
5.2.1.3 Japan
5.2.1.4 South Korea
5.2.1.5 Rest of Asia-Pacific
5.2.2 North America
5.2.2.1 United States
5.2.2.2 Canada
5.2.2.3 Mexico
5.2.3 Europe
5.2.3.1 Germany
5.2.3.2 United Kingdom
5.2.3.3 France
5.2.3.4 Italy
5.2.3.5 Spain
5.2.3.6 Rest of Europe
5.2.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 BP p.l.c.
6.4.2 Chevron Corporation
6.4.3 CLASS KGaA mbH
6.4.4 CONDAT
6.4.5 Cougar Lubricants International Ltd
6.4.6 Exol Lubricants Limited
6.4.7 Exxon Mobil Corporation
6.4.8 FRONTIER PERFORMANCE LUBRICANTS, INC.
6.4.9 Fuchs
6.4.10 Gulf Oil International Ltd
6.4.11 Hf Sinclair Corporation
6.4.12 Lubrication Engineers
6.4.13 Morris Lubricants
6.4.14 Pennine Lubricants
6.4.15 Phillips 66 Company
6.4.16 Repsol
6.4.17 Rymax Lubricants
6.4.18 Schaeffer Manufacturing Co.
6.4.19 Shell plc
6.4.20 TotalEnergies SE
6.4.21 Unil
6.4.22 Witham Group
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Growing Prominence of Biodegradable Lubricants
7.2 Other Opportunities
Agriculture Lubricants Industry Segmentation
Agriculture-specific lubricants are designed to avoid contamination, protect machinery from oxidation, corrosion, and rust, and provide longer oil drain intervals, resulting in lower oil usage. Using the proper lubricants boosts equipment uptime and ensures operational reliability regardless of weather or terrain. The agricultural lubricants market is segmented by product type and geography. The market is segmented by engine oil, transmission and hydraulic fluid, grease, and other product types. The report also covers the market size and forecasts for the fluoropolymer films market in 11 countries across major regions. The market sizing and forecasts for each segment are based on volume (Kilotons).
| Product Type | |
| Engine Oil | |
| Transmission and Hydraulic Fluid | |
| Grease | |
| Other Product Types |
| Geography | ||||||||
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| Rest of the World |
Agricultural Lubricants Market Research FAQs
How big is the Agriculture Lubricants Market?
The Agriculture Lubricants Market size is expected to reach 1.52 million tons in 2023 and grow at a CAGR of 3.13% to reach 1.77 million tons by 2028.
What is the current Agriculture Lubricants Market size?
In 2023, the Agriculture Lubricants Market size is expected to reach 1.52 million tons.
Who are the key players in Agriculture Lubricants Market?
Shell plc, Fuchs, Exxon Mobil Corporation, TotalEnergies SE and BP p.l.c. are the major companies operating in the Agriculture Lubricants Market.
Which is the fastest growing region in Agriculture Lubricants Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Agriculture Lubricants Market?
In 2023, the Asia Pacific accounts for the largest market share in the Agriculture Lubricants Market.
Agriculture Lubricants Industry Report
Statistics for the 2023 Agriculture Lubricants market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Agriculture Lubricants analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
