Construction Lubricants Market

The construction lubricants market is projected to grow from USD 9.0 billion in 2022 to USD 10.6 billion by 2027 at a CAGR of 3.3%. Over the world, the construction lubricants market is expanding significantly, and during the forecast period, a similar trend is anticipated. The extensive use of construction lubricants and growing demand for high-quality lubricants has raised the demand for construction lubricants worldwide. Rapid industrialization in the Asia Pacific and the Middle East & Africa regions post-COVID-19, coupled with the rise in process automation in the construction industry and the gradual increase in construction equipment, are key factors expected to drive the global construction lubricants industry during the forecast period. Furthermore, leveraging the E-commerce industry to increase customer reach and development of zinc-free (ashless) lubricants is an opportunity for market growth. However, rising raw material prices and maintaining product quality, and stringent environmental norms by the government are the major challenges in the construction lubricants market.

Attractive Opportunities in Construction Lubricants Market

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Construction Lubricants Market Dynamics

Driver: Rise in automation in the construction industry

Automation is the use of construction equipment and technology to automate production processes or systems to boost efficiency by reducing manual labor. As automation increases, mechanical parts of the construction equipment are constantly under motion and load, which asks for a high lubrication requirement for the equipment to work efficiently and properly without any failures. The construction industry uses numerous heavy-load equipment that requires regular lubrication. The increasing cost of workforce and safety requirements is also driving the demand for process automation. Hence, most companies are automating their operations which is driving the construction lubricants market.

Restraints: Technological Advancements

Portable and compact machinery has been introduced in the construction industry, which is gaining popularity. Due to reduced gearbox & hydraulic equipment size and extended drain intervals, lubricant consumption in the construction industry has decreased. Construction industries are using new ideas and technologies like proactive lubricant life extension, optimizing the relube interval, reducing package waste (avoiding the bulk purchase of lubricants to reduce the wastage of unused lubricants), and reducing leakage to minimize the use of lubricants. Such technological advancements in the construction industry are expected to hamper the demand for construction lubricants.

Opportunities: Leveraging the E-commerce industry to increase customer reach

E-commerce is an internet platform where manufacturers and sellers can directly sell their construction lubricants without involving any shop, dealer, or distributor. This platform helps the manufacturers of construction lubricants to cut down the value chain and improve their margins. Several construction lubricants manufacturing companies also started to leverage this revolutionary virtual marketplace to gain a customer base using digital market techniques and online campaigns.

Challenges: Rising raw material prices

The construction lubricants market is significantly influenced by the variation in the crude oil market. In 2021 and 2022, the overall market enjoyed profits as prices of WTI and Brent crude oil covered and went to a high of 84.65 and 123.70 WTI crude oil and for the Brent crude oil 85.76 and 133.18 USD per barrel. As a result, such volatile crude oil prices affected the margins of construction lubricant manufacturing companies in the past three years. The majority of the lubricant products are mineral oil-based, which is sourced from crude oil. Therefore, the prices of lubricant products depend on crude oil prices. The price change has a huge impact on the lubricants market.

Construction Lubricants Market Ecosystem

Prominent companies in construction lubricants market include financially stable and well-established manufacturers of construction lubricants. These key players have been operating in the market for several years and possess state-of-the-art technologies, a diversified product portfolio, and strong worldwide marketing and sales networks. Prominent companies in this market include Shell Plc (UK), ExxonMobil Corporation (US), BP p.l.c. (UK), Chevron Corporation (US), and TotalEnergies SE (France).

Based on base oil, the mineral oil segment is estimated to account for the largest market share of the construction lubricants market

Based on base oil, the mineral oil segment is estimated to account for the largest market share. This is attributed to its lower price and widespread availability compared to synthetic oil. However, synthetic oil is anticipated to grow at the highest CAGR during the forecast period because of its superior qualities.

Based on type, the engine oil segment is anticipated to dominate the market

Engine oil segment dominated the global construction lubricants market. This high growth is mainly driven by the frequent replacement of engine oil in various construction equipment and off-road vehicles. Engine oil is mainly used in crankcases and lubrication in various heavy-load equipment in the construction industry. This drives the consumption of engine oil in the construction industry.

The Asia Pacific market is projected to contribute the largest share of the construction lubricant market

Asia Pacific is projected to hold the largest share of the global construction lubricants market throughout the forecast period, in terms of value and volume. According to projections, the region will be a prime location for the construction lubricants business attributed to rise in construction activities, expanding industrial investment, growing population, and the development of its infrastructure in the developing markets of China, Japan, and India.

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Key Market Players

The key market players profiled in the Report include Shell plc (UK), Exxon Mobil Corporation  (US), BP p.l.c. (UK), Chevron Corporation (US), TotalEnergies SE (France), Sinopec Corp. (China), FUCHS Petrolub SE (Germany), LUKOIL (Russia), Indian Oil Corporation Limited (India), Petronas (Malaysia), among others.

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Scope of the Report

The study categorizes the construction lubricants market based on Base Oil, Type, Equipment, and Region.

By Base Oil

• Mineral Oil
• Synthetic Oil
• PAO
• PAG
• Esters
• Group III (Hydrocracking)

By Type

• Hydraulic Fluid
• Engine Oil
• Gear Oil
• Automatic Transmission Fluid
• Grease
• Compressor Oil
• Others

By Equipment

• Earthmoving Equipment
  • Excavators
  • Loaders
  • Crawler Dozers
  • Motor Graders
  • Others
• Material Handling Equipment
• Heavy Construction Vehicles
• Others
  • Compactors and Road Rollers
  • Pavers/Asphalt Finishers
  • Other Equipment and Machinery

By Region

• Asia Pacific
• North America
• Europe
• Middle East & Arica
• South America

Recent Development

• In December 2021, TotalEnergies Marketing & Services Australia, a subsidiary of TotalEnergies SE, announced a new partnership with Mitsubishi Motors Australia Limited to launch the latest Mitsubishi Genuine Oil Program. The partnership is based on common goals and provides integrated solutions with a focus on innovation, advanced technology, sustainability, and customer experience.
• In October 2021, TotalEnergies Specialties USA, a subsidiary of TotalEnergies SE,  partnered with Hyperfuels to market the full range of TotalEnergies' automotive lubricants nationwide.
• In June 2021, BP p.l.c. has set up a digital hub in Pune, India. This expansion helped them to grow their digital expertise and meet the changing demands by providing sustainable solutions.
• In March 2020, Shell plc announced its investment to double the capacity of the Indonesian lubricants oil blending plant to meet the growing domestic demand. After completion, the plant will be capable of producing up to 300 million liters of finished lubricants annually.

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