Global Agricultural Lubricants Market Extends at a Healthy CAGR of 2.77 by 2031

Introduction

Lubricants used to increase the efficiency of agricultural machinery are an indispensable component of the farming industry. Using agricultural lubricants is a cost-effective tactic since it extends machinery life by preventing wear and tear, lowers repair costs, and avoids needing to replace products too soon. Agriculture productivity and yield are increased by using modern equipment. A superior lubricating system for agricultural equipment ensures that the machinery requires less maintenance, has lower operating costs, and has a longer lifespan.

Market Dynamics

Soaring Demand for Farm Mechanization Drives the Global Market

Mechanized agriculture employs agricultural machinery to automate agricultural chores, resulting in a substantial increase in farm labor productivity. The relevance of farm mechanization has increased in recent years. This broad term includes the production, distribution, and use of diverse agricultural instruments, machinery, and equipment for land development, planting, harvesting, and primary processing. Due to innovative and contemporary products, powered farm equipment is replacing traditional methods. The tractor is the most frequent farm mechanization tool. Modern mechanized agriculture uses tractors, trucks, combine harvesters, and other vehicles to increase crop yields. Consequently, better investments and strategies are executed in accordance with the demand of the farm sector, which will spur growth in the agriculture sector, machinery, and lubricants over the projection period.

Advancements in Agricultural Technology Creates Tremendous Opportunities

Farmers have become aware of innovative ideas and strategies, such as using inorganic compost, that improves agricultural yields, increase energy efficiency, and reduces expenses. A growing understanding of the importance of technology in agriculture has prompted technological innovation. This technological advancement is the result of a growth in the usage of farm tractors and other agricultural machinery, which has improved the market productivity of lubricants. Tractors are one of the many types of agricultural machinery. They are utilized on farms for various purposes, including the carriage of heavy gear and the movement of trailers for tilling, plowing, harrowing, and planting. Integrating modern technology, such as telematics systems and GPS, into farm tractors is anticipated to increase the need for agricultural machinery. These factors increase the demand for lubricants in agricultural tractors, offering growth prospects for the market.

Regional Analysis

Asia-Pacific is the most significant shareholder in the global agricultural lubricants market and is anticipated to grow at a CAGR of 3.40% during the forecast period. Due to urbanization and industrialization, the region has experienced a tremendous expansion in investments, trade, and technology. Consequently, the industry's enablers will be demography, economic conditions, environmental conditions, and technological advances. The automation of landscapes will continue to increase the demand for agriculture and agricultural equipment. China dominates the Asia-Pacific agricultural lubricants market due to increased government initiatives to manufacture sustainable agricultural machinery in the region, hence driving the demand for agricultural lubricants.

North America is anticipated to develop at a CAGR of 2.09% over the forecast period. The growing demand for organic products is expected to raise the demand for agriculture, resulting in a significant increase in the need for agricultural lubricants. The United States dominates the agricultural lubricants market in North America due to the increasing adoption of agricultural machinery to reduce total production costs and boost productivity in the region, hence driving the market. At the onset of the pandemic, the demand for fresh and organic foods in North America increased, producing a need for organic farms and, concurrently, for agriculture. People now choose organic foods, which should offer chances for organic farming, agricultural equipment, and lubricants.

Key Highlights

• The global agricultural lubricants market was valued at USD 3,044 million in 2022. It is estimated to reach USD 3,893 million by 2031, growing at a CAGR of 2.77% during the forecast period (2023–2031).
• By type, the global agricultural lubricants market is divided into mineral oil-based, synthetic oil-based, and bio-based. The mineral oil-based segment owns the highest market share and is anticipated to grow at a CAGR of 2.35% over the forecast period.
• By product, the global agricultural lubricants market is divided into engine oils, grease, transmission and gear oils, hydraulic oil, and others. The engine oil segment is the highest contributor to the market and is expected to grow at a CAGR of 2.34% during the forecast period.
• By distribution channel, the global agricultural lubricants market is divided into offline and online channels. The offline segment owns the highest market share and is expected to grow at a CAGR of 2.39% for the forecast period.
• Asia-Pacific is the most significant shareholder in the global agricultural lubricants market and is anticipated to grow at a CAGR of 3.40% during the forecast period.

Competitive Players

Competitive Players

The key players in the global agricultural lubricants market are Fuchs, Repsol, Exxon Mobil Corporation, Morris Lubricants, Unil Lubrication, TotalEnergies, Condat, Exol Lubricants Ltd., Cougar Lubricants, Dyade Lubricants, Shell, Valvoline, BP, Petro-Canada Lubricants, Phillips 66, Chevron Corporation, and Panolin AG.

Recent Developments

Market News

• In December 2022, FuelBuddy joined forces with HPCL to enter the lubricant sector.
• In December 2022, TotalEnergies, QatarEnergy, and Petronas Petróleo Brasil Ltd. (PPBL) won the Agua Marinha block in Brazil's National Petroleum Agency's Open Acreage under Production Sharing Regime – 1st Cycle auction (ANP).

Segmentation

Global Agricultural Lubricants Market: Segmentation

By Type

• Mineral Oil-Based
• Synthetic Oil-Based
• Bio-Based

By Product

• Engine Oils
• Grease
• Transmission and Gear Oils
• Hydraulic Oil
• Others

By Distribution Channels

• Offline
• Online

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa