The global agricultural lubricants market size 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).
Agricultural lubricants are compounds used to lubricate farm equipment and machineries such as tractors, plows, combine harvesters, balers, fertilizer spreaders, grape harvesting machines, and similar machines. Agricultural lubricants are an essential aspect of the farming industry since they are used to improve the efficiency of agricultural machinery. Using agricultural lubricants is a cost-effective strategy since it extends the machine’s life by preventing wear and tear, reduces repair costs, and helps avoid early product replacement. The use of modern machinery can improve agricultural production and yield. An excellent agricultural equipment lubrication system guarantees that the machinery requires less maintenance, lower running expenses, and a longer life span.
Mechanized agriculture is deploying agricultural machinery to automate agricultural tasks, resulting in much higher farm worker productivity. Farm mechanization has taken on new importance in recent years. This broad definition encompasses the manufacture, distribution, and use of various tools, machinery, and equipment for agricultural land development, planting, harvesting, and primary processing. Due to innovative and modern goods, powered farm equipment is replacing the old ways.
Since the Industrial Revolution, technology’s continued integration has made farming much less labor-intensive. Production activities carried out by farmers are getting replaced by agricultural equipment. The most prevalent tool for farm mechanization is the tractor. Tractors, trucks, combine harvesters, and other vehicles are all used in modern mechanized agriculture to boost yields in the field. Therefore, better investments and strategies are implemented per the demand of the agriculture sector, which will promote growth in the agriculture sector, machinery, and lubricants over the forecast period.
Agricultural equipment emissions have been relevant in the last decade due to various environmental obligations. Various non-governmental and governmental agencies have decided on emission regulations in their respective countries. In 2019, the Environmental Protection Agency reported that off-road agricultural equipment such as tractors released over 100,000 metric tons (MT) of carbon dioxide equivalent. Hence, equipment manufacturers are shifting toward alternative fuels such as ethanol or soy-based bio-diesel to reduce farm machinery’s environmental impact.
Lubricants are versatile substances that serve multiple purposes within a given system. They are supposed to reduce friction, wear, and heat in machine components in general. The various elements can influence how lubricants affect environmental emissions. The most substantial impact comes from base oil, which has no additives. Mineral, vegetable, and synthetic base oils are the most general classifications. Furthermore, synthetic lubricants are human-made molecules with much more uniformity in terms of fluid characteristics and molecular size making it easier for a load to move over the lubricant coating, reducing energy consumption and pollutants. Hence, most agricultural lubricants minimize energy consumption while also helping to reduce emissions.
Climate change is a significant cause of concern these days, causing both economic and environmental repercussions. Carbon dioxide emissions from industrial activities negatively affect agriculture as well. The agricultural sector faces global warming, ozone layer depletion, droughts, lack of rainfall, and too much rain. The increased rainfall intensity causes soil erosion and adversely affects agricultural activities and production. Soil fertility loss and water shortage in crops are also affecting the agricultural sector.
Other factors include increased CO2 concentration in the soil, which causes increased microbial activity and harms agricultural production. The high temperatures eventually reduce ideal agricultural yields while fostering the spread of weeds and pests. Groundwater levels are also getting affected in regions with drought or excessive rainfall. The crop yields and production get affected gradually because of such factors, affecting agriculture, machinery, and the agricultural lubricants market.
Agriculture is one of the essential activities in terms of food and the economy. In recent years, significant technological advancements have occurred in the agricultural sector. Innovative approaches and strategies, including inorganic compost, have generated awareness among farmers of improving agricultural yields, increasing energy efficiency, and decreasing costs. Technological innovation has resulted from a growing awareness of the value of technology in agriculture. This technological innovation is due to an increase in the use of farm tractors and other agricultural machinery, which leads to increased lubricants market productivity.
Additionally, farm tractors are among the broader range of agricultural machinery. They are used on farms for several tasks, including heavy machinery transportation and trailer movement for tilling, plowing, harrowing, and planting. Farmers’ increasing demand for tractors for cropping has resulted in the evolution of farm tractors. Integration of new technologies in farm tractors, such as telematics systems and GPS, is projected to increase the adoption of agricultural machinery. In agricultural machinery, the autopilot system is a significant technological achievement. Also, tractors, sprayers, and combines are fitted with GPS units and can drive themselves through fields with extreme accuracy. These factors propel the consumption of lubricants in agricultural tractors, thereby creating opportunities for the market to grow over the forecast period.s
The global agricultural lubricants market is segmented into type, product, and distribution channels.
By type, the global 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. Mineral oil-based lubricants are derived from refining crude oil and used for wear and tear applications, including contamination of lubricants, which cannot be used for a longer time. Mineral oil lubricants are growing in popularity in the agricultural business due to their reduced cost compared to other lubricants. Mineral-oil-based lubricants, known for their outstanding lubricating qualities, are commonly used for multipurpose lubrication of mechanical components with operating temperatures ranging from -17°C to 150°C, such as bearings, chains, gears, slides, and threaded connections. Mineral oil-based lubricants are economical and can prevent oxidation in the machines, enhancing efficiency in heavy-duty engines, including tractors.
Synthetic oil is a human-made lubricant made up of chemical substances that have been synthesized artificially. Synthetic oil is expensive compared to conventional mineral oil because of its properties, including wear & tear reduction and fewer residual deposits, thereby increasing engine performance and improving agricultural equipment productivity. Depending upon the usage and properties of end-users have various options to choose from in the market. The advantages of synthetic oil-based lubricants include their capacity to perform better than their mineral oil-based counterparts and being purer than conventional ones. They can perform better at extreme pressures, including higher and lower temperatures.
By product, the global 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. Engine oils are typically used to prevent engines from deteriorating when they are subjected to various temperatures and pressures. Engine oils are utilized in various industries, including automobiles, industrial machinery, and heavy-duty machinery. Engine lubrication is essential for keeping the engine safe and lowering the risk of damage and failure.
Hydraulic fluids, often known as hydraulic oils, are utilized in various machinery and equipment. Hydraulic oils, when used properly, save energy, minimize machine and component wear, and lengthen maintenance intervals and machine life. Hydraulic fluid offers properties including anti-wear agents that provide wear protection, corrosion protection, reduction in inventory holding, reducing the chances of injuries, effectiveness in anti-wear additives, and longevity in service through thermal stability, among others. These properties are expected to increase the demand and supply of agricultural oils and lubricants in the forecast period.
By distribution channel, the global 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. The offline market provides dealers, distributors, and manufacturers that offer lubricants for agricultural machinery. are mainly sold through retail distribution channels such as dealers, distributors, wholesalers, specialty stores, hypermarkets, and specific home improvement and electronic stores. The offline distribution channels used by lubricant players in the market are specialty stores and convenience stores. Specialty stores are branded stores through which a company sells its. On the other hand, convenience stores are retail outlets that conveniently allow customers to purchase products quickly.
Various vendors sell their products online because they are less expensive than opening physical outlets or working with other retailers. Furthermore, online networks have a much larger reach than offline channels. Suppliers can sell their items for less money and get a competitive advantage by establishing online channels because doing so does not cost much. As a result, such benefits of online channels are expected to drive online sales over the projection period. Moreover, countries with solid internet penetration assist the product's online sales in the market.
By region, the global agricultural lubricants market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
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. The region's rapid growth in terms of investments, trade, and technology is due to urbanization and industrialization. Therefore, factors including demographics, economic conditions, environmental conditions, and technological advancements will be the enablers for the industry. Landscapes are evolving with automation, so the demand for agriculture and agricultural equipment will continue to grow. Furthermore, China is dominating the Asia-Pacific agricultural lubricants market owing to increasing government initiatives to manufacture sustainable agricultural machinery in the region, boosting the agricultural lubricants market.
North America is expected to grow at a CAGR of 2.09% over the forecast period. The US dominates the agricultural lubricants market in North America, owing to the rising adoption of agricultural machinery to lower total production costs and increase productivity in the region, driving the agricultural lubricants market. North America experiences more variation than any other continent, ranging from the cold arctic regions to the jungles of Central America. This variation can be seen in North America's agriculture industries. Additionally, the increased demand for organic produce is anticipated to boost the requirement for agriculture during the projected period, which will result in a significant increase in the need for agricultural lubricants.
In Europe, the agricultural lubricants market is growing due to rising government subsidies for agricultural equipment. Still, the high cost of synthetic and bio-based lubricants is expected to be a constraint in the market. The agricultural industry is becoming more mechanized, which will assist in boosting the demand for agricultural lubricants in the region. In addition, the growing usage of biodegradable lubricants in equipment in developing countries provides opportunities for agricultural lubricant makers to meet consumer demand and supply. It also has positive effects on the environment and economic development. The market for agricultural activities and lubricants is expanding due to the numerous European farming activities.
The Latin American market is driven by rising demand for high-performance lubricants and increased demand from the commercial and agricultural sectors. On the other hand, market growth is driven by the increased adoption of electric and modern agricultural machinery, which boosted the agricultural lubricants market. R&D activities need to be figured out and implemented by the Government of Latin America to increase productivity in densely populated regions, including Brazil, Argentina, and Mexico. For large commercial farms, growing investments in smart agriculture, which include technological advancements in tractors, tillers, and other agricultural machinery, need to be enacted by government schemes and measures. Therefore, investments and stringent standards to improve the agricultural sector will boost the market for agricultural machinery and lubricants in the forecast period.
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