Lubricants in Construction Market Size, Share, Competitive Landscape and Trend Analysis Report by Base Oil, by Product Type by Construction Equipment and by Application : Global Opportunity Analysis and Industry Forecast 2022-2032.

The lubricants in construction market attained $11.4 billion in 2022 and is projected to reach $16.8 billion by 2032, growing at a CAGR of 4.0% from 2023 to 2032.

Lubricants offer a multitude of benefits within the construction sector, contributing to improved efficiency, reduced downtime, and enhanced equipment performance. Lubricants minimize friction between moving parts, preventing wear and tear. This leads to reduced maintenance costs and extended equipment lifespan. Lubricants are substances used to reduce friction and heat between moving parts. They exist in various forms, such as oils, greases, solid lubricants, and dry films.

Construction machinery often operates in harsh conditions, leading to elevated temperatures. Lubricants help dissipate heat, preventing overheating and potential damage. Many construction sites expose equipment to moisture and corrosive substances. Lubricants act as a barrier, preventing corrosion and rust on critical parts. The construction industry is witnessing advancements in equipment design, which often require specialized lubricants to ensure optimal performance.

Equipment manufacturers have incorporated advanced materials such as high-strength alloys and composites to reduce weight and improve durability. These materials require specialized lubricants that withstand higher stresses and temperatures. Automation and precision control have become more prevalent in construction machinery. This requires lubricants that maintain consistent performance under varying operating conditions, ensuring smooth operation of sensors, actuators, and moving parts. Modern construction equipment uses specialized materials in their design.

Lubricants must be compatible with these materials to prevent adverse reactions that could lead to equipment failure or damage. Some construction equipment operates in extreme conditions, such as high temperatures, heavy loads, and harsh environments. Specialized lubricants are engineered to withstand these conditions, providing reliable lubrication even under duress.

Construction companies have recognized the importance of proactive maintenance to reduce downtime and repair costs. Lubrication plays a crucial role in preventive maintenance programs. Many construction companies employed a reactive maintenance approach. In this scenario, equipment was only serviced or repaired when it broke down or showed signs of malfunction. While this approach seems cost-effective in the short term, it often results in prolonged downtime, higher repair bills, and decreased productivity.

Proactive maintenance, on the other hand, involves regularly scheduled inspections, lubrication, and minor adjustments to machinery to prevent breakdowns before they occur. This shift toward proactive maintenance has been driven by several factors, including increased competition, tighter project timelines, and a greater emphasis on cost efficiency.

Technological advancements in the construction industry is expected to drive the growth of lubricants in the construction industry market.

The construction sector has shown a rise in interest in innovative lubricants, particularly bio-based and synthetic variants. These advanced lubricants offer several advantages, including enhanced performance, prolonged equipment lifespan, and positive environmental effects. Bio-based and synthetic lubricants outperform traditional mineral-based ones in various aspects. One key benefit is their superior viscosity stability, ensuring effective lubrication even under extreme conditions. This contributes to better equipment efficiency and reduced wear and tear. By reducing friction, heat, and component wear, high-quality lubricants significantly extend the lifespan of construction equipment. This results in less frequent maintenance and part replacements, saving both time and resources.

In November 2022, Shell plc's subsidiaries in Switzerland, the UK, the U.S., and Sweden made significant agreements to acquire the environmentally friendly lubricants (ECLs) division of the Panolin Group. This strategic move adds a range of biodegradable lubricants to Shell's product portfolio, emphasizing their commitment to environmentally responsible lubrication solutions.

The surge in government incentives for infrastructure development is poised to significantly propel the lubricant in the construction market.

The demand for lubricants used in construction machinery and equipment is expected to experience a substantial boost as governments across various regions increasingly prioritize large-scale infrastructure projects. For instance, in June 2022, the Minister of Road Transport and Highways opened 15 national highway projects worth $1.7 billion (Rs. 13,585 crores) in Patna and Hajipur, Bihar, India. In October 2021, the Dubai government and Indian government signed a contract to build infrastructure in Jammu and Kashmir, including industrial parks, IT towers, multipurpose towers, logistics centers, medical colleges, and specialized hospitals.

The construction sector relies heavily on lubricants for the smooth operation and maintenance of machinery and equipment. The construction industry has witnessed a surge in demand for lubricants with governments actively promoting and investing in large-scale infrastructure projects. For instance, in India, under Budget 2023-24, capital investment outlay for infrastructure increased by 33% to $122 billion (Rs.10 lakh crore), which is 3.3 % of GDP and almost three times the outlay in 2019-20.

However, environmental concerns with respect to construction lubricants are expected to hinder the growth of the lubricants in the construction industry market during the forecast period. Eco-friendly lubricants, also known as environmentally friendly or biodegradable lubricants, have become increasingly popular in the construction industry due to their reduced environmental impact compared to traditional petroleum-based lubricants.

These lubricants are made from renewable resources or have biodegradable bases, making them a sustainable choice. The shift toward eco-friendly lubricants is driven by concerns about the environmental harm caused by conventional lubricants, which often contain harmful additives that can pollute soil and water. In contrast, eco-friendly lubricants break down more easily, minimizing the risk of environmental damage.

The production of eco-friendly lubricants involves specialized processes and sustainable raw materials, making them expensive to manufacture. Developing and testing these lubricants is also resource-intensive, contributing to their higher overall cost. Smaller construction companies may struggle to afford eco-friendly lubricants due to their limited purchasing power and volume, making them costlier on a per-unit basis.

The lubricants in the construction market is segmented into base oil, product type, construction equipment, application, and region. By base oil, the market is classified into synthetic oil, mineral oil, and bio-based oil. On the basis of product type, the market is categorized into engine oil, gear oil, hydraulic oil, grease, coolants, transmission oil, and compressor oil. By construction equipment, the market is divided into earthmoving equipment, material handling equipment, heavy construction vehicles, and others. By application, the market is bifurcated into horizontal construction and vertical construction. By region, the market is studied across North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.

Global Lubricants in Construction Market, By Base oil

The mineral oil segment accounted for the largest share in 2022. The increasing demand for mineral oil can be attributed to its versatile applications across industries such as transportation, manufacturing, and energy. Its role as a crucial fuel source, raw material for petrochemicals, and lubricant in various processes has fueled global demand, driving the exploration and extraction of mineral oil resources.

Synthetic oil is expected to register the highest CAGR of 4.5%. The increasing demand for synthetic oil is driven by factors such as its superior lubrication properties, extended engine life, enhanced fuel efficiency, and better resistance to temperature extremes. Additionally, heightened environmental concerns and regulations promoting cleaner technologies contribute to the growing preference for synthetic oils, fostering their rising demand in various industries.

Global Lubricants in Construction Market, By Product type

The engine oil segment accounted for the largest share in 2022 and is expected to register the highest CAGR of 4.5%. The demand for engine oil is driven by the growth in global automotive industries, increasing vehicle ownership, and a rise in industrial activities. As more vehicles and machinery are produced and utilized, the need for engine oil grows to ensure proper lubrication, reduce friction, and enhance engine performance, sustaining the demand.

Global Lubricants in Construction Market, By Construction Equipment

The earthmoving equipment segment accounted for the largest share in 2022. The demand for earthmoving equipment is escalating due to booming construction and infrastructure projects globally. Rapid urbanization, expanding transportation networks, and a surge in mining activities are key factors. Additionally, technological advancements in earthmoving machinery, enhancing efficiency and safety, further contribute to the increasing demand for this equipment.

Heavy construction vehicles is expected to register the highest CAGR of 4.4%. The demand for heavy construction vehicles is on the rise due to escalating infrastructure projects globally. Urbanization, population growth, and government investments contribute to this surge. Increasing construction activities, coupled with the need for efficient and powerful machinery, propel the demand for heavy construction vehicles, driving the market forward.

Global Lubricants in Construction Market, By Application

The vertical construction segment accounted for the largest share in 2022. The demand for vertical construction is increasing due to urbanization, population growth, and limited horizontal space. As cities expand, vertical structures become essential for optimizing land use. Additionally, the growing trend towards mixed-use developments and the need for sustainable, efficient urban living contribute to the rising demand for vertical construction.

Horizontal construction is expected to register the highest CAGR of 4.4%. The increasing demand for horizontal construction is driven by population growth, urbanization, and infrastructure development. Rising urban populations necessitate the expansion of transportation networks, residential areas, and commercial spaces. Additionally, government initiatives and economic growth contribute to the surge in horizontal construction projects, addressing the growing need for diverse infrastructure.

Global Lubricants in Construction Market, By Region

Asia-Pacific garnered the largest share in 2022. In the Asia-Pacific construction market, the demand for lubricants is driven by the heavy machinery and equipment used in infrastructure projects. These lubricants play a crucial role in ensuring optimal performance and durability of construction machinery, thereby enhancing overall project efficiency. The growing construction activities in the region continue to fuel the demand for high-quality lubricants to maintain and extend the lifespan of equipment, contributing to the flourishing construction industry in Asia-Pacific.

Key players in the global Lubricants in construction Market include Exxon Mobil Corporation, FUCHS, Shell, PETRONAS Lubricants International, Chevron Corporation, Total Energies SE, Sinopec Corp, Lukoil, Morris Lubricants, and BP p.l.c.

Historic Trends on global Lubricants in Construction Market

• In the 1930s, synthetic lubricants were introduced that offered improved performance under extreme conditions and helped extend the life of construction equipment. They were especially valuable during World War II when heavy machinery played a crucial role in construction efforts.
• In the 1960s, the construction industry witnessed advancements in lubricant additives. These additives were designed to enhance the lubricating properties of oils and greases. Anti-wear, anti-corrosion, and anti-foam additives became more common.
• In the 1990s, synthetic lubricants continued to gain popularity due to their ability to operate efficiently at high temperatures and under heavy loads. Lubrication technology also improved, with precise formulations tailored to specific construction applications.
• In 2010, the construction industry witnessed a shift toward more specialized lubricants designed for specific equipment and applications. Lubricant manufacturers now offer a wide range of products to meet the unique demands of heavy machinery used in construction.

KEY BENEFITS FOR STAKEHOLDERS

• The report includes in-depth analysis of different segments and provides market estimations between 2022 and 2032.
• A comprehensive analysis of the factors that drive and restrict the growth of the Lubricants in construction market is provided.
• Porter’s five forces model illustrates the potency of buyers & sellers, which is estimated to assist the market players to adopt effective strategies.
• Estimations and forecast are based on factors impacting the Lubricants in construction market growth, in terms of value.
• Key market players are profiled to gain an understanding of the strategies adopted by them.
• This report provides a detailed analysis of the current Lubricants in construction market trends and future estimations from 2022 to 2032, which help identify the prevailing market opportunities.