Forestry Lubricants Market Expected to Reach $6.0 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Forestry Lubricants Market," The forestry lubricants market was valued at $4.2 billion in 2021, and is estimated to reach $6.0 billion by 2031, growing at a CAGR of 3.7% from 2022 to 2031.

Global farm mechanization is fueling the forestry lubricants market. Expansions, joint ventures, and acquisitions by several notable players in the forestry lubricants industry are the primary factors driving the forestry lubricants market's growth.

Several farmer subsidy programs are being implemented by governments in growing regions such as Asia-Oceania. For example, in India, the National Agricultural Development Program (NADP) offers farmers subsidies ranging from 30% to 50% for the purchase of agricultural equipment such as harvesters, power sprayers, paddy transplanters, threshers, tractors, power tillers, and other small equipment. This is increasing the use of sophisticated agricultural equipment, which is driving the demand for forestry lubricants and offering chances for its manufacturers, allowing them to expand their operations globally. Furthermore, the COVID-19 situation had a negative impact on the business due to severe lockdown requirements and the shutdown of certain end-use industries. This factor hampered the growth of forestry lubricants market. In addition, it is anticipated that the adoption of regulations and an increase in government funding on R&D and product type innovation would open up lucrative opportunities for the expansion of the forestry lubricants market.

The global forestry lubricants market is segmented into product type, application, and region. On the basis of product type, it is categorized into synthetic, synthetic blend, bio-based, mineral and others. On the basis of application, it is categorized into engine, transmission & gears, hydraulics, greasing, chain oils/saw guide oils, paper machine oils and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

The major players operating in the global forestry lubricants market are Behran Oil Co., Chevron Corporation, Cortec Corporation, Elba Lubes, Exol Lubricants Limited, Exxon Mobil Corporation, Frontier Performance Lubricants Inc, FUCHS, Kluber Lubrication, Penine Lubricants, Phillips 66 Company, Repsol, Rymax Lubricants, Shell Plc, and TotalEnergies.

Other players operating in the forestry lubricants market are Petro Canada Lubricants, Petronas Lubricants International (PLI), Klondike Lubricants Corporation, and Bioblend Renewable Resources.

Key findings of the study

• On the basis of product type, the bio-based segment is expected to grow at a CAGR of 4.9%, in terms of revenue, during the forecast period.
• Depending on application, the others segment is expected to grow at a CAGR of 4.3%, in terms of revenue, during the forecast period.
• By region, Asia-Pacific dominated the market with highest revenue shares of $1,659.8 million in 2021.

COVID-19 Impact on the Market

• The COVID-19 outbreak impacted the forestry lubricant market negatively. The market witnessed a sharp decline in the demand for forestry lubricant from end-use industry such as automobile.
• Due to the lockdown and shutdown of production factories, the COVID-19 pandemic had a negative impact on market demand.
• Due to the outbreak of the COVID-19 pandemic, all the forestry related activities were either suspended or stopped owing to the lockdown imposed by various government to prevent the virus from spreading. This has decreased the demand for forestry lubricants.
• However, after the pandemic the forestry activities are back to its normal condition which will drive the demand for forestry lubricant during forecasted period.