Agriculture Lubricants Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

Agriculture Lubricants Market - Growth, Trends, Covid-19 Impact, And Forecasts (2023 - 2028)

The agricultural lubricants market is expected to register a CAGR of over 2% during the forecast period. Major factors driving the market studied include the provision of subsidy for farm machinery, by the Indian and Chinese governments and increasing farm mechanization rates in the developing countries. The high cost of synthetic and bio-based lubricants is expected to hinder the growth of the market studied.

• The growing prominence of biodegradable lubricants is likely to act as an opportunity for the market's growth in the future.
• The engine oil segment accounted for the largest market share of more than 45%. In addition, it is expected to register a healthy CAGR during the forecast period.

• Engine oils are widely used to lubricate internal combustion engines and are generally composed of 75-90% base oils and 10-25% additives.
• They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of engine internals. They function by creating a thin film between the moving parts for enhancing the transfer of heat and reducing tension when the parts come into contact.
• In the agricultural sector, engine oils are used in the tractors, harvesters, and forage equipment to reduce maintenance, provide enhanced wear and corrosion protection, higher engine reliability, better fuel efficiency, etc.
• Royal Dutch Shell, Total, CONDAT Group, Schaeffer Manufacturing Co., Chevron Lubricants, etc., are some of the major lubricant manufacturers offering various types of engine oils to the agricultural equipment.
• Several leading vendors are investing in R&D work to develop innovative equipment and maintain a strong tractor market foothold. Companies, such as Case IH and New Holland, have launched new autonomous tractors. Some of the manufacturers under this segment are Deere & Company, AGCO, Claas, and Versatile, among others.
• The usage of battery power for agricultural vehicles is projected to increase in the coming years, owing to recent innovations, coupled with advantages, such as improving productivity and lowering costs.
• Such factors are projected to impact the market for engine oil in the agriculture industry, in the coming years.

• Asia-Pacific dominated the market with a share of more than 50% of the market, followed by North America. Robust demand from China and India is one of the major driving factors for the market studied.
• China is the largest lubricant consumer in the region and the world. The rate of consumption is expected to remain the same in the country, irrespective of the economy witnessing slow growth.
• China accounts for approximately 7% of the overall agricultural acreage globally, thus, feeding 22% of the world population. The country is the largest producer of various crops, including rice, cotton, potatoes, and many other vegetables, and hence, agricultural machinery laid the foundation of agricultural modernization.
• The government in the country is taking various measures to support and modernize the domestic agricultural equipment sector.
• The policy goals comprise integrating the agricultural machinery industry and developing more technologically advanced and higher-capacity products, including high horse-power (100 HP and more) tractors, development of core industrial technologies, such as sophisticated engines, transmissions, and electronic controls, and joint R&D facilities with the foreign companies in China, which would stimulate the growth of the agricultural machinery industry; thus, creating demand for the agricultural lubricants market.
• Additionally, there is a strong correlation between agricultural productivity and farm mechanization. Usage of proper equipment enhances agricultural productivity by up to 30% and reduces costs by about 20%.
• The farm equipment market is likely to witness a CAGR of 7.5% from 2015 to 2022. Agriculture equipment is either domestically manufactured or imported in India. Major agricultural equipment include power tiller, tractor, thresher, combine harvesters, and multi-crop planter.
• The tractor market in India consists of the largest segment in the agricultural equipment market and accounts for over 80% of the overall agricultural equipment sold in India.
• Such factors, in turn, are fueling the demand in the market studied.

The market studied is semi-consolidated among the top seven players. The top companies have been utilizing competitive strategies and investments to retain and expand their shares.

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