Industrial Gear Oil Market to Grow by USD 112.5 Million (2024-2028) Driven by Global Construction Industry Growth and AI Market Transformation

NEW YORK, Oct. 3, 2024 /PRNewswire/ -- Report with the AI impact on market trends- The global industrial gear oil market  size is estimated to grow by USD 112.5 million from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  2.98%  during the forecast period.  Growth in global construction industry is driving market growth, with a trend towards increasing number of industry-specific products. However, decrease in mining-related investments  poses a challenge. Key market players include ADVANCED LUBRICATION SPECIALTIES, AMALIE OIL CO., Apar Industries Ltd., BASF SE, BP Plc, Chevron Corp., China Petrochemical Corp., Croda International Plc, Dyade Lubricants B.V., Exxon Mobil Corp., FUCHS PETROLUB SE, Gandhar Oil Refinery India Ltd., Hinduja Group Ltd., Petroleos de Venezuela SA, Petromin Corp., PJSC LUKOIL, Shell plc, TotalEnergies SE, United Grease and Lubricants, and Valvoline Inc..

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The industrial gear oil market is witnessing a significant trend towards the production of industry-specific gear oils. Two types of players dominate this market: those offering generic products and those manufacturing industry-specific ones. Major players, such as Shell plc and Exxon Mobil Corp., are focusing on customer needs by aligning their businesses to provide industry-specific lubricants. Companies like Mobil Serv Engineering Services and Engen Lubricant offer specialized lubricants for mining equipment, addressing the extreme working conditions and long operation cycles in the mining industry. These lubricants reduce downtime and maintenance costs by improving productivity. The market is segmented into process equipment and mining vehicles, each requiring specific gear oils. The need for specialized lubricants to address end-to-end equipment-related issues is driving the growth of the global industrial gear oil market. 

The Industrial Gear Oil Market is experiencing significant trends in various sectors. High temperatures and heavy load weights are driving the need for gear oils in power generation, offshore, and construction industries. Synthetic gear oils are gaining popularity over mineral-based counterparts due to their superior performance in extreme conditions. Performance additives are essential to prevent bearing wear and oxidation. The power generation sector, including thermal, hydro, nuclear, and renewables, is a major consumer of gear oils. Domestic production and localization rates are increasing in key manufacturing hubs like the US, China, and Europe. Base oils and additives are sourced from energy, oil & gas, chemicals, food & beverage, and machineries industries. The mining, construction, and energy sectors also rely heavily on gear oils for their gear-based machines. Economic growth, lockdowns, and international transport disruptions impact supply chain dynamics. 

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•         The mining sector has experienced a decline in investments due to weak economies and decreased demand for minerals and metals from the manufacturing sector. BRICS countries, significant contributors to mining FDI, have been negatively impacted. Africa, particularly Guinea and Zambia, has seen a steep decline in FDI due to metal export dependence. Major multinational enterprises have reduced mining investments due to low commodity prices. The market showed a slight recovery in 2018, but the supply-demand imbalance will result in low pricing for most metal and mineral commodities. Companies will focus on increasing productivity from existing projects, leading to reduced demand for gear oil, potentially impacting the industrial gear oil market growth during the forecast period.

•         The Industrial Gear Oil market faces several challenges in the current business landscape. Raw material availability and pricing volatility pose significant production rate issues for manufacturers. High performance requirements, including corrosion and oxidation resistance, demand advanced formulations. Wind energy sector growth presents opportunities, but transportation technology and urbanization increase logistical challenges. Population increase in agriculture sectors drives demand for gear oils in tractors, harvesters, and irrigation systems. Mineral-based and synthetic-based lubricants each have their advantages. Mineral-based lubricants are cost-effective, while synthetic-based lubricants offer high-heat and high-stress resistance. Rust inhibitors are essential for steel components in moving parts like gears, bearings, chains, and wind turbine main gearboxes. Investment pockets lie in sectors with high operational performance demands, such as automotive and manufacturing. Viscosities and grades must cater to various applications, from heavy-duty industrial equipment to delicate wind turbine components. Environmental impact and biobased lubricants, such as vegetable oils, are gaining traction. Sector growth depends on technological advancements and regulatory compliance. Regardless, gear oils remain vital for reducing friction, managing heat build-up, and ensuring the longevity of essential machinery components.

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This industrial gear oil market report extensively covers market segmentation by

1. Application 
• 1.1 Manufacturing
• 1.2 Mining
• 1.3 Agriculture
• 1.4 Energy
• 1.5 Others
2. Product 
• 2.1 Mineral-based lubricants
• 2.2 Synthetic-based lubricants
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Manufacturing-  Industrial gear oil plays a crucial role in manufacturing by lubricating gears in equipment such as lathes, drill presses, and milling machines. This oil reduces friction between the gears, prevents overheating, and extends the life of the gears. Recommended for heavy-duty enclosed gear drives, plain bearings, sliding surfaces, and chain drives, industrial gear oil is essential for efficient gearbox operations. The manufacturing industry, a significant contributor to economic growth, accounts for a varying percentage of GDP in different countries. For instance, India's manufacturing sector contributes 14%, while advanced countries like Germany, the US, South Korea, and Japan have a higher percentage. The manufacturing sector's growth is a critical indicator of a nation's economic strength. With the increasing growth in the manufacturing sector worldwide, particularly in merging economies like India, the demand for machinery will rise, leading to an increased demand for industrial gear oil. Efficient machinery operation is vital for maintaining productivity and reducing costs, making industrial gear oil an indispensable component in the manufacturing industry.

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The Industrial Gear Oil Market encompasses a wide range of products used to lubricate gearboxes, transmissions, and other moving parts in various industries. The market is driven by the demand for gear oils in sectors such as mining, construction, energy, oil & gas, chemicals, food & beverage, and agriculture. The primary components of industrial gear oils are base oils and additives. Base oils can be mineral-based or synthetic, with synthetic oils offering superior performance in high-heat and high-stress environments. The production rate of gear oils is influenced by economic growth, international transport, and the supply chain. Raw materials, such as steel, are essential in the production of gearboxes and other machineries that require lubrication. Industrial gear oils are used in gear-based machines, including those in manufacturing processes, power generation, and heavy equipment. They help reduce friction, prevent wear and tear, and mitigate heat build-up in moving parts, including gears, bearings, and chains.

The Industrial Gear Oil Market is driven by various sectors including mining, construction, energy, oil & gas, chemicals, food & beverage, and manufacturing. Base oils used in gear oils are primarily mineral-based and synthetic-based, with synthetic oils gaining popularity due to their high performance, corrosion, and oxidation resistance. Economic growth, international transport, and supply chain disruptions impact the market. Raw material availability and production rate influence the cost and availability of gear oils. High-performance gear oils are essential for various machineries and gear-based machines in sectors like wind energy, automotive, and power generation. Synthetic-based gear oils offer superior resistance to high temperatures, high-stress conditions, and load weights. Additives like rust inhibitors, viscosities, and grades enhance the operational performance of gear oils. The wind energy sector's growth is a significant factor in the market's expansion, with wind turbines requiring high-quality gear oils for their main gearbox and gear motor components. The automotive sector also contributes significantly, with synthetic gear oils used in high-heat and high-stress applications like gears, bearings, chains, and moving parts. Environmental concerns have led to the development of biobased lubricants, such as vegetable oils, and the use of manufacturing centers and transportation technology to reduce the environmental impact. Urbanization and population increase have led to investment pockets in various sectors, further driving the market's growth. The power generation sector, including thermal, hydro, nuclear, and renewables, requires gear oils for various applications, with synthetic gear oils offering superior performance and longevity compared to mineral-based counterparts. The offshore industry, electricity consumption, and construction activities also contribute to the market's growth. In conclusion, the Industrial Gear Oil Market is influenced by various factors, including economic growth, sector-specific requirements, raw material availability, and environmental concerns. Synthetic-based gear oils offer superior performance and are gaining popularity due to their high-performance properties. The market's growth is expected to continue due to the increasing demand for power generation, automotive, and wind energy applications.

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Application
• Manufacturing
• Mining
• Agriculture
• Energy
• Others
• Product
• Mineral-based Lubricants
• Synthetic-based Lubricants
• Geography
• North America
• APAC
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio