The agricultural lubricant market is projected at a valuation of USD 507.4 million for 2024. Surging at a CAGR of 5.5% between 2024 and 2034, demand for agricultural lubricants is estimated to reach USD 873.8 million by 2034.
| Attributes | Key Insights |
|---|---|
| Estimated Size, 2024 | USD 507.4 million |
| Projected Size, 2034 | USD 873.8 million |
| Value-based CAGR (2024 to 2034) | 5.5% |
The agricultural lubricants are used in machinery engine oil. They help in smooth functioning minimizing friction between the engine components. They also safeguard the machineries against damage to the engine parts.
The business has soared by increasing mechanization and government support in this segment. High performance lubricants are required in difficult terrains to suffice the growing requirements. Increasing productivity and efficiency requirements from the farmers are likely to continue the expansion of agricultural lubricants market.
Much of farming today is complemented by the use of tractors, which, as a result, are subjected to periodic maintenance owing to their relatively efficient performance, hence creating a vast potential in the consumption of engine oils.
As of 2024, the mineral oil segment is estimated to account for substantial share of the overall sector. This is primarily because of the easy availability, cost effectiveness, and its preferability in usage for extended periods in agricultural machinery. The increased applications of synthetic oils and bio-based oils because of their superior performance and ecological merits have been slowly hampering the growth rate of mineral oil based lubricants but not to an extent where manufacturers are expected to shift their focus from producing mineral oil based products completely.
Moreover, comparatively low prices and suitability across a wide range of applications are among other factors due to which shipment volumes in the global agricultural lubricants market continue witnessing incremental opportunities generated due to industrializing regions with high cost sensitivity and/or less stringent environmental regulations.
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
The annual growth rates of the global agricultural lubricants market from 2024 to 2034 are illustrated below in the table. The industry was projected to increase at a CAGR of 5.3% in the first half (H1) of 2023. However, in the second half (H2), there is a noticeable increase in the growth rate of 5.5%.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 5.3% (2023 to 2033) |
| H2 2023 | 5.5% (2023 to 2033) |
| H1 2024 | 5.4% (2024 to 2034) |
| H2 2024 | 5.8% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2024, the CAGR is projected to slightly decrease to 5.4% in the first half and relatively increase to 5.8% in the second half. In the first half (H1), the sector saw an increase of 20 BPS while in the second half (H2), there was a slight increase of 40 BPS.
Increasing Mechanization in Farming Activities Spur Growth for Agricultural Lubricants across the Globe
Modern agricultural machinery is subjected to a range of operating conditions and loadings such as intensive operations over long periods, varying temperature extremes, not to mention higher loads, when machines get larger - that require specialist lubricants comprising synthetic or bio-based oils that can provide better protection, reduce friction and extend machine lifespan.
The demands for precision and efficiency within modern farming are now inspiring the development of lubricants for specific applications within the machine, such as engine oils, hydraulic fluids and gear oils. These products can minimize wear8-and-tear on sensitive components, improve machine efficiency, reduce downtime and enhance productivity in general.
This demand is only likely to grow more pronounced as the industry increasingly introduces automation and advance technologies. In addition to expecting peak performance from their machines alone, farmers will also have to ensure that any such lubricant often meets environmental obligations in relation to sustainable sourcing.
This growing need for higher performance technical environmentally safe lubricant plays into wider trends towards sustainability in agriculture - hereby driving further the market for specialty product developments intended for these preferential emerging needs.
Growing Focus on Sustainability Drives Demand for Eco-Friendly Agricultural Lubricants
As farmers and agriculturists seek ways of meeting increasingly stringent regulations pertaining to soil contamination, water runoffs, and carbon emissions associated with agri-equipment maintenance practices, bio-based agricultural lubricants are expected to exhibit increased demand in farming equipment maintenance processes.
The increasing focus on sustainability boosts demand for bio-based lubricants. This is providing opportunities for manufacturers with innovative and high-performance bio-based product offerings.
Water Scarcity to Create Growth Prospects
The agricultural lubricant market is on an upward growth trajectory, propelled by advancements in agricultural machinery. Getting high-tech and increasingly sophisticated, farming equipment is keeping pace with the industry’s disruptive innovation-led transformation. Lubricants need to meet these evolving demands of modern agriculture machinery.
Lubricants required for next-gen agriculture equipment such as self-driving tractors, intelligent crop sensors, and precision implements should not only deliver greater friction reduction but also be compatible with the intricacies of these hi-tech machines.
Performance, longevity, and deployment safety are all heavily dependent on lubricants which are formulated to tackle challenges like high-temperature operations, reduced maintenance frequency, and higher power densities to cater more capable equipment.
Factors Limiting Agricultural Lubricants Market Expansion
Principal Consultant
The global agricultural lubricants market recorded a CAGR of 1.7% during the historical period between 2019 and 2023. The growth of agricultural lubricants industry was positive as it reached a value of USD 484.1 million in 2023 from USD 410.2 million in 2019.
During the historical period under study, the business faced fluctuations due to economic instability prevailing in the overall economy at that time. Issues including global trade disputes, fluctuating currency rates, and geopolitical issues influenced various industries dependent on agricultural lubricants and created ambiguity with regard to supply and demand.
This expansion was driven by the global agricultural operations' rising mechanization, when farmers used more sophisticated machinery and equipment. This trend toward mechanization has led to an increase in the need for high-performance lubricants. The adaptability to the shifting demands of contemporary agriculture is demonstrated by its endurance.
The pandemic affected the agricultural lubricant market by altering demand and upsetting supply systems. Limitations and restrictions created logistical issues that changed the dynamics of the industry. The segment showed resiliency in the face of these obstacles by shifting with the times. Manufacturers of agricultural lubricants managed uncertainty and helped the industry remain stable overall despite external difficulties.
Once economic activity reaches pre-crisis levels, industrial activity is expected to reach its trend performance after a delay of 3-years, growing for following 4 years before stabilizing post-2030. The agricultural lubricants demand pattern is anticipated to reflect the same trend during the period.
Tier 1 companies include industry leaders with annual revenues exceeding USD 100-400 million. These companies are currently capturing a significant share of 25-30% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. These firms provide a wide range of products and utilize the latest technology to meet regulatory standards. ExxonMobil Corporation, Quaker Chemical Corporation, and Fuchs Petrolub SE are key Tier 1 players.
Tier 2 companies are mid-sized participants with revenues ranging from USD 50-100 million. They hold presence in specific regions and exert significant influence in local economies. These firms are distinguished by robust presence overseas and in-depth industry expertise.
They possess strong technology capabilities and adhere strictly to regulatory requirements. The firms may not wield cutting-edge technology or maintain an extensive global reach. Noteworthy entities in Tier 2 include, Chevron Corporation, China Petroleum and Chemical Corp (Sinopec Corporation), Repsol SA, Philips 66, Raj Petro Specialities Pvt. Ltd, Nynas AB, Valvoline, Inc, Shell plc, Savita Oil Technologies Ltd., and others.
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
The section below covers assessments of agricultural lubricants sales across key countries. Countries from East Asia and North America are anticipated to exhibit promising double-digit growth over the forecast period. All the below-listed countries are collectively set to reflect a CAGR of around 5% through the forecast period.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| China | 6.2% |
| United States | 5.5% |
| India | 5.6% |
| Japan | 5.5% |
The agricultural lubricant market is projected to reach USD 172.7 million by 2034 in China. The demand for agricultural lubricants in China is set to rise at 6.2% CAGR.
China’s agriculture sector is transforming the vibrant agricultural lubricants market. Increasing demand for tractor lubricants are leading this transformation implying seismic shift in how the country farms.
China is the world’s largest consumer of agricultural products. It is a significant food producer in shifting its farming practices toward mechanization. This was intentional, motivated by a desire to increase yields, optimize land use, and counteract labor shortages with an aggressive drive to modernize farm equipment particularly tractors.
United States are projected to surge at a CAGR of 5.5% from 2024 to 2034.
In the United States, agricultural lubricants market is gaining traction due to increasing penetration of precision farming technologies and high-performance machinery. Precision farming involves use of technologically advanced equipment which requires application specific lubricants for ensuring their continuous smooth operation. With American farmers inclination toward latest machinery for obtaining higher yields and achieving operational efficacy has further substantiated the regional product demand over the forecast period.
With elevating concerns regarding environmental hazards in developed regions like USA, regulatory bodies have enforced stringent regulations to minimize pollution levels. Agricultural industry which is one of the largest contributor and consumer of chemicals, in this region is focusing on sustainable products consumption thereby augmenting eco-friendly lubricants business size.
The demand for advanced as well as sustainable lubricants which fulfills the high performance and environmental needs of modern agriculture is fueling the United States agricultural lubricant market.
In the forecast period, India's agricultural lubricants market is predicted to rise steadily at a CAGR of 6.4%. The agricultural lubricant market value in India is anticipated to total USD 60.5 million by 2034.
India’s agricultural lubricants market is expanding on account of the vast use of machinery in agriculture across the country’s expansive rural milieu. The increased usage of tractors, harvesters, and irrigation systems, which require high grade lubricants to operate and be maintained efficiently has been reinforcing the prospects of the market. Government measures to improve agricultural output through subsidies offered on machinery and promoting modern agricultural practices have also stimulated the demand for these lubricants.
India’s diverse climatic conditions necessitate that lubricants function consistently across varied operating environments, boosting demand for highly specialized and durable products.
The market is also driven by increasing mechanization, increasing government support, and high performance lubricants required in difficult terrains. Increasing productivity and efficiency requirements from the farmers are likely to continue the expansion of agricultural lubricants market in India.
The section explains the growth trajectories of the leading segments in the industry. In terms of product type, the engine oil category will likely dominate and generate a CAGR of around 5.7% in 2024.
Based on application, the tractor segment is projected to hold a CAGR of 4.4% in 2024. The analysis would enable potential clients to make effective business decisions for investment purposes.
| Segment | Engine Oil (Product Type) |
|---|---|
| Value Share (2024) | 5.7% |
The agriculture lubricant market is driven by the basic requirement of engine oil to extract the maximum output and efficiency from farm machineries which are made up of modern high-tech designs. Modern technologically sophisticated agricultural equipment’s demand high-quality lubricants, where engine oil plays an paramount role in increasing engine performance, productivity and overall life by reducing friction between contacting parts, cooling moving parts of engines, carrying heat away from critical parts and lubricating seals for more efficient sealing.
Agricultural business operates under diverse environment and conditions right from plowing a field to harvesting a crops so does their lubrication requirements too. Therefore, farmers and agricultural business houses have started appreciating the use of specialized farm-lubricants to protect their farm-equipment’s and ensure continuous operation without any breakdown.
The emphasis on sustainable and environment friendly practices in agriculture has been driving the demand for lubricants that can not only help in improving efficiency but also meet the norms set by governing bodies with respect to environment.
Over the forecast period, demand for engine oil is forecast to rise at a CAGR of 5.7% CAGR. By 2024, the target segment is estimated to reach USD 123.7 million.
| Segment | Tractor (Application) |
|---|---|
| Value Share (2024) | 4.4% |
As per the latest Agricultural Lubricant Market analysis, tractor application is projected to thrive at 4.4% CAGR during the forecast period. It is set to attain a valuation of USD 198.4 million by 2033.
The demand for agricultural lubricants will continue to be strong, particularly for tractors. In modern agriculture, tractors are the most important equipment and high performance of these machines is imperative to achieve efficient farm operations. Agricultural lubricants comprising specialized engine oils help maintain as well as enhance the performance of tractor engines.
Increasing technological advances in agricultural practices are making tractors more complex and powerful. Such complexity requires lubricants that can withstand higher stresses and newer demands on this machinery. Engine oils assist in reducing friction, prevent overheating, and contribute toward overall longer life and better performance of tractor engines.
Farmers and agricultural machinery owners/operators are increasingly realizing the importance of using high-performance lubricants which help protect their tractor investment and overall productivity.
The section provides comprehensive assessments and insights that highlight current opportunities and emerging trends for companies in developed and developing countries. It analyzes advancements in manufacturing and identifies the latest trends poised to drive new applications in the market.
A few key players in the agricultural lubricants market are actively enhancing capabilities and resources to cater to the growing demand for the compound across diverse applications. Leading companies also leverage partnership and joint venture strategies to co-develop innovative products and bolster resource base.
Significant players are further introducing new products to address the increasing need for cutting-edge solutions in various end-use sectors. Geographic expansion is another important strategy that is being embraced by reputed companies. Start-ups are likely to emerge in the sector through 2034, thereby making it more competitive.
Industry Updates
In terms of product type, engine oil, transmission fluids, hydraulic fluid, gear oil, grease and others lubricants.
In terms of base oil, the agricultural lubricant market is segmented into mineral oil, synthetic oil and bio-based oil.
In terms of application, the industry is divided tractor, harvester, combine, irrigation systems, tillage equipment, seeders and planters and others equipment.
Key countries of North America, Latin America, Western Europe, Eastern Europe, East Asia, South Asia, Middle East and Africa (MEA), have been covered in the report.
The landscape was valued at USD 484.1 million in 2023.
The industry is set to reach USD 507.4 million in 2024.
Global demand is anticipated to rise at 5.5% CAGR.
The industry is projected to reach USD 873.8 million by 2034.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Product Type 6.2. Base Oil 6.3. Application 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 7.1. Engine Oil 7.2. Transmission Fluids 7.3. Hydraulic Fluid 7.4. Gear Oil 7.5. Grease 7.6. Other Lubricants 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Base Oil 8.1. Mineral Oil 8.2. Synthetic Oil 8.3. Bio-based Oil 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 9.1. Tractor 9.2. Harvester 9.3. Combine 9.4. Irrigation Systems 9.5. Tillage Equipment 9.6. Seeders and Planters 9.7. Other Equipment 10. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 10.1. North America 10.2. Latin America 10.3. Western Europe 10.4. South Asia 10.5. East Asia 10.6. Eastern Europe 10.7. Middle East & Africa 11. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Sales Forecast 2024 to 2034 by Product Type, Base Oil, and Application for 30 Countries 19. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 20. Company Profile 20.1. ExxonMobil Corporation 20.2. Quaker Chemical Corporation 20.3. Fuchs Petrolub SE 20.4. BP plc 20.5. TotalEnergies SE 20.6. Apar Industries Ltd. 20.7. Calumet Specialty Products Partners, L.P. 20.8. Chevron Corporation 20.9. China Petroleum & Chemical Corp (Sinopec Corporation) 20.10. Repsol SA 20.11. Philips 66 20.12. Raj Petro Specialities Pvt. Ltd 20.13. Nynas AB 20.14. Valvoline, Inc 20.15. Shell plc. 20.16. Savita Oil Technologies Ltd.
Explore Chemicals & Materials Insights
View Reports
Agricultural Lubricants Market
