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Global Mining Lubricants Market - Outlook and Forecast 2022-2027
The global mining lubricants market has exhibited substantial growth in recent years, with a value of USD 2.98 billion in 2021. It is projected to grow at a CAGR of 4.63% from 2022 to 2027, reaching USD 3.92 billion by 2027. Mining lubricants play a critical role in lubricating equipment and heavy-duty vehicles used in various mining activities. Given the demanding working conditions of the mining industry, high-quality lubricants are essential to ensure optimal performance and protect equipment from extreme temperatures and pressures.
In addition to lubrication, mining lubricants have secondary functions such as cleaning and cooling engine parts and hydraulic systems, as well as preventing rust and corrosion on turbines, pistons, and gears. As customer expectations for better quality and higher-performing mining lubricants rise, the market is evolving to meet these demands. Continuous innovation and technological advancements aim to enhance equipment and vehicle performance, improve fuel efficiency, extend turbine and engine lifespan, reduce carbon footprint, provide low viscosity lubricants, and comply with changing emission standards set by regulatory bodies.
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USD 3 billion in 2020
Application, Oil Type, Product Type, and Geography
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The mining lubricants market has benefited from increasing industrialization and rapid infrastructure and construction development in emerging economies. The mining industry itself has experienced significant growth, driven by the adoption of advanced technologies and digitalization through Industry 4.0. Moreover, the mining sector supplies raw materials to various industries such as automotive, manufacturing, steel, aluminum, building materials, electronics, and glass, all of which have shown substantial growth and are poised for future expansion. Consequently, the demand for mining lubricants is expected to increase in tandem with the growth of these industries.
The coal mining industry, in particular, has seen remarkable growth, contributing to the overall mining industry’s positive trajectory. According to the International Energy Agency (IEA), coal currently accounts for 37% of global electricity production. This significant consumption of coal has propelled coal mining and, consequently, benefited the broader mining sector. Additionally, the iron ore mining industry is expected to experience rapid growth, driven by the steel industry’s demand. Approximately 98% of iron ore is used for steel production, which is in turn driven by the growing automotive and construction sectors.
Biobased mining lubricants, derived from vegetable oil, synthetic esters, and animal fats, are gaining traction, especially in developed countries with stricter environmental regulations and environmentally conscious consumers. North America and Europe are the leading consumers of biobased lubricants due to their stringent regulations and sustainability standards. European consumers are willing to pay a premium for biobased mining lubricants that offer equivalent performance to conventional lubricants.
While the mining industry plays a crucial role in economic development by providing raw materials to the manufacturing sector, it also has significant environmental impacts. Mining activities can lead to air and water pollution, as well as harm wildlife and habitats. Governments globally have implemented stringent regulations to mitigate these environmental impacts. Various non-governmental organizations, such as the Environmental Protection Agency (EPA), Western Mining Action Network (WMAN), and the European Environmental Agency (EEA), collaborate with local governments to develop processes and practices that reduce pollution and promote sustainable growth in the mining industry.
The market is segmented based on various factors, including Application, Oil Type, Product Type, and Geography.
Segmentation by Application
Iron Ore Mining
Precious Metal Mining
Industrial Mineral Mining
Segmentation by Oil Type
Segmentation by Product Type
Segmentation by Geography
North America – US, Canada
Europe – Russia, Norway, Germany, Turkey, Poland, Spain
APAC – China, India, Australia, Indonesia, Malaysia
Latin America – Brazil, Mexico, Columbia
Middle East & Africa – South Africa, Saudi Arabia, UAE, Iran
The coal mining sector is projected to be the largest segment in the mining lubricants market, driven by the significant increase in demand for coal. According to a report by the International Energy Agency (IEA), coal was the primary fuel used for electricity generation in 2019. Additionally, coal finds applications in industries such as steel manufacturing, cement production, chemicals, and various manufacturing sectors. The surge in industrial development and population growth has led to a substantial increase in the demand for coal over the past few decades. This trend is expected to continue, driving the growth of the coal mining sector and subsequently the mining lubricants market.
Within the oil type segment, synthetic oil, mineral oil, and biobased oil are the key categories. Synthetic oil holds the largest share in the industry, offering advantages such as a wide temperature range, high pressure resistance, and excellent protection against dust and moisture. Consequently, synthetic oil-based lubricants are preferred by many mining companies due to their superior performance, even in sub-zero temperatures compared to mineral oil. Synthetic oil-based lubricants not only provide enhanced performance and protection but also comply with environmental regulations set by various countries. Therefore, the demand for synthetic oil-based mining lubricants is expected to grow significantly in the forecast period. Biobased lubricants also show promising growth due to their biodegradability and non-toxic nature when disposed of in the environment, leading to increased demand compared to synthetic lubricants.
Amongst the various oil segments, engine oil, hydraulic fluid, transmission fluid, gear oil, and axle oil are the major types used in the mining industry. As the mining industry relies on heavy equipment and vehicles powered by diesel engines for their operations, different types of oils are crucial for their smooth functioning. With the projected significant growth of the mining industry, the oil segment in the mining lubricant market is expected to expand.
Grease is another important product type in the global mining lubricants market. It acts as a lubricant to prevent equipment and vehicle parts from rubbing together. The thick consistency and durability of grease make it an efficient choice for mining applications. The grease segment is projected to grow at a compound annual growth rate (CAGR) of 4.44% during the forecast period.
The global mining lubricants market offers diverse opportunities in various established and potential growth markets. The Asia-Pacific (APAC) region leads the industry, driven by rapid industrialization, infrastructure development, and growth in sectors such as food and beverage, aerospace, automotive, and manufacturing. Moreover, the APAC region’s population growth has resulted in increased demand for power generation, where coal plays a significant role. Therefore, coal mining in the APAC region is expected to drive the global mining industry, resulting in a boost for the mining lubricants market.
North America houses numerous industrial lubrication manufacturers due to its oil and gas production and processing activities. Companies like ExxonMobil, Valvoline, and Petro Canada have established regional headquarters in this region. Additionally, the high demand for mining lubricants in the United States and Canada contributes to the growth of the sector in North America.
The global mining lubricants market has established strategic partnerships with mining companies to enhance the provision of high-quality lubricants. This strategic collaboration affords companies a competitive advantage, leading to an increased market share. Key players in the industry have implemented various growth strategies to thrive in the mining lubricants market. Competition among companies in the mining lubricant sector is strategic in nature. The growing emphasis on sustainable practices and initiatives presents challenges to companies worldwide. Consequently, the demand for innovative and sustainable mining lubricant products is driven by investments in research and development, technological advancements, and environmental and economic considerations.
Leading companies in the global mining lubricants market include ExxonMobil (US), Shell (UK), Castrol (UK), Chevron (US), and Total Energies (France). These companies have adopted expansion, acquisition, new product development, joint venture, and other strategies to bolster their revenues in the mining lubricants market. Additionally, notable companies such as HPCL, BPCL, Phillips 66, Liqui Moly, Lukoil, and others have made substantial investments in research and development to create mining lubricant products that resonate with customers. Therefore, these prominent companies pose formidable competition to the major players.
Key companies profiled in this report include Castrol, Chevron Corporation, ExxonMobil Corporation, Shell PLC, TotalEnergies, BP PLC, Bharat Petroleum Corporation Limited, FUCHS, Gazpromneft – Lubricants Ltd., GS Caltex Corporation, Gulf Oil India Lubricants Limited, Hindustan Petroleum Corporation Limited, Idemitsu Kosan Co., Ltd., Indian Oil Corporation Limited, Liqui Moly, Lukoil, Morris lubricants, Motul, Petro Canada Lubricants INC., Petroliam Nasional Berhad (PETRONAS), Philips 66, Ravensberger Schmierstoffvertrieb GmbH (Ravenol), Repsol, Sinopec, Valvoline Inc.
Key Questions Answered
What is the projected market size of the global Mining Lubricants Market by 2027?
The projected market size of the global Mining Lubricants Market is expected to reach USD 3.92 billion by 2027.
What is the growth rate of the Mining Lubricants Market?
According to Arizton Advisory and Intelligence, the growth rate of the Mining Lubricants Market is expected to be at a CAGR of 4.63% from 2022 to 2027.
What is the expected growth rate of the grease oil segment in the global Mining Lubricants Market by 2027?
The grease oil segment in the global Mining Lubricants Market is anticipated to experience an annual compound growth rate of 4.44% during the forecast period from 2022 to 2027.
What are the key driving factors in the Mining Lubricants Market?
The significant growth in the mining industry and the increasing demand for high-performance lubricants are the key driving factors in the global Mining Lubricants Market.
Who are the key players in the global Mining Lubricants Market?
The key players in the global Mining Lubricants Market include Castrol, Chevron Corporation, ExxonMobil Corporation, Shell PLC, and TotalEnergies.
Which region has the highest growth rate in the Mining Lubricants Market?
The Asia-Pacific (APAC) region stands out with the highest growth rate in the Mining Lubricants Market. This is attributed to the substantial increase in the production of coal, bauxite, iron ore, and industrial minerals mining in the region due to ongoing industrialization, infrastructure development, rapid growth in the construction sector, and a booming automotive industry.