Global Construction Lubricants Market - 2023-2030

Market Overview

The Global Construction Lubricants Market reached US$ 9.1 billion in 2022 and is expected to reach US$ 10.5 billion by 2030, growing with a CAGR of 3.5% during the forecast period 2023-2030.

The need for high-quality lubricants is rising across all construction-related activities and synthetic oil-based lubricants are becoming increasingly common due to their beneficial properties including water solubility. Such factors are accelerating the expansion of the global construction lubricants market.

The vast range of construction lubricants, including biodegradable oils, high-speed greases and heavy load greases, as well as the market's key competitors' strong emphasis on lubricant quality improvement, all have a major impact. By 2022, Asia-Pacific will hold more than one-third of the global construction lubricants market due to its rapid expansion and attractiveness. Construction lubricant demand and growth in the area are impacted by growing construction industry in Asia-Pacific.

Market Dynamics

Rising Government Initiatives in Commercial Sector

Through PPPs, governments commonly collaborate with private companies to develop commercial ventures. To speed infrastructure development, the partnerships utilize the knowledge and resources of the private sector. PPP projects sometimes involve considerable construction, raising the need for lubricants and construction equipment.

The "Pradhan Mantri Awas Yojana (PMAY) program"), an initiative of the Indian government, intends to offer affordable housing to all urban poor people by the year 2022 through financial support. The need for construction lubricants for equipment such as hydraulic fluid, engine oil, grease and others in construction will rise with the rapid growth of the commercial industry as a result of an increase in government initiatives. Thus, the Global Construction Lubricants Market is anticipated to grow during the forecast period.

Growing Demand for Residential Infrastructure

The growth of the construction lubricants market is driven by infrastructure development and the increase of residential areas. Homeowners often carry out renovation projects to modernize their current homes or make them more functional.

For instance, the Ministry of Land, Infrastructure, Transport and Tourism of Japan reports that the order for new home building increased to 32.3% in June 2021 from -13.4% in June 2020.

Building roads, utilities and public amenities in residential areas are examples of infrastructure development projects which often go alongside residential building projects. Infrastructure projects require using tools and machinery for construction, which need lubricants. Power tools, saws and drills are just a few examples of the equipment and tools used in remodeling that employ construction lubricants.

Fluctuations in the price of crude oil

Petrochemicals extracted from Brent crude oil are essentially made up of construction lubricants. Rising crude oil prices lead to volatile raw material prices, creating major obstacles for manufacturers in construction lubricants. According to the Statistical Review of World Energy 2021 report from BP, crude oil prices have changed recently.

For instance, the cost of Brent crude oil decreased from US$52.39 per barrel in 2015 to US$43.73 per barrel in 2016, then increased from US$54.19 per barrel in 2017 to US$71.31 per barrel in 2018 before declining to US$41.84 per barrel in 2020. Due to the significant price increase in construction lubricants, the expansion of the market is constrained by rising production costs and declining manufacturer profit margins.

COVID-19 Impact Analysis

The COVID-19 pandemic significantly affected the market for lubricants used in construction, resulting in supply chain disruptions and a global halt in construction activity. The pandemic's effects on the world economy caused several construction projects to be postponed or abandoned. Since the equipment and machinery used in construction were idle or ran at lower capacities, the delays and postponements directly impacted the need for construction lubricants.

With an increased focus on healthcare facilities, pandemic response infrastructure and rehabilitation of existing structures to fulfill health and safety regulations, the pandemic produced a shift in construction priorities. The change impacted the demand for construction lubricants since several projects and applications were no longer necessary.

Russia- Ukraine War Impact

Transportation restrictions and lockdowns disrupted the global supply chain. Infrastructure and construction initiatives in the conflict-affected areas were directly impacted. Construction activity decreased due to infrastructure destruction, supply chain disruptions and economic instability. In the affected locations, it reduced the need for construction lubricants.

Geopolitical tensions and wars brought on uncertainty in the international market. International commerce and economic activity slowed down as corporations and investors grow cautious of doing business with conflict-affected nations. The delay may affect construction lubricant demand and consumption in different geographic areas.

Segment Analysis

The Global Construction Lubricants Market is segmented based on base oil, lubricant, equipment and region.

Rising Demand for Efficient Construction drives Hydraulic Fluids Growth

Hydraulic fluid is expected to hold around 30% of the Global Construction Fluids Market during the forecast period 2023-2030. Excavators, loaders and bulldozers are just a few examples of the machinery and equipment used in the construction industry that heavily utilize hydraulic fluids to transmit power and regulate the movement of hydraulic cylinders. The efficient functioning and maintenance of hydraulic systems depend on hydraulic fluids.

Numerous causes, such as the expanding construction sector, the rising need for productive construction machinery and developments in hydraulic technology, are responsible for the demand for hydraulic fluids.

With the rising demand for environmentally friendly fuels, there will be a greater need for high-quality hydraulic fluids. Construction businesses seeking to lower their carbon footprint may find ecologically friendly hydraulic fluids desirable because they may increase sustainability and minimize the environmental effect.

Geographical Analysis

Growing Government Investments in Asia-Pacific

Asia-Pacific is anticipated to have the highest growth in the construction lubricants market during the forecast period. The biggest country in the region is China. The International Trade Administration predicts China's construction market to grow at an average pace of 8.6% between 2022 and 2030. The Government of India's Make in India initiative aims to invest US$965.5 million in infrastructure by 2040.

The need for construction lubricants for equipment such as hydraulic fluid, engine oil, grease and others will rise with the robust expansion of the building and construction sector in Asia-Pacific. Therefore, the demand for the construction lubricants industry is expected to increase during the forecast period due to the significant growth of construction lubricants in construction applications.

Competitive Landscape

The major global players include: TotalEnergies, Royal Dutch Shell PLC, Exxon Mobil Corporation, BP PLC, FUCHS Petrolub SE, Valvoline Inc., Repsol S.A., China National Petroleum Corporation, Kluber Lubrication GmBH and Chevron Corporation.

Why Purchase the Report?

• To visualize the Global Construction Lubricants Market segmentation based on base oil, lubricant, equipment and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous construction lubricants market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Construction Lubricants Market Report Would Provide Approximately 61 Tables, 60 Figures And 203 Pages.

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