Mining Lubricants Market Report

Mining Lubricants Market Analysis By Type (Mineral Oil, Synthetic & Bio-Based Lubricants), By Application (Coal Mining, Iron Ore Mining, Bauxite Mining, Precious Metal Mining), By Region & Segment Forecasts, 2014 - 2025

Published: August 2017  |  120 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-528-1

Industry Insights

The global mining lubricants market size was valued at USD 2.06 billion in 2016. Growth of drilling and exploration activities on a global level, as well as increased demand for mining equipment has a direct and positive impact on the industry demand.Moreover, equipment manufacturers increasing their capital spending to provide for the new sites opening up is expected to accelerate the growth of the market over the forecast period.

High growth in mining equipment including continuous miner, haul truck, scaler, hydraulic shovel, motor grader and dragline excavator in existing and unexploited plants is expected to complement the global industry growth.

U.S. mining lubricants market volume by product, 2014 - 2025 (Kilo tons)

U.S. mining lubricants market

Stringent regulations imposed by government bodies towards environment protection are anticipated to augment the demand for bio-based lubricants. As a result, regulatory support towards bio-based products coupled with superior mechanical properties of bio-lubricants as compared to synthetic lubricants is expected act as an advantage for the product market in the near future.

Global lubricants market is governed by stringent regulations from various environmental agencies at regional level. Since lubricants are produced through mineral oils and petrochemicals, they impact the environment in terms of biodegradability, aqueous toxicity and recyclability. But the opportunities for implementing new technology are on the rise, and the companies can benefit from this by carefully administrating their potential while making this technology available on the market.

On account of untapped or unexplored sites in Congo, Gabon and Zambia in Africa, and Peru, Brazil and Chile in Latin America, and the growing demand for mining products including drills & breakers, crushing, pulverizing & screening equipment, and mineral processing machinery coupled with mineral processing machinery market is expected to fuel the demand for the product as a result of rise in excavation of minerals and metals.

High industrialization and consumerism, increasing population as well as disposable income and rapid urbanizations is expected to fuel the demand for automatic lubrication system in developing countries including India and China on account of rising demand from mining and metal industries such as zinc, copper, iron ore and bauxite.

Product Insights

Mineral oil lubricants were the most extensively used and accounting for 83.8% of the global volume share in 2016. It is obtained from the distillation of crude, which are quick to dispose and reuse on account of an existing infrastructure in place. The rise in demand for mineral oil lubricants is owning to its compatibility with metals, seals and coatings, which can be further manipulated chemically to produce semi-synthetics through the distillation process.

Global mining lubricants revenue share by application, 2016 (%)

Global mining lubricants market

Mineral oil lubricants are cheaper than synthetic and bio-based lubricants, and provides an enhanced operational benefit through supplying a stable structure to equipment, thereby expected to exhibit substantial growth over the forecast period. High growth of mineral based lubricant is expected over the next eight years on account of their hydrophilic properties and solvency, as well as their ability to work at standard temperatures without advanced machinery.

Application Insights

Demand for these lubricants was highest in coal mining at 217.9 kilo tons in 2015 and is expected to witness growth due to its increasing penetration in construction and commercial industries.

Coal, segmented into four parts including lignite, subbituminous coal, bituminous coal and anthracite coal has various applications such as thermal power generation, steel manufacturing, cement manufacturing, and heating. High Demand for coal in production of a variety of metals, chemicals, ceramics and papers by manufacturing plants is anticipated to increase mining activities, thereby spurring the demand for the product in coal mining.

The product is also used in heavy load equipment during the process of coal mining, wherein coal mines require high performance lubricants having resistance to oxidation, high viscosity index as well as corrosion prevention properties, therefore augmenting the demand for mining lubricants in the related industry.

In addition, increased demand for steel for the purpose of urbanization and industrialization in developing nations mainly India and China as well as dependence on steel for construction and transportation purposes is expected to augment the demand for iron ore mining, which will in turn fuel the demand for the product in the iron ore extraction sites.

Regional Insights

Asia Pacific is expected to show high volume gains at a CAGR of 5.3% from 2016 to 2025. Mining is a significant economic activity for Asian countries including India, China, Australia, Indonesia. Asia Pacific is anticipated to grow at significant rate owing to rapid industrialization and changing lifestyle. Growing automobile industry and consumer preference for white metal jewelry in the region is expected to fuel demand for the product over the forecast period.

Iron and coal are the most widely extracted resources in Asia, wherein the most involved countries including Australia, India and China are expected to propel the demand for the related market. Moreover, Iron is the most widely used refractory metals, its demand in developing nations like India and China is fueling the demand for iron ore mining, which in turn is expected to augment the demand for mining lubricants in Asia Pacific.

North America is not only one of the major manufacturers of coal, iron, natural gas and petroleum, but is also a home to major North American manufacturers in the concerned industry such as ExxonMobil Corp., Bel-Ray Company Llc., and Quaker Chemical Corp. Therefore, utmost reliability of these market players on coal and iron ore for industrial and commercial purposes is anticipated to augment the demand for mining lubricants over the forecast period.

Competitive Insights

The market is highly competitive in nature owing to presence of various small and large-scale manufacturers in the U.S., China and Germany. The market is dominated by various major participants including Royal Dutch Shell Plc., BP Plc., ExxonMobil Corp., Sinopec, Lukoil, Chevron Corp., and Total S.A.

Product differentiation along with threat of forward integration by manufacturers to distribute mining lubricants and to capture market share is expected to result in high industry rivalry in the product’s market over the forecast period. In addition, possible entry of new players is further expected to intensify rivalry in the industry.

In March 2017, Cabina Gulf Oil Company, Chevron’s subsidiary, started the oil and gas production at Mafumeira Sul project offshore, Angola. The production capacity for liquids on the plant site is 150000 barrels while for natural gas is 350 million cubic feet. Located 15 miles away from offshore Cabinda Province, this production plant in Angola will not only enhance the production and value for its partners and corporations through improved cash flow and priority completion of major projects.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                                

Volume in Kilo Tons & Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central and South America, Middle East & Africa

Country scope

U.S., Russia, China, Brazil

Report coverage             

Volume & Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts volume and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2017 to 2025. For the purpose of this study, Grand View Research has segmented the global mining lubricants market on the basis of product, application and region:

  • Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Mineral oil lubricants

    • Synthetic lubricants

    • Bio-based lubricants

  • Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • Coal mining

    • Bauxite mining

    • Iron ore mining

    • Precious metals mining

    • Rare earth mineral mining

    • Others

  • Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S

    • Europe

      • Russia

    • Asia Pacific

      • China

    • Central and South America

      • Brazil

    • Middle East and Africa

Key questions answered by the report
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