Industrial Gear Oils (Mineral & Synthetic) Market - Forecast(2023 - 2028)

Report Code: CMR 1489 Report Format: PDF + Excel

Industrial Gear Oils (Mineral & Synthetic) Market Overview

Industrial Gear Oils (Mineral & Synthetic) market size is forecast to reach US$5.2 billion by 2027, after growing at a CAGR of 3.8% during the year 2022-2027. Industrial gear oil is a lubricant that is used in gears (gearboxes) to reduce friction and wear on the gear tooth surfaces, as well as to remove heat produced by the operating gears. The most used additives in gear oils are dithiocarbamate, dibutyl phosphite, and more. They impart excellent thermal stability and oxidation resistance, as well as good demulsibility and low foaming tendency, and they protect metal surfaces from rust and corrosion. The use of gear oil in industrial facilitates helps in delivering high performance, corrosion and oxidation resistant machinery with enhanced operational performance, which drives the growth of the industrial gear oil market. The transportation industry is growing at a considerable rate in various regions owing to which the demand for engine lubricants is expediting, which is the major factor driving the market growth. In addition, wind energy generation is increasing at a rapid rate around the world, with the installed capacity of wind turbines increasing every year, driving the demand for hydraulic fluids and industrial gear oils. Furthermore, the massive industrial growth in North America, Europe, and Asia-Pacific regions, coupled with the rising demand for gear oils from the construction and mining industries are key factors accelerating the growth of the gear oil market during the forecast period. 

COVID-19 Impact

The outbreak of COVID-19 has disrupted the production of raw materials used in industrial gear oil manufacturing. The outbreak of the novel coronavirus has affected the supply of these raw materials in various regions. The break in the supplies of raw materials reduced the production of industrial gear oil products. In 2020, transportation, mining, wind energy, construction, agriculture, and more were hit drastically. Retailers also canceled already placed bulk orders of industrial gear oil products due to the shutdown of the market. End-use consumers were not buying expensive industrial gear oil from distributors and retailers due to COVID-19. Thus, overall, the sales of industrial gear oil products were hampered at the distributors' level due to the suspension of end-use industries.

Report Coverage

The report: “Industrial Gear Oils (Mineral & Synthetic) Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Industrial Gear Oils (Mineral and Synthetic) Industry.
By Gear Configuration: Spur Gears, Helical Gears, Bevel Gears, and Others
By Base Oil: Synthetic (Poly-Alpha-Olefin (PAO), PAO/Ester Blend, Ester based Oils, and Others), and Mineral
By Application: Wind Turbine Gearboxes, Shock Loads, Mining Machinery, Extreme Loads, and Others
By End-Use Industry: Agriculture (Tractors & Combine Harvesters, and Machinery & Equipment), Chemicals, Mining (Mining Machinery, and Underground Mining Equipment), Construction (Cranes, Concrete Mixers, Excavators, Loaders, Graders, Bulldozers, and Others), Transportation & Fleet [Marine (Passenger Ships & Cruises, and Heavy Load Carriers), Aerospace & Defense, Railway (Diesel, and Electric)], Energy & Power (Oil & Gas, Wind Turbines, Hydro Power, and Others), Food & Beverage, Steel Manufacturing, Paper and Pulp, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Denmark, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Indonesia, Taiwan, Malaysia and Rest of APAC), South America (Brazil, and Rest of South America), and Rest of the World (Middle East, and Africa)

Key Takeaways

  • Asia-Pacific dominates the industrial gear oils (mineral & synthetic) market, owing to the increasing aerospace, marine, and locomotive sector in the country. The increasing per capita income and evolving lifestyle of individuals coupled with the rising population are the major factors expanding the aerospace, marine, and locomotive sector in APAC.
  • The marine, locomotive, and aerospace industries have increased steadily in the recent past and are expected to further increase in the coming years, owing to the increasing per capita income coupled and the increasing population. This factor is expected to fuel the demand for the industrial gear oil market.
  • Furthermore, growth opportunities exist for the industrial gear oil market as there will be an increase in government initiatives and investments in the renewable wind energy industry to fulfill the country’s carbon emission target, which will spur the overall market growth.

Figure: Industrial Gear Oils (Mineral & Synthetic) Market Revenue Share by Geography, 2021 (%)

Industrial Gear Oils (Mineral and Synthetic) Market Revenue

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Industrial Gear Oils (Mineral Synthetic) Market Segment Analysis – By Gear Configuration

The helical gear segment held the largest share in the industrial gear oils (mineral & synthetic) market in 2021 and is estimated to grow at a CAGR of 4.4% by revenue during the forecast period 2022-2027. Helical gears are utilized in the high load manufacturing industries such as textile, construction equipment, and more because these industries require heavy load efficiencies. Nevertheless, the excessive pressure generated during the production process can cause frequent breakdowns, which can impact the performance of the helical gears. Industrial gear oils have superior properties including anti-foam of less than 0.1%, high-viscosity 145.3, and more such properties. These properties make its use ideal for the high load manufacturing application. So, industrial gear oils are employed in helical gears to protect them from recurring failures and ensure enhanced durability. In March 2019, HGears, based in Germany launched a research and development program for the manufacturing of PM Helical Gears. The expansion of such helical gear research and development facilities is expected to fuel the rise in the manufacturing of helical gears.

Industrial Gear Oils (Mineral & Synthetic) Market Segment Analysis – By Base Oil

The synthetic segment held the largest share in the industrial gear oils (mineral & synthetic) market in 2021 and is forecasted to grow at a CAGR of 5.6% by revenue during the forecast period 2022-2027. Synthetic gear oils are produced from polyalphaolefin (PAO), polyglycol (PAG), and other base stocks. They are used in applications where mineral oils have reached their performance limitations. ?Synthetic gear oils have superior performance capabilities in high and low-temperature applications. They have also been used in exceptionally high load-bearing gearboxes. The performance limitations of mineral gear oils have prompted the development of synthetic gear oils. Although certain additions can improve the qualities of mineral oils, several physical features, such as thermal resistance, pour point, flash point, and evaporation losses, cannot be changed. Moreover, there is a potential reduction of gearing losses and efficiency improvement when using synthetic oil instead of mineral oil. Additionally, the advantages of using synthetic gear oils include lower running temperatures, increased gear efficiency, and reduced energy consumption among many others. The advantages vary based on the applications of the oils. Thus, such advantages of synthetic oils make them ideal as a base oil for industrial gear oils.

Industrial Gear Oils (Mineral & Synthetic) Market Segment Analysis – By Application

The extreme loads segment held the largest share in the industrial gear oils (mineral & synthetic) market in 2021 and is forecasted to grow at a CAGR of 3.8% by revenue during the forecast period 2022-2027. In industries such as construction, steel, and more, gearboxes have to function with extreme pressure loads, which cause heat fluctuation, which damages the gearboxes. Since industrial gear oils provide uninterrupted operation and long service life. It is used in expensive gear applications, including those that are exposed to temperature extremes. The factors such as increasing building and construction activities worldwide are propelling the demand for equipment such as concrete mixers, bulldozers, and more. For instance, according to the Committee for European Construction Equipment (CECE), construction equipment demands in Europe remained on a growth trajectory in 2021, with a 24 percent increase over the previous year. Hence, the growing demand for construction equipment is fueling the application of industrial gear oils, which is boosting market growth.

Industrial Gear Oils (Mineral Synthetic) Market Segment Analysis – By End-Use Industry

The transportation & fleet segment held the largest share in the industrial gear oils (mineral & synthetic) market in 2021 and is forecasted to grow at a CAGR of 4.8% by revenue during the forecast period 2022-2027. Industrial gear oil is often used in gearboxes, which are extensively employed in the transportation sector such as aerospace, marine, and locomotive. In today's economy and society, transport plays an important role and has a large impact on a country's growth and employment. According to European Commission, freight transport activity is projected to increase by about 80 percent by 2050 (compared to 2005). Germany’s transport ministry has forecast that by 2030, freight traffic will have grown 38 percent over 2010 levels. According to the UK Government, 38,000 large passenger aircraft worth around £4.65 trillion are needed globally over the next 20 years. And since industrial gear oils are largely employed in the transportation sector to run transmission smoothly and protect critical internal components and run smooth transmission, it is anticipated that the expanding transportation sector will drive the industrial gear oil market growth during the forecast period.

Industrial Gear Oils (Mineral Synthetic) Market Segment Analysis – By Geography

Asia-Pacific held the largest share in the industrial gear oils (mineral & synthetic) market in 2021 up to 56.2% by revenue. Industrial gear oils perform vital services such as preventing wear and tear, corrosion, temperature rise, and other problems. As a result, it is frequently used in the growing aerospace, mining, wind energy, oil & gas, construction, agriculture, and steel industry. The aerospace, mining, wind energy, marine, oil & gas, construction, agriculture, and steel industry are the booming sectors of the Asia-Pacific region. For instance, according to the World Steel Organization, in 2020, the total crude steel production in Asia-pacific was 1373,7, and in 2021 it was 1,382 million tons, an increase of approximately 1%. Thus, such a growth in the production of steel is boosting the industrial gear oils market. In June 2021, construction work started for the 113 MW Sumita Tono Wind Farm in Japan, and the project is expected to be completed by 2023. Moreover, in February 2022, the construction work of Mitsubishi Shipbuilding and TotalEnergies To Jointly Develop Liquefied CO2 Carrier started in Japan, and the construction will be completed by 2023. Moreover, according to Boeing, the total fleet demand for commercial aircraft in Asia-Pacific will increase by 3.1% reaching 43,610 units during the forecast period of 2021-2040. Hence, with a growth in commercial aircraft, the demand for MRO stations will increase, which will create an opportunity for the expansion of the industrial gear oils market. Thus, variables such as increased demand for steel as raw material, increased demand for aircraft and marine, and bolstering wind energy generation are supporting the market expansion in the Asia-Pacific region.

Industrial Gear Oils (Mineral Synthetic) Market Drivers

Accelerating Copper Mining Activities

Lubricants account for less than 5% of total maintenance costs on average. Lubrication issues, on the other hand, may account for up to 75% of all equipment failures. Maintenance and repair costs can be reduced by up to 30% by improving lubrication practices, according to a recent study by Shell Lubricants. In a mining operation, equipment maintenance is a potentially high-cost factor, especially when it comes to unexpected machine shutdowns. Many operations are attempting to move away from case-by-case solutions in favor of a more cohesive maintenance planning strategy. An example of how an integrated approach can benefit mining operations around the world is the selection of high-performance gear oils. Reduces wear and friction, dissipates heat, inhibits rust and corrosion, flushes contaminants, and reduces noise, vibration, and shock in mining applications are all basic functions of gear oils. Pitting, spalling, scuffing, scoring, and any other condition that can cause premature failure of gear teeth or bearings must be protected by gear oils. The growing demand for natural resources is expediting the growth of the mining industry in various countries. According to the International Copper Study Group (ICSG), after three years, world copper mine output is expected to rise by about 3.7 percent in 2022, adjusted for historical disruption factors. To achieve this output and increased future output, new copper mining sites are being established. For instance, in December 2021, the Eva copper project in Queensland has been approved for development by Copper Mountain Mining Corporation, with design and construction scheduled for 2024. In September 2021, the Wheeler River Joint Venture has approved the start of an independent Feasibility Study for the In-Situ Recovery mining operation proposed for the Phoenix uranium deposit, according to Denison Mines Corp. In February 2021, Canadian mining group Lundin announced to establish operations of the US$3.09bn Josemaria silver-gold-copper project in the San Juan Province of Argentina by 2026. Hence, with the increasing mining projects, it is predicted that the demand for mining equipment such as draglines, loaders, shovels, excavators, haulers, and more will substantially rise over the coming years, thereby spurring the demand for gear oils in the mining industry.

Spurring Demand for Industrial Gear Oils from Bolstering Steel Industry

Lubrication is a major challenge in an integrated steel plant because there are so many different types of lubricants and so many different types of equipment. Steel plant equipment operates in a variety of conditions, including extreme heavy loads, high speeds, low temperatures, high temperatures, dusty polluted environments, and humid acid environments. Industrial gear oils optimize the lifecycle of steel production machinery and critical equipment while minimizing the downtime and maintenance costs of the steel production facility. Also, industrial gear oils are essential for smooth operation in steel plants and reliability of equipment. Therefore, there is spurring demand for industrial gear oils from bolstering the steel industry. The steel industry has a positive outlook for the future owing to the increasing demand for steel from various end-use industries. For illustration, according to the World Steel Association Short Range Outlook (SRO) for 2022 and 2023, Steel demand is expected to grow by 0.4 percent in 2022, to 1,840.2 Mt, after increasing by 2.7 percent in 2021. Steel demand will increase by 2.2 percent in 2023, reaching 1,881.4 Mt. According to the European Steel Association (EUROFER), due to mild but continuing improvement in demand from steel-using sectors, the European steel sector is expected to grow much more moderately in 2022 and 2023 (+3.2 percent and +1.7 percent, respectively). According to the Indian government's 2017 National Steel Policy, the country's crude steel production output should reach 300 million tonnes (MT) by 2030. The policy also aims to raise domestic steel consumption per capita to 160 kilograms by 2030. Such government initiatives are further aiding the positive outlook of the steel industry in the coming years. With the increase in production of steel, it is anticipated that the machinery will work at a more elevated rate in steel production facilities and demand for gear oils will elevate, due to which the industrial gear oils market will be driven during the forecast period.

Industrial Gear Oils (Mineral Synthetic) Market Challenges

Fluctuating Crude Oil Prices

The cost of commodity chemicals and the amount of raw materials used in during the production process is always influenced by fluctuating crude oil prices. Crude oil is considered the main raw material for the synthesis of synthetic industrial gear oils since it is used to manufacture distinct raw materials. The raw materials often used for the production of synthetic industrial gear oils are the downstream products of crude oil such as polyalphaolefins (PAO), esters oils, or polyglycols polyalphaolefins (PAO), esters oils, or polyglycols. So, the price fluctuation of crude oils also hinders the price of synthetic industrial gear oils. According to, the BP Statistical Review of World Energy 2021 report, in the recent year, there is been a fluctuation in the price of crude oil, for instance, the Brent crude oil price decreased from US$52.39/bbl in 2015 to US$43.73/bbl in 2016 and increased from US$54.19/bbl in 2017 to US$71.31/bbl in 2018 and then decreased to US$41.84/bbl in 2020. And because of this uncertainty in crude oil prices, the price of synthetic industrial gear oils is also fluctuating. Thus, the volatility in crude oil prices is expected to be a significant challenge for the industrial gear oils market manufacturers, which is projected to hinder the synthetic industrial gear oils market growth during the forecast period.

Industrial Gear Oils (Mineral Synthetic) Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the industrial gear oils (mineral & synthetic) market. Major players in the industrial gear oils (mineral & synthetic) market are:
1. Shell PLC
2. Petronas Lubricants International
4. Phillips 66
5. China Petroleum & Chemical Corporation (Sinopec Corp.)
6. Total Energies
7. Chevron Corporation
8. Exxon Mobil Corporation
9. ENEOS Corporation
10. Fuchs Group

Recent Developments

  • In January 2021, Shell PLC, CSW Industrials, Inc., and Pennzoil-Quaker State Company dba SOPUS products ("Shell"), a wholly-owned subsidiary of Shell Oil Company that is responsible for Shell's lubricants business in the United States, announced the signing of a definitive agreement under which Whitmore Manufacturing, a wholly-owned subsidiary of CSWI, and Shell will form a joint venture ("JV") to distribute, market, and sell lubricants, coolants, reliability products, greases, and related industrial services to the North America rail and U.S. mining sectors.
  • In March 2020, Shell Indonesia announced plans to expand the capacity of its world-class lubricants oil blending plant (LOBP) in Marunda Centre, Indonesia, near Jakarta. The plant will be able to produce up to 300 million liters of finished lubricants yearly once it is completed on the 9-hectare site. Pennzoil, Quaker State, FormulaShell, Shell TELLUS, Shell RIMULA, Shell ROTELLA T, Shell SPIRAX, Shell Gadus, and Jiffy Lube® are among Shell Lubricants' high-quality trademarks. With this expansion, the company plans to meet the growing demand for lubricants in the domestic market, as well as contribute to the progress of Indonesia's downstream industry.
  • In July 2019, Groupe Renault and BP, through its global lubricant business Castrol, expanded their strategic alliance, which began in 2017 with a Formula 1 partnership. BP and Castrol have extended their partnership with the Renault F1 Team until 2024, supplying advanced fuels and engine oil, gear and hydraulic oils, greases and brake fluid, as well as a variety of high-performance industrial lubricants to the Team's technical centers in Enstone for the chassis and Viry-Châtillon for the engine.

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1. Industrial Gear Oils (Mineral & Synthetic) Market- Market Overview 
    1.1 Definitions and Scope
2.Industrial Gear Oils (Mineral & Synthetic) Market- Executive Summary
    2.1 Key Trends by Gear Configuration
    2.2 Key Trends by Base Oil
    2.3 Key Trends by Application
    2.4 Key Trends by End-Use Industry
    2.5 Key Trends by Geography
3. Industrial Gear Oils (Mineral & Synthetic) Market – Comparative analysis
    3.1 Market Share Analysis- Major Companies
    3.2 Product Benchmarking- Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis- Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Industrial Gear Oils (Mineral & Synthetic) Market - Startup companies Scenario Premium Premium
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Industrial Gear Oils (Mineral & Synthetic) Market – Industry Market Entry Scenario Premium Premium
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
6. Industrial Gear Oils (Mineral & Synthetic) Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porters Five Force Model
        6.3.1 Bargaining Power of Suppliers
        6.3.2 Bargaining Powers of Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Industrial Gear Oils (Mineral & Synthetic) Market – Strategic Analysis
    7.1 Value Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Industrial Gear Oils (Mineral & Synthetic) Market - By Gear Configuration (Market Size -US$ Million, Kilo Tons)
    8.1 Spur Gears
    8.2 Helical Gears
    8.3 Bevel Gears
    8.4 Others
9. Industrial Gear Oils (Mineral & Synthetic) Market - By Base Oil (Market Size -US$ Million, Kilo Tons)
    9.1 Synthetic
        9.1.1 Poly-Alpha-Olefin (PAO)
        9.1.2 PAO/Ester Blend
        9.1.3 Ester based Oils
        9.1.4 Others
    9.2 Mineral
10. Industrial Gear Oils (Mineral & Synthetic) Market - By Application (Market Size -US$ Million, Kilo Tons)
    10.1 Wind Turbine Gearboxes
    10.2 Shock Loads
    10.3 Mining Machinery
    10.4 Extreme Loads
    10.5 Others
11. Industrial Gear Oils (Mineral & Synthetic) Market - By End-Use Industry (Market Size -US$ Million, Kilo Tons)
    11.1 Agriculture
        11.1.1 Tractors & Combine Harvesters
        11.1.2 Machinery & Equipment
    11.2 Chemicals
    11.3 Mining
        11.3.1 Mining Machinery
        11.3.2 Underground Mining Equipment
    11.4 Construction
        11.4.1 Cranes
        11.4.2 Concrete Mixers
        11.4.3 Excavators
        11.4.4 Loaders
        11.4.5 Graders
        11.4.6 Bulldozers
        11.4.7 Others
    11.5 Transportation & Fleet
        11.5.1 Marine
   Passenger Ships & Cruises
   Heavy Load Carriers
        11.5.2 Aerospace & Defense
        11.5.3 Railway
    11.6 Energy & Power
        11.6.1 Oil & Gas
        11.6.2 Wind Turbines
        11.6.3 Hydro Power
        11.6.4 Others
    11.7 Food & Beverage
    11.8 Steel Manufacturing
    11.9 Paper and Pulp
    11.10 Others
12. Industrial Gear Oils (Mineral & Synthetic) Market - By Geography (Market Size -US$ Million, Kilo Tons)
    12.1 North America
        12.1.1 USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 Netherlands
        12.2.6 Spain
        12.2.7 Denmark
        12.2.8 Belgium
        12.2.9 Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Rest of South America
    12.5 Rest of the World
        12.5.1 Middle East
        12.5.2 Africa
13. Industrial Gear Oils (Mineral & Synthetic) Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Industrial Gear Oils (Mineral & Synthetic) Market – Industry/Segment Competition Landscape Premium
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Americas Level - Major companies
    14.3 Market Share by Key Country - Major companies
    14.4 Market Share by Key Additive Type - Major companies
15. Industrial Gear Oils (Mineral & Synthetic) Market – Key Company List by Country Premium Premium
16. Industrial Gear Oils (Mineral & Synthetic) Market Company Analysis - Business Overview, Product Portfolio, Financials, and Developments
    16.1 Shell PLC
    16.2 Petronas Lubricants International
    16.3 BP PLC
    16.4 Phillips 66
    16.5 China Petroleum & Chemical Corporation (Sinopec Corp.)
    16.6 Total Energies
    16.7 Chevron Corporation
    16.8 Exxon Mobil Corporation
    16.9 ENEOS Corporation
    16.10 Fuchs Group
"*Financials would be provided on a best efforts basis for private companies"