In 2021, the agricultural lubricants industry contributes $3,011.3 million, and it is projected to rise at a rate of 4.1% from 2021 to 2030, to capture $4,332.8 million revenue. It is due to the rising adoption of modern farming practices, agricultural process mechanization, and the growing need to increase yield production.
In addition, farming activities and related products are projected to rise in the near future, led by the increasing cost of farm labor. Moreover, the rising rate of farm mechanization and high-performance synthetic grease appeal are projected to cause industry proliferation.
Moreover, significant technological advancements in the agronomical sector are resulting in increased consumption of agricultural lubricants. Numerous innovative approaches and strategies, such as the usage of inorganic compost have enhanced yield production, with increased efficiency, and a decline in operational cost. Therefore, modern machinery and technology are utilized on the farm for reducing operational time, and effort, and increase production.
Government agencies have introduced a number of farmer subsidy schemes in emerging countries such as Mexico, India, and others, for helping farmers in buying harvesters, tractors, power sprayers, threshers, paddy transplanters, and other equipment. More sophisticated machinery is utilized by farmers which results in rising agricultural machine lubricating product demand.
For example, India offers subsidies for 30% to 50% procurement of farming machinery to increase the adoption of modern equipment for crop cultivation. It thus drives the lubricants demand and lures the manufacturers to expand their operations in other countries as well.
APAC generates a significant revenue share in the agricultural lubricants industry, and it is projected to experience rapid growth in the near future, due to the rising establishment of manufacturing facilities in the region. It is led by economic labor and high consumer demand. Thus, the industry players are increasingly concentrating on better investments, and plans for catering to the growing demand for agricultural lubricants.
Over 56% of the global population depends on APAC for agricultural production for sustenance. The massive size of the farm causes high equipment sales, which results in increasing demand for agricultural lubricants.
Biodegradable lubricants are expected to experience significant growth, rising at a rate of 4.9%, in the coming future. The increasing popularity of biodegradable oils is predicted to lure industry players. Bio-based products come with superior lubricating qualities to mineral-based primary assets with biodegradability and renewability. In addition, the demand for heavy-duty machines is constantly rising for agricultural operations.
Europe is a significant consumer of bio-based lubricating products, due to stringent laws and regulations in the country on the usage of harmful chemicals. For example, European regulations have made oil consumption with specific ECOLABEL mandatory. Several advantages of ECOLABEL products are lower emissions of CO2, less impact on soil and water quality, high content of renewable raw materials, and a ban on dangerous compounds usage.
