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China Heavy Duty Truck Lubricants Market - Forecast(2023 - 2028)
China Heavy Duty Truck Lubricants Market Overview
China's heavy-duty truck
lubricants market size is forecast to reach US$2.3 billion
by 2026, after growing at a CAGR of 6.3% during
2021-2026. Lubricants are used as transmission
fluids and hydraulic fluid to
reduce friction between two surfaces of the components of a vehicle. They are also used
to control the vehicle's high temperature by absorbing the heat generated while the vehicle is running. Lubricants offer various properties such as lubricity, high boiling point, corrosive prevention, and thermal stability
among others. The growing economic activities in China are boosting the market
growth for heavy-duty truck lubricants. The growing manufacturing sector along
with the rapid increase in sales of heavy trucks for good transportation is
further driving the market for lubricants during the forecast period. However,
growing environmental concerns and the high cost of lubricants are likely to
hamper the market growth during the forecast period.
COVID-19 Impact
The COVID-19 pandemic is impacting
different industries; one of the few industries that were largely hit to some
extent was the lubricants industry. The temporary shutdown of lubricant
manufacturing facilities has negatively impacted the market. The downfall in
the production of lubricants, disruption of logistical services, and lack of
workforce impacted the market negatively during the covid-19 crises. Travel
restrictions have reduced the supply of raw materials required for the manufacturing
of China heavy-duty truck lubricants, which, in turn, has affected negatively
the market growth during the pandemic.
Report Coverage
The report: “China Heavy Duty Truck Lubricants Market – Forecast (2021-2026)”, by
IndustryARC, covers an in-depth analysis of the following segments of the China
Heavy Duty Truck Lubricants industry.
By Material: Mineral Oil [Paraffinic, Naphtenic, and Aromatic],
Synthetic [Polyalphaolefin (PAo), Esters, Polyalkylene glycol (PAG), Group III
(Hydrocracking), and Others], Semisynthetic, Bio-Based Lubricants, and Others.
By Type: Engine Oil, Gear & Brake Oil, Transmission Fluids,
Hydraulic Oils, Antifreeze Fluids, Lubricating Oils, Coolants, Greases, and
Others.
By Number of Axel: 2 Axel, 3 Axel, 4 Axel, 5 Axel, 6 Axel, and
Above 6 Axel.
Key Takeaways
- The growing usage of bio-based lubricants among heavy-duty trucks is driving the market growth. Bio-based lubricants are environmentally friendly and easily biodegradable compared to other lubricants available at the market place.
- Growing demand for high-performance vehicles among transportation and manufacturing sectors is driving the demand for heavy-duty truck lubricants.
- The manufacturers are involved in developing advanced lubricants for the automotive sector. Investments in research and developments to enhance the capabilities of heavy-duty truck lubricants are supporting the market growth.
Figure: China Heavy Duty Truck Lubricants Market Revenue, 2020-2026 (US$ Billion)
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China Heavy Duty Truck Lubricants Market Segment Analysis - By Material
The mineral oil segment accounted
for approximately 32% of the market share in
2020 and is estimated to grow at a significant CAGR during the forecast period.
Mineral oils are lubricants derived from refined crude petroleum oil. Mineral oil is ideal for old vehicles and they
are easily available and cost less compared to other oil types. Mineral oils
also need to be changed more frequently than synthetic oils this will further
increase the usage of mineral oil.
Mineral oil provides more high-quality lubrication than synthetic
lubricants. The synthetic segment is expected to hold a significant share and is
estimated to grow at a high CAGR during the forecast period 2021-2026.
Synthetic oil products are developed by mixing many synthetic components and they
are more refined distilled oils. They are chemically modified and widely
preferred among high-performance engines and vehicles. They offer various
properties including stable viscosity and excellent flow at low temperatures. Synthetic oils are costlier compared to other
oils available in the market space.
China Heavy Duty Truck Lubricants Market Segment Analysis – By Type
China heavy-duty truck lubricants
are used as engine oils, brake oil, and transmission fluid among others. The engine
oil segment accounted for approximately 45% of
the market share in 2020 and is estimated to grow at a significant CAGR during
the forecast period. Engine oil is the main component used for vehicle
performance and the right engine oil will improve the lifespan of vehicles. Engine
oil helps in maintaining viscosity, ensures dependability, reduces engine wear,
and improves engine performance among others. They also help in keeping the
engine cool, corrosion-free, and clean. The gear oil and brake oil segments
also hold a significant share in the heavy-duty lubricants market. Gear oil is
a high viscosity lubricant used to protect gear and ensure a smooth transfer of
lubrication through the gear train. Brake fluid is a hydraulic fluid, widely
utilized in hydraulic brake and clutch applications in automobiles. The growing
demand for advanced braking systems in heavy vehicles is driving the market
growth during the forecast period.
China Heavy Duty Truck Lubricants Market Drivers:
Growing usage of heavy-duty trucks in China
Rapid growth in the manufacturing sector along with the growing transportation sector in China is driving the market growth of heavy-duty trucks. The growing logistic activities and e-commerce sector is also driving the demand for heavy-duty trucks which is further driving the demand for heavy-duty trucks lubricants. According to the data published by OICA, China produced 2.21 million heavy trucks in 2019 and 2.98 million heavy trucks in 2020. First Auto Works (FAW), Dongfeng, Sinotruk, Shaanxi Auto, and BAIC Foton are some of the major heavy-duty truck manufacturers in China. The demand for heavy-duty trucks in China has been increasing over the past 10 years. As China’s economy is growing at double-digit rates, and the country is investing heavily in infrastructure projects. According to the data released by Beijing-headquartered Commercial Vehicle World, approximately 1.6 million heavy trucks are sold in China in 2020. The China government is also planned to eliminate 1 million units of diesel-fueled which are failed to meet the National Emission Stage IV standard.
Growing infrastructure activities in China
The infrastructure
sector plays an important role in the Chinese economy. The Infrastructure sector
in China includes the construction projects in different sectors, like Social
Infrastructure, Extraction Infrastructure, Transportation Infrastructure, and,
Manufacturing Infrastructure among others. According to the Asian Times, the
China government has allocated 33.83 trillion yuan (US$4.8 trillion) in the 2020
investment plan and “major infrastructure” projects development. Heavy trucks
are used for transportation activities in the construction industry. They are
used to transport various raw materials such as sand, cement, gravel, bricks,
and equipment among others. Some of the ongoing mega infrastructure projects in
China include Chongqing-Kunming high-speed railway, Shanghai Urban Rail Transit
Expansion, Wuhan Urban Rail Transit, Beijing Airport, South-North Water
Transfer Project, and Lingang New City in Shanghai among others.
China Heavy Duty
Truck Lubricants Market Challenges:
The volatile price of raw materials
The raw materials
required for lubricants include mineral oil, synthetic oil, semi-synthetic oil,
and bio-based oils among others. Synthetic oils are more expensive than mineral
oils owing to their manufacturing process and availability. Depending on raw
material suppliers and outsourcing raw materials from other countries is one of
the major challenges facing by lubricants market in China. Fluctuation in foreign currency rates and
changing government rules and regulations on imports & exports across the
globe is also likely to hamper the market growth during the forecast period.
Depending on foreign countries for oil also restrain the market growth in
China. China imports oil from Saudi Arabia, Russia, Iraq, and Brazil among
others.
China Heavy Duty Truck Lubricants Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the China Heavy Duty Truck Lubricants market. Major players in the China Heavy Duty Truck Lubricants market are Jiangsu LOPAL Tech. Co., Guangdong Delian Group Co., Shandong Yuangen Petroleum Chemical, Sinopec, PetroChina, Royal Dutch Shell Plc, Exxon Mobil Corporation, Total S.A., BASF SE, Chevron Corporation, and others.
Acquisitions/Technology Launches
- In December 2020, PetroChina sets up a lubricants firm for the production and sale of lubricants. PetroChina, a subsidiary of China National Petroleum Corp, listed in Hong Kong and New York. PetroChina offers several brands of lubricants for the automotive, railway, machinery, and other sectors.
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