Mining Lubricants Market - Forecast(2023 - 2028)

Mining Lubricants Market Overview

The Mining Lubricants market size is forecast to reach US$2.8 billion by 2027 after growing at a CAGR of 4.1% during the forecast period 2022-2027. Mining is a round-the-clock operation and the equipment is subjected to very harsh conditions. Mining equipment components such as bearings, pins, bushes, ropes, and gears are subject to friction and wear. Lubricants play an important role in mining operations to ensure the mining equipment run efficiently in extreme conditions. To keep equipment operating at maximum efficiency, lubricants protect the equipment from abrasive contamination, exceptional temperatures, oscillating movements, and high loads. Synthetic lubricants derived from polyolefins, alkylated naphthalenes, polyalkylene glycols, and phosphate esters are replacing mineral oil-based lubricants. The driver for the mining lubricants market is the growing demand for high-performance lubricants that offer greater energy efficiency, longer drain intervals, better performance in a wider temperature range, and increased durability even under severe conditions.

Mining Lubricants Market COVID-19 Impact

The COVID-19 pandemic had a lasting impact on global economies which was felt across all industries, including mining. The rapid surge in infections resulted in government-imposed lockdowns and stay-at-home mandates. Only activities considered essential were permitted. As many governments consider mining essential, mining was permitted with COVID restrictions. However day-to-day operations were affected due to policies such as social distancing. Certain mine sites were closed down and some had to manage with scarce staff over rising absenteeism among workers. Brazil, one of the world's major iron ore exporters, had the world’s second-highest number of COVID cases in 2020. In June 2020, a coronavirus outbreak infected at least 188 workers employed by mining giant Vale SA in Brazil which led to the court ordering the suspension of mining activities. This affected global iron ore prices. This in turn also affected the mining industry and thereby, the mining lubricants market.

Report Coverage

The report: “Mining Lubricants Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the chemical tankers industry.

Key Takeaways

• Asia-Pacific dominates the mining lubricants market on account of the mining activities in the region. According to India Brand Equity Foundation (IBEF), the gross value added from mining and quarrying in India stood at US$13.4 billion in Q1 FY2022. 
• Lubricants ensure the efficient running of compressors, open gears, and mobile mining equipment, even in harsh environments. This contributes to significant savings to a mine site operation.
• Synthetic lubricants are derived from polyalkylene glycols, phosphate esters, alkylated naphthalenes, and silicate esters among others. They deliver a range of performance benefits due to which they occupy the largest market share.
• The major opportunity for this market is the switch to eco-friendly lubricants to make mining more sustainable.

Mining Lubricants Market Segment Analysis – By Product

The synthetic lubricants segment held the largest share in the mining lubricants market in 2021 and is growing at a CAGR of 6.9% during the forecast period. A synthetic lubricant contains more highly refined base oils than those used in conventional mineral oils. Synthetic lubricants started replacing mineral oils more than a decade ago. Synthetic lubricants are made from chemical bases such as polyolefins, polyalkylene glycols, phosphate esters, etc., They offer benefits both in terms of superior performance and environmental terms., such as longer oil life, wider operating temperature range, resistance to deposit formation, oxidation resistance and enhanced wear protection. As technology in both equipment and lubricants improves, the demand for high-performance oils and greases, including synthetics is increasing. According to Viva Energy Australia, technical advancements in lubricants will lead to synthetic lubricants being used in mobile-plant driveline lubrication, resulting in longer oil drains, better energy efficiency and extended component life. According to the World Bank, clean energy needs will escalate the demand for rare earth minerals by nearly 500% by 2050. Therefore, mining activities will continue to escalate in the future and so will the demand for synthetic lubricants. Thus, the synthetic lubricants segment is set to dominate the mining lubricants market.

Mining Lubricants Market Segment Analysis – By Application

The open gears segment held the largest share in the mining lubricants market in 2021 and is growing at a CAGR of 3.7% during the forecast period. Open gear lubricants are an essential component of all mineral and metal mining and processing operations. Mobile equipment open gears are usually bidirectional and operate with continuous, cyclic speed variations. Process open gears operate in one direction and at a constant speed. As open gears regularly suffer from pitting and other wear, they require specialized lubricants that withstand extreme pressures and heavy loads and have enhanced adhesion. According to the American Gears Manufacturers Association (AGMA) and ISO standards, the main types of open gear lubricants are greases, residual and compound lubricants, and oils. Choosing the right lubricant enhances equipment protection and prevents unscheduled downtime which increases the process efficiency.

Mining Lubricants Market Segment Analysis – By Geography

Asia-Pacific region held the largest share in the mining lubricants market in 2021 up to 45% owing to the extensive mining in the region. The Asia-Pacific region is rich in minerals and metals. According to the World Gold Council, China was the largest producer of gold in the world in 2021 and accounted for around 9% of total global production. Australia was the third-largest gold producer in 2021. According to the World Economic Forum, China is the world’s biggest producer, importer, and consumer of coal and accounts for 65% of global coal consumption. According to the International Energy Agency’s (IEA) Coal 2020 report, coal is used for electricity generation in China, India, and other Asian nations, which together account for around 75% of global coal demand. As per IBEF, India is the world's second-largest coal and aluminum producer and the fourth largest iron ore producer in the world. The mining activities in this region drive the consumption of mining lubricants.

Mining Lubricants Market– Drivers

Growing Adoption of Industry 4.0 in Mining

Digital technologies and automation or mining 4.0 is defined by the use of smart equipment and data-driven decisions to provide easier and more affordable maintenance. With mining 4.0 mining companies will be able to speed up production, reduce downtime and boost employee safety. According to Shell Lubricants mining industry report titled Exploring Industry 4.0, 98% of mining companies surveyed use at least one industry 4.0 technology in their operations. 46% of companies use cloud-based technologies and 58% use sensors, while 54% are currently using autonomous equipment. In mining operations, the main cause of operating expenditure is due to maintenance issues that hinder operating efficiencies and result in unnecessary costs. To avoid this, many companies are resorting to the use of industry 4.0 technologies. These technologies monitor the conditions of the machine and also alert the user when the equipment needs lubricants. As the adoption of industry 4.0 is still growing in the mining sector, many companies are capitalizing on this. For instance, in June 2022, Schneider Electric announced a collaboration with Intel to extend the EcoStruxure software framework offering for industrial users such as mines. EcoStruxure is the company’s open, interoperable, IoT (Internet of Things)-enabled system architecture and platform. It is used in the mining industry for fuel management, maintenance, material handling, process automation and control, and environmental management. Thus, the growing adoption of industry 4.0 in the mining sector drives the mining lubricants market.

Increasing Demand for High-Performance Mining Lubricants

Mining operations are carried out under the harshest conditions. The performance requirements for lubricants in the mining industry are increasing due to the need for longer oil drains, higher operating temperatures, and increased pressures and loads. High-performance lubricants play a crucial role in ensuring the protection and performance of mining equipment, and aid in reducing unscheduled downtime, associated financial losses, and safety risks. The use of a high-performance lubricant can also enhance equipment reliability and increase re-greasing and oil drain intervals. This cuts the need for hands-on maintenance, which decreases the potential risks for employees by limiting human-machine interaction. It also helps reduce the possibility of lubricant-related spills and leaks. Thus, the increasing demand for high-performance lubricants drives the mining lubricants market.

Mining Lubricants Market– Challenges

Stringent Regulations over Environmental Concerns

Mining is one of the biggest contributors to economic development. However, stringent regulations imposed due to environmental damage are a key challenge for the mining industry. In countries around the world, there is a concern that spilled lubricants can leach into groundwater and contaminate aquifers, streams, and lakes. Some Canadian regions require mines to use biodegradable lubricants. Many regions require operators to report any lubricant spills over a certain volume. The US state of Montana has a law mandating the use of biodegradable lubricants in mining. The law requires any underground mining done near water to use environmentally acceptable lubricants (EALs). EALs are defined by the Environmental Protection Agency (EPA) Vessel General Permit regulation, which sets specific standards for the fluids to be biodegradable, minimally toxic, and non-bioaccumulative. They can be either biobased, such as vegetable oils, or synthetic, such as polyolefins, esters, or polyalkylene glycols. Similar European Union directives include Environmental Impact Assessment Directive; the Water Framework Directive; and the Waste Framework, Hazardous Waste, and Landfill Directives. These stringent regulations pose a challenge for the mining lubricants market.

Mining Lubricants Industry Outlook

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the mining lubricants market. Mining lubricants market top 10 companies are:

1. Shell plc
2. ExxonMobil Corporation
3. Total Energies
4. BP plc
5. Chevron Corporation
6. Sinopec
7. FUCHS
8. Valvoline Inc.
9. Bel-Ray Company, LLC
10. Idemitsu Kosan Co., Ltd

Recent Developments

• In January 2021, Whitmore Manufacturing, LLC, a wholly-owned subsidiary of CSW Industrials, Inc, and Shell Oil Company formed a joint venture to market, distribute, and sell lubricants, greases, coolants, reliability products, and related industrial services to the North America rail and US mining sectors. 
• In September 2020, Petro-Canada Lubricants launched ENVIRON MV R, the first biodegradable hydraulic fluid made using ultra-pure severely hydrotreated base oils. ENVIRON MV R provides an environmentally sound solution and offers protection of equipment in the mining industry.
• In August 2020, Total Lubrifiants acquired LUBRILOG SAS to strengthen its presence in the lubricants market. This acquisition creates added value for Total Lubrifiants by bringing a new level of expertise, particularly in key sectors such as cement, mining, and materials.

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