Gear Oil Market size was valued at USD 9.23 billion in 2024 and is expected to cross USD 13.73 billion by the end of 2037, expanding at more than 3.1% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of gear oil is estimated at USD 9.46 billion.
The recent shift towards increasing the use of bio-based lubricants is driving the growth of the market. For instance, the production of bio-based lubricants was around USD 23 million in Germany in 2021. Therefore, companies have increased the production of environmentally friendly base oil in order to reduce dependence on petroleum and other non-renewable raw material sources.
The adoption of innovative machinery to enhance and optimize production is further supported by the increase in demand for products resulting from a variety of applications, which is boosting the growth of the gear oil market. Also, the increasing use of IoT-based applications is also expected to drive the market growth rapidly.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
3.1% |
Base Year Market Size (2024) |
USD 9.23 billion |
Forecast Year Market Size (2037) |
USD 13.73 billion |
Regional Scope |
|
Type (Mineral-based Lubricants, Synthetic-based Lubricants)
Gear oil market from the synthetic -based lubricants are expected to hold the largest share of 54% during the forecast period. The growth can be attributed to the enhanced properties of synthetic-based lubricants such as assisting in temperature control by absorbing the heat generated by the moving vehicle parts and transmitting them to a cooler or sump. Also, these types of lubricants are used extensively in automobiles due to their superior properties. Consequently, it is anticipated that rising automobile production and the installation of new machinery will further fuel the segment's expansion. The need for synthetic fibers is also increasing as a result of technological developments like the NSF Food Lubricants standard, which was established for the use of synthetic lubricants by significant equipment manufacturers in the food sector.
Industry Vertical (Chemical & Petrochemical, Oil & Gas, Energy & Power, Automotive, Food & Beverages, Healthcare)
The automotive segment in the gear oil market is anticipated to hold a share of 34% during the forecast period. The growth can be attributed to the rise in sales of passenger vehicles like buses, lorries, and other consumer cars. Public transportation has improved in rising economies like China, India, and Brazil as a result of economic expansion in these countries. The need for commercial automotive lubricants is anticipated to increase due to this trend. Over the projected period, rising sales of commercial vehicles including heavy-duty trucks and construction machinery like cranes, bulldozers, and concrete mixers are anticipated to support the expansion of the Middle East & Africa region. As per a report, with more than 21 million vehicles manufactured in 2021, China is the greatest producer of passenger automobiles in the world, making up nearly one-third of global output. Therefore, these factors are escalating the growth of this segment.
Our in-depth analysis of the global gear oil market includes the following segments:
Type |
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Industry Vertical |
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Application |
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APAC Market Forecast
Asia Pacific gear oil market is expected to hold the largest share of 36% during the forecast period. The growth can be attributed to the growing consumption of lubricants and greases in the region. Due to its extensive manufacturing activity across a variety of industries and its fast-paced development in the industrial and automotive sectors, Asia Pacific is one of the world's largest manufacturers and users of lubricants. As per the recent report, compared to the prior year, China's industrial production rose by roughly 3.6% in 2022. Also, the region holds the leading position in the marine industry, owing to a large number of ports and increasing trade activities with the neighbouring nations. These factors are accelerating the market growth in the region.
North America Market Statistics
The gear oil market in North America is expected to hold a share of 27% during the forecast period. The market is rising owing to the restoration of the automobile industry in the region. High-end construction machinery is needed to build these skyscrapers, increasing the demand for lubricants. A growing oil and gas industry in North America is providing value-creation opportunities for producers of industrial lubricants. In the local oil and gas industry, drilling and exploration activities are driving up demand for gear oil. Due to the rising demand for lubrication for particular applications in cars, building construction, metallurgy, and other areas, the region is also predicted to experience relatively significant expansion in the gear oils market. Therefore, these factors may positively impact the market growth of gear oil in the region.
Companies Dominating the Gear Oil Market
Author Credits: Richa Gupta
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