North America Industrial Gear Oils Market

North America Industrial Gear Oils Market Size (2024 to 2029)

The industrial gear oils market size in North America is predicted to be worth USD 28.89 billion by 2029 from USD 25 billion in 2024, growing at a CAGR of 2.93% from 2024 to 2029.

MARKET SCENARIO

A lubricant explicitly manufactured for differentials, transfer cases, and gearboxes in cars, trucks, and other machinery is known as gear oil. It has a high viscosity and typically comprises chemicals, including Sulphur. Automotive manual gearboxes, differentials, transaxles, and transfer cases all need gear oil as a lubricant. It facilitates the operation of the drivetrain and guards vital internal components of a vehicle's gear systems against wear and heat damage. It's vital to only use the gear oil advised by your car's manufacturer because using something else could lead to subpar performance or even damage to internal components. Gear oil is significantly thicker than regular motor oil. As the oil has a high viscosity, it can keep connected gears lubricated and cushioned against shocks and abrupt impacts when they work together. In addition, gear oils are designed to endure extremely high temperatures and securely transport heat through the gearbox since manual gearboxes produce more heat due to the higher friction they produce. As a result, gear oil improves the transmission system's performance, loosens wear and tear, and improves fuel efficiency. Higher quality gear oil will supply a substantial portion of the greater fuel efficiency and power sector need, together with continuing technological improvements to provide a better quality of gear, creating profitable chances for the market expansion of gear oil globally.

REPORT COVERAGE

SEGMENTAL ANALYSIS

North America Industrial Gear Oils Market Analysis By Base Oils

The mineral oil segment accounted for the major share of the North American industrial gear oils market in 2023 and is likely to hold the domination throughout the forecast period. Most applications benefit from the performance of premium mineral-based oils. Compared to popular synthetics, mineral-based oils often have higher pressure-viscosity coefficients, allowing for greater film thickness at certain operating viscosities. However, there are some circumstances in which synthetic base oils are preferable. For example, many synthetic base stocks are preferable for applications requiring high operating temperatures and, in some cases, allowing for extended service intervals because of their increased natural resistance to oxidation and heat deterioration.

Additionally, because of their high viscosity index and low pour points, synthetics operate more effectively in machinery exposed to low ambient temperatures. Modern mineral-oil lubricants perform admirably, but synthetic gear oils have several benefits, such as enhanced thermal and oxidation resistance, which permits longer oil life and deployment significantly at high temperatures, and enhanced viscosity-temperature for improved performance and wear protection at extreme temperatures. Additionally, it provides increased low-temperature qualities for better wear protection and decreased churning losses. It also provides enhanced low-temperature properties. As a result, increased gear efficiency, decreased oil temperature, reduced power requirements, longer component life, and more. Therefore, industrial gear oils operate in harder settings while still offering higher performance than before. As a result, formulators are changing their formulation strategies to use synthetic base stock in their new industrial gear oils to suit the increased demand for synthetic gear oils for tougher environments, greatly fuelling the market growth.

North America Industrial Gear Oils Market Analysis By Application

In 2023, the North American market was dominated by the power-generating segment by application. The annual increase in wind turbine installed capacity and rapid expansion mostly cause this. Following power generation, Construction, and Heavy equipment contribute the major share in the market. Industrial gear oil is frequently used in construction machinery and equipment like cranes, excavators, concrete mixers, bulldozers, and more because it exhibits exceptional lubricity and prevents gear rusting and corrosion. For manual transmissions and differentials, Industrial Gear oil has load resistance, anti-corrosion, anti-oxidation, and anti-foam features that ensure smooth gear shifts under all driving circumstances. When used in the travel and swing-reduction gears of hydraulic excavators, industrial gear oil helps ensure smooth gear operation and good machine performance. Therefore, industrial gear oils are a crucial part of machinery and construction equipment. The market for construction machines and equipment is growing quickly.

REGIONAL ANALYSIS

The market for gear oils is now dominated by the United States and will remain so during the forecast period. Major industries being present in the area will contribute significantly to its dominance of the worldwide market for gear oils. Some of the key direct and indirect market growth drivers include increasing construction activity, rising automotive demand, industry growth and expansion, and rising personal disposable income. To enhance production and, ultimately, revenue for the company, many businesses in the automotive industry are making significant investments in the automobile manufacturing industry. The main drivers of rising auto sales are the expanding population, rising disposable income, and easy access to credit and finance. As a result, rising sales in the automobile sector are fueling lubricant consumption, which supports market growth. The market for lubricants is also significantly driven by the rising investment in electric vehicles. For instance, according to Statistics Canada, the first seven months of 2021 saw a 25% increase in automotive sales. The automobile industry's potential for recovery and the expansion of the industrial sector is expected to fuel the need for lubricants.

KEY PLAYERS IN THE NORTH AMERICAN INDUSTRIAL GEAR OILS MARKET

Companies playing a notable role in the North American gear oils market include Total SA, BP PLC, Royal Dutch Shell PLC, ExxonMobil Corporation, Chevron Corporation, Phillips 66 Company, LUKOIL, CASTROL LIMITED, LIQUI MOLY GmbH, Calumet Specialty Products Partners, L.P., Morris Lubricants, Penrite Oil, Carl Bechem GmbH and Valvoline Inc.

DETAILED SEGMENTATION OF THE NORTH AMERICAN INDUSTRIAL GEAR OILS MARKET INCLUDED IN THIS REPORT

By Base Oils

• Mineral Synthetic Oil
• Bio-Based Lubricants
• Others

By Application

• Construction and Heavy Equipment
• Manufacturing
• Mining
• Agriculture
• Metallurgy
• Oil and Gas
• Power Generation
• Transport
• Others

By Country

• The United States
• Canada
• Rest of North America