Lubricants are viscous fluids that are used in several industrial applications for proper functioning of machines and their components. Just like any other industry, the mining sector requires machinery in abundance for its efficient functioning. This sector uses lubricants for quarry and mining applications. With the surging consumption of mineral oil lubricants and increasing mining activities in developing countries like China and India, the sales of lubricants are expected to boom in the coming years. At present, the mining sector is showing high preference for bio-based lubricants, on account of rising environmental concerns.
The increasing use of these lubricants in the coal mining industry and rising consumption of coal in the power sector in countries like Indonesia, China, and India will drive the lubricants market for mining and quarry applications at 5.0% CAGR during forecast period. The market size is expected to grow from $1,890.0 million in 2016 to $2,610.0 million by 2023. Moreover, the burgeoning demand for mineral and metal commodities and escalating consumption of natural resources like uranium, coal, and diamond will support the market growth in the coming years.
In recent years, there has been a considerable increase in research and development (R&D) activities in countries like China, Australia, India, and the U.S., which has resulted in numerous innovations and technological advancements in the mining and quarrying field. These developments have further led to the increased usage of lubricants for mining and quarrying applications. Moreover, the high gross domestic product (GDP) and robust economic growth in nations like India, Mexico, South Africa, Brazil, Kazakhstan, and Indonesia will boost the mining activities in these countries.
According to P&S Intelligence, the Asia-Pacific (APAC) lubricants market for mining and quarry applications generated the largest revenue in 2016, globally. Moreover, the regional market is also expected to observe a rapid growth in the foreseeable future. This can be ascribed to the expansion of the coal mining sector in India and China, which would account for the largescale consumption of mining lubricants in the future. Additionally, the increasing implementation of government laws regarding mining lubricants will boost their adoption in the region.
Thus, the expansion of the coal mining industry and the high-volume consumption of coal for power generation will amplify the usage of mining lubricants in the coming years.