The U.K. off-highway equipment lubricants market size is projected to reach USD 563.8 million by 2025, according to a new report by Grand View Research, Inc., registering a 1.9% CAGR over the forecast period. Increasing demand for heavy-duty engine oil, coupled with growing infrastructure and agriculture sectors, is anticipated to propel lubricant consumption.
Rapid increase in urbanization has led to demand for better infrastructure in U.K. As the country is developing various plans to meet the growing infrastructural demand, the construction sector is likely to expand significantly as well. Rise in demand for transport infrastructure in U.K. will create opportunities for construction machinery, and therefore its lubricants, as these machines are the basic requirement for completing any infrastructure project.
British Petroleum plc, Shell UK Ltd, ExxonMobil Corporation, Total UK Ltd, Fuchs Lubricants (UK) plc, and Chevron Corporation are key manufacturers and suppliers of lubricants and boast of a well-established distribution network across the region. Manufacturers are focusing on increasing production capacities and entering into long-term agreements with distributors to effectively cater to the market.
Presence of numerous rental services for construction and agricultural machinery, such as tractors, harvesters, and sprayer rental services, and growing trend of hiring such machinery on a short-term and seasonal basis are likely to offer promising growth in lubricant consumption in the rental segment. Growing stringent regulations pertaining to regular maintenance of machinery to reduce pollution is another factor driving demand for lubricants in U.K.
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Further key findings from the report suggest:
- By end use, rentals emerged as the dominant segment in the industry with a total share of 41.4% by volume in 2018. In terms of revenue, the segment is expected to value USD 237.9 million by 2025 and will also register the fastest growth
- On the basis of equipment type, construction machinery accounted for more than 45.0% of the off-highway machinery lubricant consumption in terms of volume in 2018. The segment also led the overall market in terms of revenue that year
- Some of the key participants in the U.K. off-highway equipment lubricants market are British Petroleum plc, ExxonMobil Corporation, Shell UK Ltd, ExxonMobil, and Fuchs Lubricant (UK) plc
- Mergers and joint ventures are some of the key trends observed in the market. In 2017, Total S.A. acquired Maersk Oil, which assisted Total in adding new refinery and oil reserves to its portfolio.