The COVID-19 pandemic is impacting different industries; one of the few industries that were largely hit to some extent was the lubricants industry. The temporary shutdown of lubricant manufacturing facilities has negatively impacted the market. The downfall in the production of lubricants, disruption of logistical services, and lack of workforce impacted the market negatively during the covid-19 crises. Travel restrictions have reduced the supply of raw materials required for the manufacturing of China heavy-duty truck lubricants, which, in turn, has affected negatively the market growth during the pandemic.
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The mineral oil segment accounted for approximately 32% of the market share in 2020 and is estimated to grow at a significant CAGR during the forecast period. Mineral oils are lubricants derived from refined crude petroleum oil. Mineral oil is ideal for old vehicles and they are easily available and cost less compared to other oil types. Mineral oils also need to be changed more frequently than synthetic oils this will further increase the usage of mineral oil. Mineral oil provides more high-quality lubrication than synthetic lubricants. The synthetic segment is expected to hold a significant share and is estimated to grow at a high CAGR during the forecast period 2021-2026. Synthetic oil products are developed by mixing many synthetic components and they are more refined distilled oils. They are chemically modified and widely preferred among high-performance engines and vehicles. They offer various properties including stable viscosity and excellent flow at low temperatures. Synthetic oils are costlier compared to other oils available in the market space.
China Heavy Duty Truck Lubricants Market Segment Analysis By Type
China heavy-duty truck lubricants are used as engine oils, brake oil, and transmission fluid among others. The engine oil segment accounted for approximately 45% of the market share in 2020 and is estimated to grow at a significant CAGR during the forecast period. Engine oil is the main component used for vehicle performance and the right engine oil will improve the lifespan of vehicles. Engine oil helps in maintaining viscosity, ensures dependability, reduces engine wear, and improves engine performance among others. They also help in keeping the engine cool, corrosion-free, and clean. The gear oil and brake oil segments also hold a significant share in the heavy-duty lubricants market. Gear oil is a high viscosity lubricant used to protect gear and ensure a smooth transfer of lubrication through the gear train. Brake fluid is a hydraulic fluid, widely utilized in hydraulic brake and clutch applications in automobiles. The growing demand for advanced braking systems in heavy vehicles is driving the market growth during the forecast period.
China Heavy Duty Truck Lubricants Market Drivers:
Growing usage of heavy-duty trucks in China
Rapid growth in the manufacturing sector along with the growing transportation sector in China is driving the market growth of heavy-duty trucks. The growing logistic activities and e-commerce sector is also driving the demand for heavy-duty trucks which is further driving the demand for heavy-duty trucks lubricants. According to the data published by OICA, China produced 2.21 million heavy trucks in 2019 and 2.98 million heavy trucks in 2020. First Auto Works (FAW), Dongfeng, Sinotruk, Shaanxi Auto, and BAIC Foton are some of the major heavy-duty truck manufacturers in China. The demand for heavy-duty trucks in China has been increasing over the past 10 years. As Chinas economy is growing at double-digit rates, and the country is investing heavily in infrastructure projects. According to the data released by Beijing-headquartered Commercial Vehicle World, approximately 1.6 million heavy trucks are sold in China in 2020. The China government is also planned to eliminate 1 million units of diesel-fueled which are failed to meet the National Emission Stage IV standard.
Growing infrastructure activities in China
The infrastructure sector plays an important role in the Chinese economy. The Infrastructure sector in China includes the construction projects in different sectors, like Social Infrastructure, Extraction Infrastructure, Transportation Infrastructure, and, Manufacturing Infrastructure among others. According to the Asian Times, the China government has allocated 33.83 trillion yuan (US$4.8 trillion) in the 2020 investment plan and major infrastructure projects development. Heavy trucks are used for transportation activities in the construction industry. They are used to transport various raw materials such as sand, cement, gravel, bricks, and equipment among others. Some of the ongoing mega infrastructure projects in China include Chongqing-Kunming high-speed railway, Shanghai Urban Rail Transit Expansion, Wuhan Urban Rail Transit, Beijing Airport, South-North Water Transfer Project, and Lingang New City in Shanghai among others.
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China Heavy Duty Truck Lubricants Market Challenges:
The volatile price of raw materials
The raw materials required for lubricants include mineral oil, synthetic oil, semi-synthetic oil, and bio-based oils among others. Synthetic oils are more expensive than mineral oils owing to their manufacturing process and availability. Depending on raw material suppliers and outsourcing raw materials from other countries is one of the major challenges facing by lubricants market in China. Fluctuation in foreign currency rates and changing government rules and regulations on imports & exports across the globe is also likely to hamper the market growth during the forecast period. Depending on foreign countries for oil also restrain the market growth in China. China imports oil from Saudi Arabia, Russia, Iraq, and Brazil among others.
China Heavy Duty Truck Lubricants Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the China Heavy Duty Truck Lubricants market. Major players in the China Heavy Duty Truck Lubricants market are Jiangsu LOPAL Tech. Co., Guangdong Delian Group Co., Shandong Yuangen Petroleum Chemical, Sinopec, PetroChina, Royal Dutch Shell Plc, Exxon Mobil Corporation, Total S.A., BASF SE, Chevron Corporation, and others.
Acquisitions/Technology Launches
In December 2020, PetroChina sets up a lubricants firm for the production and sale of lubricants. PetroChina, a subsidiary of China National Petroleum Corp, listed in Hong Kong and New York. PetroChina offers several brands of lubricants for the automotive, railway, machinery, and other sectors.
Related Reports:
A. Automotive Lubricants Market
https://www.industryarc.com/Report/18504/automotive-lubricants-market-research-report-analysis.html
B. Lubricants Market – Forecast(2021 – 2026)
https://www.industryarc.com/Report/11709/lubricants-market-analysis.html
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