June 2017 – Massive industrial growth in the Middle East & Africa and Asia-Pacific regions and rising demand for gear oils from the power industry is expected to drive the growth of the gear oil market during the forecast period. The market was valued at USD 7.32 billion in 2016 and is projected to reach USD 8.58 billion by 2022, at a CAGR of 2.69 per cent between 2017 and 2022.
Among base oils, the semi-synthetic oil segment of the gear oil market is projected to grow at the highest CAGR during the forecast period. This high-growth of the semi-synthetic oil segment can be attributed to the excellent performance offered by semi-synthetic oils in extreme working conditions. These oils offer improved viscosity index, high shear stability, and increased chemical resistance. Semi-synthetic oils are cost-effective and provide almost the same performance as that of synthetic oils. Semi-synthetic oils are mostly used in applications, wherein the risk of contamination from dust and dirt necessitates the replacement of oils at regular intervals. Semi-synthetic oils offer several advantages over conventional mineral and synthetic oils, such as excellent oxidative stability, resistance to carbon build-up, low exploration loss, improved performance, low maintenance costs, high viscosity index, and low sledging tendency.
The demand for gear oils is the highest in the transportation industry due to increasing use of gear oils in the automotive industry. The increasing number of personal vehicles and high cargo transportation also contribute to the increased consumption of gear oils in the transportation industry. Moreover, the increased purchasing power of the middle-class population, growth in the number of vehicles across the globe, and rise in the demand for high-end cars in the Middle East & Africa are also leading to the growth of the transportation end-use industry segment of the gear oil market.
The Asia-Pacific Gear Oil Market is expected to grow at the highest CAGR during the forecast period. The increase in the disposable income of the middle-class population of the Asia-Pacific region makes it an attractive market for the manufacturers of gear oils. The tremendous increase in the industrial production of the region, coupled with growth in trade activities is primarily responsible for the high consumption of gear oils in the region, thereby fueling the growth of the Asia-Pacific gear oil market.