The lubricant market in Australia was showing steady growth and significant potential. Lubricants play a crucial role in various industries, including automotive, industrial, marine, and aerospace, among others.
STORY OUTLINE
- Lubricants Demand Surges: Australia used ~460 ML of lubricating oil in 2018-2019, majorly by diverse sectors like industry, mining, automotive, and transport.
- Maintenance Awareness Boosts Demand: Preventive maintenance awareness drives regular equipment upkeep, spurring specialty lubricant demand tailored to specific machinery needs.
- Regulations Reshape Market: Stringent emission standards compel compliant lubricants, with government incentives and grants fostering sustainable options and technological growth.
- Lubricants Extend Lifespan: Lubricants decrease repairs, safeguard equipment from corrosion, reduce downtime, and potentially save up to 5% in maintenance costs.
In the fiscal year 2018-2019, Australia’s lubricating oil consumption amounted to a significant ~460 Mega Liters. The primary consumers of lubricating oil were diverse, encompassing industrial and mining companies, major producers, the automotive industry, and transport companies. According to the Australian Institute of Petroleum’s report, approximately 85% of all lubricating oil sales in the country were attributed to these commercial users.
1. Australia’s Lubricants Market Surges with Maintenance Awareness
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When businesses and individuals recognize the significance of preventive maintenance, they tend to follow regular maintenance schedules for their machinery and equipment. As a result, there is an increase in the demand for lubricants, as they play a vital role in any comprehensive maintenance program.
Preventive maintenance practices often involve using specialized lubricants tailored to specific machinery and operating conditions. This shift towards customized lubrication solutions can lead to increased demand for specialty lubricants.
2. How Government Regulations are Reshaping Australia’s Lubricants Market
The automotive industry is obligated to adhere to government emissions standards. To ensure optimal engine performance and reduced emissions, lubricants utilized in vehicles must meet these stringent requirements. As a result, there is an increased demand for lubricants formulated to comply with emission regulations.
Governments may levy taxes or offer incentives based on the environmental impact of lubricants. For example, there might be tax benefits for using bio-based lubricants or penalties for using non-compliant lubricants. Such financial incentives can sway the market towards more sustainable lubricant options.
Government support in the form of research and development grants can encourage lubricant manufacturers to invest in developing innovative and sustainable lubricant solutions. This support can spur technological advancements in the industry, leading to new market opportunities.
3. The Crucial Role of Lubricants in Australia’s Repair Reduction
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Lubricants play a vital role in reducing the need for repairs and extending the lifespan of machinery and equipment across various industries in Australia. Lubricants provide corrosion protection, especially in harsh environmental conditions, extending the lifespan of equipment.
Well-lubricated machinery tends to experience fewer breakdowns, resulting in reduced downtime for repairs. inadequate lubrication causes around ~35% of all premature equipment failures.
A well-maintained lubrication program has the potential to save up to ~5% of an organization’s total maintenance budget.
In Conclusion, Australia’s lubricants market gains momentum through maintenance awareness and government regulations, with lubricants proving crucial in minimizing repairs. This synergy fosters sustainability and efficiency across industries, reflecting a dynamic and forward-looking approach to maintaining equipment and reducing environmental impact.