Lubrication Equipment Market Trends

Growth Drivers

• Rise in Automation in the Construction Industry- The mechanical components of construction equipment are subjected to constant motion and load as automation rises, necessitating a high level of lubrication to ensure optimal performance and prevent equipment failures. Many heavy-duty pieces of equipment used in the construction sector need to be lubricated on a regular basis. The need for process automation is also being driven by rising labour costs and safety regulations. As a result, the industry is being driven by the majority of businesses automating their processes. Instead of relying on many platforms, 94% of corporate company leaders would want to combine their apps and automate processes using a single platform.
• Leveraging the E-Commerce Industry to Increase Customer Reach- Manufacturers and sellers can offer their construction lubricants straight online through e-commerce, without the need for a store, dealer, or distributor. This platform assists construction lubricant manufacturers in reducing their value chain and increasing their profit margins. Several businesses that manufacture construction lubricants also began to take advantage of this ground-breaking virtual marketplace to expand their clientele through online advertising and digital marketing strategies. The advantages of online retailing are numerous. For example, entrepreneurs can easily access the market through online retail places like eBay and Amazon, which allow anyone to set up an online store and sell products in a short amount of time. Additionally, sellers can save money by not having to pay for labour and staff or the upkeep of a physical store. By 2026, it's anticipated that 24% of retail transactions will happen online.
• Adoption of Industry 4.0 technologies worldwide- The development of intelligent lubrication equipment with real-time monitoring and predictive maintenance capabilities is made possible by the integration of Industry 4.0 technologies, including data analytics and the Internet of Things (IoT). For instance, spending on the Internet of Things (IoT) in Europe surpassed USD 202 billion in 2021. Through 2025, it is anticipated to rise at a double-digit rate. According to recent projections, the global annual generation of data is expected to surpass 180 trillion gigabytes by 2025. The industries that are enabled by IIoT will produce most of this.

Challenges

• Negative Impact of COVID-19- Due to the COVID-19 epidemic and the ensuing lockdown in many nations, production of a number of products in the lubricating equipment industry has stopped. Sales of lubricating equipment were impacted by COVID-19-imposed lockdowns in 2020, although they are predicted to rebound in 2021. Prior to the corona virus's spread, countries like the United States, China, Germany, the United Kingdom, and India accounted for the majority of the market for lubricating equipment. As a result, this demand has since declined. Furthermore, it is now unclear how the lockdown may affect things, and a company's ability to recover financially depends only on its cash reserves. To cut costs, numerous market participants put a stop to their manufacturing for a few weeks.
• For small and medium-sized businesses, the upfront costs of setting up lubrication equipment, particularly automated systems, can be a major barrier.
• Personnel with the necessary skills are needed to operate and maintain lubrication equipment properly. The lack of qualified personnel may impede the expansion of the sector.