Mining Lubricants and Greases Market in Australia, Forecast to 2025

Mining Lubricants and Greases Market in Australia, Forecast to 2025

Mining Sector Recovery Drives Growth, While Customised Service Drives Differentiation

RELEASE DATE
17-Oct-2019
REGION
Asia Pacific
Research Code: 9AB7-00-0B-00-00
SKU: CM01705-AP-MR_23581
$1,500.00
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Description

Enhanced mining production levels and a recovery in CAPEX for plant, machinery, and equipment drive the demand for mining lubricants and greases in the Australian market. Mining CAPEX peaked in 2012 and rapidly declined, and steady improvement as seen in the recent past is likely to continue. However, price sensitivity among customers will restrain market revenue growth. Generic types of lubricants account for almost 40% of the total mining lubricant volume. In this market, manufacturing know-how is widely understood and readily accessible. As a result, there is very little product differentiation. Therefore, price is still the first negotiation point in the sale process. This is aggravated by significant price pressure from large miners. In addition, an increased number of suppliers and consequently intensified competition restrain average prices.

Australia’s advanced mining market has attracted new lubricant suppliers. Existing suppliers who cater to other industrial sectors have begun to focus on mining, expecting to capitalise on the increasing demand. Finally, inadequate understanding and appreciation of lubrication benefits among customers continues to hamper market development. Very often, the link between effective lubrication management and operating cost savings is not visible to miners. Furthermore, staff training in terms of lubrication best practices is inadequate and infrequent.

Recycled lubricants and biodegradable lubricants, while still only a fraction of the total lubricants market, has the potential to reduce volume growth opportunity in the long term. The proportion of mobile plant application of lubricants will increase steadily. The market share of imported products will also increase slightly during the medium term.

The top 5 suppliers accounted for 80% of the total mining lubricants and greases market in 2018. Suppliers who have long market standing in overseas mining sectors possess a significant competitive advantage over others. A successful project track record has proven to be the best door-opening tool. Word-of-mouth from experienced operation staff has also helped develop new business. Consistent terms and conditions for supply across geographies is a significant advantage. Pricing is still a crucial factor. Technological specifications and quality are also major aspects. Proven and competitive return on investment (ROI) is an important indicator that customers value; substantial savings on equipment downtime is compelling for customers to switch suppliers. Channel to market is critical. Companies with sufficient resources (such as exclusive local distributors or sizable sales teams) that are able to establish direct contact with potential customers achieve greater market penetration. They are able to get first-hand information on what customers want and what the existing issues are. This provides them with the opportunity to develop targeted/customised solutions.

Key growth opportunities include increased demand for customised services and digital solutions for lubricant analysis.

Author: Ivan Fernandez

Table of Contents

Key Findings

Market Engineering Measurements

Market Engineering Measurements (continued)

Australian Mining Market at a Glance

Mining Investment Attractiveness Index 2018

Mining Market Outlook

Mining Commodity Prices and Exports

Mining Market Overview

Mining Market Trends

Mining CAPEX

Market Overview

Mining Lubricants Overview

Key Questions this Study will Answer

Percent Revenue by Product Base Materials

Distribution Channels

Distribution Channels (continued)

Drivers—Impact and Duration

Drivers Explained

Drivers Explained (continued)

Drivers Explained (continued)

Restraints—Impact and Duration

Restraints Explained

Restraints Explained (continued)

Restraints Explained (continued)

Restraints Explained (continued)

Market Engineering Measurements

Forecast Assumptions

Forecast Assumptions (continued)

Forecast Assumptions (continued)

Volume Forecast

Percent Revenue by Source of Supply

Percent Revenue by State

Percent Revenue Forecast by Type of Use

Percent Revenue by Type of Static Plant Oils

Major Trends

Major Trends (continued)

Major Trends (continued)

Market Share

Market Share Analysis

Competitive Structure

Competitive Factors

Competitive Factors (continued)

Growth Opportunity 1—Customised Services

Growth Opportunity 2—Digital Solutions for Lubricant Analysis

Strategic Imperatives for Success and Growth

The Last Word

Legal Disclaimer

Related Research

List of Exhibits

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
Enhanced mining production levels and a recovery in CAPEX for plant, machinery, and equipment drive the demand for mining lubricants and greases in the Australian market. Mining CAPEX peaked in 2012 and rapidly declined, and steady improvement as seen in the recent past is likely to continue. However, price sensitivity among customers will restrain market revenue growth. Generic types of lubricants account for almost 40% of the total mining lubricant volume. In this market, manufacturing know-how is widely understood and readily accessible. As a result, there is very little product differentiation. Therefore, price is still the first negotiation point in the sale process. This is aggravated by significant price pressure from large miners. In addition, an increased number of suppliers and consequently intensified competition restrain average prices. Australia’s advanced mining market has attracted new lubricant suppliers. Existing suppliers who cater to other industrial sectors have begun to focus on mining, expecting to capitalise on the increasing demand. Finally, inadequate understanding and appreciation of lubrication benefits among customers continues to hamper market development. Very often, the link between effective lubrication management and operating cost savings is not visible to miners. Furthermore, staff training in terms of lubrication best practices is inadequate and infrequent. Recycled lubricants and biodegradable lubricants, while still only a fraction of the total lubricants market, has the potential to reduce volume growth opportunity in the long term. The proportion of mobile plant application of lubricants will increase steadily. The market share of imported products will also increase slightly during the medium term. The top 5 suppliers accounted for 80% of the total mining lubricants and greases market in 2018. Suppliers who have long market standing in overseas mining sectors possess a significant competitive advantage over others. A successful project track record has proven to be the best door-opening tool. Word-of-mouth from experienced operation staff has also helped develop new business. Consistent terms and conditions for supply across geographies is a significant advantage. Pricing is still a crucial factor. Technological specifications and quality are also major aspects. Proven and competitive return on investment (ROI) is an important indicator that customers value; substantial savings on equipment downtime is compelling for customers to switch suppliers. Channel to market is critical. Companies with sufficient resources (such as exclusive local distributors or sizable sales teams) that are able to establish direct contact with potential customers achieve greater market penetration. They are able to get first-hand information on what customers want and what the existing issues are. This provides them with the opportunity to develop targeted/customised solutions. Key growth opportunities include increased demand for customised services and digital solutions for lubricant analysis. Author: Ivan Fernandez
More Information
No Index No
Podcast No
Author Ivan Fernandez
Industries Chemicals and Materials
WIP Number 9AB7-00-0B-00-00
Is Prebook No
GPS Codes 9800-A6,9100-A2,9869-A2,9985-A2,9801-A6,9A74-A2,9595