KGH RESEARCH & ADVISORY

NORTH AMERICAN AGRICULTURAL LUBRICANT MARKET SIZE & SHARE BY CATAGORY (SYNTHETIC OIL, MINERAL OIL, BIO-BASED LUBES), BY PRODUCT TYPE (ENGINE OIL, UNIVERSAL TRACTOR TRANSMISSION OIL, GREASES, COOLANT & OTHERS), BY SALES CHANNEL (OEM & OE SERVICE NETWORK, COOPERATIVE, DEALERS & DISTRIBUTORS, RETAILERS), BY PRODUCT RANGE (BASE, MID-RANGE, PREMIUM), BRANDING (LUBRICANT COMPANY OWNED BRAND, TRACTOR OEMs - CO-BRANDED) BY COUNTRIES (US, CANADA, MEXICO) – FORECAST TO 2032
Report Code: C&M3004-0202 Number of Pages: 400 Report Format: PDF, EXCEL, PPT
Trend Year: 2022 – 2024
Forecast Period: 2025 – 2032
Publish Date: JULY 2025

Market Overview: The North American agricultural lubricant market is estimated to reach approximately 0.85 Billion Liters in 2025 and is projected to grow at a compound annual growth rate (CAGR) of 3.3% from 2025 to 2032 to reach 1.1 Billion Liters by 2032. The market is being driven by high mechanization rate of farming especially in the US which has spurred the demand for high-performance lubricants to keep tractors, harvesters, and other machineries operational under extreme conditions; growing adoption of precision agriculture technologies, such as GPS-guided equipment and automated systems, further increases need for specialized lubricants; rising food demand and mounting environmental regulations encourage the development and use of eco-friendly, biodegradable, and bio-based lubricants.

MARKET DYNAMIC
GROWTH DRIVERS:
  • Growing demand for agriculture produce to cater the demand for increasing world population
  • High mechanization rate (>95%), with over five Million operational tractor parc size in the US as of 2024 and a vast majority of these tractors are 100 HP+ with large sump size
  • Organized & commercial farming driving timely lubricant replacement, thus lubricant demand
  • Driver 4
  • Driver 5
NEW GROWTH OPPORTUNITIES:
  • Rising demand for bio-based and eco-friendly lubricants
  • Demand for lubricants with extended service life and ability to keep the equipment operational under extreme weather condition
  • Autonomous tractors
  • Opportunity 4
  • Opportunity 5
MARKET RESTRAINTS:
  • Volatility in crude oil prices
  • Environmental risks & disposal issues with conventional lubricants
GROWTH HURDLES:
  • Compliance with varied regional and state regulations
  • High R&D costs involved in developing eco-friendly and bio-based lubricants
Product Category: Market Insights

By product category, the agricultural lubricant market is mainly categorized into the mineral oil-based lubricants, synthetic oil-based lubricants, and bio-based lubricants. The mineral oil-based lubricant segment holds the largest share of the global agricultural lubricant market, while the synthetic lubricants hold the second largest market share and expected to grow at a higher rate and likely to overtake mineral oil-based lubricant before the end of the decade. Bio-based lubricants likely to register highest growth, driven mainly by sustainability trends.

Product Type: Market Insights

The global agricultural lubricant market is segmented into four main product types: engine oil, universal tractor transmission oil (UTTO), greases, and coolants & others. Engine oil holds almost 50% share of the market as it is essential for reducing wear and tear in tractor engines. UTTO is specifically designed for tractors and similar equipment, offering lubrication for transmissions, hydraulic systems, and wet brakes, ensuring optimal performance and durability. Greases are used in various moving parts of farm equipment to provide long-lasting protection under harsh operating conditions. The coolants & others category include products that help regulate engine temperature and protect against corrosion, contributing to the overall efficiency and longevity of agricultural equipment.

Equipment: Market Insights

By equipment, the agricultural lubricant market is segmented into tractors and combines & implements. Tractors represent the largest share due to their widespread use in a variety of farming operations, requiring regular maintenance and lubrication to ensure efficient performance and long service life. Combines and implements, which include harvesters, plows, seeders, and other attachments, also significantly contribute to lubricant demand, as they operate under tough conditions and require specialized lubrication to reduce wear, prevent breakdowns, and enhance productivity in the field.

Product Range: Market Insights

By product range, the agricultural lubricant market is segmented into base, mid-range, and premium. Base-grade lubricants are cost-effective and cater to standard lubrication needs for older or less demanding machinery. Mid-range lubricants offer a balance between performance and affordability, providing better protection and efficiency for commonly used agricultural equipment. Premium lubricants are high-performance products designed for modern, high-load machinery, offering superior protection, longer service intervals, and enhanced operational efficiency under extreme conditions, making them ideal for intensive agricultural operations.

Product Range: Market Insights

By product range, the agricultural lubricant market is segmented into base, mid-range, and premium. Base-grade lubricants are cost-effective and cater to standard lubrication needs for older or less demanding machinery. Mid-range lubricants offer a balance between performance and affordability, providing better protection and efficiency for commonly used agricultural equipment. Premium lubricants are high-performance products designed for modern, high-load machinery, offering superior protection, longer service intervals, and enhanced operational efficiency under extreme conditions, making them ideal for intensive agricultural operations.

Sales Channel: Market Insights

By sales channel. Aftermarket segment accounted for approximately 4/5th share of the North America agricultural lubricant market, followed by OEM (1st Fill) & OE Service Network with 1/5th share. Within the aftermarket sales channel in North America, Agriculture Cooperatives accounted for the largest share, followed by retailers / distributors. The Right to Repair Act, gaining momentum across multiple U.S. states, has profound implications for the agricultural machinery ecosystem. This legislation mandates that original equipment manufacturers (OEMs) must provide farmers and independent repair shops access to essential diagnostic tools, software, and technical documentation. Historically, OEMs have restricted access to these resources, forcing farmers to rely exclusively on authorized service centers for even minor repairs, leading to downtime and higher costs.

Impact on Lubricants Market

The Right to Repair movement is democratizing maintenance. Farmers and local mechanics are now more empowered to service equipment themselves, leading to a rise in demand for high-quality, user-friendly lubricants and greases that can be easily procured and applied outside of OEM service channels. This shift opens new retail and aftermarket distribution opportunities for lubricant suppliers. It’s also pushing brands to enhance labelling, compatibility information, and packaging to cater to a broader, non-specialist user base.

Branding: Market Insights

By branding, the North American agricultural lubricant market is segmented into lubricant company-owned brands and tractor OEMs (Original Equipment Manufacturers)-Co-Branded Lubricants. Lubricant company-owned brands are produced and marketed by specialized lubricant manufacturers and are widely available across various distribution channels, often recognized for their technical expertise and broad product portfolios and accounted for the largest share of the market with over 90% share of the market. Tractor OEMs Co-Branded Lubricants are often marketed through OE Service & Dealership Networks as a tailored lubricants specifically designed for their machinery, ensuring compatibility and optimal performance. These Tractors OEM co-branded lubricants are typically recommended in maintenance manuals and are preferred by users looking to maintain warranty compliance and equipment reliability.

Regional: Market Insights

The North American agricultural lubricant market is seeing a strong push toward synthetic and high performance lubricants, extended drain interval lubricants and bio-based formulations, driven by a need to cut operational costs and meet tightening environmental standards. Farmers are embracing lubricants that not only reduce maintenance frequency but also contribute to cleaner operations and regulatory compliance. With the rise of “Right to Repair” laws, many U.S. and Canadian farmers are now taking more control over equipment upkeep, further fuelling demand for accessible, high-performance oils from both major brands and independent suppliers. In this evolving landscape, agricultural lubricants are no longer viewed as just consumables—they’re becoming critical tools for enhancing uptime, sustainability, and profitability on the farm. The US market accounted for the largest share of the market, followed by Canada, and Mexico

Competition: North American Agricultural lubricant

The North American Agricultural Lubricant market is highly competitive, with key players focusing on innovation, product efficiency, and strategic partnerships to strengthen their market position. Major companies include Shell, Phillips 66, Kendell Motor Oil, CENEX, GROWMARK, Exxon Mobil Corporation, BP plc, TotalEnergies SE, and Chevron Corporation. These players are investing in R&D to develop lubricants tailored for agriculture applications, driving ongoing competition and technological advancement in the market.

Exxon Mobil Corporation is one of the world’s leading producers and suppliers of agricultural lubricant, offering a comprehensive range of high-performance products designed to meet the demanding needs of modern farming equipment. Headquartered in Irving, Texas, ExxonMobil operates globally with a strong presence across key agricultural regions, including North America, Europe, Asia Pacific, and Latin America. The company’s agricultural lubricant portfolio includes engine oils, transmission fluids, greases, and hydraulic oils marketed under well-established brands such as Mobil Delvac™ and Mobilfluid™.

ExxonMobil’s products are engineered to enhance equipment performance, reduce maintenance costs, and extend machinery life by offering superior protection under extreme operating conditions often encountered in farming environments. With a strong emphasis on research and development, the company continually innovates its lubricant technologies to meet evolving regulatory standards and customer needs, including the growing demand for fuel efficiency and environmental sustainability. Through its extensive distribution network and collaborations with OEMs (Original Equipment Manufacturers), ExxonMobil ensures that its agricultural lubricant are readily available and compatible with a wide range of machinery. The company also provides value-added services such as oil analysis programs and technical support to help farmers optimize equipment reliability and productivity. With decades of industry expertise and a commitment to quality and innovation, ExxonMobil remains a trusted partner for agricultural professionals worldwide.

BP plc, headquartered in London, United Kingdom, is a prominent global energy company and a key player in the agricultural lubricant market. Through its well-known lubricant brand Castrol, BP offers a wide range of high-performance lubricants tailored specifically for agricultural machinery. These include engine oils, hydraulic fluids, transmission oils, and greases designed to ensure reliable performance and protection for tractors, harvesters, and other farm equipment operating under challenging conditions. Castrol’s agricultural lubricant are formulated to improve equipment efficiency, extend service life, and minimize downtime by providing excellent wear protection, corrosion resistance, and thermal stability. Products such as Castrol Agri MP Plus and Castrol Transmax Agri Trans are widely used by farmers and are engineered to meet or exceed the specifications of major agricultural OEMs. BP’s strong global distribution network, combined with its partnerships with machinery manufacturers and agricultural equipment dealers, ensures easy access to its lubricant solutions across major farming regions in Europe, Asia, and the Americas. The company also emphasizes sustainability by developing lubricants that support fuel economy and reduce environmental impact, aligning with global trends toward cleaner and more efficient farming practices. With a longstanding reputation for innovation, quality, and technical support, BP—through its Castrol brand—continues to play a vital role in advancing lubricant solutions that meet the evolving needs of the agricultural sector.

 

 

NORTH AMERICAN AGRICULTURAL LUBRICANT MARKET SNAPSHOT

Market size in 2025

 0.85 Billion Liters

Market forecast in 2032

1.1 Billion Liters

Compound Annual Growth Rate (2025-2032)

3.3%

Historical Data (Years)

2022-2024

Forecast Data (Years)

2025-2032

Major Drivers & Trends

Increasing mechanization rate, huge tractor parc size, organized & commercial farming, sustainability trend, extended drain interval, growing demand for agricultural produce, increasing demand for high HP tractors with large sump sizes.

Segments Covered

Category, Product Type, Product Grade, Branding, Sales Channel, Product Range, and Countries

Region Covered

North America

Countries Covered

US, Canada, Mexico

Companies Profiled

Shell, BP PLC, EXXON MOBIL, CENEX, GROWMARK, PHILLIPS 66, KENDELL OIL CORPORATION, EXXON MOBIL, CHEVRON CORPORATION, TOTAL ENERGIES, VALVOLINE, FUCHS, JOHN DEERE, CLAAS, AND MANY MORE



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