Press release
The Rail Lubricants Market to reach US$ 1.7 Bn by the end of 2029
Use of rail lubricants is essential to ensure efficient movement of a metro train on the track, as these play a key role in effective braking and steering. Metro train networks are growing at a healthy rate in various countries such as Dubai, India, and Kuwait, which creates steady demand for rail lubricants.Furthermore, world-wide railway ministries are also investing significantly for the development of high speed train networks. For instance, China and Japan are disbursing millions of dollars for the development of high speed railway networks, which, in turn, is projected to offer new business opportunities for stakeholders in the global rail lubricants market in the foreseeable future. According to Persistence Market Research, the global rail lubricants market is anticipated to reach US$ 1.7 Bn by the end of 2029. This report covers oil-based railway lubricants, which are a combination of base oil and additives.
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Key Takeaways of Rail Lubricants Market Report
Bio-based railway lubricants are expected to decide the future of the rail lubricants market over the forecast period. However, bio-based rail lubricants are costly as compared to synthetic lubricants. The bio-based rail lubricants segment is expected to generate US$ 200 Mn by 2029.
In the application segment, the locomotive engine lubrication segment accounts for a larger share, attributable to the use of locomotive heavy traction motors for proper operation of the entire railways. Engine oil is also considered in this research, and phasing out of diesel-operated locomotive engines leads to very limited market opportunity.
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In the railway track elements segment, the curve rails segment offers healthy business opportunities in the global market, on account of the expanding railway line network across the world.
The growing e-Commerce sector across the world is anticipated to create new business verticals for the railway lubricants market in the foreseeable future. Thus, leading players in the railways lubricants market are using this platform to improve their brand awareness as well as revenue generation.
North America is projected to hold significant share in the global rail lubricants market. Furthermore, strict government regulations for proper maintenance and servicing of railway lines in a defined time period also contributes to the demand for rail lubricants, and this trend is expected to continue in the years to come.
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Current Market Structure and Market Strategies Adopted over Last Five Years
The rail lubricants market is moderately fragmented, given the presence of a number of international and regional players. Players such as Royal Dutch Shell PLC, Exxon Mobil Corporation, BP, China Petroleum & Chemical Corporation, and Total S.A., are dependent on their well-established sales and distribution networks in order to remain prominent players in the rail lubricants market. Other key players in the rail lubricants market, such as Momar, Inc., are focusing on the development of their businesses for biodegradable rail lubricants. New product launches and expansion have been identified by PMR as global market strategies for small-scale players to strengthen their businesses in the foreseeable future.
Slow Development of Global Railway Lines to Restrain Market Growth
The global rail lubricants market is anticipated to witness sluggish growth in the years ahead, attributable to the relatively slower rate of growth of railway line networks, worldwide. However, constant, yet fixed consumption of rail lubricants annually stimulates the confidence of investors. Therefore, leading players are firmly focused only on their current strategies to gain a larger share in this fragmented market.
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