- Offering customised solutions and technical support will be crucial for lubricant suppliers to land projects
SYDNEY, June 30, 2014 /PRNewswire/ -- The mining lubricant market in Australia is anticipated to grow steadily over the next few years despite a slowdown in the country's mining investment. Lubricants with higher specifications that improve productivity and efficiency will remain in demand as the mining industry shifts focus to enhanced production.
New analysis from Frost & Sullivan, Analysis of the Mining Lubricant Market in Australia, finds that the market earned revenues of $446.3 million in 2013 and estimates this to reach $650.5 million in 2019. While biodegradable products are gaining customer attention, mineral oil-based products are expected to continue dominating the market in the short to medium term.
"The Australian mining sector leads the world in the deployment of advanced mining technologies," said Frost & Sullivan Chemicals, Materials and Food Senior Consultant Sarah Wang. "As various mining equipment incorporate high level of automation and productivity metrics, the demand for quality lubricants will remain high."
Price remains the first point of discussion, and pricing pressures affect revenues in a market where product differentiation is minimal. Generic types of lubricants still comprise 40 percent of the lubricants consumed in the mining sector, curbing market development. Moreover, the dominance of the market by the five largest suppliers makes market entry extremely challenging.
Manufacturers that offer products which can significantly improve the productivity of equipment will earn entry into the Australian mining sector. The consultative sales approach, combined with demonstrated substantial return on investment will further provide suppliers a key competitive edge during slow growth periods.
"Offering customised solutions and demonstration of efficiency has proven effective in winning new contracts," noted Wang. "Being a highly specialised product group that is directly linked to operational performance and cost, technical support is highly valued by customers."
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Analysis of the Mining Lubricant Market in Australia is part of the Chemicals & Materials (http://www.chemicals.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Strategic Analysis of the Global Lubricant Additives Market, and Strategic Analysis of the Global Lubricant Market and the Impact of Bio-based Feedstock. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
Analysis of the Mining Lubricant Market in Australia
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SOURCE Frost & Sullivan