South America Rail Greases Market Dynamics and Trends by 2027

The rail greases market in SAM is expected to reach US$ 31.52 million by 2027 from US$ 27.53 million in 2018 and is expected to grow at a CAGR of 1.6% from 2019 to 2027.

Grease is a solid or semi-solid lubricating oil. It is usually comprised of mineral oil and thickeners such as calcium-based soap and lithium-based soaps. Grease possesses characteristic feature such as high initial viscosity, which make it frictional. Grease is being used for maintenance of various rail elements such as railway axles & wheels, bearings & chains, brake elements, interior components, pantographs and railway track components, as it prevents entry of contaminants or loss of lubricant. Soft grease used in gearboxes, for noise reduction, as leakage resistant, and for suspension of solid additives. Greased components consumes a small amount of power and is an even less vulnerable impact to any wear tear damage. Besides, it is popularly used across various industries such as automobile, railway, construction, pharmaceutical, food & beverage, mining and numerous others. For rails, greases can be used in mechanisms where lubrication is required frequently and where a lubricating oil does not stay for long. The demand of greases in railway industry is growing due to the development of new railway infrastructure across major countries such as Brazil, Argentina and Rest of SAM coupled with the maintenance activities of different parts used in railway transportation.

Brazil, Argentina and Rest of SAM are major economies in SAM. Brazil has dominated the SAM  rail greases market with highest market share and is estimated to be the fastest growing country during the forecast period. The growth of the rail greases market in this country is primarily due to booming economy, rapid urbanization and growing investment by the government of emerging countries in the development of railway infrastructure. The country is experimenting with state-of-the-art transport technologies to make urban rail systems more efficient, reliable and passenger friendly. The Brazil metro systems are progressively moving from semi-automatic to driverless/unmanned train operations. Most of the upcoming systems are introducing the deployment of cutting-edge technological solutions for the comfort and safety of commuters. Hence, the rail greases market is expected to experience rapid growth in the country. Furthermore, numerous government initiatives for digitization in the country’s conventional railway networks will also drive the rail greases market during the forecast period.

Based on distribution channel, the South America rail greases market is bifurcated into online and offline. The offline segment dominated the SAM rail greases market whereas the online segment is expected to grow at fastest growth rate during the forecast period of 2019-2027. Companies operating in the rail grease market have optimized their distribution strategy over the past few years. To target and reach a large number of customers in the market, the companies are adopting online distributing channels along with their traditional offline distribution channels in response to the emerging influence of digitalization on the business environment. Online distribution channels help companies to easily reach the target consumers without adding additional costs and expenses. With the new features and technologies, vendors can attract new customers and expand their footprints in emerging markets. This factor is likely to drive the rail greases market. The SAM rail greases market is expected to grow at a good CAGR during the forecast period.

Moreover,COVID-19 has affected economies and industries in various countries due to lockdowns, travel bans, and business shutdowns. The chemical and material industry are one of the major industries suffering serious disruptions such as supply chain breaks, disruptions in manufacturing due to lockdown and office shutdowns as a result of this outbreak. All these factors have greatly affected the rail grease market. Brazil has the highest number of COVID-19 cases, followed by Ecuador, Chile, Peru, and Argentina, among others. The government of SAM has taken an array of actions to protect their citizens and contain COVID-19’s spread. It is anticipated that SAM will face lower export revenues, both from the drop in commodity prices and reduction in export volumes, especially to China, Europe, and the United States, which are important trade partners. Containment measures in several countries of SAM will reduce economic activity in the manufacturing sectors for at least the next quarter, with a rebound once the epidemic is contained.

SAM Rail Greases Market Revenue and Forecast to 2027 (US$ Million)

SAM Rail Greases Market Segmentation

SAM Rail Greases Market – ByProduct Type

• Lithium Grease
• Calcium Grease
• Other Grease

SAM Rail Greases Market – By Application

• Railway Vehicle Elements
• Railway Track Elements
• Switches and Fish Plates
• Curve Rails
• Screw and Bolts

SAM Rail Greases Market – By Distribution Channel

• Offline
• Online

SAM Rail Greases Market – By Country

• Brazil
• Argentina
• Rest of SAM

SAM Rail Greases Market - Companies Mentioned

• Royal Dutch Shell Plc
• Exxon Mobil Corporation
• Total SA
• Petroliam Nasional Berhad (Petronas)
• FUCHS
• SKF Group
• Chevron Corporation
• Klüber Lubrication
• Sinopec Corp.

South America Rail Greases Report Scope