New engineering and the emergence of new original equipment manufacturers means that different lubricant, grease and fuel products are required. These changes will likely have big impacts on the portfolios of lubricant suppliers in this market.

Workhorses of Industry

The food we eat, the buildings we live in and the rapid expansion of infrastructure in emerging countries are all made possible by off-road machinery. These workhorses of productivity are enormously diverse, each designed to perform a special task. Millions of off-road vehicles are used every day in all kinds of industries such as agriculture, construction and mining.

The duty cycles of these machines can vary dramatically by application. A tractor ploughing a field requires continual tractive force, with constant engine speed and is heavily loaded at all times. Contrast this with an excavator that spends long periods idling, interspersed with bursts of heavy activity, body swinging and braking. Or a skid-steer loader that experiences continual changes of direction and load.

Off-road equipment incorporates a wide range of systems that require lubrication, often from a common sump. Transmissions, axles, wet brakes, hydraulics, even the engine can be served with one fluid that attempts to balance the competing requirements of each system.

The construction market was hit badly by the global recession, and equipment manufacturers felt its full force. Agricultural equipment manufacturers fared better because the economic drivers of that industry are somewhat different, but even they saw a dip. Since then, the industry as a whole has bounced back well.

Caterpillar steered through the storm of recession admirably, strengthening its leading position. John Deere, Komatsu, Case New Holland, Hitachi, Volvo CE and AGCO (made up of Massey Ferguson, Valtra, Fendt and Challenger) are the other big names. Beyond that, emerging Chinese OEMs, such as XCMG and Sany are challenging established names such as JCB and Liebherr. Mahindra has only a small slice of the pie by value, but has a dominant position in the enormous Indian tractor market. In fact, if the chart showed on page 28 sales by units, Mahindra would challenge John Deere.

OEMs from China and India reflect the changing nature of the global off-road equipment business. China has become the largest national market for construction equipment, accounting for around the same amount of sales as the rest of the world combined in 2010.

The massive pace of infrastructure construction in China – where whole cities are being created from scratch – has fed this boom. Chinese OEMs have benefitted the most, with Western and Japanese OEMs doing their best to take part of the market, either directly or through joint ventures. From this base, Chinese OEMs are now ramping up their export business.

India is the dominant location for agricultural machines, accounting for about one-third of the worlds tractor sales. Here too, local OEMs benefit most, with Mahindra poised to become a global force in agriculture with its relatively small units – 50-horsepower being typical. These machines offer an excellent fit for small landholders typical in India and China and for hobby-farmers in the United States and beyond.

Russia too holds huge potential. Its fleet is relatively old, and upgrading to modern, large machinery is overdue. Western OEMs are fighting to be first in line when economic conditions allow this to happen – something expected in the very near future.

Big Machines, Small Packages

The worth of any machine is its output. Owners and users now demand greater productivity and operator comfort, driving an increase in horsepower. For example, the average horsepower for new tractor sales in the United Kingdom has risen 20 percent over the past 10 years. At the same time, smaller operating space and the desire for greater versatility have made compact equipment highly popular. This trend makes power density an important consideration and poses different challenges to the lubricant than increasing power and torque. Oxidation control and thermal stability are challenged by high power density, whereas extreme pressure protection and antiwear performance are needed with greater horsepower.

All this is happening as off-road emissions regulations approach those for on-road in Europe, the U.S. and India. The rate at which allowable nitrous oxide and particulate matter emissions have dropped is an enormous challenge for manufacturers.

Engine technology to meet U.S. Tier IV and Euro stage 4 regulations has largely been pioneered by on-road commercial vehicles. Most OEMs concede that exhaust gas recirculation (EGR) and/or selective catalytic reduction (SCR) will be needed to reach Tier IV. In the interim, construction OEMs largely favor EGR while agricultural OEMs typically prefer SCR. In-cylinder solutions (high pressure common-rail fuel systems with multiple injection events), closed crankcase ventilation, additional turbocharging and diesel oxidation catalysts (DOC) or diesel particulate filters are the major changes anticipated to comply with emissions requirements.

The drivetrain can offer valuable improvement to the efficiency of off-road machinery, and significant innovation is emerging in the area. There is room for improvements that would amount to design evolution, such as introduction of new friction materials, optimized shifting, more precise control of the drivetrain. Beyond this, tried and tested technologies, such as manual transmissions, hydrostatic drives, powershift transmissions (based on planetary gear systems) and automated manuals are being challenged by a range of new technologies. (See New Driveline Technology table above.)

Unlike some battlegrounds of competing technology, in this case there can be multiple winners. Because of the variety of applications and duty cycles, each technology will likely find its niche, and many will be successfully adopted. These innovations offer some eye-popping figures – 30 percent fuel economy savings and 20 percent productivity gains.

The impact on driveline lubricants from these new technologies varies. Off-road driveline lubricants have no governing body. Lubricant standards follow OEM requirements, and new engineering will drive new specs. Unfortunately, they are being developed in isolation and, therefore, requirements may begin to diverge. In the same way that Caterpillar TO-4 fluids are a distinct category from universal tractor transmission oils, new subsets of universal fluids may be required, also incorporating the preferences of influential Chinese and Indian OEMs.

Off-road diesel engine oils seemingly face the same challenges that on-road applications faced after 2007, namely, sulfur and phosphorous limitation to avoid catalyst deactivation, and lower total base number to reduce ash build-up in filter systems. Indeed, according to the Engine manufacturers Association, API Service category CJ-4 describes oils for use in… diesel engines designed to meet 2010 model year on-highway and Tier 4 non-road exhaust emission standards as well as for previous model year diesel engines.

But it warns, the use of these oils with greater than 15 [parts per million] sulfur fuel may impact exhaust aftertreatment system durability and/or drain interval. This is regardless of whether EGR or SCR systems are used. As a result, CH-4, CI-4+ and CJ-4 oils provide good coverage for primary or secondary recommendations for the off-road fleet, primarily as 15W-40, 10W-40 or 10W-30s. Many OEMs recommend their own branded oil, adding further requirements to those of API or ACEA.

Tighter carbon dioxide limits and increased energy efficiency needs will hasten the move to lower viscosity and lower friction engine oils. Any resultant new category will need to answer difficult questions such as backward compatibility, maintaining wear protection with lower viscosity, oxidation control with higher combustion temperatures and biodiesel compatibility.

Hydraulics will remain a highly important part of most off-road machines. While the technology here is moving more slowly than in drivetrains, new specifications are emerging for hydraulic fluids, too. Asian specifications, such as Japanese Construction Mechanization Association or specs, are increasingly important, and OEM Bosch Rexroth is firming up its future needs. The demand for low-zinc, ashless and biodegradable oils will likely increase. Advanced fuels may become increasingly demanded as new technology, combined with increased biodiesel content raises issues of oxidation, injector cleanliness and storage stability problems.

Working in the real world

So is the world bright for a new generation of machines with engineering changes across the board and new lubricants to support them? Well, not quite. Although most engineering changes are coming from Germany, Japan and the U.S., emerging regions will have a far more profound effect on the direction of lubricant formulation, both in their own countries and abroad as they start to export more significantly. Currently, Chinese construction equipment OEMs typically recommend fairly basic lubricants, but as their technology matures lubricants will evolve to fit their needs.

In addition, emissions regulations vary worldwide. While Europe, U.S., Japan and India have stringent targets, other regions (Brazil, China) have less demanding limits, and some parts of the world are unregulated. Similarly, diesel fuel sulfur levels vary significantly around the world. High-sulfur fuel can cause problems for aftertreatment systems, such as particulate filters and DOCs. AdBlue required for SCR does not have worldwide availability, and engines are programmed to derate if SCR levels are not maintained.

Therefore, in regions with high-sulfur fuel or less stringent emissions regulations, many engineering changes being made are simply not appropriate. Expensive components may be considered unnecessary or undesirable; for example, EGR reduces emissions, but can also reduce fuel economy. Consequently, off-road machinery and associated lubricants may become regionalized based on emissions regulations.

Finally, not all equipment is new and people use it for all kinds of application. Its often abused and overloaded and asked to do things it was simply not designed for. As a result, essential off-road lubricant properties such as parts protection, cost (which includes drain intervals), fleet coverage and smooth wet-brake engagement, will still be valued.

Lubes and fuels for off-road equipment face a period of unprecedented change driven by:

globalization of OEMs and suppliers;

energy efficiency;

emissions mandates;

comfort and productivity demands.

Numerous engineering solutions are emerging. The diversity of applications and duty cycles will see many competing technologies succeed and coexist. However different emissions standards, operating conditions and logistical infrastructures will mean not all technologies are relevant or suitable in all regions.

Lubricants are important in enabling these engineering changes. As OEMs develop new technology and specifications in isolation, proliferation of lubricant types is anticipated. Furthermore, different requirements may lead to regional segregation based on the severity of emissions regulations. Lubricant companies that best adapt to these changing times, aided by additive company and OEM partners, will surely be the most successful.