Saudi Arabia Lubricant Market
Saudi Arabia Lubricant Market
The market is projected to grow at a slow rate of about 1%during the forecast period of 2017-2023. Lubricants are vital for the proper functioning of machines. They are used to reduce wear and friction between surfaces that are in close proximity and move with respect to each other. Lubricants usually come in liquid, semi-fluid, or solid state. Superior-quality lubricants possess various characteristics, such as, high viscosity index, high level of thermal stability, low freezing point, and high boiling point. These features help reduce friction between surfaces of machine parts and rate of wear, while increasing operational efficiency. They act as cooling fluids and remove any residual deposition over mechanical parts, thereby increasing operating lifespan.
One of the major factors driving the Saudi Arabian lubricant market is the industrial growth in the country. With greater government focus and investment in various industries, the demand for lubricant in the region is expected to grow significantly. Additionally, the growing demand for high-performance lubricants (owing to their better and improved properties, such as, reduced flammability, reduced gear wear, and increased service life) is also driving the demand for lubricants in the country.
Based on base stock, the lubricant market has been divided into mineral oil, synthetic, semi-synthetic, and bio-based lubricants. On the basis of product type, the market has been further segmented into engine oil, transmission & hydraulic fluid, metalworking fluid, general industrial oil, gear oil, grease, process oil, and others. Engine oil is the most widely used lubricant, accounting for more than half of the market share. Based on end-user industry, the market has been segmented into power generation, automotive & other transportation, heavy equipment, food & beverage, metallurgy & metalworking, chemical manufacturing, and others.
AREAS WITH SCOPE FOR THE LUBRICANT MARKET
With the decline in the economy, due to the fall in crude oil prices, the automotive industry in the country have taken a hit, with a double-digit slump in automotive sales. This trend has drastically affected lubricant consumption in the country. However, with the industrial growth taking place in the country, the lubricant market is anticipated to witness numerous opportunities in the near future. In addition, the automotive industry in the country is expected to recover and register positive growth, in turn resulting in the recovery of the lubricant market in the country.
Source: Mordor Intelligence Analysis
NOTABLE DEVELOPMENTS IN THE MARKET
In April 2017, Aljomaih and Shell Lubricating Oil Company Limited (JOSLOC) announced a strategic partnership with Bakhashab Brothers Holding Company, dealer of Isuzu trucks in the western and eastern regions and the largest distributor of Isuzu trucks in Saudi Arabia.
In February 2017, the Saudi oil & gas giant, Saudi Aramco, launched its base oil marketing business.
In October 2016, Eni entered the Saudi market through a strategic partnership with Saudi-based Advanced International Lubricants Company (Adinlube), for the blending, distribution, sales, and marketing of Eni lubricants in Saudi Arabia.