Saudi Arabia Lubricants Market - Segmented by Base Stock, Product Type, End-user Industry - Growth, Trends, and Forecast (2018 - 2023)
The Saudi Arabia lubricant market is expected to register a CAGR of 1.10%, during the forecast period, 2018 - 2023. The major factor driving the growth of the market is the industrial growth in Saudi Arabia. With the improving government focus and investments in various industries, the demand for lubricants in the region is expected to grow significantly.
Lubricants are majorly used in the industrial sector for the proper functioning of machines. They are also used in automobile for smooth functioning and longevity of engines and other components. Lubricants are available in liquid, semi-fluid, or solid state, and possess various characteristics, such as high viscosity index, high level of thermal stability, low freezing point, and high boiling point, all of which help to reduce friction between surfaces of machine parts and the rate of wear, without compromising operational efficiency.
Industrial Growth a Key Driver for Lubricants
According to the Jeddah chamber of commerce and industry, the industrial sector witnessed a CAGR of over 12% (2011 to 2016). An investment of about USD 4 trillion is expected in the non-oil sectors by 2030 in the country. The building & construction sector is the strongest growing sector, with an estimated increase from USD 200 million in 2015 to USD 0.3 trillion in 2016 (Jeddah chamber of commerce and industry). Many private, and public-private joint ventures, such as Al Jubail Petroleum Company, High Institute for elastomer studies, and The Sadara Chemical Company are being established in the Jubail and Yanbu industrial cities, which are further driving the industrial growth in the country. Such industrial growth activities in the country are driving the growth of engine oils, transmission fluids, and greases to a significant extent.
High-Performance Lubricants a Potential Segment
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 driving the market. Many major automotive OEMs are recommending the usage of these lubricants for better engine efficiencies and the presence of large number of luxury vehicles in the country is rising the demand for high performance lubricants. Along with this, PAO (polyalphaolefins) synthetic lubricants are finding increasing applications in the construction and food & beverage industries.
Key Developments in the Market
- 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
Major Players -Petromin Corporation, Aljomaih and Shell Lubricating Oil Company Limited, Mobil, Castrol, and Alhamrani-Fuchs Petroleum Saudi Arabia.
Reasons to Purchase the Report
- Current and future scenario of the saudi arabia lubricants market
- Analyzing various perspectives of the market with the help of Porter’s five forces analysis
- The end-user segment that is expected to dominate the market
- Product types that are expected to witness fastest growth during the forecast period
- Identifying the latest developments, market shares, and strategies employed by the major market players
- 3 months analyst support, along with the Market Estimate sheet (in Excel)
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