Market Definition
Automotive lubricants are fluids comprised of base oils and additives intended to reduce friction between surfaces and the contacts such as vehicles or roads. By reducing friction, these lubricants are meant to protect parts of the vehicle & enhance the overall efficiency and lifespan. Besides, lubricants also act as a noise-reducing cushion, coolant, and sealant between engine piston rings and cylinder walls.
Market Insights
The GCC Automotive Lubricants Market is projected to grow at a CAGR of around 3.0% during the forecast period, i.e., 2022-27. The market is swiftly driven by the increased production of vehicles leading to tremendous growth in the automotive industry over the years, demonstrating an up-thrust for better-performing lubricants.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-27) | 3.0 % |
| Region Covered | Saudi Arabia, The UAE, Oman, Qatar, Kuwait, Bahrain |
| Key Companies Profiled | ADNOC, Aramco, Chevron Lubricants, Gulf Oil International, FUCHS Lubricants Germany GMBH, Exxon Mobil, British Petroleum, Valvoline, Total Energies, Oscar Lubricants LLC, Kuwait Lube Oil Co., EPCCO Lubricants, Others |
| Unit Denominations | USD Million/Billion |
In addition, the current inclination of consumers & manufacturers toward environment-friendly products is also paving the way for chemical-free bio-based automotive lubricants, resulting in a vast influx of funds by prominent players in the market. Besides, the wide utility of these lubricants in oil & gas exploration is another aspect fostering the growth of the GCC Automotive Lubricant Market.
Another growth-inducing factor is the growing affinity for heavy-duty motor vehicle engine oils to endure adverse geographical conditions and emission standards in on & off-highway heavy vehicles, further catalyzing the market growth for GCC Automobile lubricants. Moreover, the concerted efforts made by the companies to advance their products and to expand their portfolios for automotive lubricants accompanying large-scale ventures and acquisitions shall further prompt the upward trajectory of the market. For instance,
Further, with initiatives such as Abu Dhabi Vision 2030 and Dubai Plan 2021, countries like UAE, being the second largest automotive market in the GCC hint toward a potential for the automotive lubricants industry to further expand in the coming years. The active participation of the governments in promoting the automotive industry further enthralled market growth. For instance,
Market Segmentation
Based on Type,
Among all, Engine Oil is anticipated to hold the largest share in the GCC Automotive Lubricants Market during the forecast period. This dominance attributes to the rising vehicle fleet, particularly for passenger cars, projecting an escalating demand for refills. Besides, owing to the wide applications of engines in commercial vehicles for smooth engine operation, corrosion protection, & wear reduction, among others, a timely need for lubrication is necessary.
It, in turn, is propelling the demand for engine oil and catering to the market growth. In line with this, high-mileage engine oil has already made it to the priority list of users because of its unmatched properties, such as minimal oil-burn off & prevention of any form of oil leakage, which is further bolstering the overall expansion of the GCC Automotive Lubricants Market through 2027.
Based on Base Oil,
The synthetic Lubricants segment is anticipated to dominate the GCC Automotive Lubricants Market with the largest share during the forecast period. This dominance attributes to the functional utility of these lubricants as durable driveline lubricants for transmissions like manual, semiautomatic, and automatic, among others. Besides, ample base stock supply, escalating demand from original equipment manufacturers (OEMs), & frequent adoption of high-performance & advanced engines are the other key factors influencing the demand for synthetic lubricants.
Although the sales of mineral oil-based lubricants have gained popularity throughout GCC due to their high affordability, the demand for synthetic lubricants is yet to grow rapidly on the back of their innumerable benefits like high level of thermal stability, high Viscosity Index (VI), low freezing point, high boiling point, & others, minimizing wear-&-tear. For instance,
Regional Projection
Geographically, the GCC Automotive Lubricants Market expands across:
Saudi Arabia is anticipated to retain the lion’s share of the market during the forecast period. This dominance is predominantly attributed to the rising number of active vehicles & high oil-changing frequencies resulting in the wide adoption of engine oil across Saudi Arabia. For instance,
Besides, with a significant dominance in auto parts across the GCC region, Saudi Arabia is further looking forward to becoming an auto hub. To achieve this commitment, the country is making significant investments in rail lines, and shipping ports, & even incentivizing the production and distribution of vehicles. Such initiatives in the industry are hinting toward a presence of growth opportunities for automotive lubricant makers to widen their product portfolio and cater to the burgeoning demands.
Recent Developments in the GCC Automotive Lubricants Market
Market Dynamics
Key Driver:
With ICE (Internal combustion engine) vehicles still leading the automotive industry in the GCC, manufacturers are heavily investing in bringing cutting-edge technology to minimize carbon footprints. The same aspect is, in turn, paving the way for the automakers to invest & bring better quality lubricants for the vehicles. There is a gradual inclination toward better–performing lubricants engineered specially to improve fuel economy, propelling the need for synthetic lubricants & additives is mounting rapidly. It is principally due to their reduced greenhouse gas emissions, thereby curating the fundamentals underlying the dynamics of the GCC Automotive Lubricants Market.
Possible Restraint:
As carbon emission has been a significant concern across different countries in the region, the advent of Electric & Hybrid vehicles has been gaining traction steadily. Yet, with the encouragement from the governments to make a paradigm shift from ICE vehicles to electric ones, the demand for lubricants might reduce and hamper the market growth trajectory in the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The GCC Automotive Lubricants Market is projected to grow at a CAGR of around 3.0% during the forecast period, i.e., 2022-27.
A. Increased production of vehicles leading to tremendous growth in the automotive industry, acts as a prominent factor driving the GCC Automotive Lubricants Market during 2022-27.
A. The leading players in the GCC Automotive Lubricants Market are ADNOC, Aramco, Chevron Lubricants, Gulf Oil International, FUCHS Lubricants Germany GMBH, Exxon Mobil, British Petroleum, Valvoline, Total Energies, Oscar Lubricants LLC, Kuwait Lube Oil Co., EPCCO Lubricants, Others.
A. Engine Oil is anticipated to emerge as an area of remunerative opportunities for the leading players in the GCC Automotive Lubricants Market during the forecast period.
A. ‘Saudi Arabia’ is anticipated to dominate the GCC Automotive Lubricants Market during 2022-27.
A. The commitment of Saudi Arabia to becoming an auto hub in the coming years creates a plethora of opportunities for market investors and manufacturers.
A. Growing adoption of electric or hybrid vehicles posing threat to the market as these types don’t require lubricants.
