GCC Automotive Lubricants

GCC Automotive Lubricants Market Research Report: Forecast (2022-2027)

By Type (Engine Oil, Gear Oil, Transmission Fluids, Brake Fluids, Greases, Coolants & Antifreezes, Others (Additives, Oil Bender, etc.)), By Base Oil (Mineral Oil Lubricants, Synthetic Lubricants, Sem Read more

  • Automotive
  • Sep 2022
  • 167
  • AT22022

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
Country 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,

  • In 2020, Karwa Motors established its new manufacturing unit dedicated to producing buses in Oman, paving the way for augmented demand for automotive lubricants.

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, 

  • Qatar, being the host country for FIFA World cup 2022, rigorously invests in the construction and renovation of infrastructural facilities, including expressways, stadiums, and local road projects that are expected to boost the production of commercial vehicles and, ultimately, GCC Automobile lubricant industry.

Market Segmentation

Based on Type,

  • Engine Oil
  • Gear Oil
  • Transmission Fluids
  • Brake Fluids
  • Greases
  • Coolants & Antifreezes
  • Others (Additives, Oil Bender, etc.)

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,

  • Mineral Oil Lubricants
  • Synthetic Lubricants
  • Semi-Synthetic Lubricants

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,

  • Gulf Oil Middle East is all set to reshuffle its global product portfolio for the better. The portfolio includes Gulf MAX Ultra, Gulf Ultrasynth, and Gulf Multi designed to meet specific engine requirements.
  • Gulf Ultrasynth is a fully synthetic engine oil exhibiting Wear-Guard Technology meant to protect critical engine parts by blanketing them with oil molecules to reduce friction. Next, Gulf MAX Ultra is a semi-synthetic oil inbuilt with Engine Clean Technology composed of antioxidants that help waver oxidation for advanced engine durability. Again, Gulf Multi is a mineral oil ideal for downsizing maintenance costs.

Regional Projection

Geographically, the GCC Automotive Lubricants Market expands across:

  • Saudi Arabia
  • The UAE
  • Oman
  • Qatar
  • Kuwait
  • Bahrain

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,

  • In 2021, Aramco entered Saudi Arabia’s domestic lubricant market with its new line of lubricant products under the ORIZON brand. These lubricants are a global formulation of engine oil, meeting the latest oil industry, vehicle manufacturer standards, and rigorous OEM standards from, Volvo, Porsche, Mercedes-Benz, Volkswagen, and others.

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

  • Recently, ExxonMobil announced the Mobil Super range of lubricants claiming it to be of cutting-edge technology that meets the current BS-VI specifications along with fuel economy benefits. This next-generation synthetic passenger vehicle lubricant delivers improved engine wear protection.
  • In 2022, a new Voyager Green series range of lubricant products, namely Voyager PX Green for petrol engine and Voyager DX Green for diesel engines, formulated with 100% plant-derived base oil has been launched by ADNOC Distribution, the largest fuel and convenience retailer in the United Arab Emirates.
  • In 2022, Chevron Lubricants launched its Delo TorqForce Syn FD-1 high-performance, fully synthetic lubricant developed for final drives and axles of extensive mining haul trucks and other support equipment, formulated to deliver maximum system protection and enhance efficiency over conventional SAE 60 TO-4 and FD-1 products.
  • In 2019, FUCHS Group acquired Nye Lubricants Inc. which deals in the manufacturing, formulation, and innovation of synthetic products. The acquisition aimed to expand the synthetic lubricants portfolio.

Market Dynamics

Key Driver:

  • Expanding Vehicle Fleet Due to Improving Economic Conditions in GCC Promulgating Lubricant Demand

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:

  • Gradual Adoption of Electric or Hybrid Vehicles in GCC

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:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the GCC Automotive Lubricants Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the GCC Automotive Lubricants Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the GCC Automotive Lubricants Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the GCC Automotive Lubricants Market study?

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.

  1. Market Segmentation
  2. Introduction
    1. Research Process
    2. Assumption
    3. Market Definition
  3. Executive Summary
  4. Impact of COVID-19 on GCC Automotive Lubricants Market
  5. GCC Automotive Lubricants Market Trends & Insights
  6. GCC Automotive Lubricants Market Dynamics
    1. Growth Drivers
    2. Challenges
  7. GCC Automotive Lubricants Market Hotspot and Opportunities
  8. GCC Automotive Lubricants Market Supply Chain Analysis
  9. GCC Automotive Lubricants Market Policies, Regulations, Material Type Standards
  10. GCC Automotive Lubricants Market Outlook, 2017- 2027F
    1. Market Size and Analysis
      1. By Revenues (USD Million)
      2. By Volume (Thousand Tons)
    2. Market Share and Analysis
      1. By Type
        1. Engine Oil
        2. Gear Oil
        3. Transmission Fluids
        4. Brake Fluids
        5. Greases
        6. Coolants & Antifreezes
        7. Others (Additives, Oil Bender, etc.)
      2. By Base Oil
        1. Mineral Oil Lubricants
        2. Synthetic Lubricants
        3. Semi-Synthetic Lubricants
      3. By Vehicle Type
        1. Two-Wheelers
        2. Passenger Cars
        3. Commercial Vehicles
          1. Light-Weight Commercial Vehicles
          2. Heavy-Weight Commercial Vehicles
      4. By Countries
        1. Saudi Arabia
        2. The UAE
        3. Oman
        4. Qatar
        5. Kuwait
        6. Bahrain
      5. By Company
        1. Competition Characteristics
        2. Market Share & Analysis
  11. Saudi Arabia Automotive Lubricants Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume
    2. Market Share and Analysis
      1. By Type
      2. By Vehicle Type
  12. The UAE Automotive Lubricants Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume
    2. Market Share and Analysis
      1. By Type
      2. By Vehicle Type
  13. Oman Automotive Lubricants Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume (in Tons)
    2. Market Share and Analysis
      1. By Type
      2. By Vehicle Type
  14. Qatar Automotive Lubricants Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume
    2. Market Share and Analysis
      1. By Type
      2. By Vehicle Type
  15. Kuwait Automotive Lubricants Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume
    2. Market Share and Analysis
      1. By Type
      2. By Vehicle Type
  16. Bahrain Automotive Lubricants Market Outlook, 2017-2027F
    1. Market Size & Analysis
      1. By Revenues
      2. By Volume
    2. Market Share and Analysis
      1. By Type
      2. By Vehicle Type
  17. GCC Automotive Lubricants Market Key Strategic Imperatives for Success and Growth
  18. Competitive Outlook
    1. Competition Matrix
      1. Material Type Portfolio
      2. Brand Specialization
      3. Target Markets
      4. Target Material Types
      5. Research & Development
      6. Strategic Alliances
      7. Strategic Initiatives
    2. Company Profiles (Business Description, Material Type Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
      1. ADNOC
      2. Aramco
      3. Chevron Lubricants
      4. Gulf Oil International
      5. FUCHS Lubricants Germany GMBH
      6. Exxon Mobil
      7. British Petroleum
      8. Vavoline
      9. Total Energies
      10. Oscar Lubricants LLC
      11. Kuwait Lube Oil Co.
      12. EPCCO Lubricants
      13. Others
  19. Disclaimer
GCC Automotive Lubricants Market Segmentation Slide