North Africa Automotive Lubricants Market Research Report: Forecast (2024-2030)

Market Definition

Automotive lubricants are specially formulated substances like engine oil, and greases, designed to facilitate the smooth operation of vehicles by reducing friction between moving parts. They play a vital role in preventing wear & tear of mechanical components, ensuring optimal performance, and developing the longevity of vehicle engines and other critical systems. These greases are essential for maintaining efficiency, reliability, and overall health, contributing significantly to the vehicle's operational safety.

Market Insights & Analysis: North Africa Automotive Lubricants Market (2024-30):

The North Africa Automotive Lubricants Market size is estimated to grow at a CAGR of around 4.5% during the forecast period, i.e., 2024-30. Key factors shaping the industry landscape and influencing market dynamics include the rising fleet of vehicles in the region due to the growing e-commerce industry, rising construction activities, development of industrial facilities, increasing consumer spending, etc.

North African countries such as Egypt, Morocco, Algeria, etc., have a significant presence of vehicle manufacturing units. These nations provide ease of doing business for the manufacturing operations of automotive companies. It is majorly due to the government initiatives of the countries to provide various incentives, tax breaks, streamlined procedures, and infrastructure support to assist investment & business expansion. Official authorities also offer subsidies or financial incentives to manufacturers, dealers, and consumers to promote the production & purchase of vehicles. Hence, with the rising production of vehicles across the region, the demand for automotive lubricants is projected to increase in the years to come.

Moreover, in recent years, the per capita expenditure of customers has increased significantly in the region. This has made automobiles more accessible and individuals have increasingly purchased vehicles, such as cars & two-wheelers. End Users are using these vehicles for personal commuting, including intercity & intra-city travel. Owing to this, the demand for lubrication in these automobiles is increasing, supporting the market growth & expansion.

North Africa Automotive Lubricants Market Driver:

Rising Industrial Development to Propel Market Growth – The thriving industrial sector across the region has positively impacted the demand for commercial vehicles in countries such as Egypt, Algeria, etc. Along with this, these nations have appropriate geostrategic locations, adequate land availability, solar and wind power capacity, and skilled human capital, as well as a big domestic market, owing to which, the market players have been investing in the region. Furthermore, the official authorities of Morocco and Algeria are also increasing their focus on the development of the manufacturing sector in the countries. Hence, these countries have been experiencing the launch of new production plants which would boost the demand for light trucks both during the construction and post the initiation of the plant operations.

• In 2024, Haier Smart Home announced the inauguration of Egypt Ecological Park which is the first Arab-based plant of the company. The plant would produce air conditioners & washing machines, etc.
• In 2023, to produce upcoming Fiat models, including the Fiat 500 and Fiat Doblò, Stellantis announced the establishment of its manufacturing plant in Tafraoui, Algeria.

These facilities would create requirements for automobiles that will be used during construction and the delivery of the products to and from the production plant to the warehouse to the end users. Hence, this would increase the vehicle fleet across the countries. The expanding automotive fleet necessitates regular maintenance and lubrication, thus driving the demand for high-quality lubricants tailored to various vehicle applications. So, the thriving industrial sector across the region is augmenting the size & volume of the Automotive Lubricants Industry.

North Africa Automotive Lubricants Market Opportunity:

Growth in E-commerce Sector to Provide New Opportunities for Market Players – Online shopping is gradually becoming one of the key growth factors for the retail sector. The increased consciousness among consumers about shopping from websites or via mobile applications has encouraged various businesses to expand their online presence through the adoption of digital technologies. With the growing inclination of end-users toward online platforms, e-commerce companies are quickly grabbing on the opportunity. Hence, new startups have been emerging in the region’s e-commerce sector. As these startups expand in the region by gaining investment, the fleet of vehicles such as trucks, two-wheelers, etc., for product transportation and delivery is projected to increase in the years to come.

For instance, in 2023, a B2B e-commerce startup based in Morocco raised USD 1 million from Orange Ventures. Therefore, this is anticipated to provide new opportunities to the automotive lubricants suppliers during the forecast period.

North Africa Automotive Lubricants Market Challenge:

Increasing Adoption of Electric Vehicles to Hinder Market Growth – To reduce emissions and combat environmental issues in the transportation sector, there has been an inclination toward Electric Vehicles (EVs) in the last few years. However, electric vehicles do not require lubricant oil since the engines in the EVs generate much less friction than the other types of engines. Thus, the increasing sales of EVs are hampering the market growth. Along with this, there is a disparity in the quality of lubricants between countries, such as Egypt and Morocco. As a result, the imported lubricants that do not adhere to the standardized quality are stopped at customs and fail to reach the customers. Moreover, this is causing the market players to develop different products for each country, leading to higher spending on R&D and production, refraining the companies from expanding their sales & production, and negatively impacting the market growth & expansion.

North Africa Automotive Lubricants Market Trend:

Bio-Based Lubricants Gaining Traction – Governing bodies of African countries have laid stringent regulations aimed at reducing vehicle emissions and improving fuel efficiency. Thus, customers are increasingly looking for lubricants, such as bio-based, since these products offer multiple advantages, including improved engine performance, and extended lifespan of vehicle components. Along with this, the inclination of customers toward environmentally friendly lubricants and distance from the use of chemical-based products are supporting this trend in the market. Hence, with the rising transition towards the usage of eco-friendly products in the automotive sector, the demand for bio-based automotive lubricants is projected to increase in the coming years.

North Africa Automotive Lubricants Market (2024-30): Segmentation Analysis

The North Africa Automotive Lubricants Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the regional level. Based on the analysis, the market has been further classified as:

Based on Type:

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

Among them, the engine oil segment holds a significant market share due to its extensive usage in vehicles, particularly diesel and light-duty cars. The primary function of engine oil is to create a thin film among moving components within the engine which enhances heat transfer & reduces tension during contact with these components, thereby optimizing engine operation. Such functionality has led to a consistent demand for engine oil in the automotive sector across North Africa. The rapid growth of this segment is driven by the higher quantity of engine oil used in vehicles compared to industrial machinery.

Based on Vehicle Type:

• Two-Wheelers
  • Mopeds & Scooter
  • Motorcycle
• Passenger Cars
  • Hatchback
  • SUV
  • Sedan
• Commercial vehicles
  • Light Commercial Vehicle
  • Medium & Heavy Commercial Vehicle
• Off the Road (OTR) Vehicles
  • Earthmoving Equipment
  • Material Handling Equipment
  • Agricultural Equipment

The passenger cars segment held the largest share of the North Africa Automotive Lubricants Market. Passenger cars are sought after for their superior mileage, individual safety features, and excellent resale value, making them a preferred choice among consumers. This segment's growth is further fueled by the increasing average age of passenger cars and the expanding urban population in developing countries. The extremely good resale value related to car vehicles also contributes to sustained demand.

Furthermore, the rising urbanization across the region has led to improved congestion and transportation challenges. Hence the requirement for an efficient mobility solution has boosted the demand for shared mobility throughout the countries. This developing inclination in the direction of ride-sharing is undoubtedly impacting the demand for lubricants due to the fact those ride-hailing corporations make sure that their fleets are properly maintained to offer higher performance. Along with this, the ride-hailing companies are expanding their presence in the region. For instance, in 2021, Zoomcar announced the launch of its operations in Egypt and announced to expand the number of cars to 20,000 by 2022. Hence, these expansion plans would create demand for automotive lubricants in the years to come.

North Africa Automotive Lubricants Market (2024-30): Regional Projections

Geographically, the North Africa Automotive Lubricants Market expands across:

• Egypt
• Morocco
• Algeria
• Libya
• Rest of North Africa

Egypt has gained a significant share of the North Africa Automotive Lubricants Market. The market growth is attributed to the rising demand for vehicles across the country due to the growth of the e-commerce sector, rising construction activities, development of the industrial sector, etc. The construction sector in Egypt has experienced robust growth in the past years attributed to the rising public-private partnerships and green building expansion plans.

Moreover, there is a growth in Foreign Direct Investments particularly greenfield investment in the country due to the factors such as its strategic geographical location, skilled workforce, low labor costs, etc. This has led to the establishment of various facilities in different sectors such as manufacturing, IT, etc. The construction of these buildings created a demand for commercial vehicles such as trucks and OTR vehicles such as earthmoving equipment. Hence, with the increased requirement for such vehicles, there has been a significant demand for automotive lubricants in the country.

Moreover, Egypt's rich historical and cultural heritage coupled with improved political stability and enhanced security measures have resulted in surged tourist arrivals. In 2023, the number of tourist arrivals in Egypt was around 14.9 million, up from 11.7 million in 2022, as per the World Tourism Organization. This, in turn, is necessitating the need for rental scooters and mopeds among individuals. The ease of navigating through bustling streets and accessing historical sites has made scooters and mopeds a popular choice among the growing number of tourists to Egypt. Rental companies such as Driveboo, Scooter Hire Cairo, etc., have been providing a wide range of scooters to consumers. Hence the growing fleet of two-wheelers is projected to boost the requirement for lubricants as well during the forecast period.

North Africa Automotive Lubricants Industry Recent Development:

•  2024: TotalEnergies SE introduced a new range of lubricants developed with the use of premium base oils. This lubricant is also approved by several vehicle manufacturers, building trust among consumers regarding the product quality.

Gain a Competitive Edge with Our North Africa Automotive Lubricants Market Report

1. North Africa Automotive Lubricants Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. North Africa Automotive Lubricants Market aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.