Saudi Arabia Synthetic Lubricants Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: Saudi Arabia Synthetic Lubricants Market (2025-30):

The Saudi Arabia Synthetic Lubricants Market size is valued at around USD 108.34 million in 2025 and is projected to reach USD 175.21 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 8.34% during the forecast period, i.e., 2025-30. The Saudi Arabia Synthetic Lubricants Market is significantly growing due to several growth factors, including the rising automotive sector, the public & private collaborations, the significant investments in the expansion of manufacturing facilities for the production of synthetic lubricants, and the adoption of advanced methods, such as nanotechnology for the manufacturing of these lubricants.

One of the most prominent growth factors is the well-established petrochemical industry in the country, due to the strong base of natural oil. This includes the high demand for synthetic lubricants by heavy-duty machinery for their smooth operations. Additionally, the growing public and private partnerships are increasing the market potential by making efforts to increase the number of manufacturing units for the production of synthetic lubricants across Saudi Arabia. Also, the local companies are collaborating with international players to enter the global market for higher revenue and profit generation, thus providing lucrative growth opportunities to this market.

Moreover, the adoption of advanced technologies, such as nanotechnological production processes, which include the addition of nanoparticles, such as graphene & titanium dioxide, in the formulation of lubricants, is actively increasing the market growth, as these nanoparticles help to enhance the efficiency of the lubricants. However, high production costs and disruption in the supply chains of the raw materials are restraining the growth of the Saudi Arabia Synthetic Lubricants Market.

Saudi Arabia Synthetic Lubricants Market Scope:

Saudi Arabia Synthetic Lubricants Market Driver:

Increasing Vehicle Ownership Driving Market Growth – The market growth is driven by the rising automotive sector in the country, which includes high vehicle ownership, accelerating the growth of synthetic lubricants in Saudi Arabia. For instance, as of 2024, Saudi Arabia witnessed the registration of more than 1 million vehicles, showing a 7.8% increase in the adoption from the preceding year (2023). This ultimately increases the demand for a substantial amount of engine oils and other lubricants, including synthetic lubricants. This is leading to frequent maintenance of these vehicles, including frequent oil refills for their smooth running.

Additionally, the two-wheelers require more frequent oil replacement, thus increasing the market demand. For instance, the two-wheelers require oil changes after every 1,000 to 2,000 km, which increases the engine usage and lubricant consumption. Consequently, the country has increased its production capacity for lubricant manufacturing. For instance, a prime player called Saudi Aramco Base Oil Company, with two production facilities in Yanbu and Jeddah alone, has an annual production capacity of about 1.35 million metric tons of lubricants per year, driving the market significantly.

Saudi Arabia Synthetic Lubricants Market Opportunity:

Expansion of Manufacturing Facilities – The growing expansion of the manufacturing units for the production of synthetic lubricants is offering ample growth opportunities in this market. It is due to the aim of increasing local production in the country to reduce the country’s import dependence. For instance, in 2025, the Maxwell Oil & Tools company launched a new production facility in the country to increase the production of lubricants.

Similarly, several companies like INEOS, Saudi Aramco, and TotalEnergies are collaborating and launching three manufacturing plants, which will produce a substantial amount of precursors of lubricants, including polyalphaolefins (PAO), and many more. Moreover, the local companies are collaborating with foreign companies to expand their businesses and contribute to the market growth. For instance, in 2025, the Farabi Petrochemical Company (Saudi Arabia) and the Richful Xinxiang Lube Additive Co. (China) to establish a new manufacturing plant for lubricant additives in Yanbu. These projects are increasing the potential market growth.

Saudi Arabia Synthetic Lubricants Market Challenge:

High Production Costs & Fragmented Supply Chains – The market growth is adversely hindered by the high production costs due to the utilization of complex machinery and advanced chemical processes in the manufacturing of synthetic lubricants in Saudi Arabia. This is resulting in the low adoption of these lubricants as compared to other conventional lubricants and mineral oils. For instance, the conventional lubricants range between USD10 to USD15, while that of synthetic lubricants is costlier, ranging between USD30 to USD60, showing the high cost of these, hampering market growth.

Additionally, the inconsistency of the availability of raw materials for the production of synthetic lubricants in Saudi Arabia is leading to the fragmentation of their supply chains. It decreases the accessibility and affordability of synthetic lubricants, especially in the rural and remote areas of the country, thus restraining the market growth & expansion.

Saudi Arabia Synthetic Lubricants Market Trend:

Increasing Use of Nano-technological Production Methods – The market dynamics are changing due to the adoption of nanotechnology in the production processes of synthetic lubricants in Saudi Arabia. This adoption increases the quality of lubricants by reducing friction and wear, backed by the addition of nanoparticles such as graphene, TiO_2, etc.

Several key companies, such as Farabi Petrochemicals and Saudi Multichem, have started manufacturing synthetic lubricants by adding nano-technological additives to their formulations. For instance, in 2022, the Saudi Multichem company decided to incorporate nanotechnology in improving the lubricants' performance, particularly in oilfield operations. Similarly, the launch of the new plant called Farabi Petrochemicals in Yanbu is aiming to utilize nanotechnology to produce a wide range of lubricant additives to increase the longevity and efficiency of lubricants. These kinds of adoption are actively shaping Saudi Arabia’s Synthetic Lubricants Market.

Saudi Arabia Synthetic Lubricants Market (2025-30): Segmentation Analysis

The Saudi Arabia Synthetic Lubricants Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Engine Oils
• Transmission & Gear Oils
• Hydraulic Fluids
• Metalworking Fluids
• Greases

Among these, the engine oils hold the largest market share of about 63%. The dominance is due to the high reliance on motor vehicles, especially motorbikes, for daily commuting. Saudi Arabia now has more than 15 million motorbikes, which is increasing the frequency of lubricant consumption, especially engine oils. Also, car ownership is significantly rising in the country, which is increasing the requirement for a substantial amount of engine oil.

Additionally, the growing penetration of e-commerce, transportation, and logistics in Saudi Arabia has increased the number of vehicles in the country, which further boosts the demand for engine oils and other lubricants important for the automotive industry. Moreover, Saudi Arabia has heavy traffic congestion, which leads to reduced lubricant change intervals, thus increasing the frequency of engine oil change. These factors contribute to the dominance of engine oils in the market segment.

Based on Distribution Channel:

• Petrol Pumps & Service Stations
• Online Retail
• Specialty Stores
• Supermarket & Hypermarkets

Out of these, the petrol pumps & service stations are leading the national market, with more than 26% market share. These are dominant due to their broadest presence across the country, which leads to high accessibility of petrol pumps and service stations in the country. For instance, approximately 9,000 fuel stations are in the country to purchase lubricants. These are strategically located on highways, near industrial hubs, and other high-fleet zones to further increase accessibility of lubricants. Several major fuel stations that serve this industry include Aldrees Petroleum & Transport Services, Saudi Aramco, and many more are contributing to the dominance of this segment in this market.

Saudi Arabia Synthetic Lubricants Industry Recent Development:

• 2024: Shell Lubricating Oil Company & Al Jomaih renewed its strategic partnership with Al Wefaq Transportation Solutions (Yelo), ensuring the continued supply of Shell's premium lubricants to support Yelo's rapidly growing fleet operations.
• 2025: PETRONAS Lubricants International and Abdul Latif Jameel for Oils signed a strategic distribution agreement to accelerate the availability of PETRONAS' world-class lubricants across Saudi Arabia.

Gain a Competitive Edge with Our Saudi Arabia Synthetic Lubricants Market Report

1. Saudi Arabia Synthetic 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 the 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. Saudi Arabia Synthetic Lubricants Market Report 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.

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