Market Research Report

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

By Type (Engine Oil, Gear Oil, Transmission Fluids, Brake Fluids, Greases, Coolants & Antifreezes, Others), By Base Oil (Mineral Oil Lubricants, Synthetic Lubricants, Bio Lubricant...s), By Vehicle Type (Two-Wheelers, Passenger Cars, Commercial Vehicles), By Region (Dubai, Abu Dhabi & Al Ain, Sharjah & Northern Emirates), By Company (Shell UAE, ADNOC, Chevron Alkhalij, Gulf Oil International Ltd., Fuchs Oil Middle East Ltd., Exxon Mobil Corporation, British Petroleum, Valvoline Middle East & Africa, Total Energies, Oscar Lubricants LLC, EPPCO Lubricants, Others) Read more

  • Automotive
  • Nov 2023
  • 130
  • AT22028

Market Definition

Automotive lubricants are fluids made up of base oils and additives that are designed to reduce friction between the moving parts of vehicles such as engines & transmissions, etc.  These lubricants are designed to protect vehicle components by minimizing friction and increasing overall efficiency and longevity. Lubricants also serve as a noise-canceling cushion, coolant, and sealant between the engine piston rings and the cylinder walls.

Market Insights & Analysis: The UAE Automotive Lubricants Market (2024-30):

The UAE Automotive Lubricants Market size is estimated to grow at a CAGR of around 3.1% during the forecast period, i.e., 2024-30. The increased penetration of vehicles driven by the surging vehicle ownerships, and expanding commercial businesses such as; e-commerce, ride-hailing, etc., naturally drove up the need for lubricants to keep these vehicles operating smoothly. The UAE's hot and arid climate places extra stress on engines, necessitating more frequent oil changes and lubrication, as vehicle maintenance is crucial to prevent overheating and minimize frequent engine wear and operating costs respectively.

Report Coverage Details
Study Period Historical Data: 2019-22
Base Year: 2023
Forecast Period: 2024-30
CAGR (2024-2030) 3.1%
Region Covered Dubai, Abu Dhabi & Al Ain, Sharjah & Northern Emirates
Key Companies Profiled Shell UAE, ADNOC, Chevron Alkhalij, Gulf Oil International Ltd., Fuchs Oil Middle East Ltd., Exxon Mobil Corporation, British Petroleum, Valvoline Middle East & Africa, Total Energies, Oscar Lubricants LLC, EPPCO Lubricants, Others
Unit Denominations USD Million/Billion 

 

Furthermore, as the UAE continues to invest in infrastructure and construction projects, the demand for commercial vehicles and machinery is surging across the country. These include projects announced as part of the Abu Dhabi Vision 2030 and Dubai Plan 2021. This in turn is contributing to the higher use of commercial vehicles to load and unload construction materials in various sites thereby driving lubricant consumption.

Additionally, the UAE government's initiatives for promoting sustainable practices and the use of high-quality lubricants are anticipated to play a crucial role in supporting the market demand during the forecast years.

The UAE Automotive Lubricants Market Driver:

Escalating Commercial Vehicle Fleet Supporting the Market Demand – The UAE is witnessing economic development owing to increased tourism and mega infrastructure projects. As a result, the demand for transportation services has increased in the country, which in turn is leading to a substantial increase in the number of commercial and private vehicles. For Instance,

  • In 2022, CAFU, the car service in UAE increased its headcount by 30% owing to increasing consumer demand in the country.

This growing automotive fleet requires regular maintenance, including lubrication, to ensure optimal performance and longevity. This is paving the way for the automakers to invest & bring better quality lubricants for the vehicles. Consequently, the automotive lubricant market in the UAE experienced robust growth in recent years, with lubricant manufacturers and suppliers catering to the needs of this expanding vehicle population.


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

Furthermore, the ambitious projects outlined in initiatives like Abu Dhabi Vision 2030 and the National Programme for Infrastructure Development are set to amplify construction activities in the coming years. The construction of mega projects such as Burj Binghatti Residential Tower, Sharjah Floating Theatre, etc., are expected to elevate the utilization of construction vehicles and machinery, consequently escalating the demand for automotive lubricants in the forthcoming years.

The UAE Automotive Lubricants Market Opportunity:

Rising Adoption of Synthetic Lubricants – The extreme desert climate in the UAE, characterized by scorching temperatures, poses a significant challenge for lubricants. Synthetic lubricants offer superior high-temperature stability and performance, making them a preferred choice among vehicle owners for engine protection and longevity in these harsh conditions.

Additionally, the UAE's focus on sustainability and reducing environmental impact has driven the adoption of synthetic lubricants. This is due to the fact that synthetic lubricants have typically longer lifespans, which helps in reducing the frequency of oil changes and waste generation.

Moreover, the automotive lubricant industry in the UAE is constantly developing new & innovative synthetic lubricants that offer improved performance & environmental benefits. For instance,

  • In 2023, Motul, a French automotive lubricant company, launched its NGEN range of synthetic engine oil, formulated for hybrid cars and motorcycles using eco-friendly bio-sourced and premium regenerated base oils.

Thus, innovations in synthetic lubricants & their growing availability are expected to augment the market growth in the coming years.

The UAE Automotive Lubricants Market Challenge:

Growing Economic Diversification Initiatives Hindering the Market Demand – One major challenge affecting the demand for automotive lubricants in the UAE is the country's ongoing economic diversification efforts. The UAE government is actively reducing its dependence on oil-related industries and promoting alternative sectors like renewable energy and technology. This also includes improving the penetration of electric vehicles and supporting infrastructure in the country. As a result, there's a reduced focus on traditional sectors, potentially leading to decreased demand for lubricants in the UAE automotive industry.

 The UAE Automotive Lubricants Market Trend:

Growing emphasis on Environment-Friendly Lubricants – The UAE, like many nations, is increasingly concerned about the environmental impact of automotive activities, particularly given its commitment to reducing carbon emissions and dependence on fossil fuels. Environmental-friendly lubricants, often formulated to be biodegradable and less harmful to ecosystems, align with these sustainability goals. This shift is expected to impact the demand for lubricants in the UAE market significantly. As regulations and consumer preferences push for eco-friendly lubricants, traditional petroleum-based lubricants may face declining demand.

These environmental-friendly lubricants can be initially more expensive, but their reduced environmental impact, longer-lasting properties, and enhanced performance are expected to make them increasingly attractive to consumers and businesses alike. Due to this trend, the biggest automobile lubricant manufacturers like Shell, ADNOC, ENOC, etc., are increasingly showcasing carbon-neutral lubricants in the UAE market in recent years.

  • For instance, in 2021, Shell launched a portfolio of carbon-neutral lubricants in the UAE market, for passenger cars to heavy-duty diesel engines.

This growing introduction of sustainable lubricants would further boost the automobile lubricant market in the coming years, as many automotive businesses are incorporating sustainability into their core values.

The UAE Automotive Lubricants Market (2024-30): Segmentation Analysis

The UAE 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 national level. As per the analysis, the market has been further classified as:

Based on the Type

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

In the UAE, the demand for engine oil is significantly higher. This preference is primarily driven by the country's harsh climate, characterized by high temperatures and desert conditions. Engine oil plays a critical role in protecting the engine components from extreme heat and ensuring smooth operation in these challenging environments. The need for frequent oil changes and high-quality engine lubrication is essential to prevent overheating, reduce friction, and extend the lifespan of vehicles. Moreover, with a growing number of cars and commercial vehicles on the road, engine oil is a more universal requirement, as every vehicle relies on it for proper functioning.

Based on Vehicle Type:

Passenger cars are projected to hold a substantial market share in the upcoming years, driven by the augmenting ownership of vehicle fleets and the growth of tourism and car rental services. The UAE is witnessing notable economic expansion, particularly in the non-oil sectors such as real estate, financial service, manufacturing, etc., creating more job opportunities and business activities.

According to the World Bank's 2022 report, the UAE's GDP experienced a significant surge of approximately 3.9% in 2021 compared to about -5.0% in 2020. This economic growth has improved financial conditions for residents and expatriates, leading to a higher adoption of passenger vehicles. Consequently, there has been a heightened demand for engine oils, brake fluids, gear oils, etc., which has resulted in the increased market share of passenger vehicles in the automotive lubricant market in recent years.

Moreover, the UAE's tourism sector is poised for growth with increased investment, events, and new visa regulations in the coming years. According to the World Travel & Tourism Council in 2022, the tourism sector in the UAE is projected to grow to around 4.3% by 2024 from around 3.9% in 2023.  As tourism flourishes, the demand for passenger rental cars rises, requiring regular maintenance for optimal functioning. Routine activities, like oil changes, would contribute to the increased share of passenger vehicles in the automotive lubricants market in the coming years.

The UAE Automotive Lubricants Market (2024-30): Regional Projections

Geographically, the UAE Automotive Lubricants Market expands across:

  • Abu Dhabi & Al Ain
  • Dubai
  • Sharjah & Northern Emirates

Dubai is estimated to account for a significant share of the UAE Automotive Lubricants Market in the coming years due to the ongoing infrastructure developments, and fuel efficiency & emissions reduction initiative. The rise in construction and infrastructure projects in Dubai, such as those outlined in strategic plans like Dubai Plan 2021, contributes to the heightened demand for construction vehicles and machinery, subsequently boosting the need for automotive lubricants.

Furthermore, the Dubai government is actively advocating for fuel efficiency and emissions reduction through various initiatives, including the implementation of the Green Mobility Strategy. This is expected to spur the need for advanced lubricants with high performance in the coming years, contributing to enhanced fuel efficiency and lower emissions. As a result, it is anticipated that Dubai will dominate the UAE Automotive Lubricants market in the forecast period.

The UAE Automotive Lubricants Market Industry Recent Development:

  • In 2023: ADNOC signed an agreement with Indian fuel retailer Hindustan Petroleum Corporation Limited to explore opportunities for expanding their lubricants and allied products businesses in the UAE, India & other markets.

Gain a Competitive Edge with Our UAE Automotive Lubricants Market Report

  1. The UAE Automotive Lubricants Market Report by Markntel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps business organizations to gain a holistic understanding of the market dynamics & make informed decisions.
  2. This report also highlights current market trends & future projections, allowing business organizations to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
  3. The UAE Automotive 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, business organizations can develop strategies to minimize risks & optimize their operations.

Frequently Asked Questions

   A. The UAE Automotive Lubricants Market is expected to grow at a CAGR of around 3.1% during 2024-2030.

   A. Escalating commercial vehicles fleet to drive The UAE Automotive Lubricants Market during 2024-2030.

   A. Shell UAE, ADNOC, Chevron Alkhalji, Gulf Oil International Ltd, Fuchs Oil Middle East Ltd., Exxon Mobil Corporation, British Petroleum, Valvoline Middle East & Africa, Total Energies, Oscar Lubricants LLC. EPPCO Lubricants, and others are the top companies in The UAE Automotive Lubricants Market.

   A. Engine oil is the leading oil type in The UAE Automotive Lubricants Market.

   A. Growing emphasis on environment-friendly lubricants is the key trend shaping the growth of The UAE Automotive Lubricants Market.

   A. Rising adoption of synthetic lubricants is one of the growth opportunities driving The UAE Automotive Lubricants Market through 2030.

   A. Growing economic diversification initiatives are key factors hindering the market growth in the UAE.

UAE Automotive Lubricants Market Research Report (2024-2030) - Table of Contents

 

  1. Market Segmentation
  2. Introduction
    1. Market Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. The UAE Automotive Lubricants Market Pricing Analysis
  5. The UAE Automotive Lubricants Market Import-Export Analysis
  6. The UAE Automotive Lubricants Market Supply Chain Analysis
  7. The UAE Automotive Lubricants Market Policies & Regulations
  8. The UAE Automotive Lubricants Market Trends & Insights
  9. The UAE Automotive Lubricants Market Dynamics
    1. Growth Drivers
    2. Challenges
  10. The UAE Automotive Lubricants Market Hotspot and Opportunities
  11. The UAE Automotive Lubricants Market Outlook, 2019- 2030F
    1. Market Size and Analysis
      1. By Revenues (USD Millions)
      2. By Volume (Thousand Tons)
    2. Market Share and Analysis
      1. By Type
        1. Engine Oil- Market Size & Forecast 2019-2030F, (Thousand Tons)
        2. Gear Oil- Market Size & Forecast 2019-2030F, (Thousand Tons)
        3. Transmission Fluids- Market Size & Forecast 2019-2030F, (Thousand Tons)
        4. Brake Fluids- Market Size & Forecast 2019-2030F, (Thousand Tons)
        5. Greases- Market Size & Forecast 2019-2030F, (Thousand Tons)
        6. Coolants & Antifreezes- Market Size & Forecast 2019-2030F, (Thousand Tons)
        7. Others (Additives, Oil Benders, etc.) - Market Size & Forecast 2019-2030F, (Thousand Tons)
      2. By Base Oil
        1. Mineral Oil Lubricants- Market Size & Forecast 2019-2030F, (Thousand Tons)
        2. Synthetic Lubricants- Market Size & Forecast 2019-2030F, (Thousand Tons)
        3. Bio Lubricants- Market Size & Forecast 2019-2030F, (Thousand Tons)
      3. By Vehicle Type
        1. Two-Wheelers- Market Size & Forecast 2019-2030F, (Thousand Tons)
        2. Passenger Cars- Market Size & Forecast 2019-2030F, (Thousand Tons)
        3. Commercial Vehicles- Market Size & Forecast 2019-2030F, (Thousand Tons)
      4. By Region
        1. Dubai
        2. Abu Dhabi & Al Ain
        3. Sharjah & Northern Emirates
      5. By Company
        1. Competition Characteristics
        2. Market Share & Analysis
  12. The UAE Two-Wheelers Lubricants Market Outlook, 2019- 2030F
    1. Market Size and Analysis
      1. By Revenues (USD Million)
      2. By Volume (Thousand Tons)
    2. Market Share and Analysis
      1. By Type- Market Size & Forecast 2019-2030F, (Thousand Tons)
      2. By Base Oil-Market Size & Forecast 2019-2030F, (Thousand Tons)
      3. By Vehicle Type- Market Size & Forecast 2019-2030F, (Thousand Tons)
        1. Scooter
        2. Motorcycles
  13.  The UAE Passenger Car Lubricants Market Outlook, 2019- 2030F
    1. Market Size and Analysis
      1. By Revenues (USD Million)
      2. By Volume (Thousand Tons)
    2. Market Share and Analysis
      1. By Type-Market Size & Forecast 2019-2030F, (Thousand Tons)
      2. By Base Oil- Market Size & Forecast 2019-2030F, (Thousand Tons)
      3. By Vehicle Type- Market Size & Forecast 2019-2030F, (Thousand Tons)
        1. Sedan
        2. Hatchback
        3. SUVs
  14. The UAE Commercial Vehicles Lubricants Market Outlook, 2019- 2030F
    1. Market Size and Analysis
      1. By Revenues (USD Million)
      2. By Volume (Thousand Tons)
    2. Market Share and Analysis
      1. By Type- Market Size & Forecast 2019-2030F, (Thousand Tons)
      2. By Base Oil- Market Size & Forecast 2019-2030F, (Thousand Tons)
      3. By Vehicle Type- Market Size & Forecast 2019-2030F, (Thousand Tons)
        1. Medium & Heavy Commercial Vehicles
        2. Light Commercial Vehicles
  15. Competitive Outlook
    1. Shell UAE
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    2.  ADNOC
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    3.  Chevron Alkhalij
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    4.  Gulf Oil International Ltd
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    5.  Fuchs Oil Middle East Ltd.
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    6.  Exxon Mobil Corporation
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    7.  British Petroleum
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    8. Valvoline Middle East & Africa
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    9.  Total Energies
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    10.  Oscar Lubricants LLC
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    11.  EPPCO Lubricants
      1. Business Description
      2. Product Portfolio
      3. Strategic Alliances or Partnerships
      4. Recent Developments
      5. Financial Details
      6. Others
    12. Others
  16. Disclaimer


UAE Automotive Lubricants Market Segmentation