Lubricants are used in any machine that involves movement of metals and materials that are susceptible to friction, which causes a decline in the performance. The propitious automotive and petrochemical industries in Middle East and North Africa are mega end-use sectors that are creating a demand influx in the lubricants market of various countries such as Iran, Saudi Arabia, Morocco, and Turkey. Lubricants are also found to reduce CO2 emissions by vehicles, and therefore, these additives are gaining more traction in countries of Middle East and North Africa. Other factors that are attributable to the growth of the Middle East and North Africa lubricants market is the growth prospects in the marine and chemical industries. The machines used in chemical industries are highly vulnerable to performance losses due to friction and also undergo corrosion, which requires lubricants. Furthermore, the pharmaceutical industry that utilizes a substantial amount of machines is undergoing a transition in Middle East and North Africa, which is also supporting the lubricants market vendors. With aerospace industry soaring high in the region, the Middle East and North Africa lubricants market is going to gain further traction. As of 2018, the middle east and north africa lubricants market size was evaluated at $17.2 billion. Moreover, the demand for lubricants in Middle East and North Africa is poised to grow at a CAGR of around 4% during the forecast period 2019-2025.

The Import Data Analysis of the Middle East Lubricants Market –

The growth of the Middle East lubricants market can be fathomed by analyzing the data of the parent industry, which petroleum oils and oils obtained from bituminous minerals. The following table summarizes the import value and growth rate in the parent industry, which also reflects the growth prospects in the Middle East lubricants market –

Table 1:

The Middle East Import Data Analysis of the Parent Industry of Lubricants Market

Sr. No.

Country

Import Value

(In USD)

Growth Rate in % (2017-18)

1

Oman

1.70 Billion

3

2

Saudi Arabia

2.88 Billion

8

3

Turkey

12.69 Billion

29

4

UAE

9.86 Billion

22

5

Iraq

1.17 Billion

340

6

Qatar

393.48 Million

37

7

Jordan

1.49 Billion

38

8

Kuwait

39.28 Million

3

9

Iran

266.81 Million

-45

Trade Data – International Trade Centre

Clearly, the parent industry of the Middle East lubricants market is booming, and it is evident in the profitable growth rate that was witnessed between 2017 and 2018. A significant part of these figures are attributable to the growing Middle East lubricants market size. Even though the parent industry had witnessed a decline in Iran, the lubricants market is poised to gain traction in the future due to the growth of the Iran automotive industry, which is on a path to progress.

Middle East Lubricants Market Growth Drivers & Future Prospects for the Vendors:

The expansion of the Middle East lubricants market is attributable to the growth prospects in the end-use industries such as automotive, aviation, marine, and manufacturing industries that include petrochemical, chemical, pharmaceutical, and others. The Middle East had the greatest lubricants market share with 53% in 2018, and it is predominantly attributable to the following factors –

· Saudi Arabia Petrochemical Industry: A Lucrative Industrial Lubricants Marketplace –

The Organization of Petroleum Exporting Countries (OPEC) has come up with the findings that Saudi Arabia boasts of crude oil production that translates to 103.17 million barrels per day. The production of petroleum and related products entails a gamut of machinery and equipment, which are required to be maintained with proper lubrication in order to avoid the performance issues. The enormous production of crude oil in Saudi Arabia significantly creates growth prospects for the Middle East lubricants market players.

· The Industrial Lubricants Market Gaining Traction in the Turkey Chemical Industry –

Turkey chemical industry has been booming for years with around 62 thousand companies manufacturing chemicals across the country. In 2017, the chemical industry had played a vital role in the total industrial exports, and the exports of chemicals was valued at $16.8 billion, according to the Ministry of Economics, Republic of Turkey. This is attributable to the on-going manufacturing activities in multifarious chemical industries, which requires a lot of operations that include various machines which need intermittent lubrication for maintenance. The flourishing chemical industry in Turkey is creating revenue avenues for the vendors in the Middle East lubricants market.

· The Chemical Sector in UAE and Kuwait: A Profitable Marketplace for Lubricants

The chemical industry in UAE and Kuwait have a major contribution towards the GDPs of both the countries. According to the latest findings by the Gulf Petrochemicals and Chemicals Association (GPCA), the chemical sector in UAE and Kuwait is the second largest contributor to the manufacturing with a share of 24% and 19% respectively, which is to say that the chemical industries in these countries are witnessing a demand upsurge. Therefore, there is a surge in the manufacturing activities, which is creating a sustainable marketplace for the Middle East industrial lubricants market vendors.

· The Iran Automotive Industry: A Propitious Lubricants Marketplace –

According to the United Nations Educational Scientific and Cultural Organization (UNESCO), Iran’s automotive industry is an attractive marketplace for investors. It is the biggest industry in Iran after oil & gas with 10% contribution to the country’s GDP. In 2017, 1.51 million vehicles were manufactured in Iran with a year on year production growth of 18.19, according to OICA. The organization also notes that the industry saw a decline of 40% with 1.06 million vehicles manufactured in 2018. However, Iran has a substantial number of cars on the road, which require lubrication. This has been driving the lubricants market in the country. Furthermore, the upcoming years are expected to witness more investment in the Iran automotive industry, which will create revenue sources for the vendors in the Middle East lubricants market.

· The Demand Influx in the Middle East Lubricants Market from the Aviation Industry –

According to the International Air Transport Association (IATA), the Middle East aviation industry will be growing at a CAGR of 4.4% with an addition of 290 million passengers by 2037. This indicates that the aviation industry in the region is going to prosper propitiously, and this industry is a hefty consumer of aviation lubricants. Therefore, the growth of the aviation industry in the region will create a stir in the Middle East lubricants market.

· The Maritime Industry in Middle East Poised to Create Growth Avenue in the Lubricants Market –

May 2017 had witnessed a merger of Hapag-Lloyd and the United Arab Shipping Company. This was attributed to the increased freight volumes. Hapag-Lloyd had reported a rise in revenues succeeding the merger with the shipping company. This is the evidence of the growth of shipping industry in the Middle East. Now, ships are maintained with lubrication for smooth operations and performance. The growth of the maritime industry in the region in creating a tangible demand influx in the Middle East marine lubricants market.

Apart from these factors, the ever-flourishing chemical and petrochemical industries in Qatar, Oman, Jordan, and Iraq are contributing to the Middle East lubricants market revenues. Furthermore, the automotive industry is poised to grow across the globe, and the Middle East will have a substantial share in the growing market of electric vehicles, semi-autonomous and autonomous vehicles, and self-driving cars and trucks, which will further impact the Middle East lubricants market growth.

The Import Data Analysis of the North African Market –

The following is the trade data of the parent industry of lubricants market in North Africa evaluated by ITC –

Table 2:

The North Africa Import Data Analysis of the Parent Industry of Lubricants Market

Sr. No.

Country

Import Value

(In USD)

Growth Rate in % (2017-18)

1

Algeria

2.45 Billion

82

2

Egypt

7.06 Billion

27

3

Libya

2.11 Billion

36

4

Morocco

5.76 Billion

25

5

Sudan

56.22 Million

108

6

Tunisia

2.64 Billion

49

Trade Data – International Trade Centre

Conspicuously, the trade trend in the parent industry show a tangible appreciation over the course of a year. This is partly attributable to the demand for lubricants from various end-use industries in these countries, which is creating opportunities for the vendors in the North Africa lubricants market.  

North Africa Lubricants Market Growth Drivers & Future Prospects for the Vendors:

The growth prospects in the North Africa lubricants market is attributable to the revenue sources majorly generated by the automotive and petrochemical industry in various countries of the region. Here are some factors that are directly impacting the North Africa lubricants market growth –

· The Expanding Egypt Automotive Industry to Create Prospects in the North Africa Lubricants Market –

According to the International Organization of Motor Vehicle Manufacturers (OICA), Egypt had observed a vehicle production growth of a staggering 95% in 2018. This growth is attributable to a gamut of investments by automobile companies in Egypt. For instance, in January 2018, the German manufacturer Mercedes-Benz announced an inauguration of a vehicle assembly plant in Turkey. The Local Industry Development Strategy (LIDS) of Turkish government is supporting the vehicle production industry, and the upcoming years are poised witness more investments, which will create a stir in the automotive lubricants market.

· The Increasing Import of Vehicles and Thriving Petrochemical Industry in Libya to Spur the North Africa Lubricants Market –

According to ITC, the import value of vehicles in Libya was valued to be $630.72 million in 2018, and it had witnessed increment of an impressive 108% year on year. Even though Libya’s economy is seemingly non-profitable, but the country is making a prospective progress. It is quite evident in the findings by the World Bank, according to which the GDP of Libya had grown from $26.222 billion in 2016 to $38.108 billion in 2017. The upcoming years are poised to witness a tangible economic progress, and the automotive industry will make further progress, which will support the North Africa lubricants market.

Additionally, the petrochemical industry contributes significantly to the country’s economy. With an augmented demand for petroleum products in the upcoming years, the industry is going to witness enhanced production which will again require lubricating oil for machinery. This is going to play a vital role in North Africa lubricants market growth.

· Sudan and South Sudan’s Oil & Gas Industry Contributing to the Increasing Revenues of the North Africa Industrial Lubricants Market –

According to the U.S. Energy Information Administration, Sudan and South Sudan produce over 200,000 and 150,000 barrels of crude oil per day. The machinery used in the refineries of both the countries require lubrication, which creates a profitable lubricants marketplace in the countries.

· Growth Prospects for North Africa Lubricants Market in Tunisia Transportation Sector –

The International Trade Association (ITA) has assessed that the total number of passenger cars in circulation is around 2 million in Tunisia. Furthermore, the organization has evaluated that the sales of new passenger cars and pickup trucks was 63,685 in 2017, and the figure witnessed a 5% increase year on year. Now, with the growing number of passenger cars and trucks on the roads of Tunisia, the North Africa lubricants market is surely going to gain traction during the forecast period.

The aforementioned factors will be driving the lubricants market in North Africa and Middle East, and the growth will not be limited to the industrial lubricants and synthetic lubricants. The marine lubricants and aviation lubricants markets will also gain traction from the respective end-use industries. On the basis of the type of lubricants, industrial oil and process oil will get the maximum traction, and their application in Middle East and North Africa will grow at a CAGR of 4.5% through to 2025.

Middle East and North Africa Lubricants Market: Competitive Landscape

The major lubricants market players striving to expand their customer-base in Middle East and North Africa are Royal Dutch Shell plc, Exxon Mobil Corporation, BP plc, Chevron Corporation, Total S.A., PJSC Lukoil Oil Company, PetroChina Company Limited, China Petroleum & Chemical Corporation, or Sinopec, Idemitsu Kosan Co., Limited, Fuchs Petrolub SE, Royal Dutch Shell plc, JXTG Nippon Oil & Energy Corporation, or NOC or Shin-Nisseki, Agip S.A., Valvoline, and Indian Oil Corporation Limited.

Talk to one of our sales representative about the full report by providing your details in the link below:

https://www.industryarc.com/support.php?id=18448

Related Reports:

a) Lubricants Market

https://www.industryarc.com/Report/11709/lubricants-market-analysis.html

b) Construction Lubricants Market

https://www.industryarc.com/Research/Construction-Lubricants-Market-Research-500187


Any other custom requirements can be discussed with our team, drop an e-mail to [email protected]  to discuss more about our consulting services.

To request for a quote, provide your details in the below link:

https://www.industryarc.com/reports/request-quote?id=18448

Media Contact:

Mr. Venkat Reddy

Sales Manager          

Email: [email protected]

Contact Sales: +1-614-588-8538 (Ext-101)

About IndustryARC: IndustryARC is a Research and Consulting Firm that publishes more than 500 reports annually, in various industries such as Agriculture, Automotive, Automation & Instrumentation, Chemicals and Materials, Energy and Power, Electronics, Food and Beverages, Information Technology, and Life sciences and Healthcare.