Africa Lubricants Market - Forecast(2024 - 2030)

Africa Lubricants Market Overview

Africa Lubricants Market size is estimated to grow at a CAGR of 1.5% during the forecast period 2022-2027. A lubricant is a liquid material that is used to minimize friction between two surfaces that are in touch and aids in the reduction of heat and its control during the movement of surfaces. When it comes to boosting the overall performance of machines, equipment, automobiles, and other machinery, lubrication is critical. Lubricant comes in a variety of types such as engine oil, gear oil, grease, metalworking fluid, and hydraulic fluid. Polyolefin-based oil is superior as it has higher temperature resistance. The surge in energy production and growth in steel production are the driving factors of the African lubricants market while thermal stress is induced due to high flow in industrial application, and this is a restraining factor of the African lubricants market. The industries such as automotive, energy generation, building & construction and many others have experienced pitfalls in covid-19, due to which the market demand and consumption were affected.

Report Coverage

The “Africa Lubricants Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the Africa lubricants industry.

By Base Oil: Mineral Oil, Synthetic Oil, and Bio-based Oil
By Packaging: Drums, Cans, Bottles, and Others
By Type: Motor Oils, Gear Oils, Transmission Oils, Hydraulic Oils, Compressor Oils, Metal Working Hard Oils, and Others
By End-Use Industry: Automotive (Passenger Vehicles, Light Commercial Vehicles, and Heavy Commercial Vehicles), Aerospace (Commercial and Military), Energy Generation (Wind, Solar, and Others), Building & Construction (Residential, Commercial and Industrial), Marine (Passenger, Cargo, Naval, and Others), Agriculture (Combine Harvesters, Tractors, and Others), Metallurgy (Steel, Iron, and Others)
By Country: South Africa, Nigeria, Mozambique, Zambia, Zimbabwe, and the Rest of Africa

Key Takeaways

• South Africa is the fastest growing region in the Africa Lubricants Market. This growth is mainly attributed to the increased motor vehicle production in the country.
• Lubricants play an important role in several industries, especially in aerospace and energy generation which is expected to provide significant growth opportunities for the global market.
• Synthetic oil-based lubricant is superior to mineral oil-based and bio-based lubricant. It has extensive application in the aerospace industry.
• The increasing demand for renewable energy in nearby future is one of the driving factors in the lubricants market.

Africa Lubricants Market Segment Analysis – By Base Oil

The synthetic oil segment held the largest share in the African lubricants market in 2021 and it is expected to grow with a CAGR of around 1.7% during the forecast period 2022-2027. Synthetic oil is superior to mineral oil and bio-based oil in several ways. Its performance is better than that of mineral oil and bio-based oil. Synthetic oil has a more homogeneous chemical structure than mineral oils, providing greater heat stability. The distinction between synthetic and mineral oils is in the transformation process: synthetic oil is subjected to more complex alterations. Mineral oils have more contaminants than synthetic oils. Chemical modifications are made to synthetic oil which makes it better for aerospace industries. These characteristics of synthetic oil make it suitable for aerospace industries. According to the International Air Transport Association (IATA), With an annual growth rate of over 5%, Africa is expected to become one of the fastest expanding aviation regions in the next 20 years. Thus, the increasing demand for the aerospace industry is driving the growth of the lubricants market.

Africa Lubricants Market Segment Analysis – By End-Use Industry

The automotive segment held the largest share in the Africa Lubricants Market in 2021 and it is expected to grow with a CAGR of around 2.8% during the forecast period 2022-2027. When it comes to boosting the overall performance of machines and tools, lubrication is a must. It also aids in reducing and controlling friction between load-bearing surfaces. This is for machinery and tools that are utilized in the automotive industry. By producing a lubricating film between surfaces in touch with one another, lubricants reduce wear and increase the overall performance of machines used in various motor vehicles. According to South Africa’s automotive business council, NAAMSA, investment in vehicle manufacturing was US$557 billion in 2021 and US$584 billion in 2020. According to NAAMSA, the automotive industry’s contribution was 4.9% to the gross domestic product of South Africa in 2020. Thus, the growing automotive industry is boosting the lubricant market.

Africa Lubricants Market Segment Analysis – By Country

South Africa is the leading region in the lubricants market in 2021 up to 32% and it is expected to grow with a CAGR of around 2.9% during the forecast period 2022-2027. This growth is mainly attributed to the increase in demand for lubricants in several end-use industries in this region such as automotive, aerospace, and energy generation. Lubricants function as a substantial performance booster and extend the life of engines used in automotive products in the automotive industry. The use of lubricating oil protects the metal surface against corrosion and roughness. It gives machines new life and improves their performance. An increase in motor vehicle production in South Africa is further boosting the demand for lubricants. According to the Organisation Internationale des Constructeurs d’Automobiles (OICA) total motor vehicle production in South Africa in 2021 increased by 12% compared to production in 2020. Total motor vehicle production in South Africa was 499087 units out of which 52% were in the commercial vehicle while 48% were in passenger cars. In 2020 total motor vehicle production in South Africa was down by 29% compared to production in 2019. Thus, the growth in the automotive industry is boosting the market growth.

Africa Lubricants Market Drivers

The surge in Energy Production

Lubricants find an application in energy production owning to having high thermal and hydraulic stability. Lubricants have a high specific heat capacity which makes them more effective. The lubricant is usually cycled continuously to and from a colder area of the system. High-flow systems may transport a lot of heat while also decreasing thermal stress on the lubricant. Such a cooling system forms an important part of energy production systems. The demand for renewable energy sources over conventional sources is increasing day by day which will provide sustainable growth in the future. According to the Department of the Energy Republic of South Africa, 5000 megawatts of renewable energy operational by 2019 and 2000 megawatts of renewable energy operational by 2020 are targeted in integrated resource planning. Thus, with the growing energy demand, the lubricant demand will also rise to smoothly operate the machinery, which will fuel the African market growth.

Growth in Steel Production

Lubricants are used in metal works for a variety of purposes such as polishing, metal forming, lapping, metal cutting, and grinding applications. Lubricants reduce thermal deformation and flush away material that has been removed. Lubricants serve a purpose in a metallurgical application involving metals such as steel, iron, and many more. Lubricants help improve tool life and improve surface finishes. It also functions in localizing strain and inhibiting corrosion. According to the Department of Trade Industry and Corporation, South Africa is the largest steel producer in Africa. According to the World Steel Association, 16 million metric tons of crude steel were produced in Africa in January 2021. It was 29% higher than the January 2020 production of crude steel. With the increasing steel production, it is projected that the demand for lubricants will swiftly grow in Africa, thereby driving the Africa Lubricants Market growth.

Africa Lubricants Market Challenges

Volatility in Crude Oil Prices

Synthetic oil is a lubricant made up of chemical substances that have been synthesized artificially. Synthetic oils are made from crude oil that has been distilled. Crude oil prices are majorly influenced by the supply and demand principle. Synthetic lubricants are frequently utilized to replace petroleum-based oils in applications that need high temperatures. Geopolitical events and critical weather conditions have an impact on the supply of crude oil which disrupts the prices. Such global incidents create uncertainty about the demand and supply of crude oil in the near term future. Oil price volatility is connected to the inelasticity of demand and consumption to price fluctuations in the near term. Thus, the volatility in crude oil prices is hampering the growth of the lubricant market.

Africa Lubricants Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Africa Lubricants Market. Africa Lubricants Market top 10 companies include -

1. Royal Dutch Shell Plc
2. BP Plc (Castrol)
3. Engen Petroleum Ltd.
4. Total
5. Centlube
6. ExxonMobil Corporation
7. Chevron Corporation
8. Fuchs Petrolub AG
9. Sinopec Limited
10. Petrochina Company Limited

Recent Developments

• In February 2020, KenolKobil acquired a Zambian oil marketer Samfuel Limited. This acquisition will help Kenol Zambia to deepen its presence in southern Africa through the acquisition of Samfuel-owned 10 petroleum retail outlets.
• In December 2019, The FUCHS Group has acquired 50% of the shares of 3 distributors based in Zimbabwe, Zambia, and Mozambique. The acquisitions will aid in Fuchs’ objective of increasing lubricants supply to African markets.
• In November 2019, Vivo Energy and Myher Holding have formed a collaboration in the firm Sopétrole to speed up the deployment of their distribution activities in southern Morocco's provinces. In the Saharan provinces, the joint venture will be involved in the storage, marketing, and distribution of Shell brand fuels and lubricants.

Relevant Reports

Industrial Lubricants Market- Forecast (2022-2027)

Report Code: CMR 0417

Synthetic Lubricants Market- Forecast (2022 - 2027)

Report Code: CMR 0584

Biolubricants Market – Forecast (2022 - 2027)

Report Code: CMR 0787

For more Chemicals and Materials Market reports, please click here