Analysis of the Automotive Lubricants Market - Nigeria and South Africa

  • ID: 3750599
  • Report
  • Region: Africa, Nigeria, South Africa
  • 147 Pages
  • Frost & Sullivan
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Decreasing GDP Growth Rate Strains Automotive Lubricant Sales
This research service examines the automotive lubricant markets in South Africa and Nigeria. Following the assumptions of slow economic growth rates, slow GDP growth rates, and oil price volatility, the forecast predicts a decline in the revenue and volume demand growth rates for automotive lubricants in the short term. Driving overall market growth in automotive lubricants is the shift in the middle-class population and the subsequent increase in vehicle consumption. Government legislation and OEM requirements are shifting the industry towards synthetic lubricants that are higher quality, specialized, and bio-based. Engine oil and the other lubricants applications are forecast to be an area with high growth opportunity.

This research service examines the automotive lubricant markets in South Africa and Nigeria. Following the assumptions of slow economic growth rates, slow GDP growth rates, and oil price volatility, the forecast predicts a decline in the revenue and volume demand growth rates for automotive lubricants in the short term.

Driving overall market growth in automotive lubricants is the shift in the middle-class population and the subsequent increase in vehicle consumption. Government legislation and OEM requirements are shifting the industry towards synthetic lubricants that are higher quality, specialized, and bio-based. Engine oil and the other lubricants applications are forecast to be an area with high growth opportunity.

- The market size for the total Nigerian and South African automotive lubricants market, in terms of volume demand, is expected to grow at a CAGR of X% from metric tonnes (MT) in 2015 to MT 2020 with a growth rate of X% for the year 2020.

- The key drivers of the market are the growing demand for light commercial vehicles, (LCVs), medium commercial vehicles (MCVs), heavy commercial vehicles (HCVs), and the increasing vehicle parc.

- Driving the overall market growth in automotive lubricants is the shift in the middle class population, the subsequent increase in vehicle consumption, and the growth of industrialisation in Nigeria and South Africa.

- Both Nigeria and South Africa rely heavily on raw materials (base oils and additives) sourced from imports, however, the volatility in future oil price coupled with devaluating currencies in both countries, is expected to drive the local manufacturing and production market for automotive lubricants.

- The revenue generated from the automotive lubricants sector in Nigeria is expected to grow from $X billion in 2015 to $X billion in 2020 at a CAGR of X%.

- In Nigeria, about X% of the vehicles on the road are second hand vehicles that will require more frequent lubricant drains in the long term contributing to the volume demand of automotive lubricants in Nigeria.

- In South Africa, it is expected that the total revenue for automotive lubricants in the formal sector will increase from $X million in 2015 to $X million in 2020 at a CAGR of X%.

- The increasing average lifespan of new model vehicles in operation, particularly in South Africa, will require less frequent lubricant drains. However, these lubricants are of higher quality and costs, raising revenue growth in the long term.

- Tahe automotive lubricants market is led by the engine oil application in Nigeria with a revenue CAGR of % from 2015 to 2020.

- The “other lubricants segment” (transmission fluid, gear oils, and coolants) is forecast to be the fastest growing segment in the South African market. It is projected to grow from $X million in 2015 to $X million by 2020 at a CAGR of X%. In Nigeria, the revenue from the other lubricants segment is expected to grow at a CAGR of X%.

- The engine oil segment and the other lubricants segment is forecast to be an area with high growth opportunity for Nigeria and South Africa.

- Trends that are shifting the industry towards higher quality, specialised, bio-based, and synthetic automotive lubricants are government legislation, original equipment manufacturer (OEM) requirements, and improved marketing by distributors.

- Nigeria’s synthetic lubricants market makes up a small percentage of Nigeria’s total automotive lubricants market at around%. However, Nigeria is forecast to experience stable growth in the long term. This can be attributed to strong growth in the importation of new vehicles year over year, of which around X% are high-end vehicles.
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1. Executive Summary

2. Market Overview

3. Drivers and Restraints - Total Automotive Lubricants Market

4. Forecasts and Trends - Total Automotive Lubricants Market

5. Demand Analysis - Total Automotive Lubricants Market

6. Market Share and Competitive Analysis - Total Automotive Lubricants Market

7. Nigeria Analysis

8. Engine Oil Segment Analysis - Nigeria

9. Hydraulic Fluids Segment Analysis - Nigeria

10. Other Lubricant Segment Analysis - Nigeria

11. South Africa Analysis

12. Engine Oil Segment Analysis - South Africa

13. Hydraulic Fluids Segment Analysis - South Africa

14. Other Lubricants Segment Analysis - South Africa

15. The Last Word

16. Appendix
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