Egypt Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The Egyptian lubricants market size was over 400 kilotons in 2021, and the market is projected to register a CAGR of over 1% during the forecast period.

In 2020, COVID-19 had a negative influence on the market. Due to the pandemic situation, the country was put under lockdown, causing individuals to reduce their use of personal automobiles and other modes of transportation, lowering demand for automotive lubricants. In the year 2021, the market continued to see a decreasing trend. According to CEIC data, the number of passenger car sales in the country is over 101 046 units when compared to 167,792 units last year. This has negatively impacted the lubricant market in the country. However, with the latest technological advancements in automotive and various other industries, the market is expected to see a recovery phase in the forecasted period.

Key Highlights

• The major factors having a positive impact on the market studied are infrastructure development and automobile manufacturing.
• In the automotive sector, the innovation of electric cars is likely to have a positive impact in the forecasted period.
• The current pandemic is likely to hinder the growth of the market studied.
• Increasing demand from the wind energy sector is likely to provide a major growth opportunity for the market studied during the forecasted period.

Egypt Lubricants Market Trends

Increasing Demand for Engine Oil

• Engine Oils are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of engine internals. It functions by creating a thin film between the moving parts to enhance the transfer of heat and reduce tension during the contact of parts.
• According to OICA data, the production of passenger cars increased by 28% in the year 2020 when compared to last year. This has led to an increase in engine oil consumption in the automotive sector of the country.
• The Egyptian government is setting a 500,000 annual car manufacturing target by 2022. This is expected to boost engine oil consumption in the coming years.
• High-mileage engine oil is in high demand at present, owing to the properties that help prevent oil leaks and reduce oil consumption.
• Over the past years, automobile production is increasing in the country resulting in the rise of engine oil sales.
• With the above mentioned factors are expected to contribute to the demand for engine oils in the automotive industry.

Power Generation Segment to Witness Lucrative Growth Rate

• Power generation is one of the most important sectors, without which almost all manufacturing operations may cease. In Egypt the overall production of all-electric energy generating facilities is 184 billion kWh, accounting for 115 percent of the country's own consumption.
• The country has seen rapid growth in the consumption of electricity over the past years. total According to World Dara the country has a consumption of over 159 billion kWh of electricity per year.
• Humidity, high pressure, high loads, vibrations, and temperature are all variables that affect turbines, transformers, and stationary engines. Gear and turbine oils are commonly utilized for lubrication in this industry. Lubrication has the ability to save a lot of money by preventing bearings from wearing out and failing prematurely.
• The above-mentioned factors are likely to drive the market for lubricants in power generation sector in Egypt.

Egypt Lubricants Market Competitor Analysis

The Egyptian lubricants market is highly consolidated among the top six players. The top companies have been utilizing competitive strategies and investments to retain and expand their shares. Key players, namely ExxonMobil Corporation, Co-operative Soceite des petroleum (Copetrole), Misr Petroleum Company, Royal Dutch Shell PLC, and Total, are accounting for more than 80% of the market studied.

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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