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

Key Highlights

• The primary factor driving the market's growth is the augmenting automotive production in Pakistan. With the increasing Chinese investment in the past few years, the market studied is expected to see an increase in demand over the forecasted period.
• On the flip side, the sluggish growth in the textile industry is anticipated to restrain the development of the target industry over the forecast period.
• Potential growth in the renewable energy sector will likely act as an opportunity for the market studied.

Pakistan Lubricants Market Trends

Automotive and Transportation Segment to Drive the Demand

• In the automobile sector, lubricants with many qualities are used in multiple application areas for many purposes, including decreasing friction, preventing corrosion and rust development, and maintaining the component's cleanliness.
• The most common form of lubricant used in the automotive sector is engine oils. Engine oils keep the engine clean and stop particle buildup and rust development. Additionally, engine oils increase performance and fuel economy, lengthen engine life, and lower vehicle emissions. Engine oils are widely used to lubricate internal combustion engines and generally comprise 75-90% base oils and 10-25% additives.
• Transmission oil offers a reliable solution for various automotive applications, including synchronized and unsynchronized manual and steering transmission, high-load hypoid transmission, transmissions for electric cars and hybrid cars, and distribution transmission of tractors, cars, and trucks.
• CEIC data shows Pakistan's car sales in December 2021 were 27,666 units. In December 2021, Pakistani motor vehicle sales increased by 93.5%, compared to 29.6% the previous month.
• Pakistan's government established an ambitious National Electric Vehicles Policy (NEVP), with objectives and incentives aimed at capturing 30% of all passenger car and heavy-duty truck sales by 2030 and 90% by 2040. It sets even higher targets for two- and three-wheelers and buses: 50% new sales by 2030 and 90% by 2040.
• DICE Foundation, a group of Pakistanis in the United States, Canada, and the United Kingdom, is preparing to launch the country's first electric automobile.
• According to the International Organization of Motor Vehicle Manufacturers, Pakistan's production reached the pre-pandemic level in 2021, with 238.7 thousand vehicles produced. Nevertheless, the number of cars produced in 2019 fell to just 186.75 thousand.
• With all the above factors, the demand for engine oils is expected to increase at a moderate pace in the forecasted period.

Power Generation to Expand at a Fastest Rate

• Lubricants are crucial in power generation since the machinery is expected to operate continuously under harsh conditions.
• Lubricants used in wind turbines are essential to the wind energy sector's functioning, upkeep, and wind farm dependability. The main bearings, pitch and yaw bearings, and rotor shafts of wind turbines all require hydraulic fluids, greases, and gear oils.
• Turbine oils used in gas and steam turbines need to be thermally stable. These oils control the formation of degradation deposits and help to withstand oxidation. Moreover, this turbine oil protects metal parts. Grease is used in rack‐pinion lubrication, open gears, fittings, chain drives, and sprockets. Engine oils are used in trunk piston applications. Further, gear oil is used for enclosed gears, gearboxes, and bearings.
• Chinese-funded power generation plants are majorly coal-fired. Five of these 13 power plants are coal-fired with a combined capacity of 4,950 MW. China also funded six wind farms set to generate just under 400 MW of power, a 100 MW solar project, and four hydropower plants expected to produce 3,400 MW by 2027.
• According to Pakistan's economic survey, the country's total installed power generation capacity will be 41,557 MW in 2022. The maximum total demand of the country, including all residential, commercial, and industrial estates, is 30,000 MW, whereas the transmission and distribution capacity is still at approximately 22,000 MW. By 2023, Pakistan is expected to have 50% excess generation capacity.
• According to the Ministry of Energy (Power Division), the share of Industry in electricity consumption has increased by almost 9%, reaching 22,280 GWh in the July-March period, which shows a revival of economic activities. Household energy consumption also increased by 5%, reaching 41,508 GWh.
• All such factors and various ongoing electricity projects in the power generation sector are expected to affect the demand for lubricants from the power generation industry in the country during the forecast period.

Pakistan Lubricants Market Competitor Analysis

Additional benefits of purchasing the report:

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