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

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  • 80 Pages
  • April 2023
  • Region: Saudi Arabia
  • Mordor Intelligence
  • ID: 5656737
The Saudi Arabian lubricants market is expected to register a CAGR of over 2% during the forecast period.

The COVID-19 pandemic negatively impacted the lubricants market in Saudi Arabia. During COVID-19, the automobile and transport segment was heavily affected due to the lockdown, decreasing lubricant consumption within the country. After 2020, the market grew steadily with continuous activity in the automotive and transport segment.

Key Highlights

  • Major factors driving the market are the progressing industrial sector in the country and the increasing high-performance lubricants usage.
  • Continuous growth in Automotive Production is likely to act as an opportunity in the future.
  • However, an increase in drain intervals in the automotive and industrial sectors will likely hinder the market's growth.
  • By product type, the engine oil segment dominated the market and is projected to register the highest CAGR during the forecast period.

Saudi Arabia Lubricants Market Trends

Automotive and Other Transportation Segment Dominated the Market

  • The automotive and other transportation segment is the primary end-user industry for the lubricants market in Saudi Arabia. It is expected to witness a rise in demand for lubricant oils over the forecast period.
  • The country committed to becoming the auto hub of the Middle East. The Kingdom is adding rail lines, investing in workforce education, expanding shipping ports, and offering other incentives to attract vehicle makers and suppliers.
  • Automotive and other transportation media, such as aircraft and marine, are the largest markets for lubricants in Saudi Arabia. Furthermore, according to The General Authority for Statistics (Saudi Arabia), air traffic increased by 43%, and marine traffic increased by 7% during 2021, indicating lubricating oil usage increase within the country.
  • Additionally, the country is experiencing steady growth in the sales of new passenger cars. According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), around 475,837 units of passenger cars were sold in Saudi Arabia in 2021, an increase of 23% from the previous year.
  • Saudi Arabia includes very few manufacturing units for automotive and transportation. Thus foreign automotive manufacturers are trying to invest in the market, which is expected to open up opportunities for automotive lubricants.
  • According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), Saudi Arabia sold 557 thousand vehicles in 2021, witnessing substantial growth compared to sales of 454.52 thousand units of cars in 2020. This trend is expected to support the lubricant market within the automotive sector.
  • All the abovementioned factors are expected to create demand for lubricants in the country during the forecast period.

Growing Demand for Engine Oil

  • Engine oils generally comprise 75%-90% base oils and 10%-25% additives to lubricate internal combustion engines. It increases engine life due to its applications, such as corrosion protection, wear reduction, and smooth operation of engine internals.
  • Engine oil prevents friction between metal-to-metal contacts by creating a thin film between moving metal parts. It reduces heat transfer and tension during engine operation. Furthermore, the rising average age of passenger cars and the growing urban population in Saudi Arabia will likely drive the engine oil market.
  • Among all segments, the light motor vehicle category includes the highest engine oil consumption rate. Additionally, due to technology advancements and government-mandated fuel economy regulations, automakers have started producing more lightweight automobiles with tighter tolerances.
  • According to the General Authority for Statistics, the automotive industry is expected to witness a growth rate of around 4%-5% annually over the next decade. It is expected to drive the demand for lubricants over the forecast period.
  • In 2022, the Government of Saudi Arabia signed an agreement with Lucid Motors to buy 100,000 electric vehicles over the next ten years. Thus, the increasing adoption of electric vehicles in Saudi Arabia is expected to reduce the demand for engine oil in automobiles.
  • According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), commercial vehicle sales in Saudi Arabia totaled 80,722 units in 2021, representing a 25% increase over the previous year. Local vehicle production in Saudi Arabia is primarily limited to heavy-duty commercial vehicles.
  • All factors above will likely fuel the demand for engine oils in the country during the forecast period.

Saudi Arabia Lubricants Market Competitor Analysis

The Saudi Arabian lubricants market is highly consolidated, with the top five players accounting for more than 90% of the market. The market's major companies are Petromin, Aljomaih and Shell Lubricating Oil Company Limited, FUCHS, CASTROL LIMITED, and APSCO Arabian Petroleum Supply Company, among others.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study



4.1 Drivers
4.1.1 Progressing Industrial Sector in the Country
4.1.2 Growing Usage of High-performance Lubricants
4.2 Restraints
4.2.1 Increasing Drain Intervals in the Automotive and Industrial Sectors
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Regulatory Policy Analysis

5 MARKET SEGMENTATION (Market Size in Volume)
5.1 Base Stock
5.1.1 Bio-based Lubricants
5.1.2 Mineral Oil Lubricants
5.1.3 Synthetic Lubricants
5.1.4 Semi-synthetic Lubricants
5.2 Product Type
5.2.1 Engine Oil
5.2.2 Transmission and Hydraulic Fluid
5.2.3 Metalworking Fluid
5.2.4 General Industrial Oil
5.2.5 Gear Oil
5.2.6 Grease
5.2.7 Process Oil
5.2.8 Other Product Types
5.3 End-user Industry
5.3.1 Power Generation
5.3.2 Automotive and Other Transportation
5.3.3 Heavy Equipment
5.3.4 Food and Beverage
5.3.5 Metallurgy and Metal Working
5.3.6 Chemical Manufacturing
5.3.7 Other End-user Industries

6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share (%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Adinlub
6.4.2 Aljomaih and Shell Lubricating Oil Company Limited
6.4.3 APSCO Arabian Petroleum Supply Company
6.4.5 FUCHS
6.4.6 Petromin
6.4.8 Saudi Arabian Oil Co.
6.4.9 TotalEnergies
6.4.10 Unified Lubricants Co.
6.4.11 Yunitco

7.1 Continuous growth in Automotive Production

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Adinlub
  • Aljomaih and Shell Lubricating Oil Company Limited
  • APSCO Arabian Petroleum Supply Company
  • Petromin
  • Saudi Arabian Oil Co.
  • TotalEnergies
  • Unified Lubricants Co.
  • Yunitco