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

Key Highlights

• Over the next five years, market growth is likely to be driven by the growing automotive and transportation industries.
• On the other hand, the increasing penetration of electric vehicles is likely to hamper market growth.
• Investment and government support will create market opportunities in the future.
• The engine oil product type is the most popular on the market, and this is expected to stay true over the next few years.

Colombia Lubricants Market Trends

Automotive Sector to Dominate the Market

• The automotive sector is the largest market for lubricants. Engine designs are continually improved to enhance performance, increase efficiency, and meet environmental emission regulations.
• Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are these automobiles' most widely used lubricants. Engine oils are widely used for lubricating internal combustion engines in different types of automobiles. They are generally composed of base oils and additives.
• Some of the most important things that engine oils do are protect against corrosion and wear and tear so that the engine lasts longer and works better, reduce friction so that the engine works better and uses less fuel, get rid of impurities so that the engine is clean, make the engine as efficient as possible, and keep energy from escaping by keeping it cool.
• In 2021, nearly 229,490 new motor vehicles were sold in Colombia, a rise of more than 32% from the year before. In South America, Colombia ranked fourth in terms of new vehicle sales. thus positively impacting the market.
• Also, the country's market for used cars is growing, which will increase the need for lubricants. In 2021, for every new vehicle sold, more than four used vehicles were sold in Colombia. Over one million used cars were sold in 2021, an increase of nearly 57% compared to 2020.
• So, because of all of these things, the growing automotive industry is expected to help the lubricants market in Colombia over the next few years.

High Demand of Lubricants From Heavy Equipment

• Heavy equipment lubricants are used in sectors like construction and oil and gas. With the country's expanding oil and gas and construction sectors, the demand for lubricants is expected to rise significantly during the forecast period.
• In the construction sector, lubricants prevent premature failure and decline in construction equipment performance as they are subjected to extremely harsh operating conditions that involve heat, dirt, and moisture.
• Lubricants perform various functions, primarily to safeguard the construction equipment from bearing failures, the short lifespan of engine oils, the lower resistance of diesel fuel to water, and the rusting of cables, ropes, and draglines.
• Lubricants are used a lot in oil and gas production, like when drilling and doing other work.Lubricants, like engine oils, gear oils, greases, and hydraulic oils, are an important part of the equipment used to process natural gas and crude oil.
• The Colombian highway authority, Invas, gave the Viaducto Ciénaga del Magdalena partnership a USD 187 million contract in March 2022 to build three bridges on the Ciénaga-Barranquilla route.which in turn supports market growth.
• Furthermore, there are several upcoming projects in the country; for instance, the construction of a new highway called the 5G Troncal Magdalena road concession is anticipated to cost USD 773 million. The route will connect Barrancabermeja in Santander Department with Puerto Salgar in Cundinamarca Department. The construction is projected to begin in 2024.
• Moreover, according to the BP Statistical Review 2022, the total natural gas production in the country was 12.6 billion cubic meters in 2021, representing an increase of more than 6.5% compared to 2017. thus benefiting the market's growth during the forecast period.
• Because of all of these factors, the lubricants market in Colombia is expected to grow a lot over the next few years.

Colombia Lubricants Industry Overview

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