Saudi Automotive Lubricants & EV-Specific Fluids Market Size, Share, Growth Drivers, Trends, Opportunities, Competitive Landscape & Forecast 2025-2030

Saudi Arabia automotive lubricants and EV-specific fluids market valued at USD 1.5 billion, driven by vehicle growth, EV adoption, and high-performance demand.

The Saudi Arabia Automotive Lubricants and EV-Specific Fluids Market is valued at USD 1.5 billion, based on a five-year historical analysis. This growth is primarily driven by the increasing vehicle population, rising awareness of vehicle maintenance, and the growing demand for high-performance lubricants and fluids, particularly in the context of electric vehicles (EVs) and their specific requirements.

Key cities such as Riyadh, Jeddah, and Dammam dominate the market due to their significant automotive activity, high population density, and the presence of major automotive manufacturers and service centers. These urban centers are also pivotal in the distribution and retail of automotive lubricants and fluids.

In 2023, the Saudi government implemented regulations mandating the use of environmentally friendly lubricants in public transportation vehicles. This initiative aims to reduce emissions and promote sustainability within the automotive sector, thereby influencing the market dynamics for automotive lubricants and fluids.

Saudi Arabia Automotive Lubricants and EV-Specific Fluids Market Segmentation

By Type:

The market is segmented into various types of automotive lubricants and fluids, including engine oils, transmission fluids, greases, hydraulic fluids, coolants, EV-specific fluids, and others. Each of these segments plays a crucial role in vehicle performance and maintenance.

The engine oils segment is the dominant player in the market, driven by the high demand for engine performance and longevity. Consumers are increasingly opting for synthetic and high-mileage oils, which offer better protection and efficiency. The growing trend of regular vehicle maintenance and the rise in the number of vehicles on the road further bolster the demand for engine oils, making it a critical segment in the automotive lubricants market.

By End-User:

The market is segmented based on end-users, including passenger vehicles, commercial vehicles, two-wheelers, electric vehicles, fleet operators, and others. Each segment has unique requirements and contributes differently to the overall market dynamics.

Passenger vehicles dominate the end-user segment, accounting for a significant share of the market. This is attributed to the high number of personal vehicles in Saudi Arabia, coupled with a growing awareness of the importance of regular maintenance and the use of quality lubricants. The increasing disposable income and changing consumer preferences towards vehicle performance further enhance the demand in this segment.

Saudi Arabia Automotive Lubricants and EV-Specific Fluids Market Competitive Landscape

The Saudi Arabia Automotive Lubricants and EV-Specific Fluids Market is characterized by a dynamic mix of regional and international players. Leading participants such as Saudi Aramco, Al-Jomaih and Shell Lubricating Oil Company, TotalEnergies Marketing Middle East, Castrol Limited, Mobil 1, Fuchs Petrolub SE, Gulf Oil International, Petronas Lubricants International, Chevron Corporation, Valvoline Inc., Lukoil, Idemitsu Kosan Co., Ltd., ENOC Group, Sinopec Limited, Afton Chemical Corporation contribute to innovation, geographic expansion, and service delivery in this space.

Saudi Arabia Automotive Lubricants and EV-Specific Fluids Market Industry Analysis

Growth Drivers

Increasing Vehicle Ownership:

The vehicle ownership rate in Saudi Arabia has surged, with over 15 million registered vehicles as of 2024. This growth is driven by a rising population, which is projected to reach 40 million in the future, and increasing urbanization. The demand for automotive lubricants is directly correlated with this trend, as more vehicles on the road necessitate higher lubricant consumption, thereby boosting market growth significantly.

Rising Demand for High-Performance Lubricants:

The Saudi automotive sector is witnessing a shift towards high-performance lubricants, with a market value of approximately SAR 1.6 billion in the future. This demand is fueled by the increasing performance standards of modern vehicles, which require advanced lubricants to enhance engine efficiency and longevity. As vehicle manufacturers focus on quality, the demand for superior lubricants is expected to rise, further propelling market growth.

Growth in Electric Vehicle Adoption:

The electric vehicle (EV) market in Saudi Arabia is expanding rapidly, with over 25,000 EVs sold in the future. Government initiatives, such as the Saudi Green Initiative, aim to increase EV adoption to 35% of total vehicle sales in the future. This transition necessitates specialized EV-specific fluids, creating a new segment within the automotive lubricants market that is poised for significant growth in the coming years.

Market Challenges

Fluctuating Crude Oil Prices:

The automotive lubricants market in Saudi Arabia is heavily influenced by crude oil prices, which have shown volatility, averaging around $85 per barrel in the future. This fluctuation impacts production costs for lubricant manufacturers, leading to potential price increases for consumers. Such instability can hinder market growth as manufacturers struggle to maintain competitive pricing while ensuring profitability.

Limited Consumer Awareness of EV-Specific Fluids:

Despite the growth in EV adoption, consumer awareness regarding the importance of EV-specific fluids remains low. A survey indicated that only 32% of EV owners in Saudi Arabia are aware of the unique lubricants required for their vehicles. This lack of knowledge can lead to improper maintenance, affecting vehicle performance and longevity, and ultimately posing a challenge to market expansion in this segment.

Saudi Arabia Automotive Lubricants and EV-Specific Fluids Market Future Outlook

The future of the automotive lubricants and EV-specific fluids market in Saudi Arabia appears promising, driven by increasing vehicle ownership and a shift towards sustainability. As the government continues to support EV infrastructure development, the demand for specialized lubricants will likely rise. Additionally, advancements in lubricant formulations and a growing focus on bio-based products will create new opportunities for manufacturers, enhancing their competitive edge in a rapidly evolving market landscape.

Market Opportunities

Expansion of EV Infrastructure:

The Saudi government plans to invest SAR 1.2 billion in EV infrastructure in the future, which will significantly enhance charging station availability. This expansion will not only support EV adoption but also create a demand for EV-specific lubricants, presenting a lucrative opportunity for manufacturers to cater to this emerging market segment.

Development of Bio-Based Lubricants:

With sustainability becoming a priority, the market for bio-based lubricants is expected to grow. The Saudi government aims to increase the share of renewable energy to 55% in the future, encouraging the development of eco-friendly lubricants. This shift presents an opportunity for companies to innovate and capture a growing segment of environmentally conscious consumers.