The MEA Lubricants market was valued at USD 10.65 Billion in 2023. The Lubricants industry is projected to grow from USD 11.10 Billion in 2024 to USD 13.50 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 2.45% during the forecast period (2024 - 2032). The growing automobile industry is fueling the lubricants market in the Middle East and Africa (MEA). A rise in industrial activity and rising vehicle ownership are fueling the lubricant market. The increasing focus on sustainability and energy efficiency has led to a surge in the use of high-performance lubricants, which lower friction and improve fuel economy in machines and automobiles. The growth of the MEA lubricants market is being accelerated by this trend, offering manufacturers substantial prospects.
Furthermore, the MEA region's swift urbanization and infrastructure growth are important factors propelling the lubricants industry. For maximum efficiency and endurance, manufacturing facilities, construction sites, and increased machinery utilization require effective lubrication. The market is expanding due to the growing need for specialty lubricants designed to satisfy the unique needs of various applications. Lubricant manufacturers are positioning themselves strategically to take advantage of the growing prospects resulting from these dynamic sectors as the region continues to see continuous industrialization.
The market for MEA lubricants is also significantly shaped by legislative actions and government initiatives. The enforcement of strict environmental rules is driving the transition towards sustainable and eco-friendly lubricants. The regional governments are pushing for the use of bio-based lubricants and implementing laws requiring the decrease of hazardous emissions. The current regulatory environment is encouraging lubricant makers to create more environmentally friendly formulations through innovation. As a result, the market for MEA lubricants is changing in response to these legislative requirements, promoting an environmentally favorable and sustainable industrial environment.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The market for lubricants in the Middle East and Africa is now seeing a notable surge in growth, mostly due to the region's strong economic expansion and coordinated efforts in infrastructure development. Due to the increase in economic activity, there is a growing need for lubricants across a variety of industries, which is supporting the growth of the industry as a whole.
Numerous Middle Eastern and African nations have had consistent economic growth, which is a major element propelling this favorable trend. Due to governments' intentional efforts to diversify their economies, the region has emerged as a hub for investors. The expansion of non-oil industries, including manufacturing, transportation, and construction, is frequently a part of this diversification. Lubricants are essential to the smooth and effective operation of machinery in these growing sectors. Because lubricants are essential to improving the longevity and performance of machinery and lowering maintenance costs, this is driving market expansion.
Moreover, the Middle East and Africa's continuous infrastructure-building initiatives are a major factor in the rise in lubricant consumption. The region's governments are making significant investments in building roads, bridges, airports, and other vital infrastructure. Since these projects are mostly powered by construction vehicles and machinery, the lubricants market sees a significant uptick. Lubricants have a crucial role in minimizing wear and tear, decreasing friction, and preserving heavy machinery's optimal performance. As a result, the industry is progressing due to the increasing infrastructure development activities serving as a catalyst.
Apart from the expansion of infrastructure and economic growth, the Middle East and Africa are witnessing a surge in automotive and industrial activity, which in turn is driving up the demand for lubricants. Particularly, the automotive industry is expanding rapidly, propelled by urbanization and growing consumer spending power. A consistent supply of lubricants for engines and other components is required due to the increase in automobile manufacturing and usage, which is driving up market growth. The lubricants market is expected to grow steadily as long as these trends persist, offering profitable prospects to regional industry participants.
The Iran automotive market has witnessed a rise over the historic period, with demand for production increasing in the country. For instance, according to the OICA, car manufacturing in Iran increased by 19% in 2022, as the country manufactured 1.064 million vehicles in 2022, while the passenger vehicles produced were around 894,000 units in 2021.
Based on Product Type, the MEA Lubricants market has been segmented into Mineral Oil Lubricants, Synthetic Lubricants, Bio-Based Lubricants. Mineral oil is the largest segment in the MEA lubricant market. Mineral oil lubricants are vital components that facilitate seamless and effective operations in the automotive and equipment sectors. These lubricants are produced by refining crude oil, which yields a flexible spectrum of products suitable for a variety of uses. Mineral oil lubricants have unique qualities that make them very popular across a wide range of industries because of their overall performance, thermal stability, and affordability.
The capacity of mineral oil lubricants to offer efficient lubrication over a broad temperature range is a major element driving the market for these products. The exceptional thermal stability of these lubricants guarantees reliable operation in conditions with high and low temperatures. This quality, which increases equipment longevity and endurance, is especially important in industries where machinery operates in a variety of harsh environments.
Furthermore, mineral oil lubricants provide excellent viscosity properties, guaranteeing ideal lubrication in a variety of applications. This characteristic is particularly important in the automotive industry since various engine components need varying viscosity levels to function properly. Mineral oil lubricants' capacity to retain viscosity under a variety of pressures and temperatures greatly enhances the total efficiency of engines and other machinery.
Based on shipyards, the MEA Lubricants market has been segmented into Hydraulic Oil, Metalworking Fluids, Gear Oil, Compressor Oil, Dielectric Fluids, and others. Hydraulic fluids constitute an essential component of the lubricants market in the Middle East and Africa (MEA), having been specially formulated to fulfill the stringent needs of hydraulic systems. These fluids are essential to the power transmission of hydraulic machinery, which includes automobile systems, construction equipment, and industrial equipment. In a variety of applications throughout the MEA region, the distinct qualities of hydraulic fluids enhance the effectiveness, dependability, and general performance of hydraulic systems.
Based on Displacement, the MEA Lubricants market has been segmented into Automotive & Transportation, Building & Construction, Metals & Mining, Power Generation, Oil & Gas, Textile, and Others. The Middle East and Africa (MEA) lubricants market is being heavily segmented based on end-use industries, with a particular emphasis on the automotive and transportation sectors. Numerous elements that highlight the distinct dynamics forming the lubricants market in this area are the driving forces for this segmentation. The expanding automotive industry is a major driver of lubricant growth in the Automotive and transportation sectors. The need for efficient lubricating systems is being driven by the growing demand for automobiles, both passenger and commercial. These lubricants are essential for improving engine performance, cutting down on friction, and prolonging the life of automobile parts—all of which help the industry meet its expanding demands.
Stricter environmental laws and a growing focus on sustainability are also impacting the MEA region's lubricants industry. Advanced formulations designed specifically for the automotive and transportation market are being driven by the need for lubricants that lower emissions and improve fuel efficiency. Because of this, producers are concentrating on creating eco-friendly lubricants in order to comply with laws and satisfy changing industry demands.
By country, the Lubricants market is segmented into Saudi Arabia, Qatar, Oman, UAE, South Africa, Egypt, Turkey, Zimbabwe, Zambia, Iran, Iraq, Libya, Morocco, Algeria, and Rest of Middle East & Africa. The US Lubricants market is experiencing significant growth driven by several factors. The Middle East and Africa (MEA) lubricants market is experiencing significant growth, driven by a confluence of factors that are shaping the industry landscape in the region. A significant determinant is the substantial proliferation of industrial operations in the Middle East. The region's thriving oil and gas sector, coupled with burgeoning manufacturing and construction activities, has created a burgeoning demand for lubricants. As industries expand and modernize, the need for high-performance lubricants to ensure smooth machinery operation becomes paramount. This element is a contributor to the expansion of the Middle Eastern lubricants market.
Additionally, the strategic geopolitical positioning of the Middle East as a global trade hub plays a pivotal role in the expansion of the lubricants market. The region serves as a key transit point for goods moving between Asia, Europe, and Africa. This increased logistical activity, particularly in shipping and transportation, demands efficient lubrication systems to maintain the reliability and longevity of vehicles and machinery. Consequently, the demand for lubricants is witnessing a substantial uptick, fueled by the transportation needs of a burgeoning trade ecosystem.
In the African context, the growth of the lubricants market is closely tied to the continent's evolving automotive sector. With rising incomes and urbanization, there is an increasing demand for automobiles across Africa. The automotive industry's expansion, accompanied by a growing awareness of the importance of regular maintenance, is driving the consumption of lubricants. This trend is further amplified by the increasing prevalence of heavy machinery in the construction and mining sectors, necessitating high-quality lubricants for optimal performance.
Moreover, stringent environmental regulations are influencing the lubricants market dynamics in the MEA region. Governments are enforcing regulations that encourage the use of environmentally friendly lubricants, promoting sustainable practices in industries. This shift towards eco-friendly lubricants is not only aligning with global environmental goals but is also creating new opportunities for market players to innovate and introduce greener alternatives. As the region continues to undergo rapid economic development, these factors collectively contribute to a robust and expanding lubricants market in the Middle East and Africa.
The Middle East and African lubricants market is projected to register a CAGR of 3.0% during the forecast period. Lubricants market competition in the Middle East and Africa is characterized by the coexistence of major international corporations and local contenders, all striving for a portion of the market. Prominent multinational corporations, including ExxonMobil, Shell, and Chevron, wield considerable market sway by capitalizing on their vast array of products and technological progress. These behemoths frequently control markets such as synthetic lubricants, with a focus on a wide range of industries, including automotive and industrial apparatus.
Concurrently, prominent regional entities such as Petromin Corporation in Saudi Arabia and Oryx Energies in Africa solidify their positions by comprehending and addressing the intricacies of the local markets. The competition is rendered more intense due to the rise of specialized lubricant manufacturers that prioritize environmentally favorable solutions, thereby conforming to the increasing focus on sustainability. The competitive environment is influenced not only by conventional factors such as product quality and distribution but also by advancements in environmentally sustainable formulations and strategic partnerships aimed at capturing the dynamic and multifaceted lubricants market in the area.
BP p.l.c. - Optimize core oil and gas business: While transitioning, BP recognizes the ongoing importance of its existing oil and gas business. To maximize profitability and returns in this segment, BP is streamlining operations, focusing on high-value assets, and improving efficiency. Championing convenience and mobility: BP is expanding its convenience retail offerings, integrating them with digital solutions and EV charging infrastructure. This aims to create a seamless customer experience across various mobility needs, including electric vehicles and alternative fuels. Prioritizing safety and sustainability: BP emphasize safe and responsible operations across its businesses. It has set ambitious targets for reducing carbon emissions, improving safety performance, and fostering a culture of sustainability within its operations and value chain.
The International Organization of Motor Vehicle Manufacturers (known as OICA) ranked Iran sixth in the world in terms of car manufacturing growth in 2022.
Moreover, in 2022, UAE's car market sold over 400,000 new cars, representing a 10% increase over the previous year. This growth is expected to continue in the coming years, driven by the country's growing population and rising incomes.
According to the Ministry of Energy, Saudi Arabia's spending on power and renewable energy projects is expected to reach USD 293 billion by 2030. Additionally, in December 2021, Saudi Arabia's Energy Minister announced the country's plan to spend USD 38 billion on energy distribution by 2030.
In December 2023, the Saudi Arabian government announced to investment of about USD 12 billion in steel projects to increase steel production and meet the significant growth in domestic demand. The project is planned to have a total production capacity of about 6.2 million tons.
In December 2022, Aljomaih and Shell Lubricating Oil Company (JOSLOC) launched Rotella HD 25W50 for diesel engines used in heavy-duty trucks, buses, agricultural equipment, and mining and construction vehicles, among others. It provides an advanced triple-action protection formula that minimizes wear for long engine life, reduces deposit formation to maintain performance, and improves resistance to breakdowns caused by excessive heat.
In March 2022, Stellantis Middle East launched an innovative new mega-facility for sales, servicing, and spare parts (3S) in Riyadh in partnership with Petromin. Stellantis N.V., formerly Fiat Chrysler Automobiles N.V., is one of the world's leading automakers and mobility providers. This partnership was expected to help Petromin to deepen its roots in the Middle East.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 10.65 Billion |
| Market Size 2024 | USD 11.10 Billion |
| Market Size 2032 | USD 13.50 Billion |
| Compound Annual Growth Rate (CAGR) | 2.45%(2024-2032) |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2021 |
| Forecast Units | Value (USD Million) Volume (Kilotons) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Product Type, End-Use, and Country |
| Countries Covered | Saudi Arabia, Qatar, Oman, UAE, South Africa, Egypt, Turkey, Zimbabwe, Zambia, Iran, Iraq, Libya, Morocco, Algeria, Rest of Middle East & Africa |
| Key Companies Profiled | •            Exxon Mobil Corporation •            Shell •            BP p.l.c. •            Chevron •            TotalEnergies •            ENOC Company •            Gulf Oil International Ltd •            PETRONAS Lubricants International •            LUKOIL •            Axcl Lubes |
| Key Market Opportunities | ·      Technological Advancements ·      Scalability Requirements |
| Key Market Dynamics | ·      Digital Transformation ·      Sustainability ·      Cybersecurity Concerns ·      Efficiency and Cost Reduction |
Frequently Asked Questions (FAQ) :
USD 13.50 Bn
2.45%
Exxon Mobil Corporation, Shell , BP p.l.c, Chevron, TotalEnergies, ENOC Company, Gulf Oil International Ltd, PETRONAS Lubricants International, LUKOIL, Axcl Lubes
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Team Lead - Research Anshula mandaokar holds an academic degree in chemical engineering and has been contributing to the field for more than 5 years. she has expertise in market research and business consulting and serves as a team lead for a reputed market research firm under the chemicals and materials domain spectrum. she has worked on multiple projects, generating explicit results in a quick turnaround time. her understanding of data interpretation justifies her role as a leader.
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