Automotive Demand and Infrastructural Development to Drive Lubricants Demand in Middle East and North Africa: Ken Research
MENA lubricants market is predicted to pace up rapidly in the forthcoming years and scale new heights. Abundance of base oil and low cost of production have driven the growth of lubricants production in the region. An important trend observed in this region is that markets which have been comparatively larger from volume point of view were less advanced than smaller consuming markets such as the United Arab Emirates (UAE).
Islamic Republic of Iran (Iran) and Egypt were the largest markets in terms of consumption, which accounted for nearly ~% of the total demand in Middle East in 2014. Northern Africa is also a small lubricant consuming market from a volume point of view, with Egypt being the top most consumers.
Further, rising demand from international markets has been inducing producers to expand production capacities. It is forecasted that the lubricants production will surge to a gigantic ~ thousand tons by the year 2019 due to expanding refining capacities and upcoming blending facilities. The production is anticipated to register a noteworthy CAGR of ~% during the forecasted period 2015-2019.
Rapid industrial development in the region, tourism activities and booming automotive sector are the major factors fuelling the demand for lubricants in MENA countries. The total lubricants consumption is forecasted to mount to ~ thousand tons by the year 2019 at an appreciable CAGR of ~% during the period 20152019.
The rapidly increasing vehicle population in the region, rising disposable income of consumers and healthy GDP growth rates allowing government to invest in infrastructural and industrial development projects are considered important to drive the market in the near future.
MENA region is a major player in the Group I base oil segment and is projected to be the one of the last few markets to shift to lighter grade base oils. African countries have comparatively low income level than Middle East countries and can likely afford high-end synthetic products made from Group III or Group IV base oil and this is the major reason behind countries including Saudi Arabia and Iran producing Group I base oil in larger quantities.
Further, due to absence of any restrictions, low quality lubricants have been imported in most of the countries. Despite of high income level, consumers still prefer puncture shops over lube oil centers and therefore do not mind the use of low quality oil to save costs. Absence of stringent regulations and lack of awareness have restricted the use of synthetics in the region.
“It is anticipated that MENA region will slowly progress towards use of premium quality oil with the increase in number of new vehicles in the long run. Further, the government might have to enter intro joint ventures with international players to ensure that the market progresses towards use of premium quality lubricants.�, according to the Research Analyst, Ken Research.
The report titled “MENA Lubricants Market Outlook to 2019� provides detailed overview on the Lubricants Market and helps reader to identify the ongoing trends in the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will help industry lubricant manufacturers, wholesalers, distributors, consultants, new entrants and other stakeholders to align their market centric strategies according to ongoing and expected trends in the future.
Key Products Mentioned in the Report
Mineral Oil-based Lubricants Synthetic Lubricants Base Oil
Companies Covered in the Report Abu Dhabi National Oil Company Al Jomaih and Shell Lubricating Oil Company Limited Alhamrani-Fuchs Petroleum Saudi Arabia Limited Behran Oil Company BP Co-operation Petroleum Co. (Copetrole) Emarat Misr Emirates Lube Oil Co. Ltd.
Emirates National Oil Company ExxonMobil Iranoil Oil Company Misr Petroleum Company NAFTAL Pars Oil Company Petromin Corp. Sepahan Oil Company Total
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Contact: Ken Research Ankur Gupta, Head Marketing & Communications Ankur@kenresearch.com +91-9015378249 Website : https://www.kenresearch.com/automotive-transportation-andwarehousing/automotive-and-automotive-components/mena-lubricantsmarket-research-report/1109-100.html
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