The Middle East lubricant and grease market was valued at $11.5 billion in 2021, and is projected to reach $16.1 billion by 2031, growing at a CAGR of 3.5% from 2022 to 2031.
A lubricant is a substance that aids in decreasing friction between surfaces in close proximity, which in turn lowers the heat produced as the surfaces move. The primary functions of a lubricant are to reduce friction, prevent wear, protect the equipment from corrosion, control temperature. It also controls contamination, transmits power (hydraulics), and provides a fluid seal. Grease is a semi-solid compound generated when a thickening ingredient is deposited in a liquid lubricant. It contains chemical mix of thickener, oil, and additives. Grease behavior is mostly determined by the base oil and additives used in the formulations. Grease additives are used to improve desirable qualities, inhibit unwanted properties, or introduce new properties to improve the operating efficiency of the grease.
Rise in automotive manufacturing and shipbuilding business drives the growth of the lubricant and grease market. Surge in usage of high-performance lubricant and grease further propels the market growth. Numerous upcoming construction projects in Middle East are projected to create an opportunity for lubricant and grease market. Innovation in bio-greases in environmentally sensitive nations and the demand for more high-performance products is foreseen as an opportunity for the lubricant and grease market. Additionally, lubricant and grease are utilized to improve equipment drain/re-greasing intervals, improve lubricating efficacy, enhance friction pair wear resistance, and prolong equipment lifespan. Lubricant and grease are used as hydraulic fluids and compressor oils in the steel industry for various applications. Lubricants are required for equipment, including blast furnaces and continuous castings to decrease downtime and improve operational effectiveness. Such factors boost the market growth during the forecast period.
The Middle East lubricant and grease market is segmented on the basis of type, application, and country. Depending on type, the market is categorized into heavy duty engine oils (HDEO), passenger car motor oil (PCMO), gear oil, hydraulic fluids, turbine oils, greases, compressor oil, and others. On the basis of application, the market is categorized into power generation, automotive, heavy equipment, food & beverage, chemical manufacturing, and others. On the basis of country, the market is studied across Middle East.
Major players operating in the Middle East lubricant and grease market include, Armor Lubricants, Total, Petromin, Aljomaih And Shell Lubricating Oil Company Limited, Behran Oil Co., FUCHS, Exxon Mobil Corporation, GULF OIL Middle East Limited (GULF OIL International), Emarat, and Idemitsu Kosan Co., Ltd.
Middle East Lubricant and Grease Market, By Type
The heavy duty engine oils (HDEO) segment accounted for the largest market share in 2020. The increase in average age of passenger cars and rise in urban population in the developing countries are expected to drive the growth of the market for engine oils.
By Type
Heavy Duty Engine Oils (HDEO) is projected as the most lucrative segment.
Middle East Lubricant and Grease Market, By Application
Power generation segment is anticipated to garner the highest CAGR during the forecasted period. Energy demand is gradually increasing worldwide. Along with the construction of new power plants, efforts are being made to increase the capacity and efficiency of existing power generation plants. These factors are collectively driving the growth of the lubricant and grease market.
By Application
Automotive are projected as the most lucrative segment.
Middle East Lubricant and Grease Market, By Country
Saudi Arabia is expected to witness fastest growth during the forecast period owing to rise in demand from various sectors including power generation, automotive, heavy equipment, food & beverage, chemical manufacturing.
By Country
Iran is projected as the most lucrative market.
Key Benefits For Stakeholders
- The report provides an in-depth analysis of the Middle East lubricant and grease market trends along with the current and future market forecast.
- This report highlights the key drivers, opportunities, and restraints of the market along with the impact analyses during the forecast period.
- Porter’s five forces analysis helps analyze the potential of the buyers & suppliers and the competitive scenario of the Europe wood coatings industry for strategy building.
- A comprehensive Middle East lubricant and grease market analysis covers factors that drive and restrain the market growth.
- The qualitative data in this report aims on market dynamics, trends, and developments.
Impact Of Covid-19 On The Middle East Lubricant And Grease Market
- The outbreak of COVID-19 in China and its spread across numerous countries globally, halted the manufacturing activities of industrial sectors, which correspondingly hampered Middle East lubricant and grease manufacturing as well. The raw material procurement was also challenged owing to the outbreak of COVID-19.
- The COVID-19 pandemic is expected to have significant impact on industrial participants operations, indirectly and directly with respect to customer behavior, labor shortages or stoppages, inventory, sales, business and manufacturing operations, and others. As per companies operating in the market, there are numerous uncertainties about the COVID-19 pandemic, comprising the scope of scientific and health problems, the expected period of the pandemic, and the political, and economic disturbance it might cause. Manufacturing as well as the supply regions witnessed economic slowdown owing to lockdown.
- The grease market is significantly influenced by the variation in the crude oil market. Between 2008 and 2014, the crude oil market enjoyed a profitable run as prices hit USD 100 barrier per barrel and beyond. The Brent crude was priced at USD 140 per barrel, and WTI was priced at USD 120 per barrel. In 2015, crude prices dropped to record lows. Such volatile prices affect the margins of manufacturing companies.
- The majority of grease products are based on mineral oil, which is sourced from crude oil. Therefore, the prices of grease depend on crude oil prices. Price change has a huge impact on the grease market.
Middle East Lubricant and Grease Market Report Highlights
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Analyst Review
According to the opinions of various CXOs of leading companies, the lubricant and grease market is driven by high demand for lubricant in the automotive sector. In addition, increased demand for high-performance engines is expected to boost the market growth of lubricant and grease during the forecast period. Additional factors that are anticipated to propel the lubricant and grease market during the forecast period include rise in process automation in most industries and gradual increase in the number of vehicles on the road. Furthermore, there are many drivers of growth throughout the Middle East, but the largest can be found in the industrial segment within Saudi Arabia, the UAE, and Iran. In addition to industrial lubricants, engine oil is expected to continue increasing due to the demand for high-performance lubricants, including synthetics and synthetic blends.
The demand for Middle East lubricant and grease is increasing and will continue to increase due to the tremendous growth in the transportation and industrial sector.
The Middle East Lubricant And Grease market is projected to reach $16.1 billion by 2031, registering a CAGR of 3.5% from 2022 to 2031.
Major players operating in Middle East Lubricant And Grease are Armor Lubricants, Total, Petromin, Aljomaih And Shell Lubricating Oil Company Limited, Behran Oil Co., FUCHS, Exxon Mobil Corporation.
The market growth is primarily due to the demand from various industries across the Middle East. Lubricant and grease is widely used in the automotive industry to reduce friction, wear, protect against corrosion, and resist leakage. Grease with superior oxidation stability is used in bearings.
Power generation segment is projected to be the fastest growing segment.
Automotive and power generation application are expected to drive the adoption of Middle East lubricant and grease.
The COVID-19 pandemic impacted the market negatively. However, the market is now estimated to have reached pre-pandemic levels, and it is expected to grow steadily during the forecast period
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