Market Size of Middle East Lubricant Additives Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Middle East Lubricant Additives Market Analysis
The Middle-East lubricant additives market is estimated to register a CAGR of over 4% during the forecast period (2022-2027).
The outbreak of COVID-19 adversely affected the automotive and transportation industries, resulting in all-time low sales and service of both new and used vehicles. Persistent lockdowns and curfews led to disruptions in the construction and heavy equipment manufacturing industries, which effectively dropped the demand for lubricant derivatives in the market. Disruptions in the supply chain also paved the way for an overall reduction in demand and supply in the lubricant market. However, the ease of travel restrictions, rise in transportation activities, and implementation of mass vaccination programs aided the growth of this sector in 2021 in the form of elevated automobile sales. Companies in the automotive market are putting a lot of money into making cars so that they can increase their production and sales.
- A major share of demand for lubricant additives is expected from the Middle-East automotive industry. Benefitting from its strategic location and future-ready infrastructure, Dubai is perceived as the key automotive hub in the Middle East for the export of vehicles to the surrounding regions. The rising penetration of synthetic engine oil in the region is expected to be one of the major drivers within the automotive sector.
- However, supply chain disruptions and fluctuations in oil prices owing to geopolitical factors could potentially impact the supply of lubricant additives. Problems in the supply chain and logistics can cause problems like longer wait times for lubricant supplies, price changes, and less inventory.
Nevertheless, with major players mitigating the effect of supply chain disruptions with thorough inventory management, the demand and supply of lubricant additives are expected to stabilize during the forecast period. Key uses in power generation, heavy equipment, metallurgy, and metalworking are expected to further drive the demand in the next five years.
