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The Pakistani lubricants market (henceforth, referred to as the market studied) is expected to register a CAGR greater than 1%, during the forecast period.
COVID-19 had a negative impact on the market studied due to lockdowns imposed by the government. However, the market has seen a recovery phase in the year 2021. According to CEIC, Motor vehicles sales in Pakistan grew by 5.9% from July 2006 till Dec 2021. The total production of automotive vehicles in the year 2020 was reported at 117,375 units.
The major factor driving the growth of the market studied is the augmenting textile production in Pakistan. With the slight increase in the automotive sector in the past year the market studied is expected to see an increase in demand in the forecasted period.
- Potential growth in the energy sector is likely to act as an opportunity for the market studied.
- The engine oil segment dominated the market studied and is expected to continue its dominance during the forecast period.
Scope of the Report
Lubricant products are made from a combination of base oils and additives. The composition of base oil in the formulation of lubricants is primarily between 75-90%. Base oils possess lubricating properties and make up to 90% of the final lubricant product. The Pakistan Lubricants market is segmented by product type and end-user industry. By product type, the market is segmented by engine oil, transmission and hydraulic fluid, general industrial oil, gear oil, grease, and other product types. By end-user industry, the market is segmented by power generation, automotive and other transportation, heavy equipment, food and beverage, and other end-user industries. For each segment, the market sizing and forecasts have been done on the basis of volume (million liters).
|Transmission and Hydraulic Fluid|
|General Industrial Oil|
|Other Product Types|
|Automotive and Transportation|
|Food and Beverage|
|Other End-user Industries|
Key Market Trends
Engine Oil Segment to Expand at a Fastest Rate
- Engine oils are widely used to lubricate internal combustion engines and are generally composed of 75-90% base oils and 10-25% additives.
- They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of engine internals. They function by creating a thin film between the moving parts for enhancing the heat transfer and reducing tension during the contact of parts.
- According to CEIC data, Pakistan's car sales in December 2021 were 27,666 units. In December 2021, Pakistani motor vehicle sales increased by 93.5 percent, compared to 29.6 percent the previous month.
- In order to battle pollution, the country has planned to shift to Electric vehicles, and with tax braked Electric vehicles have become more affordable to the public.
- Recently Pakistan's government established an ambitious National Electric Vehicles Policy (NEVP), with objectives and incentives aimed at capturing 30 percent of all passenger car and heavy-duty truck sales by 2030, and 90 percent by 2040 in the country. It sets even higher targets for two- and three-wheelers, as well as buses: 50% new sales by 2030, and 90% by 2040.
- DICE Foundation, a group of Pakistanis located in the United States, Canada, and the United Kingdom, is prepared to launch the country's first electric automobile.
- With all the above factors the demand for Engine Oils is expected to increase at a moderate pace in the forecasted period.
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Increasing Textile Production to Drive the Demand
- The Textile Industry contributes close to 8% to the total GDP of the country and is the 8th largest exporter of textile commodities in Asia.
- According to the Government of Pakistan Ministry of Textile Industry, the textile industry in Pakistan has a significant impact on the business economy, contributing 57 % of the country's exports.
- Lubricants, such as greases, heat transfer fluids, gear oils, compressor oils, transmission, and hydraulic fluids, and anti-static oils are used in the textile industry.
- According to Pakistan Bureau of Statistics, textile and apparel exports brought in $6.021 billion in fiscal year 2021-2022, compared to $4.758 billion in July-October 2020.
- With global demand for Apparel clothing increasing at 2.5% Year on Year the opportunity to export apparel garment from Pakistan also increases considerably there by resulting in the increase in the usage of Lubricants in the country in the coming year.
The top five players, namely Shell Pakistan Limited, Total PARCO Pakistan Limited, Chevron Pakistan Limited, MAL Pakistan, and Pakistan State Oil Company Limited, account for more than 90% of the market studied.
- On October 2021, In Pakistan, ENEOS Corporation introduced ENEOS lubricants. The firm has entered into an arrangement with RTX Lubricants in Pakistan, where RTX is the exclusive licensee of ENEOS in the nation and has a large distribution network to market the well-known lubricants brand, which is supported by recommendations and approvals from prominent OEMs all over the world.
- On Sept 2021, The Duckhams lubricants brand was virtually introduced in Pakistan, with Energia Pvt. Ltd. being appointed as its sole licensee. Energia Pvt. Ltd. is a new Pakistani firm that manufactures, imports, and distributes high-quality petroleum products.
- On Nov 2019, Idemitsu Kosan Co.,Ltd has started its business operations in Pakistan. Idemitsu Lube Pakistan Pvt., Ltd. is the local corporation in the country and provides lubricants Japanese automotive and related manufacturers as well as promote the sales of Idemitsu brand oils.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1.1 Positive Automotive Outlook for the Automotive Industry
4.1.2 Demand from the Growing Wind Energy Sector
4.2.1 Modest Impact of Electric Vehicles (EVs) in the Future
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Engine Oil
5.1.2 Transmission and Hydraulic Fluid
5.1.3 General Industrial Oil
5.1.4 Gear Oil
5.1.6 Other Product Types
5.2 End-user Industry
5.2.1 Power Generation
5.2.2 Automotive and Transportation
5.2.3 Heavy Equipment
5.2.4 Food and Beverage
5.2.5 Other End-user Industries
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Share** Analysis
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.2 Chevron Pakistan Lubricants (Pvt.) Limited (Chevron Corporation - Caltex)
6.3.3 ENEOS lubricants
6.3.4 Euro Oil Pakistan
6.3.5 Hascol Petroleum Ltd
6.3.6 Hi-Tech Lubricants Limited
6.3.7 Karachi Lubricants (Pvt.) Ltd
6.3.8 MAL Pakistan
6.3.9 Pak HY-Oils
6.3.10 Pakistan Lubricants (Pvt.) Ltd
6.3.11 Pakistan State Oil
6.3.12 Puma Energy
6.3.13 Shell Pakistan Limited (Royal Dutch Shell PLC)
6.3.14 Synergy Oil Pakistan
6.3.15 Total PARCO
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Potential Growth in the Energy Sector
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Frequently Asked Questions
What is the study period of this market?
The Pakistan Lubricants Market market is studied from 2017 - 2027.
What is the growth rate of Pakistan Lubricants Market?
The Pakistan Lubricants Market is growing at a CAGR of >1% over the next 5 years.
Who are the key players in Pakistan Lubricants Market?
Shell Pakistan Limited, Total PARCO Pakistan Limited, Chevron Pakistan Lubricants (Private) Limited (Chevron Corporation - Caltex), MAL Pakistan, Pakistan State Oil Company Limited are the major companies operating in Pakistan Lubricants Market.