Saudi Arabia Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Saudi Arabia Lubricants Market is segmented by Base Stock (Bio-based Lubricants, Mineral Oil Lubricants, Synthetic Lubricants, and Semi-synthetic Lubricants), Product Type (Engine Oil, Transmission and Hydraulic Fluid, Metalworking Fluid, General Industrial Oil, Gear Oil, Grease, Process Oil, and Other Product Types), and End-user Industry (Power Generation, Automotive and Other Transportation, Heavy Equipment, Food and Beverage, Metallurgy and Metal Working, Chemical Manufacturing, and Other End-user Industries).

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Market Snapshot

Saudi Arabia Lubricants Market Bar Graph
Study Period: 2016 - 2026
Base Year: 2021
CAGR: 2.05 %
Saudi Arabia Lubricants Market Key Players

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Market Overview

The Saudi Arabian lubricants market was valued at 310.58 kiloton in 2020, and the market is projected to register a CAGR of 2.05% during the forecast period (2021-2026).

The COVID-19 pandemic has halted automotive sales in Saudi Arabia and around the world. The sales in Saudi Arabia of passenger cars in 2020 were 252 thousand units compared to the previous year's 387 thousand units. As the markets are slowly opening up and sales of passenger cars have slowly started, this can be a positive sign for the Saudi Arabia lubricants market.

  • Major factors driving the market are the progressing industrial sector in the country and the increasing usage of high-performance lubricants.
  • However, an increase in drain intervals in the automotive and industrial sectors is likely to hinder the market's growth.
  • By product type, the engine oil segment dominated the market studied. However, the process oil segment is projected to register the highest CAGR during the forecast period.

Scope of the Report

Lubricant is a substance such as oil or grease, which is used in any type of component or an engine that reduces friction and energy losses. The market is segmented by base stock, product type, and end-user industry. By base stock, the market is segmented into bio-based lubricants, mineral oil lubricants, synthetic lubricants, and semi-synthetic lubricants. By product type, the market is segmented into engine oil, transmission and hydraulic fluid, metalworking fluid, general industrial oil, gear oil, grease, process oil, and other product types. By end-user industry, the market is segmented into power generation, automotive and other transportation, heavy equipment, food and beverage, metallurgy and metalworking, chemical manufacturing, and other end-user industries. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Base Stock
Bio-based Lubricants
Mineral Oil Lubricants
Synthetic Lubricants
Semi-synthetic Lubricants
Product Type
Engine Oil
Transmission and Hydraulic Fluid
Metalworking Fluid
General Industrial Oil
Gear Oil
Grease
Process Oil
Other Product Types
End-user Industry
Power Generation
Automotive and Other Transportation
Heavy Equipment
Food and Beverage
Metallurgy and Metal Working
Chemical Manufacturing
Other End-user Industries

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Key Market Trends

Engine Oil to Drive the Market Growth

  • 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 moving parts for enhancing the transfer of heat and reducing tension during the contact of parts.
  • High-mileage engine oils are in demand lately, owing to the properties that help in the prevention of oil leaks and reduction of oil consumption. Most of the light and heavy vehicle diesel and gasoline engines use 10W40 and 15W40 viscosity-grade oils, whereas multi-grade oils, like 15W50 and 20W50, are used for aircraft engines.
  • The light motor vehicle segment records the highest consumption rate of engine oils among all the segments. Owing to the technological improvements and government-mandated requirements for fuel economy, the automakers have been manufacturing lighter vehicles with tighter tolerances (which make the vehicles more durable).
  • The automotive sales increased by about 30.96% during 2019, after witnessing a decline for three consecutive years. While in 2020, the automotive demand, in spite of the COVID-19 outbreak, increased in the first half (mostly in June) due to the VAT introduction from July 1.
  • According to the General Authority for Statistics, the automotive industry is expected to witness a growth rate of around 4%-5% annually over the next decade. This is expected to drive the demand for lubricants over the forecast period.
  • The adoption of electric vehicles in Saudi Arabia is currently at an early stage. While the country's EV market is still small, Saudi investment in EV manufacturing abroad has been substantial. This is expected to decrease the demand for engine oil in automobiles.
  • All the factors mentioned above, in turn, are expected to affect the demand for engine oils in the country during the forecast period.
Saudi Arabia Lubricants Market Share

Automotive and Other Transportation Segment Dominated the Market

  • The automotive and other transportation segment was the major end-user industry in the lubricants market.
  • Saudi Arabia is expected to witness a rise in demand for lubricant oils over the forecast period. The country has committed to becoming the auto hub of the Middle East. The Kingdom is adding rail lines, investing in workforce education, expanding shipping ports, and offering other incentives to attract vehicle makers and suppliers.
  • Saudi Arabia is the largest auto and auto parts market in the Middle East, accounting for ~40% of all the vehicles sold in the region. Saudi is the largest importer of US automotive products and parts in the Middle Eastern region, with some of these imports being re-exported.
  • Saudi Arabia does not have an automotive production base. However, there is the presence of aftermarket services, which contributes a little to the market. The country is focusing on establishing itself as the new automotive hub in the Middle East. Though the country is a large importer of vehicles and auto parts, it is now trying to attract original equipment manufacturers (OEMs), to open their production plants in the country and develop the domestic auto industry.
  • Additionally, the country is experiencing a steady growth in the sales of new cars. According to the General Authority for Statistics, the automotive industry is expected to witness a growth rate of around 4-5%, y-o-y, over the next decade.
  • Saudi Arabia imported the majority of its automobiles to date, but with the government’s invitation for FDI in the automotive sector, the country may stand as one of the major producers of automobiles in the region.
  • Foreign automotive manufacturers are trying to invest in the market, which is expected to open up opportunities for automotive lubricants.
  • All the abovementioned factors are expected to create demand for lubricants in the country during the forecast period.
Saudi Arabia Lubricants Market Growth Rate By Region

Competitive Landscape

The Saudi Arabian lubricants market is highly consolidated, with the top five players accounting for more than 90% of the market. The major companies of the market are Petromin, Aljomaih and Shell Lubricating Oil Company Limited, FUCHS, CASTROL LIMITED, and APSCO Arabian Petroleum Supply Company, among others.

Recent Developments

  • In August 2020, Saudi Arabia’s Petromin Corp. signed a strategic partnership agreement with Suzuki Barayan, the local agent for Japanese motorcycle manufacturer Suzuki Motor Corp. Under the agreement, Petromin will supply lubricants to Suzuki Barayan branches throughout the country.
  • In July 2020, Arabian Petroleum Supply Company (APSCO) opened its second branch of Mobil Oil service center called “Mobil Service” in Jeddah, Saudi Arabia. The new center will complement ongoing efforts to strengthen the company’s strategic plan to expand its retail operations in Saudi Arabia.
  • In February 2019, Saudi Arabia’s state-owned oil and gas company Saudi Aramco and French oil major Total had signed a joint venture agreement to develop a network of fuel and retail services in Saudi Arabia.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Progressing Industrial Sector in the Country

      2. 4.1.2 Growing Usage of High-performance Lubricants

    2. 4.2 Restraints

      1. 4.2.1 Increasing Drain Intervals in the Automotive and Industrial Sectors

      2. 4.2.2 Unfavorable Conditions Arising Due to the Impact of COVID-19

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Regulatory Policy Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Base Stock

      1. 5.1.1 Bio-based Lubricants

      2. 5.1.2 Mineral Oil Lubricants

      3. 5.1.3 Synthetic Lubricants

      4. 5.1.4 Semi-synthetic Lubricants

    2. 5.2 Product Type

      1. 5.2.1 Engine Oil

      2. 5.2.2 Transmission and Hydraulic Fluid

      3. 5.2.3 Metalworking Fluid

      4. 5.2.4 General Industrial Oil

      5. 5.2.5 Gear Oil

      6. 5.2.6 Grease

      7. 5.2.7 Process Oil

      8. 5.2.8 Other Product Types

    3. 5.3 End-user Industry

      1. 5.3.1 Power Generation

      2. 5.3.2 Automotive and Other Transportation

      3. 5.3.3 Heavy Equipment

      4. 5.3.4 Food and Beverage

      5. 5.3.5 Metallurgy and Metal Working

      6. 5.3.6 Chemical Manufacturing

      7. 5.3.7 Other End-user Industries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Petromin

      2. 6.4.2 Aljomaih and Shell Lubricating Oil Company Limited

      3. 6.4.3 FUCHS

      4. 6.4.4 CASTROL LIMITED

      5. 6.4.5 Adinlub

      6. 6.4.6 RAF OIL INDUSTRIES LLC

      7. 6.4.7 Total

      8. 6.4.8 Yunitco

      9. 6.4.9 APSCO Arabian Petroleum Supply Company

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Saudi Arabia Lubricants Market market is studied from 2016 - 2026.

The Saudi Arabia Lubricants Market is growing at a CAGR of 2.05% over the next 5 years.

Petromin, Aljomaih and Shell Lubricating Oil Company Limited, FUCHS, CASTROL LIMITED, APSCO Arabian Petroleum Supply Company are the major companies operating in Saudi Arabia Lubricants Market.

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