UAE Lubricants Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 154.40 Million liters |
| Market Volume (2029) | 186.5 Million liters |
| CAGR (2024 - 2029) | 3.84 % |
| 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?
UAE Lubricants Market Analysis
The United Arab Emirates Lubricants Market size is estimated at 154.40 Million liters in 2024, and is expected to reach 186.5 Million liters by 2029, growing at a CAGR of 3.84% during the forecast period (2024-2029).
The COVID-19 pandemic negatively impacted the market in 2020 because it significantly impacted supply chains and caused several supply chain disruptions that led to production halts and other issues in almost all industries, such as automotive, heavy equipment, etc. However, the market gradually recovered from the pandemic as the vaccination rates increased and the government started to lift the restrictions.
- The increase in manufacturing activities and the rising automotive sector of the country are expected to be the primary drivers of the lubricants market.
- Factors such as the impact of oil price fluctuations on the production costs of lubricants and the rising demand for the production of more eco-friendly lubricants will likely hinder market growth during the forecast period.
- Investments and the government's plans to support industrial growth in the country are likely to provide a major growth opportunity for the market studied during the forecast period.
- The automotive and other transportation segment dominates the market and is expected to continue its dominance during the forecast period.
UAE Lubricants Market Trends
Engine Oil Dominates the Market
- Engine oil, or engine lubricant, is one of the various substances used to lubricate internal combustion engines to ensure good performance. Engine oil can be synthetic, mineral, or semi-synthetic in nature but is always made of a unique composition of base oil and additives.
- Mineral engine oils are derived from crude petroleum and contain hydrocarbon, oxygenated or non-oxygenated, and may also contain sulfur or nitrogen. Synthetic oils are created chemically in the laboratory but can also come from refined petroleum. The composition and production complexity of synthetic oils makes them high-end oils with higher performance compared to mineral oils. Semi-synthetic oils are a mixture of synthetic and mineral oils, but different semi-synthetic products may have different mix compositions.
- The engine oil product type dominates the lubricants market in the country because of the high demand from the transportation or automotive end-user industry. All kinds of vehicles with a combustion engine require engine oil to function properly and to ensure a long life.
- According to Waverley Exhaust & Brake, most auto manufacturers recommend engine oil changes once each year or 20,000 km on petrol engines while diesel engines and turbo charged petrol engines should be changed every 6 months or 10,000 km.
- In September 2023, Motul, one of the world’s leading companies specializing in the formulation, production, and distribution of high-tech engine oils, announced the launch of its NGEN range of engine oil in the Middle East. The NGEN range is made of bio-sourced and premium regenerated base oils for passenger hybrid cars and motorbikes, respectively. The lubricant range made from renewable, non-fossil sources limits the engine oils' environmental impact and reduces its carbon footprint significantly during the manufacturing process.
- Moreover, in October 2023, Goodyear Lubricants and Alonsa Electric introduced API SP grade engine oil at Automechanika Dubai 2023. Goodyear Lubricants showcased a diverse range of over 100 varieties of Goodyear engine oils and specialties lubes totaling over 400 SKUs for sale in the Middle East, Africa and parts of Asia.
- Moreover, the automotive market in the UAE is dominated by the vehicles based on internal combustion engines that use either gasoline, diesel, or are hybrid in nature. This simultaneously indicates a high volume demand for engine oils across the country.
- Also, the country has a large market for used cars as they have always been a cheaper alternative to buying a new car. Factors such as people's increasing preference to own a vehicle, growing disposable income, and a rise in the number of players offering affordable, quality used cars are driving the growth of the used car market in the UAE. This can lead to a further increase in demand for engine oils because as the engine of a vehicle starts to get old, its engine oil demand also increases gradually.
Expanding Automotive and Transportation Sector
- Automotive and other transportation media, such as aircraft and marine, are the largest markets for lubricants. Engine designs are continually improved to enhance performance, increase efficiency, and meet environmental emission regulations.
- Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are the most widely used lubricants in the automotive sector.
- Some major functions offered by engine oils are resistance against corrosion and wear and tear to ensure increased engine life and better performance; reduction of friction; increase in engine performance; reduction of fuel consumption; removal of impurities and achieving engine cleanliness; optimizing engine efficiency; and preventing energy loss by providing optimum cooling.
- Due to the persistence of very high temperatures in the United Arab Emirates, thicker engine oils are widely used. The usage of thin oils leads to the quick exhaustion of oils and engine damage.
- The country's aerospace and marine segments contribute majorly to the demand for engine oil. In December 2022, Abu Dhabi Ship Building started the production of new vessels for navy. It includes the manufacture of Falaj Class vessels for UAE Navy, which is likely to increase the demand for lubricants in the country.
- Furthermore, the country's aerospace is also expanding significantly, thus positively impacting the market for lubriants in the UAE. In July 2022, Strata- a major aircraft manufacturer in the Abu Dhabi received new business from Swiss plane maker Pilatus. Strata aims to add six more production lines for aerospace sector-related manufacturing.
- Moreover, the Abu Dhabi government has announced a USD 2.72 billion investment across six industrial programs to more than double the size of the UAE's aircraft manufacturing industry to USD 46.83 billion over the next eight years.
- Additionally, the country witnessed an increase in the sales of passenger cars. For example, more than 150,000 vehicles were sold in the first half of 2022.
UAE Lubricants Industry Overview
The United Arab Emirates Lubricants market is consolidated in nature. Some of the major players (not in any particular order) in the market include ADNOC (Abu Dhabi National Oil Company), TotalEnergies, ENOC Company, Royal Dutch Shell PLC, and Exxon Mobil Corporation, among others.
UAE Lubricants Market Leaders
ENOC Company
Royal Dutch Shell PLC
Exxon Mobil Corporation
TotalEnergies
ADNOC (Abu Dhabi National Oil Company)
*Disclaimer: Major Players sorted in no particular order
UAE Lubricants Market News
- Oct 2023: Shell UAE announced that its portfolio of biodegradable lubricants, PANOLIN, will be available for customers in the Middle East by early 2024. PANOLIN biodegradable lubricants provide high-performance lubrication while also having the ability to degrade naturally.
- Aug 2022: Gulf Oil Middle East announced the launch of a new global product portfolio in the UAE market. The new product range is based on Gulf's breakthrough ThermoShield and Wear-Guard technologies, which are designed for modern cars.
- Mar 2022: ADNOC Distribution, the UAE's largest fuel and convenience retailer, launched a new Voyager Green Series range of lubricant products for both diesel and petrol engines made from 100% plant-based base oil.
UAE Lubricants Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Drivers
4.1.1 Increasing Manufacturing Activities
4.1.2 The Rising Automotive Sector
4.2 Restraints
4.2.1 The Impact of Oil Price Fluctuations on the Production Costs
4.2.2 Rising Demand for the Production of More Eco-Friendly Lubricants
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 (Market Size in Volume)
5.1 Product Type
5.1.1 Engine Oils
5.1.2 Transmission And Gear Oils
5.1.3 Hydraulic Fluid
5.1.4 Metalworking Fluid
5.1.5 Greases
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 Metallurgy And Metalworking
5.2.5 Other End-user Industries
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Chevron Corporation
6.3.2 TotalEnergies
6.3.3 Royal Dutch Shell PLC
6.3.4 ADNOC (Abu Dhabi National Oil Company)
6.3.5 Exxon Mobil Corporation
6.3.6 DANA Lubricants Factory LLC
6.3.7 Emarat
6.3.8 Gulf Oil Middle East Ltd
6.3.9 Castrol Limited
6.3.10 Lukoil
6.3.11 ENOC Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Investments and Government Plans to Support Industrial Growth in the Country
UAE Lubricants Industry Segmentation
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%. The lubricant reduces friction and wear between the surfaces.
The United Arab Emirates lubricants market is segmented by product type and end-user industry. By product type, the market is segmented into engine oils, transmission and gear oils, hydraulic fluid, metalworking fluid, greases, and other product types (dry film lubricants). By end-user industry, the market is segmented into power generation, automotive and transportation, heavy equipment, metallurgy and metalworking, and other end-user industries (food processing, marine, etc.). For each segment, the market sizing and forecasts have been provided on the basis of volume (liters).
| Product Type | |
| Engine Oils | |
| Transmission And Gear Oils | |
| Hydraulic Fluid | |
| Metalworking Fluid | |
| Greases | |
| Other Product Types |
| End-user Industry | |
| Power Generation | |
| Automotive and Transportation | |
| Heavy Equipment | |
| Metallurgy And Metalworking | |
| Other End-user Industries |
UAE Lubricants Market Research FAQs
How big is the United Arab Emirates Lubricants Market?
The United Arab Emirates Lubricants Market size is expected to reach 154.40 million liters in 2024 and grow at a CAGR of 3.84% to reach 186.5 million liters by 2029.
What is the current United Arab Emirates Lubricants Market size?
In 2024, the United Arab Emirates Lubricants Market size is expected to reach 154.40 million liters.
Who are the key players in United Arab Emirates Lubricants Market?
ENOC Company, Royal Dutch Shell PLC, Exxon Mobil Corporation, TotalEnergies and ADNOC (Abu Dhabi National Oil Company) are the major companies operating in the United Arab Emirates Lubricants Market.
What years does this United Arab Emirates Lubricants Market cover, and what was the market size in 2023?
In 2023, the United Arab Emirates Lubricants Market size was estimated at 148.47 million liters. The report covers the United Arab Emirates Lubricants Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United Arab Emirates Lubricants Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Lubricants Industry Report
Statistics for the 2024 UAE Lubricants market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Lubricants analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
