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The UAE lubricants market size is forecast to increase by USD 540.16 million, at a CAGR of 3.63% between 2024 and 2028. Market growth hinges on various factors, notably the escalating demand for high-performance lubricants across diverse industries. End-user sectors are increasingly relying on lubricants for smooth operation, further fueling market expansion. Additionally, companies are actively introducing new lubricant variants to cater to evolving industry needs and preferences. These trends collectively drive the growth trajectory of the market, emphasizing the critical role of lubricants in maintaining machinery efficiency and longevity. As industries prioritize optimal performance and reliability, the demand for advanced lubrication solutions is expected to continue rising, fostering further market expansion and innovation. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018-2022, besides analyzing the current market scenario.
Lubricants are substances that are used to control or reduce friction between two surfaces or components in equipment and machinery. These high-performance substances are used in various end-user industries as anti-wear additives, corrosion inhibitors, viscosity index improvers, friction modifiers, and extreme pressure additives.
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The lubricant market plays a pivotal role in various sectors, including automotive, construction, and industrial. With the rise of process automation and environmental norms, demand for automotive lubricants continues to surge, driven by the need for efficient and eco-friendly solutions. Major players like Ford rely on mass-produced cars that require optimal lubrication to mitigate wear and rusting of crucial components like pistons. In the construction sector, heavy-duty equipment depends on high-quality lubricant emulsions to maintain efficiency and durability amid demanding conditions. This market caters to diverse needs, offering solutions like cutting fluids and viscous hydrocarbon compounds to ensure smooth operations. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The rising demand for high-performance oils is the key factor driving the market. Owing to technological upgrades in industrial equipment, automobiles, and other kinds of machinery, the demand for high-performance greases is growing in the UAE. Moreover, manufacturers in the UAE are focusing on the need to improve performance as a critical factor in upgrading their product portfolios. Furthermore, the rising demand for sports utility vehicles (SUVs) and high-tech cars with high vehicle production, trucks, and buses has also been a major factor in the development of high-performance petroleums.
Further, many applications such as oil and grease, are subjected continuously to heat as well as contaminants, including water and yeast, which affect the quality of the lubricant to a great extent and reduce its efficacy. Thus, to ensure the efficient operation of greases, market players (Emarat and others) operating in the market have been offering resistance to breakdown under high temperatures. Thus, such factors are expected to have a positive impact on the growth of the market during the forecast period.
The emergence of bio-based lubricants is the primary trend shaping the market. Compared with mineral-based petroleums, bio-based oils produce a cleaner, less toxic work environment for engine and hydraulic system workers. Bio-based oils are also less costly over the entire product lifecycle owing to less maintenance, storage, and disposal requirements. These environment-friendly lubricants offer better safety due to higher flashpoints, constant viscosity, and the production of less oil mist and vapor emissions.
Further, leading market players are focusing on bioaccumulation and eco-toxicity to reduce the adverse impact of industrial greases on the environment. The use of bio-based industrial oils can reduce pollution in stormwater drains, which is caused by the engine, hydraulic system, and brake line leaks. UAE now requires bio-based lubricants in certain environmentally sensitive applications. Thus, the emergence of bio-based oils is expected to drive the growth of the market during the forecast period.
Fluctuations in crude oil prices is the major challenge that affects market expansion. Mineral oil lubricants account for a large share of the market. The oil and gas industry is one of the principal suppliers of these raw materials used by manufacturers in the market. Fluctuations in global crude oil prices have a negative effect on the prices of these raw materials, thereby affecting the cost of marine petroleums. The increasing demand for crude oil, accompanied by a simultaneous lower supply of crude oil, resulted in a rise in global crude oil prices.
Moreover, volatility in the prices of raw materials, such as crude oil used in manufacturing will directly affect the revenue and profit margins of manufacturers in UAE. In addition, the continuous supply of raw materials could be negatively affected by adverse weather conditions, national emergencies, natural disasters, supply shortages, and other events. Thus, price fluctuations and the non-availability of raw materials have an adverse effect on the cost of such products and the operations of vendors in the market. Thus, such factors will negatively impact the growth of the market during the forecast period.
The market is pivotal for various industries, including the e-commerce industry, where efficient logistics rely on well-lubricated machinery. Additionally, as the world shifts towards renewable energy, lubricants play a crucial role in maintaining the efficiency of wind turbines and solar panels. In the automotive realm, internal combustion engine in mass-produced car require optimal lubrication to enhance performance and longevity, especially considering the millions of vehicles produced annually. Similarly, heavy-duty construction equipment relies on high-quality lubricants to withstand demanding conditions and prevent work stoppages, ensuring seamless operations and maintaining optimal RPMs.
The market share growth by the mineral oil lubricants segment will be significant during the forecast years. The high demand for mineral oil can be attributed to their low cost and easy accessibility. Mineral oil petroleum is derived from naturally occurring petroleum or crude oil by distillation, solvent extraction, and cracking. One of the main advantages is that they are manufactured on a large scale during the petroleum refining process and, therefore, are much less expensive than synthetic and bio-based oils.
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The mineral oil lubricants segment accounted for USD 2.07 billion in 2018. Additionally, there are three types of mineral oil lubricants, namely paraffinic oils, naphthenic oils, and aromatic oils. Paraffinic oils are produced by solvent extraction or hydrocracking. These are used for manufacturing engine oils, industrial oils, and processing oils, which are used in the rubber, textile, and paper industries. Naphthenic oils are produced by the distillation of crude oil and are used for manufacturing transformer oils and metalworking fluids. Aromatic oils are used for manufacturing seal compounds and adhesives and as plasticizers in rubber and asphalt production. Thus, these factors will drive the segment and market during the forecast period.
The hydraulic fluids?segment will account for the largest share of this segment.?Hydraulic fluids are essential lubricants crucial for hydraulic systems across industries, facilitating power transmission and reducing friction. They operate under high-pressure conditions, enabling the efficient functioning of machinery like construction equipment and manufacturing machinery. These fluids offer protection by forming a barrier between moving parts, enhancing system longevity and performance. With various formulations available, their choice depends on factors like temperature, pressure, and environmental concerns, driving market growth during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Abu Dhabi National Oil Co., Avana Lubricants, DANA Lubricants Factory LLC, Dufe lub, Emarat, Emirates National Oil Co. Ltd. LLC, Gandhar Oil Refinery India Ltd., German Mirror Lubricants and Greases, GGICO, Hindustan Petroleum Corp. Ltd., Lubrex FZC, Oscar Lubricants LLC, Premier Lubricants., ridalubs.com, Runol, SOLAR LUBRICANTS Manufacturing L.L.C. , Technolube LLc, TotalEnergies SE, and UGL
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
The market is experiencing a significant shift with the advent of hybrid vehicles and electric cars, impacting engine designs and performance-to-efficiency ratios. This transformation is driven by factors like battery price parity and environmental emission regulations, pushing for bio-lubricants and synthetic oils in the automotive sector and industrial sector. The transmission systems and gear oils play vital roles in optimizing vehicle maintenance and performance, especially in commercial vehicles, passenger cars, and railways. With a focus on renewable energies and wind power generation, the market sees growth opportunities in offshore wind installations and charging stations for electric vehicles.
Additionally, the market is undergoing profound changes due to the rise of electric vehicles (EVs) and their impact on traditional ICE (internal combustion engine). With a focus on enhancing performance-to-efficiency ratios and addressing concerns like gear wear and flammability, manufacturers are developing advanced lubricants tailored for both electric motor and ICE. This market serves various sectors, including the transportation industry, encompassing passenger vehicles, medium-duty trucks, couriers, and recreational vehicles. Additionally, lubricants play a crucial role in the power sector, supporting operations in turbine oil and transformer oil. With the increasing demand for synthetic oil and Polyalphaolefins, businesses are strategizing to meet the evolving needs of the electric vehicle industry and wind energy sector.
Further, the market is witnessing significant shifts due to the rising influence of Electric Vehicles (EVs), impacting both traditional Internal Combustion Engines (ICE) and electric two-wheelers. Manufacturers are focusing on optimizing performance-to-efficiency ratios and extending drain intervals to meet the evolving needs of various sectors, including light-duty vehicles, two-wheelers, package delivery trucks, and shuttle buses. With a growing demand for specialized lubricants such as transmission oils and compressor oils, businesses are strategizing to cater to both OEM and aftermarket segments. Moreover, the lubricant market plays a vital role in supporting chemical manufacturing and offshore wind installation volume, aligning with the expanding electric vehicle market and implementing innovative business strategies.
Market Scope |
|
Report Coverage |
Details |
Page number |
139 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.63% |
Market Growth 2024-2028 |
USD 540.16 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.59 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abu Dhabi National Oil Co., Amcor Lubricants, Avana Lubricants, DANA Lubricants Factory LLC, Dufe lub, Emarat, Emirates National Oil Co. Ltd. LLC, Gandhar Oil Refinery India Ltd., German Mirror Lubricants and Greases, GGICO, Hindustan Petroleum Corp. Ltd., Lubrex FZC, Oscar Lubricants LLC, Premier Lubricants., ridalubs.com, Runol, SOLAR LUBRICANTS Manufacturing L.L.C. , Technolube LLc, TotalEnergies SE, and UGL |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Market Segmentation by End-user
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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