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The United Arab Emirates Lubricants Market size is forecast to increase by USD 540.16 million at a CAGR of 3.63% between 2023 and 2028. The market is experiencing significant growth, driven by the rising demand for high-performance lubricants in various industries such as automotive, power generation, and manufacturing. Another trend influencing the market is the emergence of bio-based lubricants, which offer environmental benefits and improved performance. However, fluctuations in crude oil prices, a key raw material for lubricant production, pose a challenge to market growth. The UAE's strategic location and strong economic growth make it an attractive market for lubricant suppliers, offering ample opportunities for market expansion. The market is expected to grow steadily, driven by these trends and challenges, with a focus on innovation and sustainability.
The market is witnessing significant growth due to the increasing vehicle production and the expansion of the construction sector. With millions of vehicles on the road and an increasing number of mass-produced cars, the demand for automotive lubricants, including hydraulic fluids, oils, and lubricant emulsions, is on the rise. The internal combustion engine is the primary consumer of lubricants in vehicles, with friction and wear being the primary concerns. The UAE's renewable energy sector is also contributing to the growth of the lubricants market, as process automation in this sector requires the use of various types of lubricants, including viscous hydrocarbon compounds and lubricant emulsions.
The construction sector's reliance on heavy-duty construction equipment is another significant driver of the lubricants market. Crude oil prices and environmental norms are key factors influencing the lubricants market in the UAE. The market is expected to experience work stoppages due to the implementation of stricter environmental norms, leading to a shift towards bio-based lubricants. The use of lubricants in various industries, including automotive and construction, is essential to prevent rusting, wear, and damage to pistons and other engine components.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The mineral oil lubricants segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing usage of internal combustion engines in various sectors. Mineral oil lubricants derived from petroleum or crude oil continue to dominate the market owing to their affordability and wide availability. These lubricants offer advantages such as excellent solubility with additives, enhanced compatibility with seals, high viscosity, and a high flash point. Three main types of mineral oil lubricants are paraffinic, naphthenic, and aromatic. Paraffinic oils are preferred for their low volatility and high viscosity index, making them suitable for use in engine designs of light-duty vehicles, passenger cars, and two-wheelers.
Naphthenic oils, on the other hand, are known for their excellent oxidation resistance and are commonly used in gear oils, transmission oils, and greases for medium-duty trucks, utility, courier, package delivery trucks, ambulances, shuttle buses, school buses, recreational vehicles, and straight trucks. Aromatic oils are preferred for their high performance-to-efficiency ratio and are commonly used in compressor oils and other industrial applications. The electric vehicle industry and renewable energies, including wind power and chemical manufacturing, are also driving the demand for bio-lubricants. Bio-lubricants, derived from renewable sources, offer superior environmental performance and are increasingly being adopted by OEMs and the aftermarket.
These lubricants are suitable for use in electric cars, charging stations, electric two-wheelers, and wind energy applications. The construction sector also relies heavily on heavy-duty construction equipment, which requires viscous hydrocarbon compounds for lubrication. The market is expected to continue its growth trajectory, driven by the increasing demand for efficient and eco-friendly lubricants across various industries.
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The mineral oil lubricants segment accounted for USD 2.07 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, market trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising demand for high performance lubricants is the key driver of the market. In the United Arab Emirates (UAE), the market for lubricants is experiencing significant growth due to advancements in technology and the increasing demand for high-performance lubricants. Manufacturers in the UAE are focusing on enhancing the capabilities of their product offerings, with a particular emphasis on lubricant emulsions, cutting fluids, and polyalphaolefins.
Further, the expanding electric vehicle market is also driving innovation in the development of specialized lubricants. The rising popularity of sports utility vehicles (SUVs) and advanced automobiles, trucks, and buses is further fueling this trend. As a result, companies are making substantial investments in upgrading their technology and production facilities to meet the growing demand for high-performance lubricants, including automotive lubricants and hydraulic fluids.
This technological evolution has led to the creation of sophisticated lubrication systems, ensuring optimal machinery performance in various industries.
The emergence of bio-based lubricants is the upcoming trend in the market. The market is witnessing significant growth due to the increasing adoption of bio-based lubricants. These eco-friendly lubricants, which include lubricant emulsions and cutting fluids, offer numerous advantages over traditional mineral-based lubricants. Bio-based lubricants produce a cleaner work environment with fewer toxic emissions, making them safer for workers in vehicle maintenance and industrial applications.
Additionally, their lower maintenance, storage, and disposal requirements result in cost savings over the entire product lifecycle. companies are focusing on reducing the environmental impact of industrial lubricants by addressing bioaccumulation and eco-toxicity. The adoption of bio-based lubricants in the automotive sector, particularly in the electric vehicle market, is also increasing due to their environmental benefits.
In the industrial sector, bio-based hydraulic fluids and polyalphaolefins are gaining popularity for their superior performance and sustainability.
Fluctuations in crude oil prices is a key challenge affecting the market growth. The market is driven by the extensive usage of lubricant emulsions, cutting fluids, polyalphaolefins, hydraulic fluids, and automotive lubricants. The oil and gas industry, being a significant contributor to the UAE's economy, plays a pivotal role in supplying the raw materials required for lubricant manufacturing. Mineral oil lubricants dominate the market due to their wide application in various industries, including vehicle maintenance and industrial machinery.
However, global crude oil price fluctuations pose a challenge to the market, as these prices significantly impact the cost of raw materials used in producing marine lubricants. For instance, the rise in global crude oil prices in 2021 due to the recovery in the global economy and the easing of pandemic-related restrictions led to an increase in the demand for petroleum, which outpaced its supply, resulting in higher prices for raw materials and, subsequently, higher prices for lubricants.
In the evolving market landscape, businesses are adopting innovative strategies to cater to emerging sectors, such as the electric vehicle market, which is expected to witness significant growth in the coming years.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Abu Dhabi National Oil Co. - The company provides a range of lubricant solutions in the United Arab Emirates, including ADNOC Voyager SJ CP multigrade engine oil, a high-performing product suitable for various engine types.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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 is witnessing significant growth due to the increasing vehicle production and the expansion of the automotive and industrial sectors. The market is driven by the need for process automation in various industries, including vehicles, renewable energy, and power sector. The vehicles segment is a major consumer of lubricants, with mass-produced cars and commercial vehicles requiring engine oil, transmission system oil, and high-performance lubricants to ensure smooth operation and reduce friction, wear, rusting, and piston damage. The lubricants market in the UAE is also influenced by the price of crude oil and environmental norms.
The rise in crude oil prices can increase the cost of production for lubricant manufacturers, while stringent environmental regulations can lead to the adoption of synthetic oils over mineral oils. The power sector, particularly wind power generation, is another significant consumer of lubricants, with the demand for turbine oil and transformer oil increasing. The market is also witnessing the growth of hybrid vehicles and electric motor-driven vehicles, which require specialized lubricants. The impact of EVs on the lubricants market is expected to be significant as battery price parity is reached and more electric vehicles are mass-produced. The industrial sector, including marine and railways, is another major consumer of lubricants.
The demand for lubricants in the industrial sector is driven by the need to reduce downtime and maintenance costs, as well as to ensure the efficient operation of machinery and equipment. In summary, the lubricants market in the UAE is expected to grow due to the increasing demand from the automotive and industrial sectors, the need for process automation, and the expansion of the renewable energy sector. The market is influenced by various factors, including crude oil prices, environmental norms, and the adoption of EVs.
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Market Scope |
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Report Coverage |
Details |
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Page number |
139 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.63% |
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Market growth 2024-2028 |
USD 540.16 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.59 |
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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 |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period. |
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Customization purview |
If our market 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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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
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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