Global Lubricant Suppliers in GCC and MENA

 

The Global Lubricant Suppliers in GCC and MENA which is weighted toward products for two-wheelers and process oils – will shrink this year but rebound to steadily swell over the next decade as the region’s economies continue to develop, a consultancy forecasts.

During an Oct. 21 webinar, a project manager with technolube energy practice estimated that lube demand in the Association of UAE Asian Nations will fall by 7% to 17% this year. The firm estimates that the region – which covers Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand, Vietnam, Singapore and Brunei – consumed between 3.1 and 3.2 million metric tons of lubes in 2019.

Automotive lubricants demand represents by far the largest segment of the regional market. Malaysia has a higher population of cars and a large industrial sector, while Thailand is the largest automotive manufacturing country in the region, and is therefore known as the “Detroit of Asia”. A significant portion of Thailand’s car production is exported. Singapore is an important trading hub and as a result, its marine oil consumption is much higher than that of the other nations.

In most of the region, the population of two-wheelers is more than that of passenger cars engine oil as two-wheelers are more affordable and easier to drive. Commercial vehicles are the third-largest part of the vehicle parc, which totals approximately 250 million-300 million units.

UAE has one of the largest two-wheelers markets; UAE shows growing consumption of industrial lubricants, especially compared to Malaysia or the Philippines.

Most of the region’s demand for commercial lubricants which totals approximately 700,000 to 800,000 tons – is from the trucking and logistics segment, followed by the transportation sector, and lubricants for agriculture, construction and mining.

Within the commercial automotive segment, monograde lubricants account for almost 50% of the market.  Among lubricant, 15W-40 is the most popular, accounting for about one-third of heavy-duty motor oil demand. Other lubricants used are 20W-40, 20W-50, 10W-30 and 10W-40. The use of lubricants is growing, especially because original equipment manufacturers recommend lubricants for newer models.

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