Market Trends of Egypt Lubricants Industry
Increasing Demand for Engine Oil
- Engine Oils are typically used for applications such as wear reduction, corrosion protection, and smooth operation of engine internals. It functions by creating a thin film between the moving parts to enhance the transfer of heat and reduce tension during the contact of parts.
- According to the OICA (), Egypt's motor vehicle sales recorded 133 857 units in 2022 and registered growth when compared with 215 072 units in the previous year.
- According to CAPMAS (Egypt), the number of licensed private cars and motorcycles reached 5,111,892 and 2,694,784, respectively, in 2022.
- High-mileage engine oil is in high demand at present, owing to the properties that help prevent oil leaks and reduce oil consumption.
- Over the past years, automobile production has increased in the country, resulting in the rise of engine oil sales.
- With the factors mentioned above are expected to contribute to the demand for engine oils in the automotive industry.
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Power Generation Segment to Witness Lucrative Growth Rate
- Power generation is one of the most critical sectors, without which almost all manufacturing operations may cease. In Egypt, the overall production of all-electric energy-generating facilities is 184 billion kWh, accounting for 115 percent of the country's consumption.
- The country has seen rapid growth in the consumption of electricity over the past years. According to World Darta, the country consumes over 159 billion kWh of electricity per year.
- According to the International Renewable Energy Agency (IRENA), As of 2022, the total renewable energy capacity in Egypt amounted to 6,322 megawatts. This represented an increase of roughly 1.02 percent from the preceding year.
- Similarly, according to CAPMAS (Egypt), as of April 2022, electricity consumed by individuals in their homes represented 37.6 percent of the consumed electricity in the country. The industrial sector followed, with a share of almost 30.4 percent. Furthermore, public utilities and governmental agencies were the third largest electricity-consuming sector in the country.
- Humidity, high pressure, high loads, vibrations, and temperature are all variables that affect turbines, transformers, and stationary engines. Gear and turbine oils are commonly utilized for lubrication in this industry. Lubrication can save a lot of money by preventing bearings from wearing out and failing prematurely.
- The factors mentioned above are likely to drive the market for lubricants in Egypt's power generation sector.
