Iraq Lubricants Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | 2.76 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Iraq Lubricants Market Analysis
The Iraq Lubricants Market size is estimated at 288.86 Million liters in 2024, and is expected to reach 330.98 Million liters by 2029, growing at a CAGR of 2.76% during the forecast period (2024-2029).
COVID-19 negatively impacted the Iraqi lubricants market due to global supply chain disruption. During the pandemic, many factories responsible for raw material supply, mainly base oil and additives, for the lubricants industry were shut down. However, the positive outlook of the automotive industry and steady progress in the oil and gas industry in recent times are likely to maintain positive growth for the studied market in the coming year.
In the short term, increasing consumption in the automotive industry and growing investment in public and private construction projects are expected to drive the market's growth.
However, geopolitical impacts, such as the conflict between Iran and Israel and increasing demand for hybrid and electric vehicles, hinder the market's growth.
The promising renewable energy source, the development of low-viscosity lubricants, and the growing prominence of bio-lubricants will likely create lucrative market opportunities in the coming years.
The automotive and transportation segment is expected to dominate the country's market, and power generation will likely witness the highest annual growth rate during the forecast period.
Iraq Lubricants Market Trends
Engine Oil is Expected to Dominate the Market
- Engine oils are widely used to lubricate internal combustion engines and generally comprise 75-90% base oils and 10-25% additives. Engine oil, comprising base stock and additives, is a crucial lubricant in the combustion cycle. It reduces friction between engine parts, ensuring smooth operation.
- Engine oil creates a protective layer that minimizes friction and improves heat transfer. Its applications include automotive, power generation, and heavy-duty equipment.
- Engine oils are typically used to reduce wear, protect against corrosion, and ensure the smooth operation of engine internals. They create a thin film between moving parts to improve heat transfer and reduce friction during contact.
- It acts as a coolant for engine parts, dissipating heat generated by combustion and friction. This heat management enhances the engine's lifespan and efficiency.
- Fuel combustion in engine parts produces corrosive acids. To combat this, engine oils are fortified with additives like corrosion inhibitors. However, with time, direct exposure to oxygen can cause the oil to oxidize, diminishing its corrosion-fighting abilities and necessitating regular oil changes.
- Considering the growing demand for two-wheeler and three-wheeler vehicles in Iraq, various automotive firms are increasing their footprints in the country through showrooms, distribution points, and others, further enhancing engine oil consumption from these automotive segments.
- Moreover, the country's recovering private sector and many OEMs, such as Hyundai and Toyota, are returning to the market with increasing automotive sales, thereby enhancing the demand for engine oils in the country.
- In September 2023, Motul, a global leader in engine oil production, introduced its NGEN line in the Middle East. This series, tailored for hybrid cars and motorcycles, features bio-sourced and premium regenerated base oils. Motul enhances its sustainability and significantly reduces carbon emissions by pivoting to renewable sources.
- Therefore, the factors above are expected to boost the consumption of engine oils in different sectors of Iraq.
The Automotive and Transportation Segment is Expected to Dominate the Market
- In the automotive segment, various lubricants, such as engines, transmissions, hydraulics, greases, and other lubricants, are used in commercial vehicles and motorcycles, which will drive the Iraq lubricants industry.
- Improved engine designs for achieving enhanced performance and efficiency and meeting the environmental emission regulations are expected to boost the Iraqi lubricants market.
- Increasing demand for medium-duty trucks, including utility, courier, and package delivery trucks, ambulances, shuttle buses, school buses, and recreational vehicles in Iraq stimulated the market growth of lubricants.
- The year 2023 was crucial as the Saudi Investment Company and Mercedes signed an MoU, indicating Mercedes' plan to establish a local car manufacturing plant. This strategic partnership will drive the country's demand for automotive lubricants.
- According to the Government of Iraq, Iraqi car sales reached 127,749 units, registering a growth of around 18.4% compared to the previous year.
- In aviation, engine oils provide lubrication, corrosion protection, cleaning, cooling, and noise reduction and are used in pistons, gears, bearings, and valves.
- In April 2024, the United States approved a USD 140 million deal to enhance Iraq's air capabilities. This contract, sanctioned by the State Department, specifically targets bolstering maintenance and training support for Iraq's C-172 and AC/RC-208 aircraft, highlighting the deepening relationship between the two nations.
- Furthering its defense capabilities, the United States government inked a USD 3.2 billion deal with Dassault Aviation to purchase 14 Rafale aircraft, signaling potential market opportunities.
- In the marine industry, hydraulic oils are used in steering systems, thrusters, and anchor windlasses. They are often biodegradable and efficient in cold temperatures.
- Marine gear oils, primarily mineral-based, are used in marine transmissions and outboard gear cases. Marine greases prevent rust and protect against salt damage.
- Shifting the focus to the maritime sector, the nation boasts six ports, three of which feature oil terminals. Notable ports include Al Basrah, Al-Basra Oil Terminal, Khawr Al Amaya, Khawr Al Zubair, and Umm Qasr. Moreover, a new port, the Grand Faw Port, is slated to commence operations in 2025. This development is expected to ramp up MRO activities, boosting the lubricants market.
- Therefore, these trends are expected to propel the consumption of lubricants in the country's automotive and transportation segments.
Iraq Lubricants Industry Overview
The Iraqi lubricants market is partially consolidated. Some of the major players in the market include Shell PLC, FUCHS, Behran Oil Company, ENOC Company (ALMEAAD Co.), and Petromin Corporation (not in any particular order).
Iraq Lubricants Market Leaders
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Shell Plc
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Fuchs
-
ENOC Company (ALMEAAD Co.)
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Behran Oil Company
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Petromin Corporation
*Disclaimer: Major Players sorted in no particular order
Iraq Lubricants Market News
- March 2023: The Saudi Arabian Oil Company (Aramco) completed the acquisition of Valvoline Inc.'s global products business for USD 2.65 billion. This move is a strategic move by Aramco to organically expand its market position in the global lubricants space.
- March 2023: Shell Markets Middle East Limited signed an agreement with GB Auto Iraq to be the official distributor of its automotive lubricants in Central and Southern Iraq. According to this agreement, Shell would supply GB Auto with Shell Helix, Shell Rimula, Shell Spirax, and Shell Gadus. With this agreement, Shell aimed to increase its lubricant market share to 25% in the coming years.
- January 2023: FUCHS launched TITAN GT1 PRO GLV-1 SAE 0W-8 engine oil in an ultra-low-viscosity grade for hybrid electric vehicles.
Iraq 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
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4.1 Drivers
- 4.1.1 Increasing Consumption in the Automotive Indsutry
- 4.1.2 Increasing Investments in Public and Private Construction Projects
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4.2 Restraints
- 4.2.1 Geopolitical Impact
- 4.2.2 Increasing Demand of Hybrid and Electric Vehicles
- 4.3 Industry Value Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size by Volume)
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5.1 Product Type
- 5.1.1 Engine Oils
- 5.1.2 Transmission and Hydraulic Fluid
- 5.1.3 General Industrial Oil
- 5.1.4 Gear Oil
- 5.1.5 Grease
- 5.1.6 Other Product Types
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5.2 End-user Industry
- 5.2.1 Power Generation
- 5.2.2 Automotive and Transportation
- 5.2.3 Heavy Equipment
- 5.2.4 Food and Beverage
- 5.2.5 Other End-user Industries
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 AMSOIL Inc.
- 6.4.2 Behran Oil Company
- 6.4.3 ENOC Company (ALMEAAD Co.)
- 6.4.4 FUCHS
- 6.4.5 Kuwait Dana Lubes (Shields Lubricants)
- 6.4.6 Morris Lubricants
- 6.4.7 Petrol Ofisi AS
- 6.4.8 Petromin
- 6.4.9 Rock Oil
- 6.4.10 Shell PLC
- 6.4.11 Totalenergies SE
- 6.4.12 Valvoline Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Promising Renewable Energy Source
- 7.2 Development of Low Viscosity Lubricants
- 7.3 Growing Prominence of Bio-lubricants
Iraq Lubricants Industry Segmentation
Lubricant is a fluid that reduces friction between contact surfaces to avoid wear and tear. It is prepared with specific additives and group base oils depending on the end users. The composition of base oil in the formulation of lubricants is primarily between 75% and 90%. Lubricants help prevent material degradation, erosion, corrosion, and rust development on metallic surfaces.
The Iraqi lubricants market is segmented by product type and end-user industry. By product type, the market is segmented into engine oil, transmission and hydraulic fluid, general industrial oil, gear oil, grease, and other product types. By end-user industry, the market is segmented into power generation, automotive and transportation, heavy equipment, food and beverage, and other end-user industries. For each segment, the market sizes and forecasts are based on volume (liters).
| Product Type | Engine Oils |
| Transmission and Hydraulic Fluid | |
| General Industrial Oil | |
| Gear Oil | |
| Grease | |
| Other Product Types | |
| End-user Industry | Power Generation |
| Automotive and Transportation | |
| Heavy Equipment | |
| Food and Beverage | |
| Other End-user Industries |
Iraq Lubricants Market Research FAQs
How big is the Iraq Lubricants Market?
The Iraq Lubricants Market size is expected to reach 288.86 million liters in 2024 and grow at a CAGR of 2.76% to reach 330.98 million liters by 2029.
What is the current Iraq Lubricants Market size?
In 2024, the Iraq Lubricants Market size is expected to reach 288.86 million liters.
Who are the key players in Iraq Lubricants Market?
Shell Plc, Fuchs, ENOC Company (ALMEAAD Co.), Behran Oil Company and Petromin Corporation are the major companies operating in the Iraq Lubricants Market.
What years does this Iraq Lubricants Market cover, and what was the market size in 2023?
In 2023, the Iraq Lubricants Market size was estimated at 280.89 million liters. The report covers the Iraq Lubricants Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Iraq Lubricants Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Iraq Lubricants Industry Report
The Iraqi Lubricants Market Report provides a comprehensive market overview, offering insights into various segments such as product types and end-user industries. The market analysis covers engine oil, transmission and hydraulic fluid, general industrial oil, gear oil, grease, and other product types. The market segmentation also includes power generation, automotive and transportation, heavy equipment, food and beverage, and other end-user industries.
The report includes a detailed market forecast, highlighting key trends and market growth. It provides an in-depth industry analysis, covering industry size, industry trends, and industry statistics. The report also features market data, market predictions, and market review, offering valuable industry information for stakeholders.
The market research encompasses market value, market leaders, and market outlook, providing a holistic view of the industry's future. The industry reports include industry sales and industry research, supporting informed decision-making. The report example and report pdf are available for further reference.
The Iraqi Lubricants Market Report is essential for understanding market trends and market share, with a focus on market growth and market forecast. The industry outlook and industry research provide a robust foundation for strategic planning and market predictions. The report is a valuable resource for research companies, offering insights into market size, market segmentation, and market overview.
