Middle East Lubricant Additives Market Size (2024 - 2029)

Middle East Lubricant Additives Market Analysis

The Middle-East lubricant additives market is estimated to register a CAGR of over 4% during the forecast period (2022-2027).

The outbreak of COVID-19 adversely affected the automotive and transportation industries, resulting in all-time low sales and service of both new and used vehicles. Persistent lockdowns and curfews led to disruptions in the construction and heavy equipment manufacturing industries, which effectively dropped the demand for lubricant derivatives in the market. Disruptions in the supply chain also paved the way for an overall reduction in demand and supply in the lubricant market. However, the ease of travel restrictions, rise in transportation activities, and implementation of mass vaccination programs aided the growth of this sector in 2021 in the form of elevated automobile sales. Companies in the automotive market are putting a lot of money into making cars so that they can increase their production and sales.

• A major share of demand for lubricant additives is expected from the Middle-East automotive industry. Benefitting from its strategic location and future-ready infrastructure, Dubai is perceived as the key automotive hub in the Middle East for the export of vehicles to the surrounding regions. The rising penetration of synthetic engine oil in the region is expected to be one of the major drivers within the automotive sector.
• However, supply chain disruptions and fluctuations in oil prices owing to geopolitical factors could potentially impact the supply of lubricant additives. Problems in the supply chain and logistics can cause problems like longer wait times for lubricant supplies, price changes, and less inventory.

Nevertheless, with major players mitigating the effect of supply chain disruptions with thorough inventory management, the demand and supply of lubricant additives are expected to stabilize during the forecast period. Key uses in power generation, heavy equipment, metallurgy, and metalworking are expected to further drive the demand in the next five years.

Middle East Lubricant Additives Industry Segmentation

Lubricant additives are chemical substances that, when dissolved or suspended in oils, improve the oil's functionality by generating an oil film that transforms solid friction into liquid friction, preventing heating and abrasion of metal parts. The Middle-East lubricant additives market is segmented by function, product type, end-user, and geography. By function, the market is segmented into dispersants & emulsifiers, viscosity index improvers, detergents, corrosion inhibitors, oxidation inhibitors, extreme-pressure additives, friction modifiers, and others. By product type, the market is segmented into engine oil, transmission & hydraulic fluids, metalworking fluids, general industrial oil, gear oil, grease, process oil, and other lubricant types. By end-users, the market is segmented into automotive & transportation, construction, power generation, heavy equipment, metallurgy & metal working, food & beverage, and others. The report also covers the market size and forecasts for the Middle-East lubricant additives market in four countries across the regions. For each segment, the market sizing and forecasts have been done on the basis of value (USD Million).