Saudi Arabia Automotive Lubricant Market Grow with a CAGR of 10.76% through 2030
The Saudi Arabia automotive lubricant
market is driven by rising vehicle ownership, expanding service networks, and
growing demand for high-performance lubricants, despite challenges from intense
competition and evolving consumer preferences
According
to TechSci Research report, “Saudi Arabia Automotive Lubricant Market – By
Region, Competition, Forecast & Opportunities, 2030F”, the Saudi
Arabia Automotive Lubricant market stood at USD 746.49 million in 2024 and is anticipated to grow USD
1,374.72 million by 2030 with a CAGR of 10.76% during
forecast period. The Saudi
Arabia automotive lubricant market is witnessing significant growth, driven by
a combination of rising vehicle ownership, expanding automotive service
infrastructure, and increasing awareness of vehicle maintenance. As one of the
largest automotive markets in the Middle East, Saudi Arabia has a robust demand
for engine oils, transmission fluids, coolants, and other lubricants essential
for vehicle performance and longevity. The country’s growing population and
economic development have led to increased car ownership, especially in urban
areas, which directly contributes to the expanding demand for automotive
lubricants. In addition, the steady rise in commercial vehicle usage for
logistics, public transportation, and industrial activities further bolsters
lubricant consumption.
The market is also seeing the emergence
of trends such as increased adoption of synthetic and semi-synthetic
lubricants, growing environmental consciousness, and a shift towards
fuel-efficient and long-drain interval products. As global and regional environmental
regulations tighten, Saudi consumers and businesses are gradually turning
toward eco-friendly and biodegradable lubricant options. Moreover, the push
toward sustainability, in line with the country’s Vision 2030 agenda, is
encouraging the use of advanced lubricants that help reduce carbon emissions
and improve engine performance.
Another notable trend is the gradual
rise of electric vehicles (EVs) in the country. While EVs currently hold a
small share of the vehicle market, their presence is expected to grow in the
coming years as the government promotes cleaner transportation alternatives.
Though EVs require fewer lubricants than traditional internal combustion engine
(ICE) vehicles, they still use specific fluids for cooling electric motors,
transmissions, and bearings. This trend is prompting lubricant manufacturers to
invest in product innovation and develop EV-compatible lubricants to capture
future demand.
The automotive service and maintenance
sector is also expanding rapidly to support the increasing number of vehicles
on the road. This includes the growth of workshops, authorized service centers,
and fast-lube stations across cities and towns. These facilities play a crucial
role in distributing lubricants and promoting regular oil changes and engine
maintenance. As this network grows, it enhances accessibility and consumer
convenience, further boosting lubricant consumption. Additionally, the rise of digital
platforms and e-commerce has enabled lubricant brands to reach a broader
audience, allowing customers to purchase products and book services online.
Despite its growth potential, the Saudi
automotive lubricant market faces several challenges. One of the most
significant is the intense competition among domestic and international
players. Established global brands such as Shell, ExxonMobil, TotalEnergies,
and Castrol compete with strong regional and local companies, leading to
pricing pressures and a saturated marketplace. For new entrants or smaller
firms, gaining market share is challenging due to the dominance of
well-established brands and the price-sensitive nature of many consumers.
Moreover, many customers in the market prioritize affordability and
availability over brand loyalty, often switching between brands based on cost,
which results in thin profit margins and frequent price wars.
Furthermore, while the government’s push
for localization and industrial diversification under Vision 2030 supports the
development of local manufacturing capabilities, companies operating in the
sector need to navigate regulatory procedures, build efficient supply chains,
and establish a strong local presence. Brand differentiation, product
innovation, and strategic partnerships with original equipment manufacturers
(OEMs) and service centers are crucial to long-term success in this market.
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" Saudi Arabia Automotive Lubricant Market”
Saudi Arabia
Automotive Lubricant market is segmented into vehicle type, demand category,
lubricant type, and company.
Based on demand category, the aftermarket segment
is the fastest‑growing
sector in Saudi Arabia’s automotive lubricant market, driven by increasing
vehicle age and mileage that necessitate frequent servicing. Consumers
increasingly seek high‑quality,
longer‑lasting
lubricants, accelerating demand beyond OEM replacements. Convenient access to a
wide network of workshops, quick‑lube
stations, and online platforms bolsters aftermarket purchases. Moreover, the
rise of DIY maintenance and digital service booking enhances aftermarket sales.
Brands are responding with targeted marketing, loyalty programs, and
specialized product offerings tailored for aftermarket needs. This dynamic
growth underscores the critical role of the aftermarket in shaping Saudi
Arabia’s lubricant landscape.
Based on the region,
the Western region, encompassing major cities like Jeddah and Makkah, is the
fastest-growing area in Saudi Arabia's automotive lubricant market. Growth is
driven by surging demand during Hajj and Umrah pilgrimages, which significantly
increases the usage of passenger and commercial vehicles. Additionally, the
region's bustling port and logistics activity boosts requirements for
high-performance lubricants in heavy-duty applications. Economic
diversification initiatives and infrastructure expansion further stimulate
automotive fleet growth, contributing to rising maintenance needs. This unique
mix of religious tourism, trade, and development positions the Western region
as a critical and rapidly expanding market for lubricants.
Major companies
operating in Saudi Arabia Automotive Lubricant market are:
- Petromin
Corporation
- PETRONAS Lubricants International
- BP p.l.c. (Castrol)
- AMSOIL Inc.
- TotalEnergies SE
- Shell plc
- Repsol S.A.
- FUCHS SE
- Eni S.p.A
- Exxon Mobil Corporation
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“Saudi Arabia’s
automotive lubricant market is gravitating toward several key trends. Synthetic
and semi‑synthetic
lubricants are increasingly popular for their enhanced performance and extended
drain intervals. The rise of electric vehicles is catalyzing demand for EV‑specific fluids such as dielectric cooling and e‑motor greases. Environmental awareness is boosting
interest in biodegradable and low-VOC formulations. Digital platforms and
online maintenance services are streamlining lubricant purchases and service
bookings. Partnerships between lubricant manufacturers and OEMs are expanding
market reach, while fuel-efficient, low-viscosity blends are gaining prominence
amid shifting consumer priorities and stricter emission standards”, said Mr.
Karan Chechi, Research Director of TechSci Research, a research-based
management consulting firm.
"Saudi Arabia Automotive
Lubricant Market By Vehicle Type (Passenger Car, Commercial Vehicle,
Two-Wheeler), By Demand Category (OEM, Aftermarket), By Lubricant Type (Engine
Oil, Transmission Oil, Hydraulic Fluids, Greases, Others), By Region,
Competition, Forecast & Opportunities, 2020-2030F”,
has evaluated the future growth potential of SAUDI ARABIA Automotive Lubricant market
and provides statistics & information on market size, structure and future
market growth. The report intends to provide cutting-edge market intelligence
and help decision makers take sound investment decisions. Besides, the report
also identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in the Saudi Arabia Automotive Lubricant market.
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