Africa Automotive Lubricants Market Trend, Drivers and Opportunities

Automotive lubricant lubricates moving parts of the vehicle to prevent wear and corrosion. Automotive lubricants are often greases, oils, or synthetics that are stored in a reservoir on board vehicles. This article provides a comprehensive analysis of Africa automotive lubricants market size, growth rates, drivers and opportunities.

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Africa Automotive Lubricant Market Forecast

The African automotive lubricant market is projected to grow at a CAGR of 7.8% during 2016-2021. The increase in the demand for efficient and reliable vehicles is likely to drive the market growth. In addition, growing awareness about the benefits of using automotive lubricants is also expected to foster the market growth.

Some of the key factors that are expected to drive the African automotive lubricant market include increasing demand from OE (original equipment) manufacturers, government initiatives aimed at promoting greener transportation, and increasing investment in R&D activities by manufacturers.

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The major players in the African automotive lubricant market are BP Plc, Castrol Ltd., Pertamina Motocicle Complex (PMC), Nexen Inc., Royal Dutch Shell plc., and SKF AB.

Africa Automotive Lubricant Market Segmentation

The African automotive lubricant market is expected to grow at a CAGR of 7.4% during the forecast period 2016-2021. The market is segmented on the basis of type, application and region.

Type:

Conventional lubricants constitute the major share of the Africa automotive lubricant market with an estimated value of $1.9 million in 2015. This was followed by synthetic lubricants with a value of $198 thousand and bio-based lubricants with a value of $224 thousand in 2015.

Application:

The automotive lubricant markets are segmented into engine, transmission, axles & joints, brakes and other components. On the basis of region, the Africa automotive lubricant market is dominated by South Africa followed by Nigeria and Egypt.

Regions:

The Africa automotive lubricant market is dominated by South Africa followed by Nigeria and Egypt.

Major Key Players in the Africa Automotive Lubricants Industry

The Africa Automotive Lubricants Market is expected to grow at a CAGR of 6.5% during the forecast period 2018-2025. The market is driven by increasing demand for efficient and quality automotive lubricants in the region. However, factors such as stringent government regulations, high cost of raw materials, and limited access to reliable transportation infrastructure are restraining the growth of the market. Some of the major players in the African automotive lubricants market include PPG Industries, Pennzoil, Castrol, Shell, and ExxonMobil.

Some of the key opportunities in the African automotive lubricants market include increasing penetration of premium automotive brands in the region, expansion of regional distribution networks, development of new products and technologies for efficient lubrication, and increase in R&D investments.

Africa Automotive Lubricant Market Trends and Drivers

According to Statista, the automotive lubricant market in Africa is expected to grow from $2.5 billion in 2020 to $4.1 billion by 2025. The growth is attributed to the increasing demand for quality and durable automotive lubricants in the region. Factors such as rising vehicle population, growing middle class and a growing infrastructure are also contributing to the market growth.

Some of the key market drivers include increasing awareness about the importance of automotive lubricants, increasing demand for high-quality lubricants from major OEMs in Europe and Asia Pacific, and Increasing investments by key players in the lubricant industry.

Some of the key market opportunities include increased adoption of greasing systems in new vehicles, expansion into new markets such as Nigeria, and development of new lubricant formulations.

Africa Automotive Lubricant Market Opportunities

The African automotive lubricant market is expected to grow at a CAGR of 6.5% during the forecast period 2019-2024. The growth is mainly attributed to the increasing adoption of electric vehicles across the continent and increasing demand for greener automotive solutions. Additionally, rising infrastructure investment and increasing government initiatives to promote clean fuel sources are other key factors driving the market growth. However, challenges such as stringent emission norms and limited availability of quality lubricants are restraining the market growth.

Some of the key players in the African automotive lubricant market are Arkema SA (France), Bayer AG (Germany), JTI Corporation (Japan), Castrol Ltd. (UK), Pertronix Inc. (US), and Lubrizol Corp. (US).

The Future of the African Auto Lube Industry

In 2014, the African automotive lubricants market was valued at $1.5 billion. The market is projected to grow at a CAGR of 7.5% through 2021, thereby reaching a value of $2.7 billion by 2021. Increasing demand for high-quality auto lubricants in Africa is primarily attributed to rising incomes and increasing consumer spending, as well as government initiatives aimed at improving automotive performance. In addition, growth in the regional automobile industry is also contributing to the market's expansion.

Some of the key factors fueling the growth of the African automotive lubricants market include:

1) Rising incomes and consumer spending in Africa are driving the demand for high-quality auto lubricants;

2) Government initiatives aimed at improving automotive performance are also boosting demand for auto lubricants in Africa;

3) The regional automobile industry is expanding rapidly in Africa, paving the way for increasing demand for automotive lubricants; and

4) Trends such as electrification and increased adoption of alternative fuel sources are spurring innovation in the automotive lubricant market.

Some of the major challenges faced by companies operating in the African automotive lubricants market include:

1) Limited access to quality raw materials and insufficient local production capabilities; 2) Limited access to quality raw materials and insufficient local production capabilities; 3) Slow adoption of new product development strategies by the major players in the African automotive lubricants market; 4) Small size of the African automotive lubricants market (in terms of volume); 5) The large number of competitors in the African automotive lubricants market, and 6) High level of localization which makes it difficult for companies to control quality assurance across regional borders.Furthermore, a few key trends identified in the report include: 1) Technological advancements will drive demand for auto lubricants across various markets; 2) Rising consumer interest in technology and quality products will be critical for growth in auto retail sales over the forecast period; 3) Increasing demand from the commercial vehicle market in Africa will fuel demand for lubricants in the automotive sector; 4) Maintaining stability in government regulations and policies across regional markets will be critical for growth of the auto lubricant industry; 5) The African automotive lubricants market has key implications on the global market, especially due to its tight competition from developed economies.