The market for Nigeria lubricants is expected to grow at a CAGR of more than .96% globally during the forecast period. The increasing demand from the power generation sector has been driving the market growth.
- However, the slowdown in the automotive sector and the outbreak of COVID-19 disease across the globe are likely to hinder the growth of the studied market.
- The growth in the industrial manufacturing segment is expected to drive the demand for the market during the forecast period is likely to provide opportunities for the Nigeria lubricants market over the next five years.
- Engine oil segment is the most dominating product type segment of the market studied.
- Automotive and Other Transportation is the most dominating end-user industry of the market studied.
Key Market Trends
Engine Oil Segment to Dominate the Market
- Engine oils are widely used to lubricate internal combustion engines and are generally composed of 75-90% base oils and 10-25% additives.
- Usually, they are used for applications such as wear reduction, corrosion safety, and smooth internal engine running. They function by creating a thin film between the moving parts to enhance heat transfer and reduce tension when the parts are in contact.
- High-mileage engine oils are in demand lately, owing to the properties that help in the prevention of oil leaks and the reduction of oil consumption.
- Most of the light and heavy vehicle diesel and gasoline engines use 10W40 and 15W40 viscosity-grade oils, whereas, multi-grade oils, like 15W50 and 20W50, are used for aircraft engines.
- Owing to the increased engine oil change intervals, technological advancements are imposing a threat to the growth of the engine oil segment, in terms of volume consumption.
- However, with the slump in demand from the automotive fleet in the country, the consumption of engine oil is projected to be at a slower pace, during the forecast period.
- The above-mentioned factors are anticipated to drive the demand for Nigeria lubricants during the forecast period.
Automotive and Other Transportation to Dominate the Market
- Automotive and other transportation are the largest markets for lubricants though the automotive industry is facing a decline in the market.
- The development in Nigeria’s automotive sector takes time is expected to propel the demand for lubricants over the forecast period.
- For instance, French carmaker Renault and Nigerian conglomerate Coscharis Group had formed a partnership to assemble and distribute Renault vehicles in Nigeria from October 2019.
- However, the sales of vehicles declined in the country from 2018, which presented challenging scenario for the market studied in the country. Furthermore, things got worse with the outbreak of novel COVID-19 disease as it has a severe impact on the Nigeria automotive industry and is expected to induce a negative momentum on the demand for lubricants owing to the reduced servicing of vehicles.
- According to Mordor Intelligence, the automotive industry growth in Nigeria is projected to record a CAGR of more than 0.57% during the forecast period.
- All the aforementioned factors are expected to increase the demand for lubricants in the country during the forecast period.
The Nigeria lubricants market is consolidated among the top 7 players. Some of the major companies are Total Nigeria Plc., 11 Plc. (Mobil Oil Nigeria Plc.), Oando Plc, Ardova Plc (Forte Oil Plc), and Eterna Plc. amongst others.
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