Indonesia Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Indonesia Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for Indonesia lubricants is expected to grow at a CAGR of more than 3% during the forecast period.

Increasing demand from ASEAN countries and other reasons are driving the market growth.

The Impact of COVID-19 and other factors are expected to hinder the market growth.

Key Market TrendsIncreasing the Demand for Engine Oils

• Engine oils are widely used to lubricate internal combustion engines and are also being used for many other applications such as wear reduction, corrosion protection, and smooth operation of engine internals.
• The automotive sales in the country had been declining since late 2018 and the decline further continued in 2019. Moreover, the production is further estimated to face a crisis in the first half of 2020. However, the demand for gear oils from Indonesia is increasing due to developments in surrounding regions (ASEAN countries).
• The automotive industry in Indonesia produced a total of 12,86,848 vehicles (including passenger vehicles, commercial vehicles, three-wheelers, two-wheelers, and others) in 2019, compared to 13,43,714 in 2018, witnessing a negative growth of 4.2%, compared the same period last year.
• Also, the shipbuilding industry has been growing decently in Indonesia. Indonesia is one of the largest producers of various products including lubricants. ASEAN countries are among the major importers of marine lubricants and other products from Indonesia.
• However, the export and demand of lubricants from ASEAN regions such as Malaysia, Philippines, Thailand, and Vietnam are expected to decrease in short term, due to the COVID-19 impact on these regions.

Automotive And Other Transportation to Dominate the Market

• Automotive and other transportation media, such as aircraft and marine, are the largest markets for lubricants in 2019 in Indonesia.
• In terms of market size, Indonesia is the biggest car market in both the ASEAN and Southeast Asia regions. The country accounts for nearly one-third of the total annual car sales in ASEAN, followed by Thailand.
• Moreover, aviation is one of the fastest-growing segments in Indonesia. According to the Indonesia National Air Carriers Association, the Aviation Industry grew by 10 % in 2019. This has been one of the driving factors for the lubricants market in Indonesia in recent times.
• Also, the marine industry is one of the fastest-growing sectors in Indonesia. According to the South East Asia Iron and Steel Institute (SEAISI), the demand for ships in Indonesia has increased pointedly to at least double in volume compared to the last 4-5 years for various purposes.
• The outbreak of COVID-19 in this region has resulted in lockdown of industrial activities for a brief time. Due to this, various production plants such as automobiles, aviation, marine, and other units have been paused. This has affected the growth of lubricants in these segments currently.

Competitive Landscape

The Indonesia lubricant market is consolidated in nature with a few major players occupying a large portion of the market. Some of the major companies are Royal Dutch Shell PLC, Exxon Mobil Corporation, CASTROL LIMITED, Chevron Corporation, and PT Pertamina Lubricants, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
CASTROL LIMITED
Chevron Corporation
Exxon Mobil Corporation
PT. Idemitsu Lube Indonesia
PT Fuchs Lubricants Indonesia
PT Pacific Lubritama
PT Pertamina Lubricants
Repsol Indonesia
Royal Dutch Shell PLC
Total

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