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

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

The Iraq Lubricants Market size is expected to reach about 274 million liters in 2022 and the market is projected to register a CAGR of over 2.5% during the forecast period (2022-2027).

COVID-19 negatively impacted the lubricants market in 2020. The COVID-19 pandemic affected the Iraq lubricants market owing to disruption in the supply chain globally. During the pandemic, many factories responsible for raw material supply, mainly base oil and additives, for the lubricants industry were shut down. However, the positive outlook of the automotive industry and steady progress in the oil and gas industry in recent time is likely to maintain sluggish but positive growth of the market studied in coming year.

• Over the short term, increasing consumption in the automotive sector and growing investment in public and private construction products, are some of the driving factors which are stimulating the market demand.
• Geopolitical Impacts like the Russia-Ukraine war and increasing demand for hybrid & electric vehicles are the factors hindering the market's growth.
• The promising renewable energy sector is expected to offer various opportunities for the growth of the market studied.
• The automotive and other transportation segment is expected to account for the largest end-user industry of the market studied while registering a rapid growth over the forecast period.

• Engine oils are widely used to lubricate internal combustion engines and are generally composed of 75-90% base oils and 10-25% additives. Engine oil is a key lubricant that plays a vital role in the combustion cycle, and it is composed of two elements including base stock and additives. Engine oils are primarily used for the lubrication of engine parts, that are constantly in friction.
• They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of engine internals. Engine oils function by creating a thin film between the moving parts, to enhance the transfer of heat and reduce tension during the contact of parts.
• The light motor vehicle segment recorded the highest consumption rate of engine oils among all the segments. Owing to the technological improvements and government-mandated requirements for fuel economy, the automakers have been manufacturing lighter vehicles with tighter tolerances, which make the vehicles more durable.
• With the economy on the path to recovery, the automotive sales are expected to increase moderately during the next few years. Powered with the projected growth in automotive sales in future, the automotive lubricant market is estimated to grow at a moderate rate during the coming years.
• Considering the growing demand for two-wheeler and three-wheeler vehicles in Iraq, various firms in automotive industry are increasing their footprints in the country in the form of showrooms, distribution points and others, which further enhanced the consumption for engine oil from these automotive segments. For instance, In May 2021, TVS Motor Company opened a new showroom of two-wheeler and three-wheeler in Baghdad, Iraq with distribution partner Ritaj International General Trade LLC, with 41 touchpoints across the country.
• Moreover, the country’s recovering private sector and many OEMs, such as Hyundai and Toyota, are making a comeback in the market with increasing automotive sales, thereby, enhancing the demand for engine oils in the country.

• In the automotive sector, various lubricants such as engine oil, transmission oil, hydraulic oil, greases, and other lubricants are used in commercial vehicles and motorcycles, which will drive the Iraq lubricants industry.
• Improved engine designs for achieving enhanced performance and efficiency, and meeting the environmental emission regulations, are expected to boost the Iraq lubricants market.
• Light-duty vehicles include two-wheeler and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are the most widely used lubricants in the aforementioned type of automobiles. Lubricants hold a good share in the aftermarket and among OEMs.
• Increasing demand for medium-duty trucks including utility, courier, and package delivery trucks, ambulances, shuttle buses, school buses, and recreational vehicles in Iraq has stimulated the market growth of lubricants.
• Medium-duty and high-performance lubricants are used extensively in these vehicles, as components, such as gears, transmission systems, and engines, are subjected to high loads and rapid rubbing, thus, producing ample heat. Lubricants are extensively used to protect the gear teeth from breakage, due to friction, and ensure smooth and efficient functioning.
• Heavy-duty vehicles (HDVs) include non-light-duty trucks, tractors, and tractor-trailer combination vehicles. Due to the enactment of stringent environmental, fuel-efficiency, and emission norms, manufacturers are focusing on developing eco-friendly and improved lubricants (with long service life) designed specifically for heavy-duty vehicles, thereby, boosting the demand for, and the usage of, high-performance lubricants in the heavy-duty vehicle segment.
• The above mentioned factors are expected to contribute to the increasing demand for the lubricants market in Iraq, during the forecast period.

The Iraq lubricants market is partially consolidated in nature. Some of the major players in the market include Shell Plc, Behran Oil Company, Petromin Corporation, Fuchs and ENOC Company (ALMEAAD Co.), among others (not in any particular order).

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