South Africa Lubricants Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

South Africa Lubricants Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The market for South Africa lubricants is expected to grow at a CAGR of more than 1.53% globally during the forecast period. The expanding food-grade lubricants demand has been driving the market growth.

• However, the modest impact of electric vehicles (EVs) in the future and outbreak of COVID-19 disease across the globe are likely to hinder the growth of the studied market.
• The growth in the construction sector is expected to drive the demand for the market during the forecast period and is likely to provide opportunities for the South Africa lubricants market over the next five years.
• Engine oil is the most dominating product type of the market studied.
• Automotive and other transportation segment is the most dominating end-user segment of the market studied.

• 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.
• The South African automotive sector is the largest manufacturing sector in the region. The automotive sector has a stronghold in the domestic market through continuous investments by major manufacturers of automotive vehicles. However, the automotive industry is facing a decline in the market, but it is anticipated to recover during the forecast period.
• 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.
• The above-mentioned factors are anticipated to drive the demand for South Africa lubricants during the forecast period.

• Automotive and other transportation such as aircraft and marine, are the largest markets for lubricants though the automotive industry is facing a decline in the market.
• All the motor companies and components suppliers in the country are preparing for the next phase of the automotive production and development program (APDP) starting in 2021 running until 2035, which was started in 2013. This is expected to improve the industry competitiveness, thus, driving the market in the coming years.
• The country is likely to see an investment of USD 4.04 billion in its vehicle and component sector over the next five years according to NAAMSA. In which, two-thirds of the investment would be by the seven automakers with plants in the country.
• However, the sales of vehicles declined in the country from 2018 and created many challenges 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 South Africa's automotive industry and is expected to induce negative momentum on the demand for lubricants owing to the reduced servicing of vehicles.
• All the aforementioned factors are expected to increase the demand for lubricants in the country during the forecast period.

The South Africa lubricants market is consolidated in nature. Some of the major companies are Royal Dutch Shell Plc, BP Plc (Castrol), Engen Petroleum Ltd., Total, and Centlube amongst others.

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