Saudi Arabia Automotive Lubricant Market, By Vehicle Type (Passenger Car, Commercial Vehicle, Two-Wheeler), By Demand Type (OEM, Aftermarket), By Lubricant Type (Engine Oil, Transmission Oil, Hydraulic Fluids, Greases, Others), By Region, Competition, Opportunities and Forecast, 2019-2029F
Published Date: March - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 729 Million |
| CAGR (2024-2029) | 10.54% |
| Fastest Growing Segment | Passenger Car |
| Largest Market | Riyadh |
| Market Size (2029) | USD 1322.37 Million |
Market Overview
The Saudi Arabia Automotive Lubricant Market stood at USD 729 Million in 2023 and is forecasted to be USD 1322.37 Million by the year 2029 with a CAGR of 10.54% over the forecast period.
The Saudi Arabian automotive lubricant market is witnessing a remarkable growth due to the growth in vehicle ownership, as well as growing demand for maintenance products. Being one of the Middle East's most prominent automobile markets, Saudi Arabia's lubricant market is advantaged by its robust oil and gas economy with access to quality base oils. Both global and domestic companies dominate the market with expanding demand for synthetic and semi-synthetic lubricants. Rising car fleet sizes, along with growth in automobile repair and services stations, is enhancing lubricant demand. In addition, the transition to electric vehicles (EVs) is increasingly impacting lubricant demand, but internal combustion engine (ICE) vehicles remain dominant. The market will continue to change, with advancements in energy-efficient lubricants and better fuel economy. Environmental pressures for cleaner, more sustainable products also drive the market's evolution.
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Market Drivers
Expansion of Automotive Service and Maintenance Network
The vehicle population in Saudi Arabia continues to grow, the automotive service and maintenance industry is expanding to meet the demand for oil changes, maintenance, and repairs. This expanding network of service centres, workshops, and fast lube stations has led to an uptick in lubricant consumption. The need for high-performance lubricants that improve engine efficiency and extend vehicle lifespans is driving the demand for advanced lubricants in the market.
Technological Advancements in Lubricant
The introduction of high-performance, synthetic, and semi-synthetic lubricants is revolutionizing the Saudi Arabian automotive lubricant market. The shift towards technologically advanced lubricants designed for superior fuel efficiency, enhanced engine protection, and longer intervals between oil changes is becoming more prevalent. With improvements in viscosity, thermal stability, and oxidation resistance, modern lubricants are becoming increasingly important for consumers seeking optimized engine performance. Technological innovations, such as low SAPS (sulfated ash, phosphorus, and sulfur) lubricants, are contributing to the growth in demand as they offer better protection for modern engines and fuel efficiency. For Instance, in may 2023, Lumax Auto Technologies has launched a new range of high-performance lubricants and coolants in the Indian market, aiming to meet the needs of modern vehicles across various segments. This strategic expansion leverages Lumax's expertise in automotive solutions, reinforcing its commitment to quality and innovation. The newly launched products are designed to enhance engine efficiency, reduce wear, and improve overall vehicle longevity. With this launch, Lumax strengthens its portfolio and positions itself as a key player in the automotive aftermarket.
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Regulatory Push for Environmental Sustainability
Increasing environmental regulations are another crucial driver of the automotive lubricant market in Saudi Arabia. The government is pushing for cleaner and more sustainable automotive technologies, which is spurring demand for lubricants that comply with stricter emission and sustainability standards. Additionally, the growing emphasis on reducing carbon footprints and improving fuel efficiency is contributing to the adoption of low-viscosity oils and eco-friendly lubricants, which are designed to meet both regulatory and consumer expectations for sustainability.
Rising Popularity of Electric Vehicles (EVs)
While traditional internal combustion engine (ICE) vehicles still dominate the Saudi Arabian market, the rise of electric vehicles (EVs) is gradually influencing the automotive lubricant landscape. Although EVs require fewer lubricants than ICE vehicles, they still require lubricants for parts like gearboxes, motors, and bearings. Additionally, as Saudi Arabia aims to increase the adoption of EVs, lubricant manufacturers are innovating to cater to the specific needs of electric vehicles, helping to secure future demand in this evolving market
Key Market Challenges
Intense Competition in the Market
One of the most prominent challenges in the Saudi Arabian automotive lubricant market is the intense competition among domestic and international players. The market is dominated by several global and regional lubricant brands, such as Shell, ExxonMobil, and TotalEnergies, along with local players, which increases competition in terms of product quality, pricing, and marketing. For new entrants or smaller companies, this competitive pressure makes it difficult to differentiate their products and capture market share. Additionally, maintaining brand loyalty can be challenging as consumers often prioritize affordability and availability over brand preference, leading to price wars and shrinking profit margins.
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Technological Advancements and Innovation
Rapid technological advancements in the automotive sector, such as the increasing adoption of electric vehicles (EVs), pose a challenge for traditional automotive lubricant manufacturers. While EVs do not require conventional lubricants for the engine, they still require specialized lubricants for components like electric motors, gearboxes, and cooling systems. The demand for lubricants in this segment is still emerging, and the lack of widespread EV adoption in Saudi Arabia means that lubricant companies must adapt their product offerings to cater to this niche, investing in R&D and innovation. Additionally, keeping up with advances in lubricant technology, such as enhanced synthetic oils, friction-reducing additives, and oils that support hybrid and autonomous vehicles, can be resource-intensive and costly. For example in august 2023,
Consumer Education and Awareness
The availability of high-performance lubricants, there remains a lack of consumer education about the benefits of using advanced and specialized automotive lubricants. Many consumers in Saudi Arabia continue to choose conventional lubricants based on price rather than performance benefits, which hinders the growth of premium product segments. Lubricant companies need to invest in educational campaigns and product awareness to encourage the adoption of higher-quality lubricants, which can protect vehicle engines more effectively and improve fuel efficiency.
The Saudi Arabian automotive lubricant market faces several challenges, including intense competition, fluctuating raw material prices, environmental regulations, changing consumer preferences, and technological advancements. Addressing these challenges requires a strategic approach that involves innovation, cost management, consumer education, and compliance with sustainability goals. By overcoming these obstacles, lubricant manufacturers can continue to thrive in this growing market.
Key Market Trends
Shift Towards High-Performance and Synthetic Lubricants
A significant trend in the Saudi Arabian automotive lubricant market is the growing preference for high-performance and synthetic lubricants. Consumers and businesses alike are increasingly opting for lubricants that provide superior engine protection, enhanced fuel efficiency, and longer service intervals. Synthetic oils, due to their advanced formulation, offer benefits such as improved temperature stability and better protection under extreme conditions compared to conventional oils. As vehicle engines become more complex and performance-focused, demand for synthetic and semi-synthetic lubricants is expected to rise. This shift is also supported by automakers recommending the use of premium lubricants for newer vehicle models. For Instance,
Focus on Sustainability and Eco-friendly Lubricants
Growing Aftermarket Lubricant Demand
As the automotive sector in Saudi Arabia continues to expand, the demand for aftermarket automotive products, including lubricants, is also on the rise. The aftermarket segment is driven by the increasing number of vehicles on the road, particularly as Saudi Arabia's middle class continues to grow and more individuals are purchasing personal vehicles. Additionally, as vehicle owners seek to extend the lifespan of their cars, they are turning to high-quality lubricants and fluids for maintenance and repairs. Lubricant manufacturers are tapping into this growing demand by expanding their product lines and ensuring that their offerings meet the specific needs of the aftermarket segment, such as lubricants for older vehicles or specific brands. For instance in october 2023, NanoMalaysia and Micratto Technologies have launched a cutting-edge, graphene-enhanced automotive lubricant designed to optimize engine efficiency and performance. This advanced formulation leverages graphene’s superior thermal and friction-reducing properties, promising extended engine life and improved fuel economy. Developed to meet the rigorous demands of modern vehicles, the lubricant represents a significant innovation in automotive maintenance. The collaboration underscores both companies’ commitment to driving sustainable, high-performance solutions in the automotive sector.
Segmental Insights
Vehicle Type Insight
The Saudi Arabia Automotive Lubricant Market is divided by vehicle type into passenger cars, commercial vehicles, and two-wheelers. Passenger cars account for a large share of the market due to an increasing number of vehicles on the road and the growing emphasis on keeping engine performance and longevity intact. There is growing demand for premium lubricants in passenger vehicles as a result of the installation of sophisticated engine technologies and a need for enhanced fuel efficiency. Commercial vehicles too are major contributors to the market, with lubricants playing a crucial role in sustaining the performance and operational effectiveness of heavy trucks, buses, and other commercial fleets. The emphasis on lowering maintenance expenditure and enhancing fuel efficiency propels the demand for specialty lubricants in this space. Two-wheelers, as a niche category, continue to experience steady demand for lubricants, especially as urbanization and the usage of motorcycles and scooters for private and commercial applications increase. Growing demand for fuel-efficient and performance-oriented lubricants, coupled with the evolution in lubricant technology, sustains the growth across all categories. Drivers like increased disposable income and shifts in consumer patterns also impact lubricant demand among vehicle types.
Region Insights
In 2023, Riyadh continues to be the leading area in the Saudi Arabia Automotive Lubricant Market. The city's high and fast-growing automotive industry, fueled by its role as the political and economic center of the nation, is a major factor in lubricant demand. As a city with a large number of cars on the road and continuous urban growth, Riyadh is one of the most important markets for automotive lubricants, especially for commercial vehicles and passenger vehicles. The strong infrastructure growth of the city and rising number of automotive service centers also drive the demand for lubricants, as routine maintenance of personal and commercial vehicles demands quality products.
Demand for lubricants in Riyadh is also driven by the rising trend of car ownership, particularly in the passenger car segment. With consumers becoming more concerned with improving engine performance and extending the life of vehicles, demand for high-quality lubricants is growing. In the commercial vehicle segment, including trucks, buses, and logistics vehicles, demand for specialty lubricants continues to be robust. This is due to rising transportation and logistics activity in Riyadh, fueled by the city's strategic location and position as a key hub for trade and commerce.
The rising trend of increased disposable incomes in Riyadh, together with increasing consumer consciousness of automobile maintenance, is still driving the growing lubricant market in the region. Advances in lubrication technology and the increasing demand for eco-friendly products will see the market in Riyadh grow steadily. The infrastructure expansion and economic activity in the region will continue to drive demand for automotive lubricants in the coming years.
Recent Developments
- In April 2024, Savita Oil Technologies Ltd. has launched the Savsol Ester 5 lubricant range, offering advanced performance for automotive and industrial applications. Formulated with ester technology, it enhances efficiency, reduces wear, and improves engine longevity. This launch strengthens Savita's position in the premium lubricant market. The Savsol Ester 5 range reflects the company's commitment to delivering innovative, high-quality solutions.
- In July 2024 Stellantis, in partnership with TotalEnergies, has introduced the Quartz EV3R 10W-40, a sustainable lubricant designed to support environmental responsibility. Made from premium regenerated base oils, this lubricant is derived from waste oils that have been refined to restore their quality and performance. This launch underscores both companies' commitment to sustainability in the automotive sector. The Quartz EV3R 10W-40 is a key step toward advancing eco-friendly automotive solutions.
- In May 2024, Castrol has introduced the new VECTON LONG DRAIN 5W-30 E6/E9, a fully synthetic commercial vehicle lubricant designed to meet the ACEA 2022 specifications for Heavy-Duty engines. This advanced engine oil offers extended protection and lubrication for longer vehicle lifecycles, meeting all regulatory and performance standards across Europe. The launch reflects Castrol's commitment to providing high-performance solutions for the heavy-duty vehicle market. The VECTON range continues to drive innovation in the commercial vehicle sector.
- In December 2023, HD Hyundai Oilbank has introduced a new dedicated electric vehicle lubricant brand, Hyundai XTeer EVF, consisting of two product tiers. The top-tier fluid is compatible with all EVs, while the mid-tier version is designed for specific models, including Tesla. These lubricants are crafted to meet the specifications of a wide range of electric vehicles, reflecting the company’s commitment to the growing EV market. The new products are designed to optimize EV performance and efficiency
Key Market Players
- Petromin Corporation
- PETRONAS Lubricants International
- BP p.l.c. (Castrol)
- AMSOIL Inc.
- TotalEnergies SE
- Shell plc
- Repsol S.A.
- FUCHS SE
- Eni S.p.A
- Exxon Mobil Corporation
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By Vehicle Type |
By Demand Type |
By Lubricant Type |
By Region |
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