Africa Engine Oil Market Size, Industry Outlook Report, Regional Analysis, Application Development, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI248
Africa engine oil market value is poised to grow with rising sales of automobiles and increasing demand for passenger vehicles. An upsurge in gas stations has further solidified the position of engine providers and oil gas companies alike.
Engine oil is one of the most prominent lubricants in the combustion cycle. The oil neutralizes acid and inhibits corrosion and oxidation. Engine oil companies in Africa are gearing to capitalize on the upsides of these opportunities. Several oil companies are transitioning from oil to energy as they shift to become more consumer-centric. And in doing so, the underlying trend in the engine oil sector indicates traction towards synthetic oil.
The synthetic engine oil segment will gain a significant share as auto manufacturers and customers exhibit the trend for optimum protection. Given its resistance to viscosity breakdown from friction, heat and chemical contaminants, synthetic engine oil is gaining prominence across the Africa region. Moreover, engine oil companies are formulating synthetic engine oils to resist challenges in operating conditions with tremendous wear protection.
Africa engine oil market value from the passenger vehicle segment will witness an appreciable gain during the forecast period 2021-2027. Passenger car engines such as light-duty diesel engines and gasoline are providing a dominant mode of transport. Emerging countries such as South Africa are heavily investing in passenger vehicles. According to a study, South African vehicle exports accounted for 387,092 vehicles in 2019.
Expanding automotive production in African countries will boost the engine oil market forecast. According to OICA, more than 630,000 vehicles were produced in South Africa in 2019. An upsurge in demand for passenger cars and commercial vehicles has encouraged OEMs to expand their foothold in the region. Automotive lubricant traders will also exhibit traction for conventional, synthetic and high-mileage engine oil. Besides, hoardings and banners will occupy a considerable share in brand promotion for engine oil providers during the assessment period 2021-2027.
Nigeria engine oil market value will surge with an upsurge in the number of gas stations in the region. For instance, the Nigerian government announced the construction of 9,000 alternative fuel stations in September 2020. OEMs are expected to inject funds into the procurement of engine oil, auguring well for the Africa engine oil market growth.
Key vendors in the African engine oil industry are Chevron, Castrol, Total, ExxonMobil, Engen, Connoil Plc, Forte and Oando Plc. Leading companies are expected to view collaboration, partnerships and mergers & acquisitions as major strategies to gain a competitive edge in the landscape. For instance, Total is slated to proceed with $5.1 billion Uganda oil project. The French energy giant is contemplating project expansion in Nigeria and Angola.
Impact of COVID-19 on African engine oil market outlook
With automotive production having witnessed a plunge globally in 2020, the Africa engine oil market outlook may take witness a sluggish growth during the forecast period 2021-2027. According to OICA, Africa observed a steep decline of more than 35% in automotive production in 2020. Engine oil suppliers and other stakeholders are expected to address energy efficiencies through collaboration with OEMs. They are likely to work towards manufacturing lubricants, fuels and enhance engine design. Lubricant suppliers will position their businesses, emphasizing value-growth potentials.
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