Africa Engine Oil Market Size, Industry Outlook Report, Regional Analysis, Application Development, Price Trends, Competitive Market Share & Forecast, 2020 - 2026
Report ID: GMI248
Africa engine oil market size was estimated at over 2 million tons in 2015. Africa lubricant market size witnessed an increase of 1.1% of total consumption in 2014. Automotive engine oil market was the leading application segment and accounted for over 50% of the total volume in 2014. Industrial engine oil market size was estimated at over 1 million tons in 2014 and is likely to witness an increase in demand owing to growth in end-used industries such as steel, mining, construction and cement.
Egypt engine oil market accounted for more than 20% of the total regional volume in 2014. Nigeria engine oil market is likely to be the most lucrative over the forecast period and accounted for more than 8% of the regional demand in 2014.
Increase in automobile sales, particularly in South Africa, Morocco, Algeria and Egypt coupled with increase in consumer spending capacity is likely to drive Africa engine oils market growth. Regional automobile sales were estimated at over 1.6 million units in 2013 with over 21 million units of passenger car operating in the region.
Investments in transportation projects worth USD 500 billion are planned in the region which is expected to pave way for automobile industry growth over the forecast period. South Africa was the leading automobile regional market with estimated sales at over 650 thousand units. Automotive engine oil prices remained a key factor for consumer purchase decisions coupled with other factors such as branding, after sales service, spare part distributors and motor mechanic service centers.
The Africa engine oil market is fragmented with few countries such as Egypt, South Africa, Nigeria, Algeria, Sudan and Morocco accounting for over to 70% of the total volume in 2014. Increasing economic development in Egypt and Nigeria is likely to spur engine oil demand in the region. Egypt & Nigeria are the two most populous countries in the region which is characterized by economic growth driven by rapid industrialization. This factor is likely to support growth in middle-class consumer spending capacity and thus drive lubricant demand in the region.
Africa engine oil industry is likely to grow owing to availability of high performance raw materials such as group II and group III base stocks. These base stock plants are lacking in the region and are very crucial to establish type II and type III based stock plants to tap potential market. Base oil regional production accounts to more than 52% of the total demand, close to 20% is fulfilled via recycled base and the rest is met through imports. Low grade lubricants such as API CC/CDs & CFs are widely used in the region although demand for high quality base oils is gradually starting to take pace.
South Africa engine oil market share is highly deregulated in the region with presence of multinational companies such as Chevron, Castrol and Shell. The country has more than ten blending plants and major petrochemical companies present here obtain lubricants from share or wholly owned lube blending units. BP and Shell own a lube blending unit located at Durban whereas Engen owns a wholly owned unit at the same location. The current lube blending capacity in the country exceeds the domestic lubricants demand
South Africa lubricant market size accounted for more than 17% of the total volume in 2014. Industrial applications dominated the regional demand with more than 45% of the share in 2014. Automotive applications accounted for more than 40% of the total volume in 2014 and rest was accounted by applications such as aviation and marine.
In South Africa, about 10% to 15% of the base oil deficit is obtained from re-refined sector developed through sanctions to conserve petroleum products which restrict the disposal or burning of used lubes. Oikol, anon-profit organization, is responsible for used collecting used from service stations & industrial areas and then transports to storage depots in the region which is then supplied to Chemico for re-refining.
Africa engine oil market share is moderately consolidated with major industry participants such as Chevron, Shell, Total, Castrol and Engen. Other important companies include Conoil Plc, ExxonMobil, Oando Plc and Forte.
What Information does this report contain?
Customize this Report
Our Market Research Reports Include:
- Market snapshot
- Market Segmentation
- Value Chain Analysis
- Growth Dynamics
- Potential Market Opportunities
- Regulatory Overview
- Technology Evolution
- Innovation & Sustainability
Take a free trial of GMIPuse, our report store; designed to provide clients a range of market research services, all on a single platform.Start Your Free Trial
Benefits of Association
Data Coverage & Quality
GMI reports provide the most comprehensive coverage of any focus industry, ensuring a holistic and deep understanding of the market, along with actionable and granular data. We also take pride in our commitment to quality and strive to ensure that our clients get their moneys worth.
Client Trust & Security
GMI maintains strict code of conduct as a business and is committed to ensure that the privacy and trust of our clients are always maintained. As an organization, we also strive to be fully compliant with privacy laws, PCI and information security guidelines.
Our customers rely on us to produce accurate, reliable and timely information. Service orientation is a key mission for us as an organization; our process is guided by the desire to ensure that our clients are provided the best possible solutions in optimal timeframe. GMI stands by its commitment to service, providing timely assistance in both pre-sales and post-sales support for our clients.