MATRKET OVERVIEW - NIGERIA

NIGERIA LUBRICANTS MARKET - GROWTH, TRENDS, COVID-19 IMPACT, AND FORECASTS (2021 - 2026)

The market for Nigeria lubricants is is expected to reach 339.52 kilo ton by 2026, registering a CAGR of 1.54% during the forecast period (2021-2026). The demand from the expanding wind energy sector and the rising demand for high-performance lubricants are the major factors driving the growth of the market studied.

  • On the flipside, increasing drain intervals in the automotive and industrial sectors, slowdown in the automotive industry, and unfavorable conditions arising due to the COVID-19 outbreak are expected to hinder the growth of the market.
  • The growth in the industrial manufacturing segment is likely to provide opportunities for the Nigeria lubricants market over the next five years.
  • Automotive and Other Transportation is the most dominating end-user industry of the market studied.

Lubricant products are made from a combination of base oils and additives. The composition of base oil in the formulation of lubricants is primarily between 75-90%. Base oils possess lubricating properties and makeup to 90% of the final lubricant product. The Nigeria lubricants market is segmented by product type and end-user industry. By product type, the market is segmented into Engine Oil, Transmission and Hydraulic Fluid, Metalworking Fluid, General Industrial Oil, Gear Oil, Grease, Process Oil, and Other Product Types. On the basis of end-user industry, the market is segmented into Power Generation, Automotive and Other Transportation, Heavy Equipment, Food and Beverage, Metallurgy and Metalworking, Chemical Manufacturing, and Other End-user Industries. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Product Type
Engine Oil
Transmission and Hydraulic Fluid
Metalworking Fluid
General Industrial Oil
Gear Oil
Grease
Process Oil
Other Product Types
End-user Industry
Power Generation
Automotive and Other Transportation
Heavy Equipment
Food and Beverage
Metallurgy and Metalworking
Chemical Manufacturing
Other End-user Industries

Key Market Trends

Engine Oil Segment to Drive the Market Growth

Engine oils are widely used for lubricating internal combustion engines in different types of automotive, off-road vehicles, and they are generally composed of 75%-90% of base oils and 10%-25% of additives. They are used in engines for different transportation modes, owing to their advantages, such as fuel efficiency, enhanced performance, temperature control, and engine protection. Various types of engine oils are synthetic oil, synthetic blends, and conventional oil. Synthetic oils are used in areas where high- and low-temperature performances are required. Conventional oils are used for simple and regular engine designs and manufactured according to various viscosity grades. Synthetic blend oils are a mixture of conventional and synthetic oils and have a high resistance to oxidation. High mileage oils, which are witnessing high demand, have unique properties, such as oil burn-off reduction and oil leak prevention.

Engine oils are typically used in applications for various purposes, such as wear reduction and corrosion protection, as well as ensuring the smooth operation of engine internals. The oils function by creating a thin film between the moving parts for enhancing heat transfer and reducing tension during contact of the parts. Moreover, engine oils are classified into two types, based on viscosity and performance. Kinematic viscosity is measured at 100°C and defines the viscosity of the engine oil from 20 to 60, primarily for the rising levels of viscosity. The initial “W” degrees, from the initial “winter”, is mentioned to define the viscosity of the oil at low temperature levels. Those temperatures range between -35°C and -5°C, and the viscosity levels of the oil are stated as 0 W – 25 W. This temperature represents the lowest possible temperature at which the engine can be started when lubricated with an oil of the corresponding degree (e.g., a 15 W oil makes it possible to start the engine at up to -20°C). The temperature mentioned is the minimum temperature at which the oil can flow freely and lubricate the critical parts of the engine, in addition to ignition.

Oils without the letter W, which are intended for use at higher temperatures, are based on the viscosity at 100°C only. The engine oil for heavy equipment is used in the agriculture machinery, mining, off-road vehicles, and oil and gas industries. 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.