The Bangladesh Lubricants Market is projected to register a CAGR of about 2% during the forecast period (2021-2026).
Due to the COVID-19 pandemic in the country during the first half of 2020, the automobile and transportation, and various other industrial sectors have been affected significantly. For instance, the automobile industry in the country witnessed uncertainty in 2020 and registered a decline of around 40% in sales during the year.
- In the short term, one of the major factors like increasing construction activities in the country is expected to diver the market. On the flip side, low adoption rates of synthetic lubricants due to high prices are expected to hinder the growth of the market.
- The automotive & other transportation dominated the market with a share of around 70%, in terms of demand, and it is expected to grow at a significant rate during the forecast period.
Key Market Trends
Engine Oils Segment to Dominate the Market
- Engine oils are widely used for lubricating the internal combustion engines in different types of automotive and are generally composed of 75%-90% base oils and 10%-25% additives.
- Engine oils are typically used for applications, such as wear reduction, corrosion protection, and ensuring the smooth operation of the 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.
- The demand for engine oils in Bangladesh has been rising steadily for the past five years, owing to the rapid growth in the sales of motor vehicles (both domestically manufactured and imported) in the country.
- MJL Bangladesh Limited, Ranks Petroleum Limited, and BP PLC (Castrol) are among the leading engine oil manufacturers in Bangladesh in the current scenario.
- All the aforementioned factors are expected to increase the demand for engine oils during the forecast period.
Automotive and Other Transportation Segment Expected to Dominate the Market
- Lubricants are used in automotive for various applications, such as the engine, brake systems, fuel systems, transmission manufacturing, steering systems, exhaust systems, and many others. Lubricants in automobiles reduce friction by creating a thin layer or film (clearance) between the moving parts. Shock absorption during heavy loads and the absorption of contaminants are a few of the various advantages.
- Lubricants in marine transportation are used to dissipate heat, for reducing friction, and combat wear and tear between the surfaces of two moving components. Additionally, lubricants help fight corrosion and rust in the engine, whether it's an aviation engine or a wheel burning on a car.
- Although the sales of new vehicles have been decreasing in the country for the past three years, the sales of used cars have increased significantly in the country, thereby driving the demand for automotive lubricants.
- In 2020, the car sales in the country came down to 900 per month from 1500 per month in the previous year due to the COVID-19 impact.
- Bangladesh is anticipating a growth in the aviation market, with the population increasing the use of the aerial route for traveling increasing gradually, owing to the growing middle-class incomes. The increasing air travel rates in the country is in turn supporting the growth of aviation lubricants.
- Owing to all the above mentioned factors, the demand for lubricants is expected to grow at a moderate rate during the forecast period.
The Bangladeshi lubricants market is partially consolidated with the top five players accounting for almost 60% of the total consumption. The key players in the market include MJL Bangladesh Limited, BP PLC (Castrol), Trade Services International, Navana Petroleum Limited, and Ranks Petroleum Limited, among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support