Report Overview

A spurring demand for lubricants from the growing automotive industry and ongoing infrastructure projects, including road construction and port expansion, is expected to boost the growth of Egypt Automotive Lubricants Market during the forecast period between 2024 and 2030.

Egypt Automotive Lubricants Market - Industry Trends & Forecast Report, 2030

Egypt Automotive Lubricants Market size was estimated to be worth USD 361.27 million in 2023. During the forecast period between 2024 and 2030, Egypt Automotive Lubricants Market size is projected to grow at a CAGR of 3.80%, reaching a value of USD 477.37 million by 2030. Major growth factors for Egypt Automotive Lubricants Market include increasing vehicle usage, which escalates the need for periodic maintenance, and consumer shifts towards sustainable lubricants. Another factor influencing the growth of Egypt Automotive Lubricants Market is the expanding automobile production under various government initiatives, such as tax exemptions for automobile manufacturers.

Automotive Lubricants – Overview

Automotive lubricants are specialized fluids used to reduce friction, wear, and heat in the moving parts of vehicles, ensuring smooth and efficient operation. They include engine oils, transmission fluids, gear oils, and greases. These lubricants help in protecting the engine and other components from damage, improving fuel efficiency, and extending the lifespan of the vehicle. They can be derived from mineral oils, synthetic materials, or bio-based sources, each offering distinct performance characteristics to meet specific automotive needs.

Egypt Automotive Lubricants Market

Growth Drivers

Expanding Automotive Manufacturing Industry

Egypt is a lucrative market for automotive manufacturing with leading automobile OEMs, such as General Motors, Hyundai, Nissan, and others, operating in the country. Automobile manufacturers are given tax incentives and other incentives by the government, which boosts domestic manufacturing. Additionally, they created the Egyptian Organization for Standardization and Quality, which establishes safety and quality standards for lubricants. These initiatives are fostering the expansion of Egypt Automotive Lubricants Market.

Challenges

Prevalence of Counterfeit Lubricants

Lubricant counterfeiting is a major cause of concern in the Egypt Automotive Lubricants Market. Rogue printers have been found to print for both genuine businesses and counterfeiters of the same product. The labels were then affixed to common lubricant bottles that the counterfeiters had bought from the marketplace. The end result is a fake lubricant bottle that contains a potentially harmful substance, yet it is really hard to distinguish from the real one. Naturally, the substance of fake packaging is frequently of far worse quality than the real, which harms equipment and causes major losses for vehicle lubricant manufacturers.

Impact of Escalating Geopolitical Tensions on Egypt Automotive Lubricants Market

Intensifying geopolitical tensions among countries and spreading across the major regions, especially in the Middle East, could adversely affect various aspects of Egypt Automotive Lubricants Market. Geopolitical, economic, and trade tensions and conflicts could cause economic instability in Egypt, which could deter foreign direct investments in the country. Israel’s war in its neighboring countries (Palestine and Lebanon), for instance, directly impacts the political and financial scenario of Egypt. Egypt shares its border with Gaza of Palestine, and escalations in violence are raising security concerns. The Egyptian government may increase military presence and surveillance along the border, which could strain the country’s resources. Geopolitical tensions also lead to disruption of the country's supply chain. Egypt relies on imports for many raw materials used in lubricant production. Any conflicts affecting shipping routes or trade agreements could result in shortages or increased costs for these materials.

Egypt Automotive Lubricants Market

Segmental Coverage

Egypt Automotive Lubricants Market – By Type

Based on type, Egypt Automotive Lubricants Market is segmented into engine oil, transmission fluid, gear oil, brake fluid, and others. The engine oil segment accounts for the highest market share, as the engine oil protects the vehicle engine from deterioration. Engine oil lubricates the engine, maintains its temperature, and prevents rust in its inner parts, which help keep the performance steady. Engine oil is made to withstand a wide range of driving circumstances since its viscosity naturally varies with temperature.

Egypt Automotive Lubricants Market – By Vehicle Type

By vehicle type, Egypt Automotive Lubricants Market is segmented into passenger cars, commercial vehicles, and heavy duty vehicles. The passenger cars segment holds the largest share of Egypt Automotive Lubricants Market by vehicle type. Growing working class population and rising disposable income of consumers are boosting the number of passenger vehicle registrations across the country. Passenger vehicle owners periodically use automotive lubricants to prevent excessive wear and tear in their vehicle and improve its lifespan and performance, propelling the overall market growth.

Egypt Automotive Lubricants Market – By Distribution Channel

On the basis of distribution channel, Egypt Automotive Lubricants Market is split into OEMs (original equipment manufacturers) and aftermarket segments. The OEMs segment accounts for a larger market share of Egypt Automotive Lubricants Market by distribution channel. Buying automotive lubricants ensures that automobile manufacturers and owners are using genuine products and not counterfeit lubricants, which might prove detrimental for the vehicle’s health. OEMs are the main supplier of automotive lubricants in the automotive manufacturing industry and provide lubricants based on machine’s design and operating requirements, which drives its market growth.

Egypt Automotive Lubricants Market – By End User

By end user, Egypt Automotive Lubricants Market is bifurcated into individual/private use and fleet operators segments. The individual/private use segment dominates Egypt Automotive Lubricants Market by end user. There were more than 5 million private cars registered in Egypt in 2023, with the number of registrations increasing at a substantial rate. Automotive lubricants are used in automobiles to reduce friction between auto parts and prevent rust and corrosion buildup. It extends the life of the automobile and proves to be economical for car owners by making them fuel efficient as well.

Competitive Landscape

Major companies in Egypt Automotive Lubricants Market include BP PLC (Castrol), Chevron Corporation, Cooperative Soceite des petroleum, Emarat, ExxonMobil Corporation, FUCHS, Misr Petroleum, Petromin Corporation, Royal Dutch Shell Plc, and TotalEnergies. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Engine Oil

• Transmission Fluid

• Gear Oil

• Brake Fluid

• Other

By Vehicle Type

• Passenger Cars

• Commercial Vehicles

• Heavy Duty Vehicles

By Distribution Channel

• OEMs (Original Equipment Manufacturers)

• Aftermarket

By End User

• Individual/Private Use

• Fleet Operators