East Africa has a surplus of natural resources including the Great Rift Valley, a series of lakes, and high proximity to the equator, which provides abundant solar radiation. IndustryARC’s analyst reports that East African countries are adopting clean energy technology with Kenya, Ethiopia, and Rwanda largely investing in solar, wind, hydro and geothermal power projects in the past few years. This signifies the scope of opportunities for the lubricant market in this region since turbines and gear machines require frequent lubrication to work consistently and smoothly. Furthermore, the automotive sector is experiencing a surge in demand in this region. Consequently, the automotive industry is capitalizing in the lubricant industry for a huge supply of lubricating oils essential for motor parts and machines. East Africa also imports a large quantity of lubricants from the UAE and is a center of export trade for overseas countries since the East African nascent market is progressing steadily in recent years. The East Africa lubricants market acquired a revenue of $2.8 billion for the FY 2018.
Several types of lubricants such as anti-wear additives, corrosion inhibitors, friction modifiers, transmission fluids, and industrial engine oils are widely used in the aerospace, food and beverage, modern machinery, and oil and gas industry of East African region. Furthermore, lubes used in medical diagnosis and cosmetic emulsifiers are also boosting the East African lubricants market demand growth. As a result, the East Africa lubricant market demand is elevating gradually which is evaluated to grow at a CAGR of 3.15% during the forecast period of 2019-2025.
East African Lubricants Market Growth Drivers:
· Lubricating wind turbines and gearboxes used in renewable plants are subject to corrosion and wear due to extreme temperatures coupled with humidity. Moreover, there is an increase in the establishment of renewable plants which will simultaneously influence the growth prospects of the domestic market.
· Lubrication is essential in terms of the rate of used-vehicle purchases and usage. East African countries such as Ethiopia and Kenya are some of the leading importing countries of used vehicles in this region. Besides, India Environment Portal highlights among the total vehicles imported into Kenya in the year 2016, more than 96% are used. This signifies the high dependency on lubricants for boosting the efficiency of these vehicles. Significantly, hike in used-vehicle trade eventually elevates the East African lubricants market demand.
East African Lubricants Market Key Players:
The East African lubricants market growth is extensively aided by the approaches and innovations of several companies. Also, investment in R&D activities and launch of newer products by these market pioneers will eventually contribute to the economic income of the niche market. Theses competitive global leaders influencing the market demand include Petrochina Company Ltd, Idemitsu Kosan Co Ltd, Royal Dutch Shell plc, ExxonMobil Corporation, BP PLC, SINOPEC, TOTAL SA, Lukoil, Chevron Corporation, and Fuchs. For instance, the Royal Dutch Shell Plc, one of the leading oil and gas company, delivers various lubricants and oils, commercial fuels, and associated products and services to aviation, marine, and other industrial sectors.
East African Lubricants Market Trends:
Trends of clean energy production in East African countries generate interest of several market companies. It offers huge scope for the various industrial sector to expand their services in this region. Since lubricating substances are one of the most essential ingredients used in renewable power plants, the establishment of clean energy plants will boost the market economy. Concurrently, the East African lubricants market is likely to gain huge demand with the construction of Kenya’s Turkana Wind Farm and Rwanda’s two hydropower plants: Ruzizi III and Rusumo.
East African Lubricants Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the East African Lubricants market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of East African Lubricants in the East African Lubricants market and their specific applications in different areas.
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