How is Lubricants Market Positioned in Algeria?
Algeria lubricants market is presently in its growth stage. The market comprises of both domestic production and import of lubricants to meet the domestic demand for lubricants. There are 9 players in total that operate in the organized space of the market including the government owned Sonatrach. The terrorist attacks near oil refineries of In Amenas in 2013 and the global oil price shock during 2014-2015 negatively impacted the market during the period 2012-2017. However, increasing government expenditure to diversify the oil dependent economy through initiatives like National Vision 2030 and SH2030 are expected to keep the overall market demand for lubricants growing in future.
The lubricant sales in Algeria have declined at a negative CAGR during the period 2012 to 2017. The leading categories in case of market segmentation by origin were mineral lubricants while in case of segmentation by type, lubricants used in automotive sector especially in commercial and passenger vehicles, led the market. Moreover, majority of the lubricants sales were met through dealer networks in the country as they are associated with higher trust and credibility. Ever since the oil price shock and terrorist attacks, the government has focused on diversification of the economy to decrease the oil and gas sector dependency by encouraging other industries to emerge through its five year plans of 2009-2014 and 2014-2019.
Algeria Lubricants Market Segmentation
By Origin: In 2017, mineral lubricants dominated the lubricants market of Algeria. This is mainly due to their low retail price and easy refining process. Moreover, industries prefer mineral oils as they have o make bulk purchases in comparison to customers that purchase automotive lubricants in much smaller quantities. This was followed by semi-synthetic and finally, synthetic lubricants, which accounted for the lower volume share due to comparatively narrower scope of usage in end user applications.
By Type (Automotive and Industrial): Automotive lubricants dominated the lubricants market of Algeria till the year 2017 with high volume of domestic sales. Automotive lubricants are required for rented, used and pre-owned vehicles. Industrial lubricants followed with a comparatively lesser volume share with construction sector being the largest end user. The remaining end users of industrial lubricants include manufacturing, power generation and other end user industries.
Algeria Automotive Lubricants Market Segmentation
By Application (Heavy Duty Diesel Engine Oils, Passenger Car Motor Oils, Hydraulic Oils, Greases, Gear Oils and Transmission Fluids): Domestic sales of Heavy Duty Diesel Engine Oils and Passenger Car Motor Oils dominated the automotive lubricants market of Algeria catering to majority of the market demand in 2017. This was majorly due to huge number on road passenger and commercial vehicles in the country. The volume shares of Hydraulic Oils, Greases and Gear & Transmission Fluids were much lesser and collectively accounted for remaining volume share in the market. Moreover, Transmission Fluids are replaced only after vehicles have travelled distances, larger than 60,000 miles which is sporadic.
By End Users (Passenger Vehicle Lubricants, Commercial Vehicle Lubricants, Marine Lubricants and Aviation Lubricants): Commercial and passenger vehicles were the largest consumers of automotive lubricants in Algeria in 2017 and collectively accounted for majority of the market. This is due to the growing transportation and logistics industry and high existing domestic demand in households. The remaining volume share was of marine and aviation lubricants which were mostly imported from abroad.
By Channel of Distribution (OEM Workshops/Service Stations, Dealer Networks and Others): Dealer networks were the leading category under this segmentation with the highest volume share in 2017. This was mainly because of their expertise and knowledge which enables them to advice customers. This increases customer trust and makes dealer networks a preferred channel for sales. Service stations accounted for the second highest market share in 2017. The remaining market was catered by other channels such as supermarkets and online sales.
Key Segments Covered:-
By Origin (Mineral, Semi-synthetic and Synthetic Lubricants)
By Type (Automotive and Industrial Lubricants)
Automotive Lubricants
By Application (Heavy Duty Diesel Engine Oils, Passenger Car Motor Oils, Hydraulic Oils, Greases, Gear Oils and Transmission Fluids)
By End Users (Passenger Vehicle Lubricants, Commercial Vehicle Lubricants, Marine Lubricants and Aviation Lubricants)
By Channel of Distribution (OEM Workshops/Service Stations, Dealer Networks and Others)
Industrial Lubricants
By Application (Hydraulic Oils, Industrial Gear Oils, Turbine Oils, Compressor Oils, Greases and Transformer Oils)
By End Users (Construction, Power Generation, Manufacturing and Others)
By Channel of Distribution (Direct Sales by Companies and Workshops, Dealer network)
Key Target Audience:-
Lubricants Manufacturers
Lubricants Distributors
Government Agencies
Base-oil Companies
Additive Companies
Refining Companies
Time Period Captured in the Report:-
Historical Period: 2012-2017
Forecast Period: 2018-2022
Companies Covered:-
Sonatrach
Total S.A.
Petroser
Royal Dutch Shell
Exol Lubricants
Rebex Lubricants
Lincoln (SKF)
Liqui Moly
Bardahl
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