Saudi Arabia Automotive Engine Oils Market Growth Analysis - Forecast Trends and Outlook (2024-2032)

Saudi Arabia Automotive Engine Oils Market Size

The Saudi Arabia automotive engine oils market size reached a value of approximately USD 666.25 million in 2023. The market is projected to grow at a CAGR of 2.40% between 2024 and 2032, reaching a value of USD 824.55 million by 2032.

Key Trends in the Market

Automotive engine oils are lubricants that are used for the lubrication of internal combustion engines. IC engines generally contain a lot of moving parts rubbing against each other. This leaves vehicles more vulnerable to wear and tear. Engine oils help reduce the friction between these moving parts, thus facilitating the smooth and efficient functioning of the engine and prolonging the vehicle's lifetime. Additionally, they clean the engine from sludge and cool the engine down by carrying heat away from moving parts.

• The Saudi Arabia automotive engine oils market growth can be attributed to the growing automotive sector in this country, supported by the rising disposable incomes, improved standard of living of the masses, and a rise in the number of on-road vehicles. Hence, with the growing automotive sector, the demand for engine oils is also expected to expand in the coming years.

• One of the significant Saudi Arabia automotive engine oils market trends is strategic efforts by the Saudi Arabian government to diversify its revenue sources. Under its Saudi 2030 initiative, the government is inviting original equipment manufacturers to set up manufacturing plants in Saudi Arabia to boost the economic development of the country. The government is also offering various tax rebates and concessions to attract automobile and other industrial players to the country, creating lucrative opportunities for market growth.

Moreover, the increasing investment by the Saudi Arabian government to develop public infrastructure, including roadways and bridges, for better connectivity is expected to support the market growth.

• The emergence of synthetic automotive lubricants that undergo many industrial treatments to gain required performance characteristics and improved efficiency influences the Saudi Arabia automotive engine oils market demand. Synthetic oils are witnessing a heightened demand owing to growing environmental concerns and their various advantageous properties, including higher fuel efficiency, lower vehicle emissions, and improved hardware compatibility.

Market Analysis

Based on grade, the market is segmented into mineral, semi synthetic, and fully synthetic. On the basis of engine type, the market can be categorised into gasoline, diesel, and alternative fuels. Based on vehicle type, the Saudi Arabia automotive engine oils market segmentation includes passenger cars, light commercial vehicles, heavy-duty vehicles, and motorcycles.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model, along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the Saudi Arabia automotive engine oils market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• BP PLC 

• Exxon Mobil Corporation  

• FUCHS Group  

• Chevron Corporation  

• TotalEnergies SE  

• Motul  

• Ravensberger Schmierstoffvertrieb GmbH  

• PETRONAS Lubricants International  

• BIZOL Germany GmbH  

• Others

Market Share by Grade

As per the Saudi Arabia automotive engine oils market analysis, fully synthetic oils are expected to witness high demand during the forecast period owing to their multiple desirable properties, including increased lubrication, better stability, reduced degradation, and lower deposits, among others.

Fully synthetic lubricants offer considerably advanced engine protection, along with better cleaning properties and less engine wear and tear, as compared to traditional engine oils. With the growing use of turbochargers in premium vehicles, which leads to an increase in engine temperature, the demand for fully synthetic oils is anticipated to rise in the forecast period as they can perform smoothly even in such high temperatures.

Market Share by Vehicle Type

Passenger vehicles are expected to hold a significant portion of the Saudi Arabia automotive engine oils market share over the forecast period owing to rising disposable incomes and the rapidly rising urban population in Saudi Arabia. The rising environmental consciousness has increased the demand for sustainable and fuel-efficient vehicles, assisting the segment's growth. Moreover, relatively cheaper fuel prices and increasing foreign investment in the country by key automobile manufacturers are likely to support the Saudi Arabia automotive engine oils market demand in the coming years.

Competitive Landscape of Saudi Arabia Automotive Engine Oils Industry

BP PLC, founded in 1909, is a British multinational oil and gas company that is headquartered in London, England. It is one of the largest companies in the world based on revenues and profits. The company deals in all areas of the oil and gas sector, ranging from exploration and extraction to power generation and trading.

Exxon Mobil Corporation is an American multinational oil and gas company that started its operations in 1999. Exxon is currently headquartered in the Houston suburb of Spring, Texas, and is vertically integrated across processes in the oil and gas sector. The company expanded to Saudi Arabia over 90 years ago to diversify its revenue sources.

FUCHS Group is a German multinational company headquartered in Mannheim, Baden-Württemberg. The company was started in 1931 and specialises in manufacturing automotive lubricants, including engine motor oils and transmission, for motor cars, motorcycles, agricultural, plant and stationary engines.

Other market players included in the Saudi Arabia automotive engine oils market are Chevron Corporation, TotalEnergies SE, Motul, Ravensberger Schmierstoffvertrieb GmbH, PETRONAS Lubricants International, and BIZOL Germany GmbH, among others.

Key Highlights of the Report