LONDON, June 21, 2016 /PRNewswire/ -- Analysis of the Automotive Lubricants Market—Nigeria and South Africa : Decreasing GDP Growth Rate Strains Automotive Lubricant Sales
This research service examines the automotive lubricant markets in South Africa and Nigeria. Following the assumptions of slow economic growth rates, slow GDP growth rates, and oil price volatility, the forecast predicts a decline in the revenue and volume demand growth rates for automotive lubricants in the short term. Driving overall market growth in automotive lubricants is the shift in the middle-class population and the subsequent increase in vehicle consumption. Government legislation and OEM requirements are shifting the industry towards synthetic lubricants that are higher quality, specialized, and bio-based. Engine oil and the other lubricants applications are forecast to be an area with high growth opportunity.
-The market size for the total Nigerian and South African automotive lubricants market, in terms of volume demand, is expected to grow at a CAGR of % from metric tonnes (MT) in 2015 to MT 2020 with a growth rate of % for the year 2020.
- The key drivers of the market are the growing demand for light commercial vehicles, (LCVs), medium commercial vehicles (MCVs), heavy commercial vehicles (HCVs), and the increasing vehicle parc.
- Driving the overall market growth in automotive lubricants is the shift in the middle class population, the subsequent increase in vehicle consumption, and the growth of industrialisation in Nigeria and South Africa.
- Both Nigeria and South Africa rely heavily on raw materials (base oils and additives) sourced from imports, however, the volatility in future oil price coupled with devaluating currencies in both countries, is expected to drive the local manufacturing and production market for automotive lubricants.
- The revenue generated from the automotive lubricants sector in Nigeria is expected to grow from $ billion in 2015 to $ billion in 2020 at a CAGR of %. - In Nigeria, about % of the vehicles on the road are second hand vehicles that will require more frequent lubricant drains in the long term contributing to the volume demand of automotive lubricants in Nigeria.
- In South Africa, it is expected that the total revenue for automotive lubricants in the formal sector will increase from $ million in 2015 to $ million in 2020 at a CAGR of %
Key Questions This Study Will Answer
- What is the size and forecast growth potential of the automotive lubricants market in Nigeria and South Africa?
- What are the market drivers and restraints, and what are the effect on the growth potential of the automotive lubricants market in Nigeria and South Africa?
- Who are the key market participants/competitors, and what are their relative market shares?
- What are the distribution channels in the market?
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