(MENAFN- America News Hour)
The Moroccan lubricants market is expected to register a CAGR of less than 3% during the forecast period. The major factor driving the growth of the market studied is the positive automotive outlook. However, the modest impact of electric vehicles in the country is projected to hinder to the growth of the market studied to some extent.
– Stable economic performance, growth in foreign investments, growth in the food and beverage sector, growth in construction, and the increasing manufacturing activities in Morocco are expected to act as opportunities for the lubricants market.
– The engine oil segment dominated the market and is expected to continue its dominance during the forecast period.
Key Market Trends
Automotive Segment to Drive the Market
– Automotive and other transportation media, such as aircraft and marine, are the largest markets for lubricants.
– Engine designs have been continually improved to enhance performance, increase efficiency, and meet the environmental emission regulations.
– Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are the most widely used lubricants in these automobiles. Lubricants have a good share in the aftermarket and among OEMs.
– The automotive industry is one of the pillars of the country's economy. Several international companies are investing in the industrial zones, such as Tangier and Kenitra. Furthermore, Morocco unseated South Africa in 2019 from the top of the podium of African car producers.
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– PSA and Renault-Nissan are the major automobile manufacturers in the country. The country, which manufactures one car every 90 seconds, aims to produce 500,000 cars in 2020, and it plans to produce 1,000,000 cars per year by 2023.
– Sales of vehicles in the country decreased from 177,359 units in 2018 to 165,916 units in 2019, registering a dip of 6.45%. However, in the first two months of 2020 (before the COVID-19 outbreak), the automotive sales in the country witnessed a solid recovery, as the sales posted more than 13% YTD (year to date) growth when compared to 2019, which is expected to positively influence the demand for lubricants, for a brief period after the pandemic recovery, owing to the increased servicing of vehicles. This trend is expected to contribute to the demand for lubricants in the aftermarket.
Greases Segment to Witness Lucrative Growth Rate
– Grease seals out contaminants, easily suspends solid additives, reduces noise, and is suitable for intermittent operations. Greased machinery consumes less power and significantly helps reduce wear and tear.
– The demand from the automotive sector contributes significantly to the grease market. According to the National Lubricating Grease Institute (NLGI), NLGI 2 grade grease is widely preferred for automotive applications.
– The demand for grease from the automotive segment in Morocco is increasing, as the country is witnessing double-digit growth in production and significant increase in sales every year. As grease is used more frequently for small applications in the industry, the demand for greases from the automotive industry is expected to increase.
– Automotive greases are used to lubricate the chassis, suspension, and steering. Additionally, automotive greases can be classified based on their GC and LB ratings.
– In the industrial segment, the demand for grease is increasing from the iron and steel industry, where it is used in frequent intervals during the operations.
– Such aforementioned factors are expected to incur the demand for industrial greases during the forecast period.
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