“High rate of terrorism and global oil price shock of 2014-2015 negatively impacted the demand for lubricants in country.”
The report titled, “Algeria Lubricants Market Outlook to 2022 – By Automotive (Heavy Duty Diesel Engine Oils, Passenger Car Motor Oils, Hydraulic Oils, Greases, Gear Oils and Transmission Fluids) and By Industrial (Hydraulic Oils, Industrial Gear Oils, Turbine Oils, Compressor Oils, Greases and Transformer Oils)” by Ken Research recommends that the companies operating in lubricants market of Algeria can expand their market share by focusing on sales through dealer networks, invest in marketing and sales promotion activities and focus on customer loyalty and repeat orders. The market is expected to register an overall positive CAGR of 2.3% by revenue during the forecast period 2017-2022.
High Dependency on Hydrocarbon Sector: The country is the leading natural gas producer in Africa, second largest natural gas supplier to Europe and among the top 3 oil producers in Africa. It is also expected to possess world’s third largest shale gas reserves. Algeria began producing oil in 1958 and became an OPEC country in the year 1969. According to the IMF report of 2014, the country’s revenues were heavily dependent on its hydrocarbon sector which accounted for 25% of the country’s GDP, 95% of export earnings and 60% of the budget revenues. Thus, the high dependency of hydrocarbons sector and oil price shock during 2014-2015 negatively impacted the lubricants sales in Algeria.
Negative Impact of Terrorism: Terrorism in Algeria has been a constant threat to foreign entrants in the Algerian lubricants market. The operations of foreign entrants in Algerian markets are expected to remain limited due to this reason. The terrorist attack near In Amenas gas facility in 2013 led to withdrawal of expatriates working in the region. This attack raised safety concerns among foreign companies for their employees working in lubricants market in Algeria and has negatively impacted the market.
Declining Automotive Industry: Algeria is one of the leading consumers for automotive sector. The country imported 4 million cars during 2001 – 2016. However, in 2015, the government introduced a major policy change in the automotive industry to improve the safety of passengers. This involved a ban on purchasing imported vehicles that are not equipped with proper safety measures such as extra air bags, ABS system and traction control. This significantly impacted the imports and domestic manufacturing of passenger and commercial vehicles thereby negatively impacting the lubricants market of Algeria.
Growing Mergers and Acquisitions: In 2017, Total signed an agreement with Sonatrach to launch petrochemical engineering studies in western Algeria. This project also includes setting up of a dehydrogenation unit and a production unit for polypropylene. The heavy machineries installed in these units will also require regular usage of lubricants especially synthetic lubricants for efficient performance.
Lubricants Demand Algeria
Lubricants Market Algeria
Lubricants Sales Volume Algeria
Diesel Engine Oils Market Algeria
Heavy Duty Oils Market Algeria
Motor Oils Market Algeria
Hydraulic Oils Market Algeria
Greases Market Algeria
Gear Oils Market Algeria
Industrial Oils Market Algeria
Turbine Oils Market Algeria
Sonatrach Lubricants Algeria
Total Lubricants Algeria
Petroser Lubricants Algeria
Key Segments Covered:-
By Origin (Mineral, Semi-synthetic and Synthetic Lubricants)
By Type (Automotive and Industrial 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)
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:-
Time Period Captured in the Report:-
Historical Period: 2012-2017
Forecast Period: 2018-2022
Royal Dutch Shell
For more information on the research report, refer to below link:-
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Ankur Gupta, Head Marketing & Communications