Saudi Arabia Automotive Engine Oil Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Saudi Arabia Automotive Engine Oil Market Trends and Growth Drivers

Saudi Arabia’s Economic Diversification Initiatives Are Significant Market Trend

• Saudi Arabia is witnessing a change socially and economically to improve the living standards of its citizens.
• Saudi Arabia's economy is highly dependent on the oil and gas sector, which is why it is trying to move toward others for economic diversification. Crown Prince Mohammed bin Salman has launched the Vision 2030 program to reduce the dependence on oil sector and create new revenue streams.
• This initiative has a positive impact on Saudi Arabia’s automotive industry, increasing the production and sales of automobiles in recent years, which will also increase the demand for automotive engine oils.
• Furthermore, engine efficiency is the main priority for both automakers and owners. In reducing friction, optimizing engine performance, and improving fuel efficiency, automotive engine oil plays a crucial role. To meet these requirements, the demand for high-quality engine oils is increasing.

Increasing Automotive Sales in Saudi Arabia Are Driving Market Growth

• Saudi Arabia has seen a surge in automobile sales due to the growing rate of urbanization and a shift in people's preferences for better lifestyles.
• ZATCA reports that the imports of automobiles into the Kingdom of Saudi Arabia reached 93,199 units in 2023, a notable rise from 66,870 in 2022. Moreover, Saudi Arabia sold 729,466 automobiles in total in 2023.
• Regular maintenance and oil changes are essential to extend the lifespan and performance of automobiles, which drives the demand for automotive engine oils.

Saudi Arabia's Shift toward Electric Vehicles Acts as a Challenge

• The kingdom's growing environmental concerns have led to an increase in the popularity of electric vehicles, which presents a threat to the expansion of the Saudi Arabian market for automobile engine oils.
• Electric vehicles do not require lubrication for their engines, which reduces the demand for engine oils.
• In addition, to leverage the rising demand for electric vehicles, makers of automobile engine oils must expand and diversify their product lines to include lubricating chemicals for various EV components, such as transmissions and motors.

Saudi Arabia Automotive Engine Oil Market Analysis

Engine Insights

• The diesel category will hold the largest share, of 55%, in 2024. This is due to the fact that more vehicles in the kingdom run on diesel than any other crude derivative.
• The gasoline category is expected to grow at the highest CAGR, of 2.9%, over the forecast period. This is due to the environmental benefits of gasoline engines, such as low carbon emissions, and the advancements in them.

The engines analyzed in this report are:

• Gasoline (Fastest-Growing Category)
• Diesel (Largest Category)
• Alternative Fuels

Grade Insights

• The fully synthetic category will hold the largest share, of around 50%, in 2024 due to their improved stability, reduced deterioration, and smaller deposits.
• This variant reduces engine wear and tear by nearly half when compared to other engine oils. Fully synthetic engine oils are used in high-performance automobiles.
• The semi-synthetic category is expected to grow at the highest CAGR, over the forecast period because it is more stable across a wider temperature range in comparison to other categories.

The grades analyzed in this report are:

• Mineral
• Semi-Synthetic (Fastest-Growing Category)
• Fully Synthetic (Largest Category)

Vehicle Insights

• The passenger cars category will hold the largest market share, in 2024. This is due to the fact that consumers prefer automobiles that provide excellent overall performance and emit fewer greenhouse gases.
• The commercial vehicles category is expected to grow at the highest CAGR, over the forecast period. The nation's e-commerce, logistics, and transportation sectors are growing, which is driving the demand for commercial vehicles.
• Commercial vehicle fleet operators prioritize regular maintenance for high efficiency, which further requires automotive engine oil for lubrication and maintenance.

The vehicles analyzed in this report are:

• Passenger Cars (Largest Category)
• Commercial vehicles (Fastest-Growing Category)
  • Light commercial vehicles
  • Heavy commercial vehicles
• Motorcycles

Geographical Analysis

• Al-Riyadh will dominate the market with 40% revenue in 2024.
• It is also expected to witness the highest CAGR, of 3.2%, during the forecast period.
• The majority of automobile buyers in the province of Riyadh are purchasing luxury and high-end models, which has an impact on the growth in automotive engine oil usage.

The provinces analyzed in this report are:

• Al-Riyadh (Largest and Fastest-Growing Province)
• Makkah
• Al-Madinah
• Al-Qaseem
• Eastern Province
• Aseer
• Tabouk
• Hayel
• Northern Border
• Jazan
• Najran
• Al-Baha
• Al-Jouf

Saudi Arabia Automotive Engine Oil Market Share

The Saudi Arabian automotive engine oil market is consolidated due to the presence of a few major players. The market players are actively involved in various activities such as geographically expansion, mergers & acquisitions, partnerships, and collaborations to stay ahead in the race of competition. The major share of the market is held by the top five companies. By emphasizing R&D and forming strategic alliances, these players strengthen the market's dynamism.

Saudi Arabia Automotive Engine Oil Market News

• In December 2023, Petromin Foton announced the official launch of its first showroom in Saudi Arabia under Petromin Corporation.
• In December 2023, Motul introduced 8100 Power, an entirely synthetic ester lubricant, throughout the Middle Eastern region.
• In September 2023, Motul launched the NGEN engine oil line in the Middle East, combining sustainability and performance.