Bangladesh Lubricants Market Research Report Forecast 2019-2024 has outlined the industry with the growing applications and industry chain structure.
This market is expected to register a CAGR of approximately 2.80% during the forecast period, 2019-2024.
The major factor driving the market studied is the continuous rise of construction activities in the country likely to drive the consumption of lubricants through the forecast period.
The construction activities accounted for a value of BDT 7,359.5 million in 2017-2018, witnessing an increase from BDT 6,659.1 million in 2016-2017.
In recent years, the construction sector’s contribution rose to 7.5% of total GDP in the 2017-2018 fiscal year from 7.36% in the 2016-2017 fiscal year.
Growing demand for engine oil
The demand for engine oils in Bangladesh has been rising steadily since the past five years, owing to the rapid growth in the sales of motor vehicles in the country.
Increase in the demand for automotive vehicles
Light motor vehicles and passenger cars are the fastest growing sectors, and they are also the largest consumer of lubricants in Bangladesh. Lubricants are used in automobiles in the form of engine oil, coolants brake oil, and other transmission oils.
The sales of the automotive vehicle have increased rapidly over a period of 2013-2017 and are expected to increase over the period of 2019-2024.
In 2017, according to the Bangladesh Road Transport Authority (BRTA), a total of 0.5 million vehicles were registered in Bangladesh.
Growing sales of new passenger vehicles
The sales of new passenger vehicles witnessed an increase of nearly 30% in 2016-17 (according to the International Organization of Motor Vehicle Manufacturers), and the growth is expected to continue further.
The per capita income of the citizens of Bangladesh is increasing steadily, in turn, leading to a rise in the living standards of the people, and thus, the demand for the automobiles is increasing.
Also, the sales of high-end cars have witnessed a massive surge in the country lately, with a growth rate of over 15% being recorded during 2015-18.
This, in turn, has spurred the consumption of semi-synthetic and synthetic engine oils in the country in recent times.
According to the World Bank Business report, High price of synthetic lubricants is expected to hinder the growth of the market to some extent.
Additionally, the sectors, such as metalworking and construction, are also flourishing, which are supporting the increase in the demand for lubricants during the study period.