Growing construction activities are to drive the overall consumption of construction lubricants in Bangladesh during the forecast period.
Bangladesh is the fourth fastest growing economy worldwide, with GDP of Bangladesh experiencing a continuous rise since the past 5 years, and this is expected to continue during the next five years.
The domestic and foreign investments in the construction industry have been consistently growing over the past decade in the region, which is fueling the growth of the construction lubricants market.
The Bangladesh lubricants market is expected to register a CAGR of 3.01% over the forecast period, 2019-2024. The major factor which is driving the market studied is the increasing construction activities in the country.
In recent years, the construction activities in Bangladesh are increasing, owing to the growing per capita income and rising living standard of the consumers in the country.
Major economies, like China, India, Japan, Korea, and the United States are keen to invest in the infrastructure sector of Bangladesh, owing to its good land to water connectivity, port operations, and other factors leading Bangladesh to be a strategic location to carry out business.
According to the World Bank Business report, Bangladesh has improved its ranking in terms of ease of doing business in the construction sector.
The construction activities accounted for a value of BDT 7,359.5 million in 2017-2018 (~USD 86.93 million), witnessing an increase from BDT 6,659.1 million (~USD78.66 million) in 2016-2017.
In recent years, the contribution of the construction sector towards the country’s GDP has been rising at a significant rate. 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.
Thus, the growing construction activities in the country are likely to drive the consumption of lubricants through the forecast period.
Even, the global construction lubricants market is projected to reach USD 15.64 billion by 2022, at a CAGR of 4.37% during the forecast period.
Heavy-duty industrial applications to drive construction lubricants
Construction lubricants are a type of lubricants used to reduce friction between moving parts or surfaces and to enhance the efficiency of the machines used in the construction industry.
In heavy-duty industrial applications such as those found on construction sites, a high-performance lubricant can have a significant impact on operational success.
From bulldozers, dump trucks and draglines to scrapers and shovels, all construction equipment is subject to harsh conditions. Exposure to extreme cold or heat, moisture, dust and dirt can hurt lubricant performance and lead to premature equipment failure.
Heavy-duty equipment used in the construction of streets, highways, bridges and buildings is subject to extreme environmental conditions.