Bangladesh industrial lubricants market is a focused market in recent years. Also, the oil players look outside of the highly competitive automotive lubricants market for new growth.
The growth of the power sector has got publicized recently because of the national agenda, which has also highlighted the industrial lubricants market in Bangladesh.
Also, the growing industrial sector requires a greater import of efficient machinery to be used in the factories.
The demand from the industrial machinery and equipment application also accounts for a major market share and is driven by the end-user sectors such as power, manufacturing, logistics, automotive manufacturing, and others.
Within Bangladesh, industrial lubricants represent the third-largest market after mineral-based lubricants markets and automotive lubricants market.
With an estimated annual consumption of around 20 million litres in 2018 that is projected to reach the 25 million litres mark by 2020.
The stability of Bangladesh’s economy in the last 5 years and, coupled with its pro-business climate and improving infrastructure has transformed this market into one of the top destinations for foreign direct investments in the manufacturing sector.
Lubricants consumption by the industrial sector has increased significantly in the last 5 years.
This industrial sector accounts for around 30% of the total lubricant consumption in Bangladesh.
The consumption of industrial lubricants has increased exponentially. And the metalworking fluid segment is the key segment includes a range of oils and other liquids that are used for lubricating or cooling metallic workpieces during the industrial procedures such as machining, grinding, forging, stamping, and milling.
Metal Removal fluids processed is likely to be one of the lucrative application segments in the metalworking fluid market which will remain the second most prominent application segment in this industry due to the growth in the automotive and steel industries in the coming years.
In Bangladesh, the distribution structure of industrial lubricants has evolved over the years to serve the dispersed industrial landscape.
Traditionally, lubricants oil manufacturers have relied on primary and secondary distributors as their primary channel-to-market.
However, some markets may even require traders–individuals who have intimate knowledge of the market–to service the population of small-scale industrial end-users and retailers in rural regions.