Who will reveal the exact market size of the engine oil market in Bangladesh? The market for engine oils, known as lubricants, is growing rapidly, driven by the increasing number of automotive vehicles as well as the rapid growth of its economy.
On an assumption, last year, the demand for the total engine oil market was around 160,000 tonnes.
The Daily Star, a reputed newspaper of Bangladesh claimed that the engine oil market has grown at nearly 15% during the last three years.
It also alleged that the lubricant consumption rose over 14% during this period.
Earlier, Mobil Jamuna Limited, a leading shareholder of Bangladesh engine oil market, has estimated that the lubricants consumption was about 62,600 tonnes for the year 2010.
Within nine years, it has observed that lubricants consumption has increased by 60%, where the market has enjoyed around 5% to 6% annual growth.
Market Insiders says the lubricants consumption likely to be around 165,000 tonnes for the year 2019.
An earlier report by the Daily Star says the retail market was about Tk 1,000 crore in 2009, when the automotive sector consumed 77%, and the manufacturing sector consumed the rest market share.
But now, based on the growth analysis, the expected retail market is around Tk 3,000 crore.
In the last 5 years, lubricants consumption in the manufacturing sector has increased notably.
It has also observed, the automotive sector holds around 70% of the total demand, and the manufacturing sector accounts for the rest 30% market share.
The demand from the industrial machinery and equipment application also accounts for a major share of the total lubricants market and is driven by the end-user sectors such as power, manufacturing, logistics, automotive manufacturing, and others.
The growth of the power sector has got priority because of the national agenda, also highlighted the demand from the manufacturing sector.
Also, the growing industrial sector requires a greater import of efficient machinery to be used in the factories. Various automotive vehicles in the transport sector require lubricants too, which come from base oil.
Therefore, the lubricants demand is expected to witness steady growth in Bangladesh. And the market size is expected to increase due to these factors amid its economic growth.