The Bangladesh lubricants market is expected to register a CAGR of 3.01% over the forecast period, 2019-2024. One of the key factors which are driving the market studied is the growing demand for new motor vehicles in the country.
In 2018, the automotive and other transportation has dominated in this market, and it is expected to grow during the forecast period.
Mostly because of the rise of the overall automotive sector, the engine oil market has grown up around 10% to 12% in the last three years.
This automotive and other transportation segment is likely to dominate the market during this meanwhile.
Now, the automotive industry in Bangladesh is considered as the third largest in South Asia.
Bangladesh is anticipating a rise in the demand for motorized vehicles. Until July 2018, 282,354 vehicles were registered against the 420,398 vehicles registered in 2017.
In 2016, a total of 0.42 million vehicles were registered in Bangladesh, up 31.25% from a year earlier, according to the Bangladesh Road Transport Authority.
Bangladesh imports $2.01 billion worth of vehicles including motorbikes, trucks, passenger vehicles and small pick-ups in the year 2017.
The demand for automobiles in Bangladesh is $2.5 billion, according to data from the Bangladesh Investment Development Authority.
Lubricants are used in automotive for various applications, such as the engine, brake systems, fuel systems, transmission manufacturing, steering systems, exhaust systems, and many others.
Besides, the lubricants in marine transportation are used to dissipate heat, for reducing friction, and combat wear and tear between the surfaces of two moving components.
Additionally, lubricants help fight corrosion and rust in the engine, whether it’s an aviation engine or a wheel turning on a car.
Although the sales of new vehicles have been decreasing in the country for the past three years, the sales of used cars have increased significantly in the country, thereby driving the demand for automotive lubricants.
At least 35,000 units of commercial vehicles such as bus, truck, auto-rickshaw, cargo van, human-haulier, pickup and tanker have been sold last year.
The automotive industry in Bangladesh is dominated by imports of new vehicles, mostly by Japan, China, and India on a large scale and a few from Europe and the United States.
Moreover, Bangladesh is anticipating a growth in the aviation market, with the 170 million population increasing the use of the aerial route for travel, owing to the growing middle-class income.
Due to this, air travel is increasing in the country, which in turn is leading to the market growth for aviation lubricants.
The demand for engine oils will keep rising with the increasing automotive vehicles, which in turn will increase the market for lubricants in Bangladesh.
Looking into Future Automotive Lubricants Market
The future of the lubricants market is more linked with the overall automobile market of Bangladesh. So the forecasts of the automotive segment may provide complete market research on the automotive engine oil market too.
Key trends driving the business in the Bangladesh automotive sector along with potential challenges confronted by players across the industry have to be discovered.