Bangladesh industrial lubricants market is growing at a rapid pace.
Now, the industrial lubricant is the third-largest market after mineral-based lubricants markets and automotive lubricants market.
The growth of the power sector has got exposed recently because of the national agenda, which has highlighted the industrial lubricants market most.
Cement, steel and fertilizer industries also consume a good amount of lubricants. The proportion of lubricant used by the industrial sector is expected to increase even more in the future as industries grow and the demand for lubricant to be used in this sector increases.
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.
It is not just in the power sector, but there is potential for an overall very good future for Bangladesh.
With an estimated annual consumption of around 20 million litres in 2018 that is projected to reach the 25 million litres mark by 2020.
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.
This market is categorized by hydraulic lubricants, compressor lubricants, gear lubricants, metalworking fluids and others types, and by the end-user, the categories are automotive, manufacturing, heavy- industries, power generation and others.
The market trends substantiating the regional market growth include rapid urbanization, industrialization and the increasing consumption of the product in the industrial sector.
However, Bangladesh has been steadily building its economic strength and is now emerging as an attractive frontier growth market in South Asia.
According to the Asian Development Bank, Bangladesh has registered the fastest growth rate in the Asia-Pacific economies comprised of 45 countries.