Globally, Asia Pacific accounts for the largest market for industrial lubricants due to the increased demand from the growing end-users’ sectors such as energy/power and manufacturing.
Especially India, China, Indonesia and Japan are the key markets.
Growing industrialization coupled with the ever-increasing population drives the regional market growth.
In the Asia Pacific economies comprised of 45 countries, Bangladesh has been steadily building its economic strength and is now emerging as an attractive frontier growth market.
This presents a sizeable opportunity for organizations seeking to expand their global footprint and further establish a presence in the South Asia region.
According to the Asian Development Bank, Bangladesh has registered the fastest growth rate in the Asia Pacific.
Asian Development Outlook predicted that the growth will be 8% in the FY2019 and FY2020, terming it a new record.
It is predicted that Bangladesh will continue to be the fastest growing economy in the Asia-Pacific.
In recent years, Bangladesh industrial lubricants market has grown at a rapid pace. This industrial sector accounts for around 30% of the total lubricant consumption in Bangladesh.
With an estimated annual consumption of around 45,000 tonnes in 2018 that is projected to reach the 50,000 tonnes mark by 2020.
The growth of the power sector has got exposed recently because of the national agenda, which has also highlighted the industrial lubricants market.
It is not just in the power sector, but there is potential for an overall very good future for Bangladesh.
The demand from the industrial machinery and equipment application also accounts for a major market share and is driven by the power, manufacturing, logistics, automotive manufacturing, and others.
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.
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.