Market Overview The market for Jordan lubricants market is expected to grow at a CAGR less than 1% during the forecast period. The major factor driving the growth of the market studied is the positive automotive outlook.
New York, Aug. 31, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Jordan Lubricants Market - Growth, Trends, and Forecast (2020 - 2025)" - https://www.reportlinker.com/p05865853/?utm_source=GNW
On the flipside, political and economic instability in the country is hindering the trade and acting as a roadblock to the growth of the market studied. Engine oil segment dominated the market and is expected to continue its dominance during the forecast period.
Scope of the Report
The Jordan lubricants market report include:
Key Market Trends
Engine Oil Segment to Continue its Dominance During the Forecast Period
- Engine oils are widely used to lubricate internal combustion engines and are generally composed of 75-90% base oils and 10-25% additives.
- They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of engine internals. They function by creating a thin film between the moving parts for enhancing the transfer of heat and reducing tension during the contact of parts.
- High-mileage engine oils are in demand lately, owing to the properties that help in the prevention of oil leaks and reduction of oil consumption.
- The average age of vehicles has been increasing at a constant rate over the years. This factor provides an opportunity, in terms of the refill market. The increasing average age of passenger cars and growing urban population in the country are the factors expected to drive the market for engine oils.
- Owing to the increased engine oil change intervals, technological advancements are imposing a threat to the growth of the engine oil segment, in terms of volume consumption.
- With the economy on the path to recovery, the automotive sales are expected to increase moderately during the next few years. Powered with the projected growth in automotive sales during the forecast period, the engine oil market is estimated to grow at a moderate rate during the next few years.
Positive Automotive Industry Outlook to Propel the Market Demand
- Lubricants are extensively used in the automotive refinish and aftermarket. After a continuous decline in the sales of automotive in the country since 2013, the sales in the country increased in the past two years, i.e. 2017 and 2018. The automotive sales in the country increased by 0.55% (including all types of vehicles) and 3.01% in 2018 and 2017, respectively.
- The government of Jordan also announced incentives for the usage of electric vehicles. This factor is expected to positively influence the Jordanian economy and boost the demand for lubricants in the country.
- In Nov 2019, the government announced to reduce taxes on electric cars, as the country produces more electricity than it needs. The special tax on electric cars will be reduced from 25% to 10% for vehicles with a charging capacity of 250 kilowatts. The tax will be reduced by 15% on cars with a 251-kilowatt hour charging capacity or above.
- The new incentives announced by the government are expected to boost the sales of electric vehicles, and thus, enhance the demand for lubricants in the country.
- Hence, the increasing rate of automotive sales and the opportunity of vehicle production in the country are the factors that are expected to boost the demand for lubricants used in the automotive industry.
The lubricants production market in Jordan is occupied by three companies (Qais Al Rawi & Sons Company, Jordan Petroleum Refinery Company Limited, and Jordan National Lube Oil Company) that combined account for nearly 100 thousand metric ton of lubricant blending capacity in the country.
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