Growth in passenger and commercial vehicle sales drives lubricants market in Algeria, report
The government of Algeria has decided to invest $262 billion through its five year plan of 2015-2019 to diversify the oil dependent economy and improve the nation's infrastructure.
The government is expected to increase investment in industries such as textile, pharmacy, plastics and cement while improving the state of road, rail and port network in the country. This will require setting up of production facilities by increasing the use of machineries thereby augmenting the demand for lubricants in the country.
The government owned Sonatrach also declared its Vision 2030 plan called SH2030 which is expected to turn Sonatrach into an integrated energy company by the year 2030.
This will increase investments in the power generation sector of the economy thereby increasing the demand for industrial lubricants as well. The increasing Salah, Shale and TFT gas explorations in collaboration with international companies is also expected to increase lubricants demand in power generation sector.
Algeria lubricants market is expected to significantly grow during the period 2017-2022 due to optimistic growth indicators like growing GDP. As per Ken Research's proprietary database, the GDP of Algeria is expected to reach USD 218.7 billion by the year 2022.
The growth in GDP is expected to take place primarily through growth in industrial sector with increasing construction projects. The government has allotted a budget of EUR 58 billion to build 1.6 million new homes by 2019 in order to address housing shortage in the country which will also positively impact the demand for lubricants in the market.
Analysts at Ken Research in their latest publication "Algeria Lubricants Market Outlook to 2022 - By Automotive (Heavy Duty Diesel Engine Oils, Passenger Car Motor Oils, Hydraulic Oils, Greases, Gear Oils and Transmission Fluids) and By Industrial (Hydraulic Oils, Industrial Gear Oils, Turbine Oils, Compressor Oils, Greases and Transformer Oils)" believe that the market is expected to grow in future through increasing demand for semi-synthetic and synthetic lubricants and industrial lubricants for construction and power generation sectors.
Among automotive lubricants, the demand for commercial and passenger vehicle lubricants is also expected to rise in future. The market is expected to register a positive CAGR of 2.3% in terms of revenue during the forecast period 2017-2022.