The market for lubricants in Iraq is expected to grow at a CAGR of more than 3% during the forecast period. Major factors driving the market studied are positive automotive industry outlook and steady progress in oil and gas industry.

  • Promising renewable energy sector is expected to offer various opportunities for the growth of market.
  • Automotive and other transportation segment is expected to account for the largest end-user industry of the Iraq lubricants market and is also expected to grow at a rapid rate over the forecast period.



Key Market Trends

Engine Oil Product Type to Dominate the Market:

  • 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.
  • The light motor vehicle segment records the highest consumption rate of engine oils among all the segments. Owing to the technological improvements and government-mandated requirements for fuel economy, the automakers have been manufacturing lighter vehicles with tighter tolerances (which make the vehicles more durable).
  • 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 automotive lubricant market is estimated to grow at a moderate rate during the next few years.
  • In April 2019, the burgeoning car industry received another boost with the opening of a new plant built for the production of South Korean cars, and this factory is receiving parts of Kia Optima for assembly.
  • Moreover, country’s recovering private sector, along with many OEM’s, such as Hyundai and Toyota are making a comeback in the market with increasing automotive sales, thereby, enhancing the demand for engine oils in the country.



Automotive and Other Transportation End-user Industry to Dominate the Market

  • Automotive and other transportation media, such as aircraft and marine, are the largest markets for lubricants.
  • Engine designs have been continually improved to enhance performance, increase efficiency, and meet the environmental emission regulations.
  • Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are the most widely used lubricants in these automobiles. Lubricants have a good share in the aftermarket and among OEMs.
  • Typical medium-duty trucks include utility, courier and package delivery trucks, ambulances, shuttle buses, school buses, and recreational vehicles. However, straight trucks continue to be the predominant medium-duty chassis.
  • Medium-duty and high-performance lubricants are used extensively in these vehicles, as components, such as gears, transmission systems, and engine, are subjected to high loads and rapid rubbing, and thus, produce ample heat.
  • Lubricants are used extensively to protect the gear teeth from breakage, due to friction, and ensure smooth and efficient functioning.
  • Heavy-duty vehicles (HDVs) include non-light-duty trucks, tractors, and tractor-trailer combination vehicles. Due to the enactment of stringent environmental, fuel-efficiency, and emission norms, manufacturers are focusing on developing eco-friendly and improved lubricants (with long service life) designed specifically for heavy-duty vehicles, thereby boosting the demand for, and the usage of, high-performance lubricants in the heavy-duty vehicle segment.
  • The aforementioned factors are contributing to the increasing demand for lubricants market in Iraq during the forecast period.



Competitive Landscape

The Iraq lubricants market is consolidated in nature, with top companies utilizing competitive strategies and investments to retain and expand their shares. Few companies include Shell, Petromin, Amsoil Inc., Kuwait Dana Lubes (Shield Lubricants), and Morris Lubricants.

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