Philippines Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• The increasing construction activities in the country are expected to drive market growth over the projection period.
• On the other hand, the increasing penetration of electric vehicles is likely to hamper the market growth.
• Investments and government plans to support industrial growth shall create market opportunities in the future.
• The engine oil product type dominates the market and is expected to continue its dominance during the forecast period.

Key Market Trends

Increasing Construction Activities

• Lubricants such as de-molding oils are used for de-molding concrete, primarily during construction activities.
• The construction sector in the country has been expanding at a significant rate over the past few years. The trend is expected to continue during the forecast period, primarily due to the increasing number of initiatives taken by the government to develop infrastructure and construction and higher investor confidence in the country’s economy.
• There are several ongoing construction projects in the country. The construction of the Metrotowne Residential Complex worth USD 150 million is a good example. The project entails the construction of five 15-story residential towers with 1,650 units in Metro Manila, Philippines. It is expected to be finished in Q4 2026, aiming to improve regional residential facilities.
• Furthermore, in Central Luzon, the Hamana Homes Magalang project construction started in Q2 2022. The project involves the construction of 1,000 townhouses on 15 ha of land. With the aim to provide improved regional residential facilities, the project is expected to be finished in Q1 2026.
• As of 2021, the gross value added by the construction industry in the Philippines was estimated to be 1.34 trillion Philippine Pesos (around USD 27.21 Billion), representing a growth of 14% from 2020.

Expanding Automotive and Transportation Sector

• Automotive and other transportation media, such as aircraft and marine, are the largest markets for lubricants. Engine designs are continually improved to enhance performance, increase efficiency, and meet environmental emission regulations.
• Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are these automobiles' most widely used lubricants. Engine oils are widely used for lubricating internal combustion engines in different types of automobiles. They are generally composed of base oils and additives.
• Some of the major functions offered by engine oils are resistance against corrosion and wear and tear to ensure increased engine life and better performance; reduction of friction; increased engine performance; reduction of fuel consumption; removal of impurities and achieving engine cleanliness; optimizing engine efficiency; and preventing energy loss by providing optimum cooling.
• With the increase in sales of vehicles, domestic demand for engine oils observed a growth in Philippines. In 2022, the country's total motor vehicle sales increased by 31.3 percent to 352,596 units from 268,488 units in 2021, thus positively impacting the market.
• Additionally, the country witnessed an increase in the number of on-road vechicles that includes passenger, commercial vehicles and motorcycles, registering a CAGR of more than 3% for the period.

Competitive Landscape

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support