Saudi Arabia’s lubricant market shifting gears with Vision 2030
The lubricant market in Saudi Arabia is currently going through a significant transformation, in part driven by ambitious national goals and evolving consumer behaviors.
Lubricants are no longer just an afterthought. In fact, they are a crucial part of the Kingdom’s economy. A new report from the Middle East team of Eurogroup Consulting details how Saudi Vision 2030, social reforms, and a booming tourism sector are reshaping demand for lubricants across various industries and consumer segments.
With vehicle ownership in Saudi Arabia projected to surpass 17 million by 2030, demand for lubricants is on the rise. As the Kingdom’s transportation and industrial capacity grows, the demand for dependable and high-performing lubricants will continue to increase.
The way lubricants are distributed to consumers is being revolutionized by mix-and-match facilities, brand collaborations, and internet platforms. For this reason, it is now easier than ever for customers to access lubricant brands through internet retailers and smartphone applications.
Female drivers
There has also been a significant increase in female drivers, given that women were forbidden from driving in Saudi Arabia until relatively recently. This has unlocked a whole new market in the mobility industry, as a new consumer base begins buying and operating personal cars.
A total of 175,000 women had received licenses in the first year of lifting the ban, and millions more are projected to follow. The automotive market is expected to increase 9% in 2025, which is a substantial improvement from the 3% yearly growth that had been seen during the preceding years.
Electric vehicles
Saudi Arabia has also been seeing more and more EVs on the road, including personal vehicles from carmakers like Tesla and a number of Chinese brands. That means the demand for conventional engine oils and lubricants is declining, but because combustion engine vehicles will remain on the roads for many more years, that decline with be gradual.
“Electrical vehicle adoption in Saudi Arabia is growing due to several significant considerations,” explains Damien Duhamel, managing partner for the Middle East & Asia at Eurogroup Consulting.
“Vision 2030 has established defined sustainability and diversification goals, emphasizing cleaner mobility options and lower carbon emissions. The government has supported this with infrastructure improvements (such as more public charging stations) as well as favorable regulations for international manufactures. Competitive price, longer battery life, and a wider range of models are all making electrical vehicles more enticing to Saudi consumers.”
Despite the growth in electrical vehicles, conventional lubricants will still remain relevant for the foreseeable future in Saudi Arabia. Mixed fleets – in which combustion engine vehicles will not be immediately replaced – will still be part of a major demand for these products.
“The development of new fluids required for electrical vehicles, such as battery coolants, thermal management fluids, and specific greases for electric drivetrains, present considerable opportunities,” adds Duhamel.
“The transition to electrical vehicles will be accelerated by government initiatives including fleet electrification support, tighter emissions regulations, and incentives. This will boost demand for electrical vehicle compatible fluids while reducing the market for traditional lubricants.”
Tourism growth
The growing tourism sector is another factor: As the number of tourists is expected to reach 150 million per year by 2030, there is going to be a proportionate increase in vehicle rentals and ride-hailing services. More people and more movement means more demand for lubricants.
Saudi Arabia is home to the most important Islamic holy sites, making it a pivotal destination for millions of pilgrims annually. It is rapidly becoming a global economic powerhouse due to its Vision 2030 initiatives, which means more visitors to cultural and commercial centers around the Kingdom.
In fact, there are more than 27,000 buses facilitating transportation for pilgrims during Hajj. More than 3,500 additional buses are used to transport pilgrims to and from the holy mosque. All of this movement means that lubricant supply networks are a crucial component of Saudi Arabia’s overall tourism strategy.
With this growth in mobility, there is a need for more efficient, inclusive, and accessible public transportation. The demands for transportation have increased as more people commute to work, more tourists visit, and cities grow at an unprecedented pace. While private automobiles continue to be an important part of daily life, public transit is increasingly being viewed as a key, complementary force in Saudi Arabia’s evolving urban dynamics.
Mobility is part of economic growth in the Kingdom, and more equity and inclusion in mobility is considered part of Vision 2030. Buses, metros, and trains are no longer subordinate to private cars; they are forming the foundation of a sustainable, networked, and progressive society.
“The Saudi lubricants market is robust and transitioning, driven by Vision 2030. While automotive oils dominate, growth comes from industrialization demands, pushing toward synthetic and specialized lubricants,” said Arshadul Haque, lubricants and automotive specialist at Saudi Technology Lube Oil Plant, in response to questions from Eurogroup Consulting.
“Competition intensifies as local players like Petromin and global brands adapt to localization policies and electrical vehicles disruption, shifting the focus to value-driven and service-driven solutions.”
Spending on public infrastructure in Saudi Arabia continues to grow – from railways and metros to new roads. These all require regular maintenance, high performance standards, and durable goods that can withstand strain and severe environments. This all generates consistent and substantial long-term demand patterns, especially in the industrial lubricants market.
The report shows that private vehicle ownership is also increasing the demand for quicker lubricant-related services, new product lines, and new delivery methods. There is a definite opportunity for the businesses that are competing in this market, the report notes.
Conclusion
The lubricants market in Saudi Arabia is not just growing – it is maturing. And in the process, it has become an important part of a much bigger story, the story of a nation moving forward, building its future one lubricant change at a time.
