Spain Lubricants Market Outlook to 2027

Market Overview:

The Spanish lubricants market has a significant size and has exhibited steady growth over the years. This growth can be attributed to various factors like increased vehicle sales, expansion in industrial activities, and advancements in lubricant formulations. The market includes segments like automotive lubricants, industrial lubricants, marine lubricants, and others. Automotive lubricants contains a substantial portion of the market, driven by the extensive automotive sector in Spain.

Automotive includes engine oils, transmission fluids, and hydraulic fluids necessary for vehicle maintenance and servicing. Additionally, industrial lubricants cater to the needs of manufacturing, construction, and mining sectors. In these industries, machinery and equipment demand lubrication for maximum performance. The automotive sector which includes manufacturers like SEAT, Renault, and Volkswagen, significantly influences lubricant demand in Spain. Moreover, industrial activities across various sectors contribute to the market's growth trajectory. Environmental regulations also play a role, prompting a shift towards eco-friendly lubricants such as bio-based and synthetic formulations.

The lubricant market in Spain is moderately consolidated  with a few major players dominating a significant portion of the market share. Companies like Repsol, Cepsa, and BP are among the key players in this market. However, there are smaller and regional players contributing to the overall market landscape as well.

Spain Lubricants Market Analysis

• The market experienced an increasing trend during the growing period between 2000-2021 with consumption peaking in 2005 at nearly 690 Mn Liters.
• In 2008 and in 2020, market got hit with two global events GFC and Covid, respectively which damaged consumption in both years.

• 2022 is the recovery year in Spain’s lubricant market with sales in 2022 closing on with pre-covid levels from lows of 457.7 Mn Liters to 498.3 Mn Liters.
• Technological advancement with launch of biodegradable lubricants offers sustainable growth and reduction in carbon emissions.
• Growth is expected in terms of new products that are sustainable and eco-friendly as well as new product portfolio for Electric Vehicles.

Key Trends by Market Segment:

By Type of Lubricants: In 2022, Spain Lubricants market is segmented by type i.e., Industrial & Automotive Lubricants. Automotive Lubricants are dominating the market & overall contributes more than half of sales. Spain contains significant number of automobiles on its roads, ranging from passenger cars to commercial vehicles. The high ownership and extensive usage of vehicles contribute to a continuous demand for automotive lubricants.

By Grade: In 2022, Spain Lubricant market is segmented by grade into Mineral, Semi-Synthetic & Synthetic. The synthetic segment dominates more than half of contribution to this segment. The preference for synthetic lubricants is due to their superior performance characteristics compared to mineral or semi-synthetic alternatives. Synthetic lubricants offer better thermal stability, resistance to oxidation, wider temperature tolerance, and improved lubrication efficiency. Additionally, they provide longer service intervals, reducing maintenance costs for users over time.

By Distribution Channel: In 2022, this segment is divided into direct sales & dealer network. Dealer network forms a significant majority of overall contribution. In the industrial segment, dealer networks offer high discounts, increased product choices & for small requirements, dealer networks are suitable. Hence, they dominate the market. Industrial lubricants needed for mining and construction are usually sold through dealer network.

Competitive Landscape:

Major Players in Spain Lubricants Market

• CEPSA and Repsol are the market leaders, hold the more than one-third of the market share at 36.5% based on sales volume in 2022, which contributes their position in a moderately consolidated market.
• CEPSA has established itself as a leader in the lubricant market in Spain. Total Energies and Castrol have shown that they have the capability to reach there.
• Players have acquired their strength in the market by rooting strong distribution network along with focus on new launches for biodegradable lubricants.
• Out of total refineries, Repsol consists of 4 refineries and CEPSA has 3 and ASESA refinery is held by both.
• CEPSA consists of the largest distribution network with 200+ grades and a wide range of automotive and industrial lubricants.

Recent Developments:

• January 2022: ExxonMobil Corporation was organized alongside three business lines: ExxonMobil Upstream Company, ExxonMobil Product Solutions and ExxonMobil Low Carbon Solutions.
• June 2021: Total Energies and Stellantis group renewed their partnership for cooperation across different segments. Partnerships with Peugeot, Citroën, and DS Automobiles & the new collaboration extends to Opel, and Vauxhall as well.
• April 2021: Texaco Lubricants introduced three new engine oils within the successful Texaco Havoline ProDS range with manufacturer approvals. These have been designed to provide enhanced wear protection even with a lubricant layer of 2 microns.

Future Outlook:

• Spain lubricant market revenue is expected to grow at a CAGR of 4.5% due to a rise in demand.
• Revenue is expected to rise owning to the rising sales volume in passenger cars and increasing average prices.
• Due to increase in synthetic oils usage and launching of new sustainable lubricants price is expected to rise during next 5 years
• Demand for industrial lubricants in Food Industry is projected to grow at a CAGR of 3%, due to transformation towards digitalization and sustainability to adapt climate change. Spain has become one of the few Food Tech nations, developing an enterprising ecosystem across the entire agri-food value chain.
• Post 2023, the Lubricants market is expected to grow due to growing demand for automobiles and increasing demand for zero-emission producing vehicles in Spain.