Türkiye Lubricants Market Outlook to 2028

Market Overview:

Türkiye’s lubricants market is experiencing steady growth, driven primarily by industrial activities, automotive sector developments, and increasing demand for lubricants in various applications. The market size is increasing which reflects the growing demand for lubricants across different industries. Türkiye has a significant automotive manufacturing industry, with several major manufacturers producing vehicles for domestic consumption and export. The automotive sector is a key driver of lubricant demand in Türkiye as lubricants are essential for vehicle maintenance and operation.

Lubricants are used in various industries like manufacturing, construction, mining, and agriculture. The growth of these sectors contributes to the demand for lubricants for machinery and equipment maintenance. Regulatory standards and environmental concerns are influencing the types of lubricants used in the market. Compliance with environmental regulations & adopting eco-friendly lubricants have been the emerging trends in the industry. Lubricants are distributed through various channels that is, direct sales, distributors, retailers, and online platforms. The efficiency of distribution networks and availability of products across different regions influence market penetration.

The lubricants market in Turkiye is a moderately consolidated market. Several companies dominate a significant portion of the market share, including companies like Shell, Total, Castrol among others. These major players often have extensive distribution networks, brand recognition, and diverse product portfolios, which gives them a stronghold in the market.

Türkiye Lubricants Market Analysis

• Inception of the lubricants market in Türkiye was in 1940 by Petrol Ofisi. Oil was first discovered at Raman-1 Well in Batman.
• Presently, the Türkiye Lubricant Market is at growth stage with establishment of many national and international companies such as Shell, Castrol, Total Energies and more.
• Türkiye is witnessing growing demand for specialized industrial lubricants which is tailored for specific applications in manufacturing.
• Synthetic lubricants are gaining popularity in the industry due to their ability to withstand extreme temperatures and provide better efficiency.
• The market is witnessing a sharper focus on sustainability which drives the demand for eco-friendly lubricants.

Key Trends by Market Segment:

By Type of Lubricants: In 2023, Türkiye Lubricants market is segmented by type into Industrial & Automotive. Out of these, Automotive segment dominates the market in Türkiye with a significant share of overall contribution.  Türkiye has a considerable number of vehicles on its roads, including both passenger cars and commercial vehicles. With a large fleet of automobiles, there is a consistent demand for automotive lubricants to keep these vehicles running smoothly.

By Grade of Lubricants: In 2023, Türkiye Lubricants market has been segmented into Mineral, Synthetic & Semi-Synthetic. Mineral-based lubricants dominate the market with a significant portion of overall contribution. Mineral-based lubricants are usually less expensive to produce compared to synthetic or semi-synthetic lubricants. This makes them more accessible to a wider range of consumers, including individual vehicle owners and small businesses. Along with its widespread compatibility, the mineral segment continues to grow.

Competitive Landscape:

Major Players in Turkiye Lubricants Market

• Türkiye's Lubricants Market is in its growing phase with leaders commanding a larger market share. Players in this market compete on various fronts which includes Product, Price, and Service.
• Petrol Ofisi, BP Castrol and Total Energies collectively accounted for more than 60% of the total market share in the market.
• Despite being the leader in the market, Petrol Ofisi falls behind in the Industrial Lubricant Segment, as Castrol BP consolidates its position in both the segments, amongst the giant players.
• Lubricants in Türkiye have a history from 1900s and 3 global players: Total Energies, Shell and Castrol BP, based out of Europe contribute the most annual revenue of more than $300 Mn.

Recent Developments:

• January 2022: ExxonMobil Corporation restructured its organization, implementing a new framework that divided the company into three separate business lines: ExxonMobil Upstream Company, ExxonMobil Product Solutions, and ExxonMobil Low Carbon Solutions, starting from April 1, 2022.
• September 2021: Total Türkiye Pazarlama and Nissan Türkiye signed a new agreement wherein Nissan Türkiye is expected to deliver Nissan Genuine Engine Oils to its Turkish clients for the next three years. Nissan Genuine Engine Oils are created with the help of TotalEnergies' lubricant expertise.
• March 2021: Castrol announced the launch of Castrol ON i.e. a Castrol e-fluid range that includes e-gear oils, e-coolants, and e-greases. This range is specifically designed for electric vehicles.

Future Outlook:

• Türkiye Lubricants Market is projected to reach $ 21.2 Bn revenue in 2028, driven by high inflationary tendencies and growth in manufacturing and construction sectors.
• Oil demand is expected to continue to expand over 2023-2028 in Türkiye to fulfill the consumption requirements of industrial and automotive sectors by processing mineral oils into semi-synthetic and synthetic oils.
• The market is expected to witness enhancing use of synthetic lubricants over long term, due to the growing awareness of people to switch to better quality lube oils for long term protection of the engines. Specialized EV fluids will gain popularity with increasing EVs in the country.
• The market is also seeing adoption of automation and Industry 4.0 principles in automated machinery, robotics, and smart manufacturing processes.
• Synthetic based lubricants are expected to continue gaining popularity and secure more than 40% of the market share by 2028.