Netherland Lubricants Market Outlook to 2027

Market Overview:

According to Ken Research estimates, the Netherlands Lubricants market is growing at a steady rate with a CAGR at ~3% owing to the country’s high oil imports. Strong delivery network accompanied by authorized distributors to reach out to customers through both online and offline modes led to an increase in the overall sales of lubricants in the Netherlands. Up-scaling Manufacturing Industry, Escalating Construction, Automotive and Marine Industries are major growth drivers for Netherlands Lubricants Market.

• Market is expected to witness an increase in the consumption of lubricants due to rapid growth in industrialization and infrastructural developments, rising private and government investments; cost effective manufacturing operations
• Lubricants Industry concentration is at a moderate level, with the four largest companies estimated to account for approximately 40% of industry revenue in 2022-23.

Netherlands Lubricants Market Analysis

• Dutch government's emphasis on high-tech manufacturing and industrial automation has spurred the demand for specialized lubricants in automotive, warehousing, and semiconductor sectors.
• The sale of used vehicles in the Netherlands has surged by 16%, reaching 33 Mn vehicles from 2017 to 2021, driving the need for aftermarket services, including lubricants.
• The rising popularity of ride-sharing mobility is projected to increase shared car numbers by 7% annually, reaching around 337,000 cars by 2030, resulting in a higher demand for lubricants due to increased wear and tear.

Key Trends by Market Segment:

By Type of Lubricant: The boosting sales of automobiles in the country have significantly led to the increased consumption of automotive lubricants than industrial lubricants. The increased sales were also supported by the continuous improvement in the refining process of the existing players and the upgradation of refineries by the lubricants giants operating in the country.

By Distribution Channel: Most of the lubricants consumed by the industrial sector of the Netherlands have been supplied by the widespread network of authorized and local distributors across various regions of the Netherlands. Distributors might be dealing in a particular brand or can have multiple brands of lubricants that are used for industrial purposes. Distributers are in direct contact with the company, thus creating the trust among the customers to buy genuine products from them.

By End Use: With 7,000+ food processing companies, it is the largest consumer of lubricants in industrial segment with Netherlands’ agricultural exports crossing USD 108 Bn1 by value in 2021.

Netherlands, the world’s 2nd largest agricultural exporter, has a USD 88 Bn2 (2022) food processing industry that utilizes high-tech machinery and requires a significant number of food-grade lubricants.

Competitive Landscape:

With more than 3,000 lubricants manufacturers in the Netherlands, the market is flooded with a mix of domestic & International players catering to majorly industrial companies. The lubricant market in the Netherlands is highly competitive, with both multinational corporations and local players vying for market share. Major multinational companies like Shell, ExxonMobil, and BP dominate the market with their extensive product offerings and established brands. Local players such as Eurol, Kroon-Oil, and MPM International Oil Company cater to niche markets and specific customer segments. Additionally, smaller regional players and independent lubricant distributors contribute to the market. Factors such as product quality, brand reputation, pricing, distribution networks, and technological advancements drive competition in the industry. It is important to refer to the latest sources for the most up-to-date information on the competitive landscape in the Netherlands lubricant market.

Recent Developments:

• The sale of used vehicles in the Netherlands has experienced a remarkable growth trajectory in recent years, facilitated by the presence of popular classified portals like Ooyyo, Marktplaats, AutoScout24, and others. From 2017 to 2021, the number of used vehicles sold through these platforms witnessed a substantial 16% increase, reaching a significant milestone of 1.33 Mn vehicles.
• This surge in the sale of used vehicles has created a ripple effect across the automotive industry, driving the demand for various aftermarket services, including lubricants. When purchasing a used vehicle, one of the key considerations for buyers is to ensure the optimal performance and longevity of the vehicle. This is where lubricants play a vital role.
• The number of shared cars would grow by 7% yearly, from ~78,000 in 2021 to ~337,000 in 2030, generating revenue of USD 30 Mn by 2030. Average daily distance travelled by shared car is 93 Km, while private car travels 46 Km. This increases the need for constant change of lubricants due to higher wear & tear in shared cars.

Future Outlook

• Increasing production and sales of light commercial vehicles as well as heavy duty vehicles, primarily for trade transport is expected to propel demand for automotive lubricants across Netherlands in the coming years.
• Additionally, growth in automotive repair services market across the country coupled with rising adoption of synthetic and semi-synthetic lubricants is further anticipated to fuel growth in Netherlands automotive lubricants market during the forecast period.
• The sale of used vehicles in the Netherlands has experienced a remarkable growth trajectory in recent years, facilitated by the presence of popular classified portals like Ooyyo, Marktplaats, AutoScout24, and others. From 2017 to 2021, the number of used vehicles sold through these platforms witnessed a substantial 16% increase, reaching a significant milestone of 1.33 Mn vehicles.
• This surge in the sale of used vehicles has created a ripple effect across the automotive industry, driving the demand for various aftermarket services, including lubricants. When purchasing a used vehicle, one of the key considerations for buyers is to ensure the optimal performance and longevity of the vehicle. This is where lubricants play a vital role.