Automotive Lubricants Market

An approximately US$66.5 Bn automotive lubricants market (2021) is projected to observe gradual growth in the next few years.

Considetently Expanding Vehicle Parc Continues to Sustain Automotive Lubricants Market

Growing consumer desire for lightweight, high-performance cars in developing nations like China, and India, together with rising disposable income globally, is anticipated to be a major driver for sustaining sales of automotive lubricants. The global automotive lubricant market is being driven by factors such as the rise in the number of on-road cars, the reliance on private automobiles for mobility, the rise in disposable income, economic stability, and consumer affordability. In 2022, there will be around 1.446 billion automobiles worldwide. The worldwide automotive lubricants market is being driven by the opportunity for maintenance created by the fleet of aging vehicles. Sales of cars have increased in several nations due to rising per capita income and growing demand for personalized transportation options. In 2021, it was predicted that there would be 55.3 million cars sold worldwide. As a result, OEMs are increasing their production capacity to keep up with the rising regional and international demand.

Automakers use premium high-viscosity engine oils to lubricate internal combustion engines, which allows for smooth operation by forming a thin layer between moving parts. Along these lines, rising demand for heavy-duty motor vehicle engine oils to withstand harsh geographic conditions and emission standards in on- and off-highway heavy vehicles is also boosting the market. There is an increasing need for motor oils with shear resistance and a specific viscosity index because most engines are diesel-powered. It is anticipated that this tendency will support industry growth throughout the projection period. Automotive lubricants market is predicted to rise due to additional factors, such as rising consumer spending power and significant research and development (R&D) efforts to enhance oil quality. During the anticipated time, market growth will be boosted by the growing competition among themselves. In March 2020, Royal Dutch Shell PLC announced plans to expand the manufacturing capacity of its lubricant blending plant in Bekasi, Indonesia, to 300 million liters per year by 2022, helping to satisfy the growing domestic lubricant market in the coming years.

Automotive Lubricants Market: COVID-19 Impact

The value chain of the producers of automotive lubricants has been impacted by the limits on material distribution and transportation that several nations have put in place since the coronavirus epidemic in late 2019. These producers had a supply deficit during the first half of 2020 due to trade restrictions in important industrial countries like China, and India. This problem limited business manufacturing capabilities and reduced demand for automobile lubricants. Additionally, most owners who adopted the work-from-home policy rarely used their automobiles or bicycles, reducing product consumption. Automotive lubricants market is anticipated to recover slowly in the upcoming years due to business continuity strategies implemented by top lubricant providers and supported by government attempts to boost the economy.

Growing Need to Safeguard Automotive Systems, and Components Elevate Demand in Automotive Lubricants Market

The market acceptance of automotive lubricants is boosted by factors including their durability and vehicle protection. By drastically reducing friction between the pieces, they provide defense against damage to a vehicle's systems and parts. Additionally, the need for low-viscosity and better-performing lubricating oils is continuously growing due to the industry's use of smaller and more complicated automotive systems. This is anticipated to support the invention and development of premium lubricating oils in the upcoming years. The rising standards for high performance in automobiles encourage the use of new products. Automotive lubricants are essential for ensuring that consumer and industrial vehicles operate effectively in harsh weather situations.

Rising Demand for Passenger Cars in Developing Nations to Drive Automotive Lubricants Market Growth

The global automotive market has grown significantly over the past few decades in terms of markets, manufacturing capacity, and competitive standards, which has led to a rapid expansion of the automotive industries in India, China, Brazil, and South Korea. With their high population density, emerging economies like China and India have sizable domestic markets. Additionally, rising nations have benefited from foreign direct investment and assisted MNCs in establishing their assembly operations throughout many nations. Furthermore, new industrial strategies adopted by governments in emerging nations contributed to a rise in the capacity of the automobile sector. The Made in China 2025 project was introduced in China in 2015 to enhance the country's growth in high-tech manufacturing, including the production of automobiles. These factors will lead to a rise in the use of automobile lubricants during the predicted period.

Continuous Improvement in Vehicle Technology to Reduce Product Consumption in Automotive Lubricants Market

By lowering friction and safeguarding the solid moving parts, automotive lubricants considerably lengthen a car's lifespan. But as lubricants and technologies advance every day, growth is drastically reduced. The oil drain intervals in automobiles have increased from every 6–12 months to 18–24 months due to the growing footprint of synthetic lubricants and advantages, including higher fuel efficiency. Users tend to favour premium lubricants with long oil drain intervals to protect their vehicles. However, this has restricted the market volume growth and is anticipated to produce poor volume growth over the forecast period. Additionally, as electric vehicles do not need engine oil, rising sales of them are anticipated to create a major impediment facing the automotive lubricants market.

Engine Oil Dominant in Automotive Lubricants Market with Excellent Cooling Properties

Engine oil to dominate the market with a major share in the forecast period. In diesel trucks, light-duty trucks, and passenger cars, engine oil is utilized extensively. It promotes consistency, guarantees dependability, and lessens engine wear. It also helps keep the engine clean, corrosion-free, and cool. Automakers have been producing light automobiles with precise tolerances, which makes them more durable, thanks to technological advancements and legally imposed fuel economy standards. With their abilities to prevent oil leaks and reduce oil consumption, high-mileage engine oils are in demand right now. Of all the automotive segments, the segment for light vehicles uses the most engine oil. High-viscosity engine oils, called heavy-duty motor vehicle engine oils, are utilized in both on- and off-road, heavy vehicle applications. These engine oils are produced to support harsh geographic conditions and stringent emission criteria. Technology developments pose a threat to the growth of the engine oil segment in terms of volume consumption because of the lengthened engine oil replacement intervals. As a result, in the upcoming years, it is anticipated that the aforementioned variables will substantially impact the market for automotive lubricants.

Since Synthetic Oil Improves Vehicle Performance, Synthetic Oil to Dominate Market

Synthetic oil is gaining popularity among industry professionals and end users for a variety of reasons, including improved shear and chemical stability, viscosity index, improved low and high-temperature viscosity performance at service temperature extremes, decreased evaporative loss, higher fuel economy in certain engine designs, better lubrication during severely cold weather starts, and increased horsepower and torque due to less initial drag on the engine. With the ongoing changes in vehicle design and the introduction of cutting-edge new engines, promising growth possibilities are predicted in this market. Adopting modern engines and expensive vehicle components is another recent market development for synthetic lubricants. Furthermore, synthetic lubricants are more compatible with these high-end engines and parts. Therefore there will be enormous demand for them during the projection period.

Asia Pacific to Acquire a Major Revenue Share in Automotive Lubricants Market

Asia Pacific dominates global automotive lubricants market due to many on-road vehicles in countries like China, Japan, India, and South Korea. Different automotive lubricants are consumed differently depending on the country and the region. For instance, South Korea's usage of synthetic lubricants is higher than India's, and most of it is used in commercial and passenger cars. In India, the two-wheeler market, which makes up about one-fourth of the entire demand, consumes the second-highest percentage of lubricating oil after commercial vehicles. Government efforts to replace out-of-date vehicles are driving demand for better, higher-performing lubricants. India is also the third-largest lubricant market in the world and the second-largest in the region. Despite the economy's modest growth, China is currently the world's largest market for lubricants, and that is projected to continue in the years to come. The largest manufacturer of automobiles worldwide is China. Around 302 million automobiles were registered in China as of 2021. The number of cars on the road in China has increased during the last ten years nearly 1.9x. As a result, in the upcoming years, it is anticipated that the aforementioned variables will substantially impact the automotive lubricants market.

Europe stood second in global automotive lubricants market in terms of revenue share. Automobile lubricants are in great demand in the area due to growing customer demand for effective and high-quality lubricants. The revival of the industrial sector, greater emphasis on fuel efficiency and CO₂ reduction, the availability of base oil in the region, and the enhancement of product quality are key market drivers in Europe. The European Union's numerous environmental, health, and safety restrictions could hinder market expansion. With 41 assembly and engine production facilities, Germany dominates the European automotive industry and produces one-third of all the cars sold on the continent. Equipment makers, suppliers of materials and components, engine manufacturers, and integrators of complete systems have facilities in Germany, one of the top manufacturing hubs for the aircraft industry.

Global Automotive Lubricants Market: Competitive Landscape

In January 2022, Chevron Corporation, headquartered in San Ramon, California, announced the establishment of its Keep Clean Preferred Vendor Program, which will give its clients the tools and services required to obtain the majority of their lubricants. Furthermore, participating vendors will assist enterprises with their maintenance and lubrication needs, covering everything from storage and handling to fluid analysis, allowing organizations to increase performance while eliminating costly downtime. In April 2021, Valvoline Inc. launched Valvoline High Mileage 150k with MaxLife Plus Technology Synthetic Blend, an engine oil specifically designed for engines with over 150,000 miles. The revolutionary formula of the product reduces oil consumption in older, high-mileage engines, while its Moly Additive Protection improves engine performance and power.

A few of the players in the automotive lubricants market include Shell International B.V., Exxon Mobil Corporation, FUCHS PETROLUB SE, Motul, Phillips 66 Company, Repsol S.A., SK lubricants Co., Ltd., China National Petroleum Corporation, Klüber Lubrication München SE & Co. KG, Amsoil Inc., Petróleo Brasileiro S.A., Valvoline, Inc., JXTG Nippon Oil & Energy Corporation, Chevron Corporation, and BP P.L.C. (CASTROL).

Global Automotive Lubricants Market is Segmented as Below:

By Product

• Engine Oil
• Transmission & Hydraulic Fluids
• Gear Oil
• Grease
• Process Oil
• Others

By Vehicle Type

• Passenger Cars
• Light-Weight Commercial Vehicle
• Heavy-Weight Commercial Vehicle
• Two/Three Wheelers

By Type

• Mineral Oil Lubricants
• Synthetic Oil Lubricants
• Semi-Synthetic Lubricants
• Others

By Sales Channel

• Aftermarket
• Original Equipment Manufacturers (OEMs)

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • France
  • Germany
  • Russia
  • Rest of Europe
• Asia Pacific
  • Japan
  • South Korea
  • India
  • China
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

Key Elements Included In The Study: Global Automotive Lubricants Market

• Automotive Lubricants Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2019 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Production Output Analysis (Major Producing Regions)
• Key Trade Statistics (Import and Export)
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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• The segmentation/company profiles/countries depicted above may vary in the actual report.