Key Market Overview:
Automotive engine oil Market is estimated to reach over USD 45.09 Billion in 2022, registering a CAGR of 3.36% during the forecast period (2023-2030), and the market is projected to be worth USD 57.8 Billion by 2030.
Automotive engine oil, also known as motor oil, is a type of lubricant that is used in internal combustion engines. Automotive engine oil is designed to reduce friction in engine’s moving parts in automobiles. Engine oils also plays a vital role in enhancing the performance of vehicles by sealing pistons and rings resulting in less dirt deposition. In addition to lubrication and seal formation, automotive engine oil is also comprised with the ability to cool the engine, eliminate dirt at the time of oil replacement, and prevent rusting.
According to Scotiabank, the global automotive sales reached to 66.14 million units in the year 2022. Growing the automotive industry due to rising incomes levels is expected to propel the demand for engine oil. Additionally, factors such as the rising urbanization have resulted in higher demand of automotive vehicles in urban centers. Ultimately propelling the demand for automobiles. and growing expenditure from key industry players for the facilitation of innovative products are projected to boost this market growth.
Market Dynamics:
Driver:
Surging adoption of passenger vehicles in developing nations owing to strong economic performance and rising standard of living is driving the demand for automotive engine oils. For instance, according to S&P global, light vehicle sales in the association of Southeast Asian nations (ASEAN) region witnessed a rise of 53.0% from the previous year, reaching a total of approxmately 250,000 units.
Restraints:
Increasing adoption of electric vehicles for personal and commercial use is restraining the market growth. For instance, according to ICRA (A Moody’s investment subsidiary company) it is estimated that EV’s and other clean fuel powered vehicles is expected to account for 30 % of the total automobile sale in the next 5 years. Additionally, several governments worldwide are taking initiatives to fuel the production and adoption of electric vehicles, which in turn is negatively impacting the automotive engine oil market.
Opportunity:-
Rising adoption of synthetic automotive engine oil is anticipated to positively impact the market growth during the forecast period. Synthetic oils offers superior lubrication properties, hence high-end automobile owners prefer synthetic oils. Moreover, Polyalkylene Glycol (PAG) synthetic oils are highly biodegradable in nature. With rising environmental conservation awareness, the demand for PAG type synthetic oil is anticipated to witness substantial growth in forthcoming years.
Automotive engine oil Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | USD 57.8 Billion |
| CAGR (2023-2030) | 3.36% |
| By Type | Synthetic, Synthetic Blend, and Conventional (Mineral). |
| By engine type | Diesel, Petrol (Gasoline), And Alternatives |
| By Vehicle type | Passenger Vehicle, Commercial Vehicles (HCV & LCV), Two-Wheeler, And Others |
| By Geography | Passenger Vehicle, Commercial Vehicles (HCV & LCV), Two-Wheeler, And Others |
| Key Players | Saudi Arabian Oil Co., Total, LUKOIL oil company, Shell plc, Exxon Mobil Corporation, Chevron Corporation, Sinopec Lubricant Company, Eni SPA, Valvoline, Castrol, Jiangsu Lopal Tech. Co., Ltd. |
Market Segmentation:
By Type
This segment is separated into Synthetic, Synthetic Blend, And Conventional (Mineral). The Conventional oil segment accounted for the largest market share in the year 2021. Conventional (Mineral) oils are extracted from petroleum during its refining process and are comparatively cheaper than synthetic and synthetic blend engine oils. Moreover, mineral based engine oils are largely preferred by motorcycle owners in developing nations as mineral oils are cheaper alternative in comparison to conventional oils. For instance, Castrol, one of the leading engine oil manufacturers offers 2 mineral oil-based convention oils named Castrol go 2T and Castrol go 4T especially designed for motorcycles.
Furthermore, the synthetic blend oils segment is anticipated to showcase the fastest growth over the forecasted period. The synthetic blended oils comprise of a mixture of synthetic and conventional base oils for added resistance to oxidation. Continues research and development into synthetic blends oils have resulted in development of newer synthetic blend products with better lubricating properties than conventional oils. Aforementioned factors are expected to propel the demand for synthetic blend oils in high performance vehicles in coming years. For instance, Castrol GTX ultraclean which is a synthetic blend engine oil is one of the most popular engine oils for modern cars globally.
By engine type
On the basis of engine type this segment is categorized into diesel, petrol, and alternative fuel types (Hybrid). The petrol segment dominated the market in the year 2021. The presence of large number of petrol-based vehicles is key factor driving the demand for petrol-based automotive engine oil. For instance, according to the International Organization of Motor Vehicle Manufacturers passenger vehicles accounted for 68.2 % of total vehicles sold globally in the year 2021. Moreover, in 2021, 74 % percent passenger vehicles sold in India were petrol based.
Furthermore, the alternative fuel type, mainly Hybrid type is estimated to showcase fastest growth CAGR over the forecasted period. For instance, according to Toyota one of the leading car manufacturers In January 2020, they passed the milestone of more than 15 million hybrid electric vehicles (HEV) sales worldwide. Moreover, in November 2022 Mazda stated that the company aimed for all models to be EV or hybrids by early 2030s.
By Vehicles:-
The application segment is categorized into passenger vehicles, commercial vehicles (HCV & LCV), two wheeler and others. The passenger vehicle segment has the largest market share in the year 2022. According to a report by the International Organization of Motor Vehicle Manufacturers passenger vehicles accounted for 68.2 % of total vehicles sold globally in the year 2019. Furthermore, this demand is also expected to expand due to rising disposable incomes and living standards globally, especially in Asia pacific countries.
Moreover, the commercial vehicle segment, particularly heavy commercial vehicles segment is projected to showcase considerable growth CAGR over the forecasted period. High volumes of engine oil consumption by HCV is expected to be one of the main reasons. Developing nations are likely to lead this demand. For instance, according to OICA new registrations of commercial vehicles in India are up by 7 % year on year since 2014.
By Region
The regional segment includes Asia Pacific, Europe, North America, the Middle East, Africa, Latin America. In 2022, Asia pacific region accounted for the largest market share of engine oil. This region has the highest number of automobiles. Additionally, projected robust economic growth and rising number of youth into workforce in countries such as China and India are expected to further fuel the demand for automobiles in this region. Ultimately propelling the demand of automotive engine oil.
Furthermore, Europe is expected to showcase considerable growth over the forecasted period the rising awareness about fuel efficiency and governments initiatives to reduce the emissions is expected to drive the demand for automotive engine oil in this region.
Automotive engine oil Competitive Landscape:
The competitive landscape of the market has been analyzed in the report, along with detailed profiles of the major players operating in the industry. In terms of market players, the data is related to business collaborations, mergers and acquisitions, product innovations, and strategies adopted by competitors. These factors are studied to offer an insightful understanding of current market circumstances. Following are the major market players that comprise the latest market concentration: –
- Castrol
- Shell plc
- Exxon Mobil Corporation
- LUKOIL oil company
- Chevron Corporation
- Sinopec Lubricant Company
- HINDUJA GROUP
- Valvoline
- Castrol
- Other players
Recent developments:-
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- In the year 2021 Valvoline launched products named All Climate Advanced 5W30 and All Climate Premium 10W40 targeting car segment.
- In 2021 Total announced acquisition of 20 % stake in Adani green to strengthen presence in Indian markets.
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