Key Market Overview:
Automotive lubricants market size was worth over USD 69.67 Billion in 2022 and is projected to surpass USD 97.57 Billion by 2030, registering a CAGR of 4.3% during the forecast period (2023-2030).
Automotive lubricants are specialized substances used to reduce friction, heat, and wear between the moving parts of an engine or transmission. The main purpose of engine lubrication with such automotive lubricants is to minimize wear by firmly closing clearances between moving parts such as bearings, shafts, and other vehicle components. For an engine to function efficiently, the proper lubrication of points of contact between the cams that operate the valves controlling the flow of air and fuel, and the tappets that activate such valves is essential to prevent excessive wear of the components.
Further, specifically in the context of engine oil, a high quality engine oil plays an important role in efficient working of an engine. Such usage of engine oils in boosting the efficiency of engine operation helps to prevent damages, reduce vehicle emissions and extend the lifespan of the engine. Further, lubricants consist of additives that comprise over 10-30% of the overall lubricant composition. Such additives are mainly used to improve the desirable properties to oils such as reduced friction, improved viscosity index, management of deposits and sludge with the help of detergents additives, dispersants and others.
Moreover, growing demand of automotive lubricants, especially in commercial vehicles, to support increased transportation of goods and passengers is anticipated to witness significant rise during the forecast period. For instance, according to the International Energy Agency (IEA), the global number of vehicles is expected to increase from 1.3 billion at 2021 to 2.3 billion by the year 2040. Thus, favorable adoption of vehicles to support increased e-commerce activities along with consumer preference boosts the automotive lubricants market statistics.
Automotive lubricants Report Coverage:
|Report Attributes||Report Details|
|Market Size in 2030 (USD Billion)||97.57 Billion|
|CAGR (2022-2030)||4.3 %|
|By Grade||Mineral, Fully Synthetic, Semi-Synthetic, and Bio-based|
|By Application||Engine Oil, Gear and Brake Oil, Gear & Transmission Oil, Hydraulic & Wet Brake Oil, Greases, Coolants, and Others|
|By Vehicle Type||Commercial vehicles (Light Commercial Vehicles, and Heavy Commercial Vehicles), Passenger vehicles, Utility Vehicle, and Others|
|By Geography||Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] |
Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey]
North America [United States, Canada, Mexico]
Middle East & Africa [GCC, North Africa, South Africa]
South America [Brazil, Argentina, Columbia, Chile, Peru]
|Key Players||FUCHS, Exxon Mobil Corporation, Gulf Oil Lubricants India Ltd., Valvoline, Chevron U.S.A. Inc., Eni Sustainable Mobility S.p.A., ENEOS Corporation, Idemitsu Kosan Co.Pvt.Ltd., Shell Plc., Indian Oil Corporation Ltd., TotalEnergies, BP PLC., AMSOIL INC.|
Rising on-road vehicle fleet especially in countries such as India, Brazil, and Japan boosts the demand for automotive lubricants for regular maintenance and lubrication requirement of vehicles. Moreover, strict imposition of environmental regulations from organizations such as the European Chemicals Agency (ECHA) and the US Environmental Protection Association (EPA) to reduce emissions and improve fuel efficiency of vehicles also propels the automotive lubricants market demand.
The emergence of fully electric vehicles (EVs) mainly hampers the market growth. Furthermore, the shifts in consumer preferences in the favor of electric vehicles along with growing availability of public transportation and difficult urban layout and policy restrictions restrains the market growth in terms of decreased ICE vehicle ownership due to reduced tax benefits.
The scope of advancements in high-performance lubricants with the ability to withstand higher temperatures, pressures, and loads is expected to offer lucrative opportunities for the market growth. Such high-performance lubricants are expected to meet the growing consumer demand for better fuel economy, extended drain intervals, and improved vehicle performance. Also, favorable consumer preference for aftermarket maintenance and modification of vehicles is estimated to offer creative opportunities for market growth during the forecast period. The factors such as increasing vehicle age, rising demand for maintenance and repair services, and the availability of a wider range of lubricant products are projected to boost the market demand.
Automotive lubricants Market Segmentation:
The grade segment is separated into mineral, fully synthetic, semi-synthetic, and bio-based. The fully synthetic segment contributed highest shares to the market growth in 2022. Synthetic engine oils are mostly made from polyalphaolefin (PAO) or Group III base stock that offer great compatiblity with conventional mineral oils. Such compatibility reduces the risks of cross-contamination during the transition from a conventional oil to a synthetic oil. Also, such synthetic oils witness increased demand in automobiles, especially due to properties such as lower viscosity that results in improved cold temperature performance (cold-start). Moreover, bio-based segment is anticipated to witness significant growth with fastest CAGR during the forecast period. Growing product innovations in favor of environment-friendly alternative of automotive lubricants is expected to boost the segmental growth in terms of biodegradability, higher flash/fire points, superior lubricity, high viscosity index, and basestock renewability.
The application segment is categorized into engine oil, gear and brake oil, gear & transmission oil, hydraulic & wet brake oil, greases, coolants, and others. The engine oil segment accounted for largest share contribution to the market growth in 2022. Large demand for engine oils to maintain favorable temperature at engine circuit of vehicle and slow down the process of corrosion of metal parts within circuit supports the segmental growth. Further, gear & transmission oil segment is projected to support the market growth in terms of volume. Large scale usage of rust and oxidation (R&O) inhibited oils, compounded gear oils, extreme pressure (EP) gear oils, and synthetic gear oils to protect crucial internal components of car transmission system is expected to boost the segmental growth in terms of protection against wear and heat damage. The completed dependence on manual gearboxes, transmissions, transaxles, differentials, and transfer cases also propels the demand for such automotive lubricants to reduce the risks of vehicle damage.
By Vehicle Type
The vehicle type segment comprises commercial vehicles, passenger vehicles, utility vehicle, and others. Commercial vehicles segment is anticipated to support the automotive lubricants market growth in terms of value and volume. Growing rate of goods transportation across countries is expected to boost the demand for vehicle maintenance in commercial vehicles. Such vehicles opt for modern engine oils with additives such as low SAPS (Sulfated Ash, Phosphorus and Sulfur) to help transmission and engine components of vehicles witness high resistance to heat and wear & tear. Moreover, passenger vehicles segment is also estimated to contribute substantial shares to the market growth during the forecast period. The high volume adoption or ownership of passenger vehicles due to daily commute requirement and growing standards of living among population is expected to propel the demand for automotive lubricants for increased focus on vehicle maintenance.
The regional segment comprises North America, Asia Pacific, Europe, Latin America, and the Middle East and Africa. Asia Pacific is anticipated to account for largest share contribution to the market growth in 2022. The implementation of government regulations for promotion of the environment friendly lubricants supports the growth of market statistics in Asia Pacific region. For instance, in the context of India, the government implemented Bharat Stage VI (BS VI) emission norms that promotes the usage of low-emission automotive lubricants in vehicles.
Moreover, Europe is also anticipated to contribute substantial shares to the market growth during the forecast period. The large automotive presence in European region is expected to boost the demand, especially for high performance automotive lubricants, to meet the consumer preference for maintenance of owned luxurious and sports cars.
Automotive Lubricants Market Competitive Landscape:
The market of automotive lubricants is highly competitive a diverse due presence of several regional and global market players. The manufacturers mainly focus on introducing product innovations, business strategies and mergers and acquisitions to steer clear of obstacles in latest market circumstances. The players also provide different grades of lubricants depending on the specific requirements of the vehicle and the operating conditions to strengthen the market position. Listed are major market players that currently operate in the market circumstances–
• Exxon Mobil Corporation
• Gulf Oil Lubricants India Ltd.
• Chevron U.S.A. Inc.
• Eni Sustainable Mobility S.p.A.
• ENEOS Corporation
• Idemitsu Kosan Co.Pvt.Ltd.
• Shell Plc.
• Indian Oil Corporation Ltd
• BP PLC.
• AMSOIL INC.
• In May 2022, Idemitsu Lube India, a renowned manufacturer of automobile lubricants, introduced a latest portfolio of fully synthetic and high-end Nano Tailored oils for cars and motorcycles in India. The new range of IDEMITSU engine oils comprises IFG (Idemitsu Four-wheelers Gasoline engine oil) and IFD (Idemitsu Four-wheelers Dual engine oil) for cars, as well as IRG (Idemitsu Riders Gasoline engine oil).
• In October 2020, Valvoline Inc., a global prominent manufacturer of top-quality branded lubricants and automotive services, ventured into the greases market. The company made a significant move in this direction after acquiring a renowned manufacturer of greases and industrial oils in Serbia in 2019, which was strategically located to cater to Central Eastern Europe and Russia. Further, Valvoline also invested in a modern research and development center and improved the production capability to support future expansion.
• In October 2021, Hyperfuels collabroated with TotalEnergies Specialties USA to distribute the full range of TotalEnergies Automotive Lubricants in the United States.