Automotive Engine Oil Market

Automotive Engine Oil Market Size (2022 - 2027):

The Global Automotive Engine Oil Market is anticipated to be worth USD 51.4 billion by 2027, growing at a CAGR of 3.54% from 2022 to 2027.

Automotive engine oil is a lubricant used to reduce friction and wear on moving parts in an internal combustion engine. It is specifically formulated to provide the necessary lubrication, cooling, and cleaning functions required by the specific type of engine it is used in. Engine oil is typically made from a blend of base oils and various additives designed to improve the oil's performance in various ways, such as reducing wear, improving detergent and dispersant properties, and providing corrosion protection. The type of oil used in a particular engine depends on the engine's design and the manufacturer's recommendations.

Market Drivers:

The increasing production of vehicles worldwide propels the automotive engine oil market growth. As automobile production increases, the demand for engine oil also increases. The amount of engine oil used in a particular vehicle depends on the size and type of engine, as well as the manufacturer's recommendations. In general, larger engines tend to require more oil than smaller engines, and certain types of engines, such as diesel engines, may require different types of oil than gasoline engines. As automobile production increases, the demand for engine oil will also increase, and manufacturers will need to produce and distribute more oil to meet this demand. Therefore, it is essential for manufacturers to carefully manage their engine oil supply to ensure that there is enough to meet the needs of the market.

The demand for synthetic and conventional automotive engine oil is further anticipated to promote the market’s growth rate. The demand for synthetic engine oil has grown in recent years due to its superior performance and the increasing complexity of modern engines. Synthetic oils are often recommended for use in high-performance engines and engines that operate under extreme conditions, such as high temperatures or heavy loads. In addition, the growing demand for electric and hybrid vehicles has also contributed to the increased demand for synthetic engine oils, as these vehicles often require oils with specific properties to meet the unique needs of their engines.

Market Restraints:

Numerous factors are expected to hamper the growth rate of the automotive engine oil market during the forecast period. Some of them are frequent price fluctuations, product shortages, and environmental regulations. The price of engine oil can fluctuate for various reasons, including changes in the cost of raw materials, transportation, and taxes, as well as changes in demand and supply. The cost of crude oil, the primary raw material used to make engine oil, can significantly impact the price of engine oil. When crude oil prices rise, the cost of producing engine oil also tends to increase, which can lead to higher prices for consumers.

Conversely, when crude oil prices fall, the cost of producing engine oil may also decrease, leading to lower prices. Other factors that can affect the price of engine oil include changes in transportation costs, such as fuel prices and shipping fees, as well as changes in taxes and duties. In addition, changes in the demand for engine oil can also impact its price, as can fluctuations in oil supply from different sources.

Market Opportunities:

The growing sales of automotive vehicles from Europe and Asia-Pacific are expected to create huge demand for automotive engine oil and provide growth opportunities. APAC region is one of the major markets for automotive vehicles, with countries such as China, Japan, and India among the world's largest producers and consumers. The automotive industry in the APAC region has experienced significant growth in recent years, driven by economic development, urbanization, and the increasing demand for mobility. In addition, the growing adoption of technological developments by automotive manufacturers is predicted to open more growth possibilities.

Market Key Developments:

• In September 2019, the Saudi Arabian Oil Company (also known as Saudi Aramco) bought Shell Saudi Arabia (Refining) Limited's 50% stake in the SASREF joint venture in Jubail Industrial City, Saudi Arabia, for a sum of USD 631 million. The SASREF joint venture was a refining company that operated a refinery in Jubail Industrial City. The acquisition of Shell's 50% stake by Saudi Aramco gave the latter full ownership of the joint venture and its refinery. This acquisition was part of Saudi Aramco's long-term downstream growth strategy, which aims to increase the complexity and capacity of its refineries.

ELECTRIC CARGO BIKE MARKET REPORT COVERAGE:

Market Segmentation:

Automotive Engine Oil Market – By Grade:

• Mineral

• Semi-Synthetic
• Fully-synthetic

Based on grade, the mineral segment led the market in 2021 and is anticipated to capture the leading share of the automotive engine oil market during the forecast period. On the other hand, semi-synthetic and fully synthetic segments are expected to hold a considerable share of the global market during the forecast period.

Automotive Engine Oil Market – By Engine Type:

• Gasoline

• Diesel
• Alternative Fuels

Based on the engine type, the diesel segment had the major share of the global automotive engine oil market in 2021. Among all the various types of engines, diesel engines are believed to deliver better performance, which is one of the major factors propelling the segment’s growth. In 2021, the gasoline segment accounted for the second-largest share of the market in 2021.

Automotive Engine Oil Market – By Vehicle Type:

• Passenger Cars

• Light Commercial Vehicles
• Heavy-Duty Vehicles
• Motorcycle

Based on the vehicle type, the passenger cars segment occupied the leading share of the automotive engine oil market in 2021. The growing population migrating to the urban areas from rural areas and the increasing capacity of the public to afford vehicles from multiple regions are anticipated to boost the segment’s expansion. Among all the segments, the heavy-duty vehicles segment is expected to register the fastest CAGR during the forecast period in the automotive engine oil market.

Automotive Engine Oil Market – By Region:

• North America

• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

The automotive engine oil market in the APAC region is one of the largest in the world and is expected to continue to grow in the coming years. The APAC region is home to some of the world's largest and fastest-growing economies, such as China, India, and Indonesia, which have a large and rapidly growing automotive industry. This has led to an increase in the demand for engine oils in the region. In addition, the APAC region is also home to several leading engine oil manufacturers and suppliers, such as Sinopec, PetroChina, and Indian Oil Corporation, which have a strong presence in the regional market. These companies have significant production capabilities and can meet the region's growing demand for engine oils. In addition, the APAC region has a large and growing population, which is expected to further drive the demand for engine oils in the coming years. Overall, the engine oil market in the APAC region is expected to continue to grow due to strong economic growth and the increasing demand for vehicles in the region.

COVID-19 Impact on the Automotive Engine Oil Market

The COVID-19 pandemic had a negative impact on the automotive engine oil market, resulting in a decline in demand, a shift towards lower-grade oils, and supply chain disruptions. One significant impact was the decline in engine oil demand due to the decrease in global vehicle production and sales due to lockdowns and the economic downturn. This led to a surplus of engine oils and a decrease in prices. Another impact was the shift in demand towards more affordable and lower-grade engine oils as consumers tightened their budgets due to the economic downturn. This led to a decline in demand for premium and synthetic engine oils. In addition, the COVID-19 pandemic disrupted supply chains and caused delays in the delivery of engine oils, leading to shortages and price increases in some regions. However, the automotive engine oil market is expected to have a quick recovery and register a healthy CAGR during the forecast period due to the market participants' new normalization and growing manufacturing activities.

Market Key Players:

1. Total
2. Eni GmbH
3. Amsoil Inc.
4. Castrol
5. ExxonMobil
6. Petronas
7. Fuchs Petrolub
8. Valvoline
9. Wurth Group