The automotive lubricant market was worth US$ xx million in 2022, and it is estimated to reach a valuation of US$ xx million by the end of 2028, expanding at a robust CAGR.
Lubricants play an essential role in the industrial and commercial sectors, including aviation, automotive, manufacturing, and marine. Automotive lubricants help cool components and remove dirt, providing one of the critical functions called viscosity. Therefore, the use of lubricants helps reduce friction, which increases fuel efficiency and the durability of auto parts. In addition, automotive lubricants improve the overall functionality of the vehicle and protect it from abrasion and high temperatures. Since the lubricant has a viscosity, it provides thermal stability, low freezing point, high oxidation resistance, corrosion resistance, and high boiling point. Therefore, they are becoming an integral part of the brakes, gears, and transmission fluids of automotive engines.
The high demand for motor oil for passenger cars, diesel trucks, and light trucks is expected to drive the growth of the global automotive lubricant industry during the forecast period.
The increase in demand for light and high-performance vehicles in emerging economies such as China and India, together with the rise in disposable income worldwide, is supposed to be an essential driver of market growth. Engine oil is likely to multiply due to the increase in passenger cars, the rise in mobility due to urbanization, the increase in per capita income, the growth in vehicle ownership aspirations, and the demand for cargo transport by small and medium enterprises. The increase in the number of vehicles on the road is one of the main drivers of the market for automobile lubricants. As the dependence on personal transport increases, economic stability increases, and the economic efficiency of consumers increases, the use of vehicles increases, and the demand for automobile lubricants increases.
The presence of an aging vehicle ages leads the automotive lubricant market by improving the scope of maintenance. OEM recommendations for the use of high-quality lubricants, such as synthetic/semi-synthetic oils that provide better lubrication than mineral oil, are expected to increase the demand for high-quality lubricants. As consumer awareness and the economy increase, the use of high-quality lubricants is promoted, stimulating the market demand. Government agencies are setting minimum performance standards for lubricants to control the rise in emissions. Therefore, it encourages the use of low-viscosity lubricants, such as synthetic/semi-synthetic oils. These synthetic/semi-synthetic oils have a longer drain interval than mineral oils, which makes them increasingly preferred by consumers. Also, they are more expensive than mineral oils, so they have a higher market share in terms of revenue.
Since electric vehicles have fewer reciprocals, the global automotive lubricant market is foreseen to be hampered by the increasing adoption of electric cars.
Synthetic/semi-synthetic oil segments are expected to expand at high growth rates during the forecast period due to the increased demand for high-quality lubricants and rigorous emission standards. The biobased oil segment accounted for a relatively small part of the global automotive lubricant market, which is projected to augment in the next few decades.
Engine oils
Manual transmission fluids
Automatic transmission fluids
The engine oil sector occupied the dominant part of the market share in 2019 due to the short download time interval. Motor engine oil is generally in demand because it is replaced for every 10,000 to 15,000 miles.
North America
Europe
Asia Pacific
Latin America
Middle east and Africa
Asia-Pacific was a famous region, which represented more than 43.9% of total market revenues. The Asia Pacific automotive lubricant industry is expected to show high growth rates during the forecast period due to rapid economic development, large-scale construction projects, and the introduction of several favorable policies by the government, such as 100% of FDI. High-performance luxury cars attracted massive investments from international players. Besides, key industry players are turning their production facilities into the lucrative Asia Pacific market due to low labor, increasing demand, and favorable government policies.
North America accounted for more than 19% of the total market size. The North American automotive lubricant market is rapidly industrializing, mainly in Mexico. Mexico has become a vital automobile manufacturing center in the last decade. Major US automakers moved their production bases to Mexico due to their relatively low manufacturing costs. Growing demand for bio-lubricants also characterizes markets in North America and Europe.
In recent years, the manufacturer of lubricants FUCHS Petrolub SE has spent almost $ 12 million at a site based in Stoke-on-Trent, United Kingdom. The investment was made for a new automated and energy-efficient machine at Hanley's base in FUCHS.
In April 2019, a multimillion-dollar oil refining company, ExxonMobil, announced in Singapore that it would manufacture raw materials based on high-quality and high-performance lubricants and clean fuels. The project will add 7 million barrels per Group II base capacity each year, which is mainly used to manufacture high-performance automobile lubricants.
Major players in the global automotive lubricant market include ExxonMobil Corporation, Royal Dutch Shell plc, BP plc, Total SA., Chevron Corporation, Sinopec Corporation, LUKOIL, Valvoline LLC, Phillips 66 Company, Fuchs Lubricants Co., Repsol SA, Bharat Petroleum Corporation Limited, JXTG Nippon Oil & Energy Corporation and Indian Oil Corporation Limited.
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