Automotive Motor Oil Market

Global Automotive Motor Oil Market Size (2024 to 2029)

The global automotive motor oil market size is expected to be valued at USD 40.72 billion in 2024 and USD 46.52 billion by 2029, growing at a CAGR of 2.7% from 2024 to 2029.

The demand for fully synthetic (FS) motor oil is growing rapidly worldwide and is resulting in the growth of the automotive motor oil market. The demand for FS engine oil has surged as it has several advantages over conventional engine oil and is more expensive than regular engine oil due to the addition of sophisticated lubricants and additives. As a result, the market is flourishing owing to the increasing use of sophisticated engine oil. 

Global Automotive Motor Oil Market Drivers:

The rise in vehicle sales and production is driving the growth of the global automotive motor oil market. More than 85 million automobiles were manufactured in 2022. There was a 5.7% increase as compared to 2021. Hence, the demand for motor oil was boosted at that time. Lubrication is required for the proper functioning of the engine. Moreover, the rising vehicle density on the streets is leading to significant issues in urban areas and these problems are surging the need for automotive lubricants.

The demand for high-performance oils is another factor propelling the growth of the automotive motor oil market. These lubricants are becoming more essential as industrialization and automation expand around the world. In addition, industries such as power generation, heavy industry and equipment, automotive and transportation, and others depend on high-performance lubricants. Furthermore, the need for higher effectiveness and output is generating demand in the automotive industry. It lowers wear and friction and enhances machine performance.

The rising demand for durable and superior engine oils, along with the growing popularity of vehicle servicing and maintenance, will provide more opportunities for the automotive motor oil market. It presents enormous prospects for suppliers and manufacturers in the market. The primary means of transportation for the average European is a car. They drive more than 12,000 kilometers annually. Thus, there will be consistent requirements for engine oils in the region. The growing need for biodegradable engine oil is another factor with significant potential for the automotive motor oil market. This was developed as a result of growing consumer awareness of the harmful environmental effects of engine oil. With its sustainable beneficial qualities, it continues to expand in various sectors.

Global Automotive Motor Oil Market Restraints:

Instability in raw material prices is decreasing the automotive motor oil market growth rate. The market is facing multiple obstacles because of unpredictable price changes, excessive use or product shortages, currency fluctuations, ongoing focus on energy-efficient goods, and environmental requirements. Moreover, increased competition has made it more difficult for businesses to maintain progress and rewards from their operations in a high-risk environment. Since it takes several steps to get the final items out, manufacturing is expensive. Customers want affordable products. Thus, the pricing presents a serious problem. People find it hard to purchase the goods as a result.

Strict regulation by multiple nations is hampering the expansion of the automotive motor oil market size. Businesses that have established a reputation for addressing environmental, social, and governance issues are often burdened by additional costs in improving product quality, production process, or other requirements. Also, manufacturers are required by the REACH standards for chemicals to make sure goods are free of harmful soot and combustion qualities. Additionally, the high cost of producing and manufacturing automobile engines coupled with the availability of cheap engine oil alternatives are hindering the market expansion. The automotive motor oil market is expected to face challenges due to society's growing desire for electric cars without engines.

Impact of COVID-19 on the global automotive motor oil market:

The pandemic had a significant impact on the upward trend in the value of the automotive motor oil market worldwide. COVID-19 caused labor shortages and work limitations. This led to supply chain interruptions. In addition, all OEMs were affected by factory closures from March to May. For instance, Tesla revealed a 5 percent yearly decrease in deliveries in the second quarter of 2020. Moreover, the impact of the pandemic on the United States EV industry was reduced due to Tesla's strong first-quarter 2020 sales. The automobile engine oil market growth rate is anticipated to develop notably in the next several years despite these obstacles.

REPORT COVERAGE:

This research report on the global automotive motor oil market is segmented and sub-segmented into the following categories.  

Global Automotive Motor Oil Market - By Engine Type:

• Petrol
• Diesel

The diesel segment accounts for a considerable portion of the automotive motor oil market. The higher anti-wear capacity is driving the segment's market value. Diesel engines are more bitter and have a higher viscosity than gasoline or natural gas engines, which helps them operate better. Moreover, it holds more energy than petrol, and these engines are 40 percent more efficient than petrol engines. Diesel engine's catalytic converters are built to handle corrosion-related problems, while gasoline ones are not.

On the other hand, the petrol segment will develop at an elevated pace in the coming years. Its superior solubility and great leaching loss resistance will steadily boost the segment's market share.

Global Automotive Motor Oil Market - By Vehicle Type:

• Passenger Cars
• Heavy-Duty Vehicles

The passenger cars segment continues to grow at a rapid pace. The Automotive motor oil market for passenger cars is driven by increasing urbanization and growth in customers' disposable income. Furthermore, the rise in travel and leisure activities across the world in recent years has up surged the market for SUVs. Moreover, owning a car or other passenger vehicle is viewed as a social status symbol in the majority of emerging nations. It includes Thailand, India, Brazil, and many more. Therefore, motor oil is in great demand in these nations.

Global Automotive Motor Oil Market - By Grade:

• Fully Synthetic
• Semi-Synthetic
• Mineral

The fully synthetic segment holds the top position in terms of market share. The demand has grown due to several factors. The attributes propelling the segment's expansion include enhanced lubrication, reduced deposits, and improved stability. Also, it provides three times more proficient engine protection than traditional mineral oils. This increased the adoption of FS lubricants. Meanwhile, the semi-synthetic segment of the automotive motor oil market is expected to rise at a higher rate in the future. Furthermore, the category is growing as a result of improved component protection and excellent performance. 

Global Automotive Motor Oil Market – By Region:

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa

Asia Pacific is expected to lead the automotive motor oil market. The region's growth is attributed to the increase in product production and consumption across the region and the existence of major companies. Also, the demand for engine oil has increased along with the local population's rising spending power. Economies like China, India, and Thailand are dominating the regional market. Furthermore, it is anticipated that China and India will have the maximum number of automobiles on the road. Additionally, India will have the largest two-wheeler market. And it will contribute to the expansion of the automotive motor oil market. In addition, the regional market is generating more revenue due to consumer's acceptance of all types of engine oil. There has been a surge in demand for fully synthetic engine oil in recent years.

North America accounts for a considerable portion of the global automotive motor oil market share. The top five companies control more than 65 percent of the market. It reflects a fairly concentrated market. The United States has the highest share. At the same time, the largest section by vehicle type is made up of passenger cars. Moreover, the regional automotive and transportation industry is expanding, and regulations supporting energy efficiency and environmental protection are propelling the market and encouraging sustainable growth. However, market growth is hampered by the price volatility of engine oil because of currency fluctuations, supply shortages, and environmental requirements. The ongoing conflicts in the world are affecting this price.

Europe is expected to register a steady market growth rate. The use of environmentally friendly oil, along with the focus on sustainable and eco-friendly products, is driving the automotive motor oil market in Europe. Moreover, almost 85 percent of travel within the country is done by vehicle, whether it be shared, private, or taxi. The sale and usage of passenger automobiles generate 390 billion euros in revenue for the budgets of EU member states annually. Furthermore, There are already 250 million passenger automobiles on the road in the EU as of January 2024.

Latin America is anticipated to propel further at a decent pace during the forecast period. The demand for engine oils is driven by the expansion of the automobile sector in Brazil, Mexico, Argentina, Chile, Colombia, and Venezuela. In addition, policies about energy efficiency and sustainability encourage the adoption of synthetic engine oils, which contribute to market expansion.

The Middle East and Africa market is projected to move forward in the automotive motor oil market. It is expected to reach 1.42 billion dollars by 2026 because of large quantities of crude oil, stable infrastructure, and the dominance of key companies. Firms like Saudi Aramco, Gulf Petroleum Group, and Qatar Petroleum in Saudi Arabia, the United Arab Emirates, Iran, and South Africa dominate the engine oil market in the Middle East and Africa (MEA) region.

KEY MARKET PLAYERS:

Valvoline, Castrol, ACDelco, ExxonMobil, Hinduja Group, Total S.A, RelaDyne, Shell Plc, DMax Lubricants GmbH, China Petrochemical Corp, Chevron Corp. are some of the market players dominating the global automotive motor oil market.

RECENT HAPPENINGS IN THE MARKET:

• In January 2024, Valvoline globally introduced its new premium full motor oil Restore and Protect. It is developed for gasoline-based automotive and high-mileage vehicles.
• In January 2024, Shell Deutschland Gmbh announced the conversion of its hydrocrack facility in the Rheinland chemicals complex in Germany into a manufacturing factory for Group 3 base oils for high-quality lubricants such as engine and transmission oils.