Automotive Engine Oil Market Size, Share, and Growth Forecast for 2025 - 2032

Automotive Engine Oil Market Outlook (2025-2032)

According to Persistence Market Research, the global automotive engine oil market will grow from its market size of US$ 43.3 Bn in 2025 to US$ 57.4 Bn in 2032, with a CAGR of 4.1% during the same period.

Automotive engine oil, commonly referred to as motor oil, is a lubricant used in the internal combustion process that takes place in an engine to produce power for motorcycles, vehicles, and several other types of automotive engines. Automotive engine oil's primary purpose is to reduce friction and wear on the moving parts of an engine and is also essential for removing varnish and sludge from the engine.

Increased production of light, medium, and heavy vehicles as well as passenger vehicles around the globe is one of the key factors fueling the demand growth for automotive engine oil. The global market is rising due to growing consumer demand for energy-efficient lubricants.

Worldwide sales of automotive engine oil account for 80% to 85% share of the global automotive lubricants market, while Two-Wheeler Engine Oil accounts for ~20% of the total automotive engine oil market.

Consumption Analysis of Automotive Engine Oil (2019 to 2024) Vs. Market Outlook (2025 to 2032)

From 2019 to 2024, the market for automotive engine oil witnessed 4.4% CAGR due to higher sales of Internal Combustion Engines (ICE) vehicles. The introduction of new effective synthetic engine oil variants attracted new customers with high engine capacities. Growing urbanization, increasing population and rising disposable income among middle class has surged the demand for automobiles leading to the higher demand for automotive engine oil.

According to the newest study by Persistence Market Research, the market for automotive engine oils will see slightly reduced growth by 4.1% CAGR during 2025 and 2032. The rising penetration of Electric Vehicles replacing ICE is a major reason for this reduced demand. However, the existing huge fleet of ICEs followed by introduction of new variants of hybrid Gasoline-CNG vehicles is expected to support the market growth.

Market Growth Driver

Surging Automotive Sector Acting as Pillar for Target Market Growth

Growth in the automotive sector, rise in the demand for fuel-efficient vehicles, high sales of luxurious passenger vehicles, and the need to extend the life of engines, provide low-viscosity engine oil to enhance fuel economy, and meet changing vehicle pollution regulations are factors that will drive the growth of the market.

To lower friction and prevent unnecessary power loss, engine oil must lubricate the various components of an engine. Fuel is burned more efficiently by a well-lubricated engine, while also improving its performance. The surfaces and other components of the engine that are subject to friction are protected as friction is reduced with the functioning of the engine oil. To increase the engine component's life, wear is reduced to a minimum. Without engine oil, the components of the engine have a higher chance of getting damaged and becoming less functional, thereby producing more engine emissions.

The engine is also protected from unwanted chemical reactions, such as corrosion occur inside the engine. These advantageous factors of using engine oil have been increasing its demand for use in various vehicle types.

Furthermore, increasing demand for commercial vehicles and luxurious passenger vehicles and the surge in the use of synthetic engine oils in most vehicles have also positively influenced the market.

Market Restraint Factor

Fluctuating Raw Material Prices and Growing EV Sales to Dent Market Expansion

Key factors restraining the growth of the market are the volatility of raw material prices and growth in the adoption of electric vehicles across the world. The market is facing several difficulties because of unstable price changes, overconsumption or product shortages, currency fluctuations, ongoing emphasis on energy-efficient products, and environmental laws. Additionally, production costs are increasing because it takes complicated operations to produce final products. As such, demand and sales of automotive engine oil are being significantly impacted.

In the automobile business, electric vehicles are rapidly increasing as a more environment-friendly mode of transportation. The use of electric vehicles has grown as a result of rising traffic, pollution, and fuel costs globally. Governments all across the world are promoting e-vehicle deployment in an effort to reduce carbon emissions.

Though these are good initiatives for saving the polluted environment, they will impact the market for automotive engine oil eventually. Electric vehicles do not require a fuel engine for propulsion; their engine oil requirement is significantly reduced. This factor is anticipated to hamper market progress over the forecast period.

Country-wise Analysis

Where Does China Stand in the Global Market for Automotive Engine Oil?

Automotive engine oil demand in China is anticipated to increase at 3.7% CAGR over the next 7 years. In the East Asian region, China is expected to hold a prominent share of the market through 2032.

• The (ITA) International Trade Administration estimates that 35 million vehicles will likely be produced domestically by 2025 in China. More than 25 million vehicles were sold in the country in 2020, 19.99 million of which were passenger cars.

Sales of automotive engine oil in China are expected to increase as a result of growing automotive production throughout the course of the projected period.

How is the Automotive Engine Oil market set to fare in UK Market?

The U.K. is one of the most lucrative markets for automotive engine oil manufacturers in the European region and is anticipated to expand at 2.9% value CAGR through 2032.

• According to the Society of Motor Manufacturers and Traders, the U.K. ranks fourth in Europe and is the world's 13th-largest automotive manufacturer.
• In February 2021, the market for new light commercial vehicles increased by 22% to 17,205 units.

Category-wise Insights

Which Product Type of Automotive Engine Oil Remains the Most Significant?

Synthetic oil leads the market by grade and this segment is anticipated to grow at a CAGR of 5.8% through the forecast period.

The advantages of synthetic lubricants over traditional ones are numerous. Synthetic oils have a more uniform molecular structure than mineral oils, allowing for a more even and consistent lubrication. Their increased viscosity index is a key benefit.

Synthetic oil is more resistant to temperature changes when it has a higher viscosity index. It is more efficient and has a longer service life. This is expected to fuel the demand for synthetic automotive engine oil over the coming years.

Which Vehicle Type Accounts for Higher Sales of Automotive Engine Oil?

Passenger vehicles dominate the global market and this segment is expected to hold its position until the end of the forecast period, growing at a CAGR of 4.5%.

Passenger vehicles continue to remain lucrative for automotive oil suppliers, holding around 41% share of the market. Rising consumer class prosperity and rapid urbanization are predicted to drive up demand for passenger vehicles over the coming years.

The demand for SUVs has also grown as a result of the rise in leisure and travel activities in recent years. Owning a car or other type of passenger vehicle is regarded as a sign of social prestige in most emerging economies, including India, Brazil, and many others, which will drive the demand for automotive engine oil.

Impact of COVID-19 Crisis

The COVID-19 pandemic had a negative impact on industrial activities all across the world. Worldwide restrictions on sales and value chains made it difficult for players to expand their market share. The temporary closure of engine oil production facilities across the world was a result of lockdowns. The offline and online sales channels of engine oils also got impacted due to rules and regulations owing to the virus spread. However, in 2022, the market experienced a V-shaped recovery and is anticipated to grow in a similar manner over the decade.

Competitive Landscape

The global engine oil market is fragmented with number of market players competing in different regional landscapes. However, some global leaders in lubricants market are expanding their portfolios for automotive engine oils. Continuous efforts for research and development to produce efficient grades of engine oils and collaborate with automobile manufactures to develop engine-specific lubricants is a growing trend in this market.

Some of the key market developments are:

• In January 2025, Cadence Petroleum Group has acquired R.W. Davis Oil Company, a Georgia-based fuel and lubricant distributor with locations in Lilburn and Newnan. This move enhances Cadence's presence in the Southeast U.S.
• In August 2022, The Saudi Arabian Oil Company (“Aramco”) announced the signing of an equity purchase agreement to acquire Valvoline Inc.’s global products business (“Valvoline Global Products” or “VGP”) for US$ 2.65 billion.
• In April 2022: ExxonMobil developed Mobilgard™ 540 AC, a premium 40BN marine cylinder oil granted Category II status by MAN ES for use in Mark 9 and higher 2-stroke marine engine designs.

Automotive Engine Oil Industry Report Scope

Key Segments of Automotive Engine Oil Industry Research

By Product Type:

• Mineral Engine Oil
• Synthetic Engine Oil
• Semi-Synthetic Engine Oil

By Viscosity:

• 0W-20
• 0W-30
• 5W-20
• 5W-30
• 5W-40
• 10W-30
• 10W-40
• 15W-40
• 20W-50
• Others

By Sales Channel:

• B2B
• B2C

By Vehicle Type:

• Passenger Vehicles
• Commercial Vehicles
• Two Wheelers

By Region:

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

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