Automotive Engine Oil Market Segmented By Gasoline Engines and Diesel Engines - Mineral Engine Oil | Synthetic Engine Oil | Semi-Synthetic Engine Oil
Industry: Automotive
Published Date: December-2022
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 235
Report ID: PMRREP2838
According to Persistence Market Research, revenue from the global automotive engine oil market totaled US$ 42.4 Bn at the end of 2021. Worldwide demand for automotive engine oil is expected to reach US$ 55.1 Bn by 2032, increasing at a CAGR of 2.2%.
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 fuelling 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 oil market.
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Automotive Engine Oil Market Size (2021A) |
US$ 42.4 Bn |
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Estimated Market Value (2022E) |
US$ 43.37 Bn |
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Projected Market Value (2032F) |
US$ 55.1 Bn |
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Value CAGR (2022-2032) |
2.2% |
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Collective Value Share: Top 3 Countries (2022) |
47.8% |
From 2017 to 2021, the market for automotive engine oil increased at 0.90% CAGR and is anticipated to grow at a value of a CAGR of 2.2% over the forecast period of 2022 to 2032. This increase in CAGR is because of factors such as a worldwide surge in the demand for automobiles and the growing demand for more efficient engine oil variants that can increase the performance and life of engines.
Additionally, the market is anticipated to witness a stronger growth outlook due to advancing technology and rising governmental and private sector investments. Global expansion of the automotive sector is one of the key drivers for automotive engine oil demand growth.
Moreover, ZDDPs (zinc dialkyl diphosphates) are an additive class found in almost all lubricants and engine oils. These substances function to reduce engine wear by breaking down under intense pressure to generate complex phosphate glasses on the surface of bearings and other crucial engine locations. They are the most effective anti-wear and antioxidants that are cost-effective, owing to which, this type of engine oil is gaining traction in the global market.
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.
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.
Where Does China Stand in the Global Market for Automotive Engine Oil?
Automotive engine oil demand in China is anticipated to increase at 2.8% CAGR over the decade. In the East Asian region, China is expected to hold a prominent share of the market through 2032.
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 flare 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% value CAGR through 2022.
Which Grade 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 4.8% 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?
Light commercial 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 2.3%.
Light commercial vehicles continue to remain lucrative for automotive oil suppliers, holding around 35% share of the market. Rising consumer class prosperity and rapid urbanization are predicted to drive up demand for light commercial 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 light 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.
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.
The supply chain of automotive engine oil has improved over the past few years as a result of an increase in acquisition and growth activities. Key players in the market are concentrating on business expansion through partnerships and contracts to further strengthen their presence in regional and international markets, as well as new product launches to expand their engine oil product portfolios.
Some of the key market developments are:
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Details |
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Forecast Period |
2022-2032 |
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Historical Data Available for |
2017-2021 |
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Market Analysis |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Pricing |
Available upon Request |
By Grade:
By Engine:
By Vehicle:
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The global automotive engine oil market is estimated at US$ 43.37 Bn as of 2022.
Automotive engine oil sales are projected to increase at 2% CAGR and reach US$ 55.1 Bn by 2032-end.
Saudi Arabian Oil Co., Total S.A, ROSNEFT, LUKOIL Oil Company, Shell Plc, Exxon Mobil Corporation, BP P.L.C, Chevron Corporation, Sinopec Lubricant Company, Eni SPA, Valvoline, Castrol, Jiangsu Lopal Tech. Co., Ltd., and Fuchs Petrolub are key market players.
Germany, China, the U.S., India, and Japan account for the most consumption of automotive engine oil.
The market in Germany is set to expand at 2% CAGR during the forecasted period.
China, the U.S., and Germany are key producers and exporters of automotive engine oil.
China is expected to hold 66.7% share of the global market by the end of 2032.
