The Global Automotive Lubricants Market Size Was Valued At USD 66.87 Billion In 2021. The Market Is Projected To Grow From USD 68.63 Billion In 2022 To USD 76.61 Billion In 2029, Exhibiting A CAGR Of 1.6% During The Forecast Period.

Automotive Lubricants Market Overview:

The COVID-19 pandemic has had an unprecedented and disastrous impact on the world, and demand for automotive lubricants has exceeded expectations in all regions compared to pre-pandemic levels. According to our research, the global market grew 14.8% in 2020 compared to 2019.

Automotive lubricants are essential to a vehicle's effective operation and protection. They are produced using a variety of base oils. Because they are widely available, mineral-based lubricants are primarily used in all parts of the world. However, the market has been significantly transformed by the introduction and popularity of synthetic or bio-based lubricants. Consumers have benefited from technological advancements in various ways, including longer oil drain and service intervals, higher fuel efficiency, and a longer warranty period.

Market Dynamics:

Latest Trends:

Synthetic lubricant adoption will open up new market expansion prospects.

Mineral oils have undergone substantial processing to enhance their performance characteristics and satisfy the needs of contemporary automotive technologies, resulting in synthetic lubricants. Environmentally friendly and biodegradable lubricants are also covered in this section. In the past, synthetic lubricants were viewed as high-end goods with a limited market penetration. Synthetic lubricants, however, are catching up as environmental issues and engine technology advance. In order to meet consumer demand, these formulations provide longer oil drain intervals than their comparable mineral lubricants. Synthetic lubricating oils also provide other advantages, such as increased hardware compatibility, lower vehicle emissions, and better fuel efficiency. These characteristics accelerate the use of synthetic lubricants, opening up new market expansion prospects.

Driving Factors:

The need to safeguard automotive systems and components is driving up product demand.

The market acceptance of automotive lubricants is boosted by factors including their durability and vehicle protection. By drastically reducing friction between the pieces, they provide defence against damage to a vehicle's systems and parts. Additionally, the need for low viscosity and better-performing lubricating oils is continuously growing due to the industry's use of smaller and more complicated automotive systems. In the upcoming years, this is anticipated to support the invention and development of premium lubricating oils.

Additionally, rising standards for high performance in automobiles are encouraging the use of new products. Automotive lubricants are essential for ensuring that consumer and industrial vehicles operate effectively in a variety of harsh weather situations. For instance, tractor engine oils help improve hardware compatibility of unwavering toughness and quality while also safeguarding and ensuring high performance of the tractor in harsh weather and field situations. They are designed to support a vehicle engine's correct operation and system overheating between -40°C and 250°C. The growth of the automotive lubricants industry will be boosted by its superior features and advantages over the foreseeable future.

Restraining Factors:

Vehicle Technology Innovation is Reducing Product Consumption

By lowering friction and safeguarding the solid moving parts, automotive lubricants considerably lengthen a car's lifespan. But as lubricants and technologies advance every day, growth is drastically reduced. The oil drain intervals in automobiles have increased from once every 6–12 months to 18–24 months as a result of the growing footprint of synthetic lubricants due to advantages including higher fuel efficiency. In order to protect their vehicles, users favour premium lubricants with long oil drain intervals. This, however, has restricted the volume growth of the market and is anticipated to produce poor volume growth over the forecast period. Additionally, as electric vehicles don't need engine oil, rising sales of them are anticipated to provide a growing obstacle in the market.

Segmentation Analysis:

By Oil Type Analysis:

The market is divided into synthetic, semi-synthetic, and traditional categories based on the type of oil used.

The conventional sector held the biggest market share for automotive lubricants in 2021. This oil, which is made exclusively from crude oil, is also known as ordinary or mineral oil. Its stability and temperature resistance allow for its incorporation in engine oil for lubrication and even better engine protection. Additionally, it can be produced in a range of viscosity classes and quality standards. It is mostly advised for drivers with consistent driving habits and straightforward engine layouts.

In general, base oil, thickeners, and additives make up synthetic oils. They have a reputation for better temperature performance, the capacity to increase fuel efficiency, lengthen drain intervals, decrease friction, and offer a significant increase in engine power. The demand for synthetic and bio-lubricants from car manufacturers is rising as people become more aware of alternatives to products involving mineral oil. Semi-synthetic oils, on the other hand, are a combination of synthetic and mineral oils. They are used with synthetic oils to improve engine performance without raising costs. These semi-synthetic oils also perform better at lower a temperature, which is expected to increase demand for them in automotive applications.

By Product Type Analysis:

The market is divided into categories for engine oil, gear oil, transmission fluids, coolant, braking fluid & greases, and others based on the kind of product.

In order for an automobile's engine to run properly, engine oil is essential. It supports the proper operation of moving parts and maintains the engine's cooling. As a result, regular engine oil changes are essential to prolong engine life and prevent the accumulation of pollutants and sludge. Consequently, compared to other goods, engine oil has a high adoption rate. Due to the large number of gasoline and diesel engine cars on the road, this market segment is anticipated to maintain its dominance over the forecast period. Additionally, alternative vehicle technologies like e-mobility are less likely to replace commercial and high-duty vehicles like tractors, trucks, and other similar autos, which would guarantee steady growth of the engine oil segment in the market.

The gear oils market will rise as more trucks, cars, and other vehicle machines adopt gear oil for their transmissions, differentials, and transfer cases. The transmission fluid market will also rise as consumers become more aware of the need to change the transmission fluid every 30,000 to 60,000 miles in order to prevent transmission leaks, slipping gears, delayed gear engagement, and poor vehicle acceleration. Modern automobiles employ brake grease in their hydraulic clutches and braking systems. Heavy-duty brake fluids, which are often synthetic-based and produced specifically for hydraulic clutches and brakes of all types of cars, make up brake fluids. The capacity of brake greases to offer long-lasting protection and temperature resistant qualities is correlated with the segment's expansion.

Regional Insights:

In 2021, the Asia Pacific automotive lubricants market had a value of USD 27.36 billion. Due to the large number of on-road vehicles in countries like China, Japan, India, and South Korea, the Asia Pacific region dominates the global market. Different automotive lubricants are consumed in different ways depending on the country and the region. For instance, South Korea's usage of synthetic lubricants is higher than India's, and the majority of it is used in both commercial and passenger cars. Whereas in India, the two-wheeler market, which makes up about one-fourth of the entire demand, consumes the second-highest percentage of lubricating oil after commercial vehicles.

In Europe, there is a growing need for synthetic vehicle lubricants as a result of rising customer demand for effective and high-quality lubricants. The region's market growth has been restrained due to the ripple effects of disruption brought on by the rise in electric vehicle demand and the implementation of strict environmental rules in the automotive sector.

It is anticipated that North America would follow the same pattern as Europe. Market growth in North America will be driven by increasing product usage in commercial vehicles.

With more than two-thirds of the market's income coming from Brazil and Mexico, these two countries dominate the Latin American market. The area has seen numerous political upheavals and is currently in economic recovery. Over the upcoming time, this is anticipated to impede market growth. However, the region is seeing an increase in expenditures from automakers, and public preference for personal vehicles is growing.

The Middle East and Africa only make up a tiny fraction of the worldwide market. The region's demand is dominated by the GCC nations, Turkey, and Iran. Due to low base stock prices, poor adoption rates, and limited consumer awareness in the area, the conventional or mineral oil category dominates the region with more than three-fourths of the market share. Over the projection period, market growth is likely to be constrained by the political and economic difficulties in the region.

Scope Analysis

Recent Development:

• July 2022: Shell USA, Inc. and Shell Midstream Partners, L.P. announce definitive agreements and execution of merger plans. Shell USA will acquire all general units or total value of approximately $1.96 billion representing a limited partner interest in SHLX. The transaction is expected to close by the fourth quarter of 2022.
• July 2021: Valvoline All-Terrain is a new engine oil specially designed for off-road, heavy-duty diesel engines operating in harsh environments. Made for wear protection of equipment operating in harsh environments such as construction, mining and agriculture.
• April 2021: Valvoline Inc. introduces the Valvoline High Mileage 150k with MaxLife Plus Technology Synthetic Blend, an engine oil expressly formulated for engines over 150,000 miles. The product's innovative formula lowers oil consumption in older, older engines, while Moly Additive Protection increases engine performance and power.
• March 2021: Nissan Motor India has signed an agreement with ExxonMobil Lubricants to supply lubrication solutions for the passenger car aftermarket. Various engine oils are provided for BS6-compatible vehicles as well as BS3 and BS4 models.
• February 2021: Shell says it will offer carbon-neutral lubricants for heavy diesel engines, passenger vehicles and industrial use to consumers. Shell Lubricants' multi-year plans will help customers manage their sustainability needs. Shell aims to lower the carbon intensity of its products by reducing, avoiding and offsetting emissions.

Market Segmentation

By Oil Type:

• Synthetic
• Semi-synthetic
• Conventional
• Others

By Product Type:

• Engine Oil
• Gear Oil
• Transmission Fluids
• Coolant
• Brake Fluid & Greases
• Others

By Companies:

• Shell plc (U.K.)
• Exxon Mobil Corporation (U.S.)
• BP plc (U.K.)
• Chevron Corporation (U.S.)
• TotalEnergies SE (France)
• China National Petroleum Corporation (China)
• Idemitsu Kosan (Japan)
• Sinopec Group (China)
• Fuchs Petrolub SE (Germany)
• Valvoline Inc. (U.S.)
• ENEOS Corporation (Japan)
• Others