Global Automotive lubricants Market - 2024-2031

Global Automotive lubricants Market - 2024-2031

Global Automotive Lubricants Market reached US$ 72.1 billion in 2023 and is expected to reach US$ 94.9 billion by 2031, growing with a CAGR of 3.5% during the forecast period 2024-2031.

Increasing automobile manufacturing, combined with a shift in the trend from heavy to lightweight vehicles, is an important driver, as the latter contributes greatly to weight savings and lower carbon emissions. A 10% reduction in an automobile's weight saves around 5% to 7% on fuel. Furthermore, the vehicle's lower weight helps to limit CO2 emissions throughout its life cycle.

It improves the overall performance of the car in terms of acceleration and handling. Furthermore, the reduction of mass at unsecured locations reduces noise and vibration, resulting in a smoother ride. Thus, rising concerns about fuel consumption and greenhouse gas emissions are likely to increase demand for lubricants in commercial and passenger cars.

In 2023, North America is expected to be the dominant region with over 30% of the global Automotive Lubricants market. In accordance to the International Trade Administration, U.S. will be the second largest market for car sales and manufacturing in 2022, with 14.5 million light vehicles sold. Furthermore, the Motor & Equipment Manufacturers Association reported that foreign direct investment in the country's automotive industry was US$ 143.3 billion in 2019. Thus, the developing automotive industry in the country is expected to be the key driving force for the product during the forecast period.

Dynamics

Increasing Vehicle Production and Sales

The continued growth of the automobile sector, particularly in emerging economies, drives up demand for automotive lubricants. Germany's vehicle manufacturing business contributes significantly to overall automotive production in Europe. Increased car production is expected to promote lubricant market growth. Even while general car sales in the country fell, electric vehicle registrations have grown substantially over the last few years.

The government's push for all-electric vehicles by 2040 is helping to fuel this boom. Volkswagen authorized an investment in a new electric car facility in March 2022. The new German factory, located near to the group's historic home in Wolfsburg, would begin building in 2023, with manufacturing beginning in 2026. According to data supplied by OICA, globally automotive manufacturing climbed from 80,205,102 in 2021 to 85,016,728 in 2022, driving up engine oil demand.

Increasing Use of Engine Oils

Internal combustion engine oils are widely used for lubrication and typically contain 75-90% basic oils and 10-25% additives. It is commonly employed to decrease wear, guard against corrosion and ensure smooth running of internal engines. It work by forming a thin coating between the moving components to increase heat transfer and reduce strain when in contact with the components.

Motor oils with high kilometers are in demand because to their qualities that help prevent oil leakage and reduce oil usage. The majority of lightweight and high-performance diesel and gasoline cars employ viscosity grade oils, whereas multi-grade oils such as 15W50 and 20W50. The market for engine oils is driven by the rising average age and urbanization of passenger cars in developing countries.

Regulations and Technological Advancements

Environmental restrictions are being tightened by governments and regulatory agencies globally in order to minimize emissions and promote sustainability. The regulations frequently require the use of low-emission, environmentally friendly lubricants, which can raise production costs and complexity for producers. Restrictions on the use of specific chemicals and additives due to their impact on the environment might limit the formulation possibilities for lubricants, complicating the manufacturing process and increasing costs.

Advancements in engine technology and the creation of more efficient engines have the potential to minimize the frequency and amount of lubricant changes. It could reduce the overall need for vehicle lubricants. The increased usage of electric vehicles, which require different lubrication than typical internal combustion engine (ICE) vehicles, presents a considerable problem. EVs often use fewer lubricants, influencing demand for conventional automotive lubricants.

Segment Analysis

The global automotive lubricants market is segmented based on product, oil, end-user and region.

Rising Sales of Passenger Cars Drives the Segment Growth

Passenger cars is expected to be the dominant segment with over 30% of the market during the forecast period 2024-2031. Passenger cars surpass other vehicles in terms of fuel efficiency, individual safety, resale value and dependability. Lubricant oils in cars help to enhance efficiency and decrease wear and tear on moving engine parts. Furthermore, mineral lubricating oils are currently the most widely utilized variety due to the inexpensive cost of obtaining the oils from crude oil.

Thus, the growing automobile sector is likely to boost demand for automotive lubricants. For example, the ""India Brand Equity Foundation"" reports that automobile exports reached 4.77 million vehicles in FY20, expanding at a CAGR of 6.94% between FY16 and FY2020. The Indian government anticipates the vehicle sector to attract US$ 8 to US$ 10 billion in local and foreign investment by 2023, which will impact market demand over the projected period.

Geographical Penetration

Rising Grwoth of Automotive Industry in Asia-Pacific

Asia-Pacific is expected to be the dominant region in the global automotive lubricants market covering over 35% of the market. The rise is linked to the rapid expansion of the automobile sector, as well as industrial development and the existence of automotive manufacturing industries in countries such as Japan, India and China. The growing government emphasis on replacing obsolete vehicles raises the demand for better and higher-performance lubricants.

Automotive engine oils, greases and hydraulic fluids are the most often used lubricants in the Asian market. According to the government-backed China Association of Automobile Manufacturers, Chinese auto sales in 2018 were 28.1 million. China has emerged as a global leader in the electric bus category, with output expected to increase by 34% by 2025. Thus, the manufacturing of commercial vehicles and passenger cars is likely to boost the automotive lubricant market.

Competitive Landscape

The major global players in the market include Amsoil (Wisconsin), Total SA, Bharat Petroleum, Eni S.P.A., Exxon Mobil Corporation, Indian Oil Corporation, Lubrizol, Royal Dutch Shell, Sinopec and Valvoline.

COVID-19 Impact Analysis

The pandemic caused temporary shutdowns of manufacturing facilities, particularly those producing lubricants and raw materials. The disruptions prompted delays and shortages in the supply chain. Automotive production and sales fell sharply during the pandemic's early phases due to manufacturing shutdowns, supply chain difficulties and lower consumer demand. The drop directly lowered demand for vehicle lubricants.

The fuel antioxidants market is now plagued by the COVID-19 epidemic, which has brought most industrial activities to a halt. For example, according to the European Automobile Manufacturers Association, passenger car registrations will fall by almost 25% in 2020. It has had an impact on both demand and output, limiting market growth. As constraints lifted and economies began to recover, vehicle manufacturing and sales rebounded, resulting in a rise in demand for lubricants.

Russia-Ukraine War Impact

Russia is a large exporter of crude oil and natural gas, both of which are necessary feedstocks for the production of base oils used in lubricants. The war has disrupted these supplies, causing raw material shortages and price increases. The conflict has caused disruptions in transportation lines, particularly in Eastern Europe. It has impacted the timely delivery of raw materials and finished lubricants, raising lead times and transportation costs.

The conflict's broader economic effects, such as decreased consumer confidence and spending, have caused a halt in vehicle production. End-User production and sales decline, reducing demand for automotive lubricants. It has increased volatility in global energy prices, notably for oil and gas. Higher energy costs have increased the production costs of lubricants, because energy is a crucial component in manufacturing processes.

By Product
• Engine Oil
• Brake Fluids
• Gear Oil
• Greases
• Coolants
• Others

By Oil
• Synthetic
• Mineral
• Conventional
• Others

By End-User
• Light Commercial Vehicle
• Heavy Commercial Vehicle
• Passenger Cars
• Others

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In October 2022, TotalEnergies has teamed with MG Motor to create a new line of lubricants in Chile. The pioneering automobile lubricant, set to be branded as MG lubricant, has been precisely customized for MG Motor vehicles. The new product will be produced only in Chile, a strategic step that will increase TotalEnergies' presence in the region.
• In July 2022, Shell USA, Inc. and Shell Midstream Partners, L.P. have formally merged. Under this transaction, Shell USA is going to take ownership of all common units that represent limited partnership interests in SHLX, equal to an estimated total value of about US$ 1.96 billion.
• In July 2021, Valvoline developed All-Terrain, a new engine lubricant intended specifically for powerful diesel engines used in challenging off-highway applications, such as construction, mining and agriculture.

Why Purchase the Report?
• To visualize the global automotive lubricants market segmentation based on product, oil, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of automotive lubricants market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global automotive lubricants market report would provide approximately 62 tables, 57 figures and 204 pages.

Target Audience 2024
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies