Automotive Engine Oil Market Forecasts to 2030 – Global Analysis By Product (Synthetic Oil, Conventional Oil, Semi-Synthetic Oil, High-Mileage Oil and Other Products), Vehicle Type, Additive Type, Grade, Distribution Channel, End User and By Geography

Automotive Engine Oil Market Forecasts to 2030 – Global Analysis By Product (Synthetic Oil, Conventional Oil, Semi-Synthetic Oil, High-Mileage Oil and Other Products), Vehicle Type, Additive Type, Grade, Distribution Channel, End User and By Geography

According to Stratistics MRC, the Global Automotive Engine Oil Market is accounted for $36.59 billion in 2024 and is expected to reach $49.38 billion by 2030 growing at a CAGR of 4.8% during the forecast period. Automotive engine oil is a lubricant specifically formulated for internal combustion engines in vehicles. Its primary role is to reduce friction between engine components, minimizing wear and tear. It also helps cool the engine by dissipating heat, prevents corrosion, cleans deposits, and seals gaps between parts for better performance. It is essential in maintaining engine health, improve fuel efficiency, and extend the vehicle’s lifespan by ensuring optimal performance.

According to the China Association of Automobile Manufacturers (CAAM), in 2022, approximately 23.56 million passenger cars and 3.3 million commercial vehicles were sold in China.

Market Dynamics:

Driver:

Growing automotive aftermarket

As vehicles age, they require more frequent oil changes and servicing, which drives the need for engine lubricants. The expansion of aftermarket services, including oil changes, repairs, and upgrades, creates a steady demand for engine oils. Additionally, the rise in vehicle ownership and the trend towards regular maintenance to extend vehicle lifespan further contribute to the increased consumption of engine oils, supporting market growth. This sector’s expansion thus plays a crucial role in sustaining engine oil demand.

Restraint:

Fluctuating crude oil prices

Since conventional engine oils are derived from petroleum, changes in crude oil prices directly impact the cost of raw materials. Volatile prices can lead to unpredictable oil prices for consumers and manufacturers, causing budget uncertainties and potentially reducing demand. Additionally, high crude oil prices can drive up production costs, which may result in higher retail prices for engine oils, further constraining market growth and impacting consumer purchasing behaviour.

Opportunity:

Development of synthetic and high-performance oils

Synthetic oils offer superior lubrication, improved engine cleanliness, and extended oil change intervals compared to conventional oils, attracting both consumers and manufacturers. High-performance oils are designed for advanced engines, enhancing fuel efficiency and reducing emissions, which aligns with stringent regulations and performance requirements. This innovation drives market growth by appealing to consumers seeking optimal engine care and efficiency, and by meeting the needs of modern, high-tech vehicles, thus expanding market opportunities.

Threat:

Electric vehicle adoption

With the rise in EV sales, there is a reduced demand for engine oils used in internal combustion engines. As more consumers and manufacturers shift towards electric and hybrid vehicles, which have different maintenance requirements, the overall market for automotive engine oil experiences a decline. This shift towards electrification is accelerating the decrease in oil consumption, challenging the growth prospects of the conventional engine oil market.

Covid-19 Impact

The covid-19 pandemic significantly impacted the automotive engine oil market, as global vehicle production and sales declined due to lockdowns, supply chain disruptions, and reduced consumer demand. Automotive maintenance activities were delayed, leading to lower engine oil consumption. However, the market saw a gradual recovery as restrictions eased, with a resurgence in vehicle sales and maintenance. Increased focus on personal transportation and aftermarket services also boosted demand for engine oils, especially in regions experiencing recovery from the pandemic.

The high-mileage oil segment is expected to be the largest during the forecast period

The high-mileage oil segment is estimated to be the largest during the forecast period. High-mileage oil is specifically formulated for vehicles with over 75,000 miles on their engines. It contains additives that help reduce oil consumption, minimize leaks, and restore performance in aging engines. These oils often include seal conditioners to prevent gasket and seal deterioration, and enhanced detergents to clean engine deposits. It helps maintain engine efficiency and extend the vehicle’s lifespan by addressing the common issues faced by older engines, making them ideal for aging vehicles.

The anti-wear agents segment is expected to have the highest CAGR during the forecast period

The anti-wear agents segment is anticipated to witness the highest CAGR growth during the forecast period. Anti-wear agents in automotive engine oil are additives designed to protect engine components from friction and wear. They form a protective layer on metal surfaces, reducing direct contact between moving parts and minimizing wear and tear. Anti-wear agents are crucial for preventing premature engine damage and optimizing engine efficiency.

Region with largest share:

The automotive engine oil market in the Asia-Pacific region anticipated to witness the largest share, driven by increasing vehicle ownership and rising automotive production. Countries like China, India, and Japan are major contributors, with expanding automotive industries and a rising focus on vehicle maintenance. Additionally, the region's large automotive aftermarket sector supports continued demand for engine oils, as consumers prioritize engine efficiency and longevity amid increasing vehicle usage.

Region with highest CAGR:

In North America, the automotive engine oil market is expected to have highest CAGR, driven by high vehicle ownership rates and a strong automotive aftermarket. The market also benefits from advanced technologies in engine oils. Additionally, a well-established aftermarket sector and consumer preference for premium products contribute to sustained growth. The North American market is characterized by a focus on innovation and high standards for engine performance and protection.

Key players in the market:

Some of the key players profiled in the Automotive Engine Oil Market include Castrol, Mobil 1, Valvoline, Shell, Chevron, TotalEnergies, BP, ExxonMobil, Pennzoil, Amsoil, Royal Purple, Lubrizol, Fuchs Petrolub, Havoline, Liqui Moly, Red Line, Kendall Motor Oil, JXTG Nippon Oil & Energy, Eneos and Quaker State.

Key Developments:

In September 2024, Shell launched three new motor oil products for passenger cars. These products are specifically designed to meet the stringent requirements of original equipment manufacturers (OEMs) and to comply with the latest industry specifications. The launch reflects Shell's commitment to innovation and performance in automotive lubricants, providing enhanced protection and efficiency for modern vehicles.

In August 2024, Castrol India launched a new range of engine oils, featuring EDGE Hybrid, EDGE Euro Car, and EDGE SUV. This new EDGE range is specifically designed to offer enhanced performance and adhere to the latest Original Equipment Manufacturer (OEM) specifications. The EDGE Hybrid oil caters to hybrid vehicles, ensuring optimal performance and efficiency.

Products Covered:
• Synthetic Oil
• Conventional Oil
• Semi-Synthetic Oil
• High-Mileage Oil
• Other Products

Vehicle Types Covered:
• Passenger Cars
• Light Commercial Vehicles (LCVs)
• Heavy Commercial Vehicles (HCVs)
• Motorcycles
• Off-Road Vehicles
• Other Vehicle Types

Additive Types Covered:
• Detergents
• Anti-wear Agents
• Viscosity Index Improvers
• Corrosion Inhibitors
• Foam Inhibitors
• Other Additive Types

Grades Covered:
• Single-Grade
• Multi-Grade

Distribution Channels Covered:
• Online Sales
• Offline Sales

End Users Covered:
• OEMs (Original Equipment Manufacturers)
• Aftermarket

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements