Automotive Lubricants Market Forecasts to 2028 – Global Analysis By Product Type (Engine Oil, Gear Oil, and Other Product Types), Type (Semi-Synthetic Lubricants, Synthetic Lubricants and Other Types), Vehicle Type (Passenger Cars Light Commercial Vehicle

Automotive Lubricants Market Forecasts to 2028 – Global Analysis By Product Type (Engine Oil, Gear Oil, and Other Product Types), Type (Semi-Synthetic Lubricants, Synthetic Lubricants and Other Types), Vehicle Type (Passenger Cars Light Commercial Vehicles and Other Vehicle Types), Sales Channel, Application and By Geography

According to Stratistics MRC, the Global Automotive Lubricants Market is accounted for $69.27 billion in 2022 and is expected to reach $85.65 billion by 2028 growing at a CAGR of 3.6% during the forecast period. 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.

According to the OICA, the total automotive production across the globe increased by 9% in the first nine months of 2021 compared to 2020. According to International Organization of Motor Vehicle Manufacturers (OICA), the total vehicle units produced in 2021 was 82,684,788 as compared to 78,774,320 in 2020. According to an international industry study, commissioned by Shell Lubricants, the savings opportunity is recognized, but undervalued. About 58% of the companies recognized that lubricant selection can help reduce costs by 5% or more, but fewer than one in 10 (8%) realized that the impact of lubrication could be up to six times greater.

Market Dynamics:

Driver:

Protect automotive components and systems is surging the product demand

Automotive lubricants are increasingly popular on the market thanks to their qualities of 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.

Restraint:

Innovation in vehicle technologies is decreasing the product consumption

By minimising friction and safeguarding the solid moving parts, automotive lubricants greatly extend a vehicle'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.

Opportunity:

Rapid growth in urbanization and middle-income population

Some of the key market opportunities are the rapid urbanisation process, changing lifestyles, and an increase in the population of middle-class people. According to the World Bank, middle-income countries are home to about 75% of the world's population, and this number is growing by 1% per year. The fundamental cause of the recent surge in urbanisation is the significant rise in the number of individuals moving from rural to urban areas. Due to the rapid urbanisation, cities account for more than 80% of the global GDP. The availability of inexpensive raw materials, significant investment in R&D, low cost of skilled labour, and accessibility to high-quality infrastructure have all contributed to the tremendous growth of industries like automotive and information technology in recent years in emerging nations.

Threat:

Increased requirement for alternate powertrain specific lubricants

Great investment in the automotive industry has created a challenge for new lubricant requirements as the industry produces vehicles with low environmental impact and high performance. Additionally, different manufacturers have varied specifications for the gearbox, brake system, transmission assembly, and engine design. As a result, in order to satisfy this criterion, the lubricant sector must collaborate with the automaker to create a new line of products that are appropriate for that vehicle. For example, the thinner engine oil will support fuel efficiency. However, thinner engine oil may have an impact on how well the engine runs, which presents a problem for lubricant producers.

Covid-19 Impact

The rapid spread of the coronavirus around the world has had a severe impact on the worldwide automobile lubricant market. Lubricants are used in automobiles to prevent friction and promote smooth operation of motor vehicles. Automotive lubricants can also be used to transmit power, transport heat, and prevent rust and corrosion. The worldwide automotive lubricant market's expansion has been constrained by business shutdowns, rigorous lockdowns, travel and transportation restrictions, and interrupted supply chains. Businesses are recovering from losses thanks to a strategic strategy taken by market participants, and market contributors are concentrating on cutting-edge solutions to stay afloat in the market.

The engine oil segment is expected to be the largest during the forecast period

The engine oil segment is estimated to have a lucrative growth. The proper operation of the engine in an automobile depends heavily on engine oil. 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. The increasing use of gear oil in trucks, cars, and other automotive machinery for transmissions, differentials, and transfer cases will fuel the segment's expansion during the forecast period.

The heavy commercial vehicles segment is expected to have the highest CAGR during the forecast period

The heavy commercial vehicles segment is anticipated to witness the fastest CAGR growth during the forecast period. Transporting passengers, cargo, and building supplies is the main function of a heavy commercial vehicle. Diesel engines are frequently used in heavy commercial vehicles because they provide more torque and have higher fuel efficiency than other types. Additionally, heavy commercial vehicle manufacturers use hydraulic fluid-powered air brake assemblies for enhanced handling. It is anticipated that increased commercial vehicle demand brought on by population expansion, environmental sustainability, and growing urbanisation will increase lubricant consumption in the sector.

Region with highest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to the region's rapid economic expansion, massive construction projects, and the introduction of several advantageous government policies like 100% FDI and ""Smart Cities,"" the automotive industry is predicted to grow at a significant rate over the projected period. Additionally, the rising desire for premium, high-performance passenger cars has drawn significant investment from global automakers.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to the enormous industrialization that is going place in this region. Since the previous ten years, Mexico has been a significant centre for the production of cars. Due to Mexico's relatively low manufacturing costs, many major U.S.-based automakers have moved their production bases there. A feature of developed markets in North America and Europe is the rising need for bio-lubricants.

Key players in the market

Some of the key players profiled in the Automotive Lubricants Market include Chevron Corporation, B.P. PLC, Exxon Mobil Corporation, Valvoline Corporation, Shell International B.V., Phillips 66 Company, China National Petroleum Corporation, FUCHS Petrolub SE, Kluber Lubrication Munchen SE & Co. KG, Petroleo Brasileiro S.A., Royal Dutch Shell Plc., Equilon, Indian Oil Corporation Ltd. and BASF SE

Key Developments:

July 2022, Shell USA, Inc. and Shell Midstream Partners, L.P. announced the execution of a definitive agreement and plan of merger. Shell USA will acquire all the common units representing limited partner interests in SHLX or a total value of approximately USD 1.96 billion. The transaction is expected to be closed by the 4th quarter of 2022.

July 2021, Valvoline All-Terrain is a new engine oil designed specifically for off highway, heavy-duty diesel engines that operate in challenging environments. It was created for wear protection in equipment operating in severe settings such as construction, mining, and agriculture.

April 2021, Valvoline Inc. introduced Valvoline High Mileage 150k with MaxLife plus Technology Synthetic Blend, the engine oil explicitly formulated for engines with more than 150,000 miles. The product's innovative formula lowers oil consumption in older, high-mileage engines while its Moly Additive Protection increases engine performance and power.

March 2021, Nissan Motor India signed an agreement with ExxonMobil Lubricants to supply lubricating solutions for the passenger vehicle aftermarket. It will provide a variety of engine oils not only for BS6-compliant vehicles but also for BS3 and BS4 models from the automaker.

February 2021, Shell stated that it will offer consumers carbon-neutral lubricants for heavy-duty diesel engines, passenger automobiles, and industrial uses. Shell Lubricants' multi-year plan will assist customers in managing their sustainability needs.

Product Types Covered:
• Engine Oil
• Gear Oil
• Transmission Fluids
• Coolants
• Brake Fluid & Greases
• Other Product Types

Types Covered:
• Semi-Synthetic Lubricants
• Synthetic Lubricants
• Conventional Lubricants
• Mineral Oil Lubricants
• Bio-Based Lubricants
• Other Types

Vehicle Types Covered:
• Passenger Cars
• Light Commercial Vehicles
• Heavy Commercial Vehicles
• Other Vehicle Types

Sales Channels Covered:
• Aftermarket
• Original Equipment Manufacturers (OEMs)

Applications Covered:
• Transportation
• Industrial Machinery & Equipment
• Other Applications

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 2020, 2021, 2022, 2025, and 2028
- 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