The Automotive Engine Oil Market is expected to grow at a CAGR of 4.71% to reach USD 14.29 billion by 2028. The global automotive engine oil market is experiencing significant advancements, driven by the adoption of innovative technologies. Vendors are investing heavily in research and development to create superior engine oils using advanced antioxidants, surfactants, high-pressure agents, and corrosion inhibitors. Notably, the market is witnessing the increasing utilization of advanced bonding technology, which involves the formulation of high-pressure lubricants through the chemical treatment of hydrocarbons. These developments are anticipated to propel market growth during the forecast period.
APAC dominates the regional market because of The Asia-Pacific (APAC) region, home to the world's largest and fastest-growing automotive market, is a significant contributor to the global automotive engine oil market. With a substantial population of in-use vehicles, increasing consumer awareness regarding the benefits of synthetic oil, and the emergence of new manufacturing industries and plants, APAC presents substantial growth opportunities. Key drivers include economic expansion, rising employment rates, and burgeoning trade and logistics activities in countries such as China and India. These socio-economic developments underpin the region's status as a potent market for automotive engine oil.
There are various factors that drive the Automotive Engine Oil Market market which are as following: The global automotive engine oil market is experiencing significant growth due to several key factors. Primarily, the expanding global vehicle population, driven by increasing sales in major markets like China and India, is leading to increased consumption of engine oil. In 2023, automotive sales showed steady growth in most regions, with China remaining the largest market. India's car sales experienced a notable surge of approximately 30% in 2022, despite a relatively small overall vehicle market. Furthermore, the prolonged life span of vehicles is also contributing to the growth of the automotive engine oil market by increasing demand.
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Automotive Engine Oil Market Segmentation
The market witnesses several challenges, which are as follows The automotive engine oil market is significantly influenced by the price fluctuations of crude oil and its derivatives. In 2022, the global crude oil market experienced volatile quarterly averages, as reported by The World Bank Group. For instance, the average crude oil price reached USD83 per barrel in January, but surged to USD112 in March. These irregularities in crude oil pricing have a direct impact on the cost of producing and procuring automotive engine oil. Consequently, market players must closely monitor and adapt to these price trends to maintain profitability.
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Some of the key companies that have been profiled in the report include:
According to Technavio, the global automotive engine oil market is a segment of the broader automotive parts and equipment market, which encompasses companies producing components and accessories for various automobile types, including passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. The global automotive parts and equipment market's size is determined by the combined revenue generated by these manufacturers. Key growth drivers for this market include the increasing integration of electronic components in automobiles, such as electronic control units (ECUs), and the escalating sales of EVs, motorcycles, and PCs. - The Automotive Engine Oil Market is experiencing significant growth, fueled by the Growing number of vehicles in use. Businesses are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
The Automotive Engine Oil Market is experiencing significant growth due to the increasing demand for fuel efficiency and emissions reduction in the transportation sector. The market is segmented by engine type, including petrol and diesel engines, and alternative fuels such as LNG fuels, CNG, Ammonia, and LPG. The use of alternative fuels is expected to increase as Marcellus shale and crude oil prices continue to fluctuate. Major players in the market include Castrol, Shell, and ExxonMobil. The market is also witnessing a shift towards light-weight engines, which require specialized engine oils. The use of additives such as detergent and dispersant additives is essential in reducing soot build-up in diesel engines and maintaining the efficiency of turbochargers. The market is also witnessing an increase in the adoption of BSIV compliant engine oils and semi-synthetic and synthetic oils. E-commerce platforms have made it easier for consumers to purchase engine oils based on their engine type, oil drain intervals, and grade insights. Base oil and raw materials are the primary components of engine oils, with the former accounting for a significant share of the market. The use of mineral grade type engine oils is expected to decline as consumers shift towards more advanced engine oil types.
Technavio Research
Jesse Maida
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