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The global engine oil market is expected to register a CAGR of below 2% during the forecast period. Increasing adoption of high-performance lubricants globally is has been driving the market over the recent past and is expected to continue over the study period.
- Modest impact of electric vehicles (EVs) in the future is likely to hinder the market’s growth.
- Numerous upcoming construction projects in North America and APAC is projected to act as an opportunity for the market in future.
Key Market Trends
Automotive and Other Transportation Segment Dominated the Market
- Engine oils are widely used to lubricate internal combustion engines and are composed of 75-90% base oils and 10-25% additives.
- They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of the engine internals. They function by creating a thin film between the moving parts, for enhancing heat transfer and reducing tension during the contact of parts.
- High-mileage engine oils are in demand, owing to properties that help in oil leak prevention and reduction in oil-burn offs. Most light and heavy vehicle diesel and gasoline engines use 10W40 and 15W40 viscosity grade oils, globally.
- Technological advancements are imposing a threat to the growth of engine oils, owing to the increased engine oil change intervals.
- The increasing production and sales of light-duty vehicles is estimated to have a direct impact on engine oil consumption, which, in turn, is anticipated to drive the demand for engine oil during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region dominated the global market share. With growing demand for automobiles and the increasing investments in the automotive industry in the countries such as China, India, and Japan, the demand for engine oil is increasing in the region.
- China is the largest engine oil consumer in the region, as well as globally. The increasing trend in the demand and production of vehicles in the country has seen, owing to the growing middle-class, along with urbanization of Western China.
- China’s automotive sector has been shaping for product evolution, with the country focusing on manufacturing products to ensure fuel economy and minimize emissions (owing to growing environmental concerns as a result of the mounting pollution in the country).
- In India, the automotive industry has been witnessing a continued shift in the vehicle preferences i.e. evolving vehicle parc, owing to consistent economic development, coupled with rising income; consumers moving from two- to four-wheelers, in turn, resulting in augmenting demand for passenger car motor oils (PCMO). Several auto makers have started investing heavily in various segments of the industry, with increasing demand for vehicles.
- Overall, the market for engine oils is driven with the growing automotive sales in the region.
The engine oil market is highly fragmented. Key players in the market include Royal Dutch Shell, BP PLC, ExxonMobil Corporation, Total SA, and China Petrochemical Corp. (SINOPEC Group).
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