Global Automotive Engine Oil Market Definition
Automotive engine oil is the lubricant used to lubricate internal combustion engines. Among the constituents of automotive engine oil are organic compounds, hydrocarbons, and poly internal olefins. These oils are enriched with certain additives such as engine stability additives and extreme pressure additives which boost the performance of the engine. Apart from preventing engine failure, automotive engine oil performs various other functions such as reducing engine noise, reducing friction, and dissipation of heat from the engine.
Global Automotive Engine Oil Market: Key Insights
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~6% |
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Base Year Market Size (2023) |
~ USD 40 Billion |
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Forecast Year Market Size (2033) |
~ USD 72 Billion |
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Regional Scope |
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Global Automotive Engine Oil Market Size, Forecast, and Trend Highlights Over 2023 - 2033
The global automotive engine oil market is estimated to garner a revenue of USD 72 Billion by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of USD 40 Billion in the year 2023. The growth of the market can be attributed primarily to the increasing motor vehicle production worldwide, increasing transportation services with growing students, employees, and organizations, and increasing awareness of its efficiency in fuel economy. As per the data by the International Organization of Motor Vehicle Manufacturers (OICA), the global production of motor vehicles grew from 583,74,162 numbers in the year 2000 to 917,86,861 units in 2019.
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Furthermore, the rising demand for synthetic products, increasing technological advancements in the automotive industry, and rising disposable income are expected to contribute to the growth of the global automotive engine oil market during the forecast period. According to the Bureau of Economic Analysis, disposable personal income rose by 0.2% nearly USD 37.6 billion in the year July 2022.
Global Automotive Engine Oil Market: Growth Drivers and Challenges
Growth Drivers
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Growth in Automobile Industry with Increasing Long-Distance Jobs, Institutes, and Schools - For instance, the Indian automobile industry manufactured approximately 22,930,200 vehicles in April 2021, which include passenger cars, CVs, and two-wheelers. It showed a significant rise from 22,600,600 units produced in April 2020.
The growing awareness of the benefits of automotive engine oil in vehicles such as reducing friction, and protecting and lubricating engine parts is expected to propel the engine oil demand. Thus, the rapid growth in the automotive industry worldwide coupled with rising demand for vehicles is anticipated to drive global automotive 1engine oil market growth over the forecast period.
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Surge in Exports of Medium Oils Worldwide Owing to Increasing Spending Capacity - According to the statistics by the International Trade Center (Trademap), the global value of exports of medium oils in the year 2021 was recorded to be USD 437,452,177 thousand, which was an increase from USD 277,333,611 thousand in the previous year.
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Rising Demand for Motorcycles with Rising Standards of People in Developing Countries - For instance, motorcycle production accounted for an estimated 52 million units in 2021 and the demand for motorcycles grew by 7.3% year over year.
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Increasing Crude Oil Production Owing to Rising Demand from Different Sectors - For instance, crude oil production in the United States grew by 1.4 % in the year 2021, and Russia surpassed Saudi Arabia in crude oil production by 1.6%.
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Rapid Growth in Industrialization and Urbanization Across the World - According to World Bank data, a total of 57% of the population has been identified as an urban population, equal to nearly 4.5 million people.
Challenges
- Rising Supply of Counterfeit Engine Oil Products
- Changing Prices of Raw Materials- The volatility of prices in the raw materials supply of automotive engine oil is the major disadvantage that hampers the market growth in the forecast period. The fluctuations, shortage, and rising environmental regulations from the government. The production cost is rising as the process is complex and an increasing number of companies as competitors in the market are restraining the market growth.
- Lack of Environment-Friendly Engine Oils
The global automotive engine oil market is segmented and analyzed for demand and supply by vehicle type into passenger cars, light commercial vehicles, heavy commercial vehicles, and others. Among these segments, the passenger car segment is anticipated to capture the largest market size in the global automotive engine oil market owing to the rapid expansion of the passenger car market in developing countries. For instance, the Indian passenger car market was reported to be worth USD 32 billion in 2021 and is projected to grow to USD 53 billion by the end of 2027. In addition, the rising purchasing power of people, growth in urban population, and growing preference for the adoption of fewer carbon emissions vehicles are further projected to augment segment growth over the forecast period.
Global Automotive Engine Oil Market Regional Synopsis
The Asia Pacific region automotive engine oil market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The increasing demand and sale of commercial vehicles in the region. For instance, India witnessed an increase in the sales of commercial vehicles by 8.21% with 54,000 vehicles sold in August 2021 going up to 67,100 vehicles sold in August 2022. In addition, the presence of a large customer population, increasing production of automobiles, and rise in crude oil production in countries such as China coupled with rising government funding and investments in product advancement are contributing factors expected to drive regional market growth over the forecast period.
Market Segmentation
Our in-depth analysis of the global automotive engine oil market includes the following segments:
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By Technology |
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By Vehicle Type |
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By Additives |
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Top Featured Companies Dominating the Global Automotive Engine Oil Market
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Valvoline, Inc.
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Shell Plc
- Total S.A
- Arabol Lubricants
- LUKOIL Oil Company
- Exxon Mobil Corporation
- Castrol Limited
- Chevron Corporation
- Amsoil Inc.
- Sinopec Lubricant Company
