Analysis by Oil (Synthetic, Semi-synthetic, and Conventional); by Product (Engine Oil, Gear Oil, Transmission Fluids, Coolants, and Brake Fluid & Greases); and by Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global automotive lubricants market is estimated to garner a revenue of ~USD 85 Billion by the end of 2033 by growing at a CAGR of ~2% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 73 Billion in the year 2022. The primary factor that is attributed to the market growth is the rapid expansion of the automotive industry across the world, along with the surging demand to protect the automotive components. For instance, a recent report suggested that the global automotive industry is expected to reach approximately USD 9 trillion by 2030. The increased demand for lightweight and high-performance vehicles in every region of the world is also anticipated to drive the market in the upcoming years.
Automotive lubricants are playing a huge role in upgrading the performance and ensuring proper conduction of the vehicles on the road. Thus, with the increasing spending capacity, and rising per capita income, many consumers are adopting high-quality automotive lubricants to protect against wear and tear of various automotive components while increasing their durability. Also, the high demand for individualized transportation, along with increased sales and production of vehicles around the world, is considered growth factor of the market during the assessment period. Furthermore, there has also been an increase in demand for engine oils, brake fluids, and transmission fluids among both consumer and commercial automobiles, which is projected to create a positive outlook for the global automotive lubricants market. In addition to the other factors, the recent focus on shifting towards green derivatives to lessen air pollution is expected to bring growth opportunities for bio-based automotive lubricants in the upcoming years. The stringent government rules regarding carbon emission along with the presence of regulatory associations including EPA, and REACH, are projected to help in market growth.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~2% |
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Base Year Market Size (2022) |
~ USD 73 Billion |
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Forecast Year Market Size (2033) |
~ USD 85 Billion |
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Regional Scope |
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Growth Drivers
Rapid Swelling of Population with Middle Income - Population growth has driven the production of automotive lubricants owing to the rising demand for vehicles. With the growth of the Gross Domestic Level (GDP) level, the disposable income of individuals has increased, which in turn, is expected to increase the adoption rate of automotive lubricants owing to rising spending capacity. According to World Bank, the total population with middle income in the world rose from 5.51 Billion in 2015 to 5.86 Billion in 2021.
High Number of Road Accidents in the Past Years – In the past few years, the number of road accidents has considerably risen. This has generated the need for enhanced on-road performance of vehicles, and impact resistance from extreme pressure, weight, and force through automotive lubricants. Thus, the rising number of deaths owing to road accidents is expected to fuel the global automotive lubricants market’s growth in the forecast period. For instance, in 2022, the World Health Organization revealed that globally, approximately 1.3 million people die each year due to road traffic crashes.
Rise in Demand and Production of Vehicles - As per the Organization of Motor Vehicle Manufacturers (OICA), the global production of vehicles was 80 million units in 2021. This is a rise from 77 million units in 2020 across the globe.
Growth in Production of Sports Cars – As per estimations, sports car sales are anticipated to augment to 920K vehicles in 2026. This is an increase from 840K vehicles in 2022.
Worldwide Surge in Air Pollution - For instance, air pollution is a severe hazard to the health of almost 4 billion people (93%) across Asia and the Pacific region. In 2019, four Asian countries, including China and India, had the highest population-weighted average exposure to PM 2.5.
Stringent Government Rules Regarding Carbon Dioxide Emission- Increasing carbon emission is a major concern for the government of the nations to keep it in necessary control for environmental safety. Hence, various governments have disposed of some regulations to lower the carbon emissions, that are estimated to favor the market growth during the forecast period. For instance, for model years 2023–2026 of passenger automobiles and light trucks, the EPA issued new national greenhouse gas (GHG) emissions regulations in December 2021 in the United States. The final regulations are anticipated to reduce other essential pollutants as well as GHG emissions significantly.
Challenges
The global automotive lubricants market is segmented and analyzed for demand and supply by vehicle type into passenger cars, light commercial vehicles, heavy commercial vehicles, and others. Out of these, the passenger cars segment is anticipated to garner the highest market share by 2033, owing to its increased sales and production worldwide, along with the rising level of disposable income. As per the International Organization of Motor Vehicle Manufacturers (OICA), in 2021, 49 million new passenger cars were sold and 57 million passenger cars were produced across the globe. Moreover, nowadays, consumers are opting for more efficient and easy transportation, making passenger cars a viable option. Further, the utilization rate of automotive lubricants in passenger cars is forecasted to witness major developments owing to rising per capita disposable income along with its increased preference for a better driving experience.
The global automotive lubricants market is also segmented and analyzed for demand and supply by oil into synthetic, semi-synthetic, and conventional. Out of these three segments, the conventional segment is attributed to holding the largest segment share by the end of the forecast period. As conventional oil is derived from crude oil, its greater accessibility makes it a favorable option for consumers. Furthermore, its various advantages, such as temperature resistance and stability against harsh physical conditions, make it an excellent option in the production of automotive engine oil for enhanced lubrication and better engine protection. On the other hand, the synthetic segment is also estimated to grow at a steady growth during the forecast period. Synthetic oil is the best alternative to mineral-based conventional oils. Also, synthetic oil carries numerous advantages, including temperature regulation, extended drain intervals, lessened friction, improved in fuel economy, and better engine performance, which makes it a product in high demand for automotive manufacturers.
Our in-depth analysis of the global automotive lubricants market includes the following segments:
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By Oil |
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By Product |
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By Vehicle Type |
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The Asia Pacific automotive lubricants market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033. The major factor for the market growth in the region is the increased production, sales, and demand for vehicles by the burgeoning population of the region. The International Organization of Motor Vehicle Manufacturers (OICA) statistics revealed that the total production of vehicles in the region was 46 million in 2021, a rise from 44 million in 2020. Similarly, the total sales in the region were 42 million in 2021, a rise from 40 million in 2020. Automotive lubricants provide better lubrication, better protection from corrosion, and effective cooling to an engine, and are highly beneficial for any commercial vehicle. Hence, the enhanced use of automotive lubricants owing to the large number of vehicles on the streets, as well as the presence of prominent stakeholders and renowned exporters and importers of vehicles in the region, are expected to provide lucrative opportunities for growth for the market throughout the forecast period. For instance, in 2021, China exported around 402,000 commercial vehicles and around 2 million passenger vehicles. Also, the growing Gross Domestic Product (GDP) level, along with the rising economies, and rising income levels of the population, are other factors for the increased adoption rate of automotive interior materials. Moreover, favorable government policies such as 100% FDI in the auto sector of India, and massive investments from international players in the automotive industry are projected to boost the market size.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The expansion in the automotive industry and the increased demand for vehicles along with the high prevalence of road accidents in the past years is expected to fuel the market growth in the future.
Ans: The market is anticipated to attain a CAGR of ~2% over the forecast period, i.e., 2023 – 2033.
Ans: The increasing preference of extended oil drain period along with the stringent government rules regarding carbon dioxide emission and low awareness among the population is expected to hamper the market growth.
Ans: The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Eurol B.V., Shell International B.V., Chevron Corporation, CNPC, Exxon Mobil Corporation, Phillips 66 Company, Valvoline Inc., BP p.l.c., Klüber Lubrication München GmbH & Co. KG, FUCHS PETROLUB SE, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by oil, product, vehicle type, and by region.
Ans: The passenger cars segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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