Automotive Lubricants Market Size & Share, by Oil (Synthetic, Semi-synthetic, Conventional); Product (Engine Oil, Gear Oil, Transmission Fluids, Coolants, Brake Fluid & Greases); Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2033

 Global Automotive Lubricants Market Definition

Lubricants are generally substances of fluidic nature that play the role of bringing down the friction between surfaces that are in contact. Using lubricants is an efficient way of reducing the energy loss that is generated by friction and is very useful in the processes of cleaning, cooling, and preventing metal parts from corrosion, rust, and other harsh physical conditions that a machine faces during its operation.

Lubricants have been used in the automobile industry for ages now. Automotive lubricants are effective in enhancing the driving experience by smoothening the vehicle’s function. Other than that, automotive lubricants are used for a wide range of purposes in protecting from corrosion in the vehicle parts, reducing wear and tear of engines, maintaining the running temperature, and cooling pistons. The application of automotive lubricants is also a great way to increase the shelf life of various vehicle components and protect the engine oil stored in the sump from combustion gases.

Today, almost all the automotive lubricants that are found on the market are manufactured by mixing base oil and other additives. In a typical automotive lubricant, almost 75% - 95% of it consists of a base oil that is mineral oil. These base oils are generally derived from refineries. Also, the base oil constituents are straight or branched chains of hydrocarbons, hydrocarbon molecules with aromatic rings attached. However, in some cases, these chains are formed in the later stage of chemical reactions of the base oils. Apart from the base oil, the remaining constituent of the automotive lubricants carries numerous types of additives. The most common additives that are used include anti-wear additives, corrosion inhibitors, antioxidants, detergents, dispersants, antifoam additives, and large polymer molecules also known as viscosity. Each of the additives that are added has its role to play in improving the vehicle performance, reducing the emission, enhancing the durability of the vehicle components in the longer run, and other advantages.

Global Automotive Lubricants Market: Key Insights

Global Automotive Lubricants Market Size, Forecast, and Trend Highlights Over 2023 - 2033

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.

Global Automotive Lubricants Market: Growth Drivers and Challenges

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

• High Costs of Automotive Lubricants – As automotive lubricants are composed of base oils that are extracted through refineries, their cost ultimately increases. As a result, the population with low-income levels is not able to opt for automotive lubricants for their vehicles. This trend is anticipated to hinder market growth in the upcoming years.
• Increased Preference for an Extended Oil Drain Period
• Low Awareness Among the Population

Market Segmentation

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:

Global Automotive Lubricants Market Regional Synopsis

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.

Top Featured Companies Dominating the Global Automotive Lubricants Market

• Eurol B.V.
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• 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