Global Automotive Engine Oil Market By Grade (Mineral, Semi-Synthetic, and Fully-synthetic), By Engine Type (Gasoline, Diesel, and Alternative Fuels), By Vehicle Type, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Automotive Engine Oil Market size is expected to be worth around USD 56.1 Billion by 2032 from USD 43.3 Billion in 2023, growing at a CAGR of 2.7% during the forecast period from 2022 to 2032.

The rise in the demand for the automobile sector and synthetic products is driving the growth of the automotive engine oil market. Due to the rise in the population of the regions, especially in Europe and APAC, the sales of the automotive sector have seen significant growth in the last few years, which resulted in a rise in the demand for automobile engine oil in the market.

The advancement in the technologies and the innovations that are implemented in the automotive industry is the factor that is driving the growth of the market. Due to the tactical vehicle mechanism, there is an emergence in the need for high-performance engine oil, which is driving the growth of the market.

Automotive engine oil can also be named motor oil, and this oil is a lubricant that is used in (ICE) Internal combustion engines. These can provide power to cars, motorcycles, and other types of engines. The function of the engine oil is to reduce friction and wear of the moving parts in the engine. By carrying the heat away from the engine parts, it works as an insulator and cools down the engine parts.

Key Takeaways

• Market Size in 2032: The world engine oil market for automobiles is expected to grow to USD 56.1 billion by 2032. This market is expected to grow at a steady annual rate of growth of 2.7%.
• Grade Analysis: Market expansion is mostly driven by the segment that is fully synthetic and has experienced substantial growth because of its array of appealing attributes.
• Engine Type Analysis: Analyzing the Type of Engine in terms of the type of engine the diesel engine segment is leading an increase in market share, securing the biggest market share over the projected time.
• Car Type Analyses: The segment for passengers is the main driver of market growth and has the highest percentage during the forecasted time which is driven by people living in the region who have disposable income. It is clear that this has reflected the expansion of this market segment.
• Market drivers: The increase in global production for automobiles as well as the growing number of vehicles are major drivers that require regular maintenance, and increasing the demand for engine oil.
• Market Restrictions: Low market awareness and acceptance in new markets due to the constraints on affordability and changing consumer preferences can pose challenges to market penetration.
• In the news: One noticeable trend that has been seen is a shift toward environmentally friendly and low-viscosity motor oils that are driven by increasing environmental issues and mandates from regulators.
• Market Opportunities: The increasing popularity of maintenance for vehicles and services, along with the increasing demand for high-quality and long-lasting engine oils, offers huge opportunities for producers as well as suppliers.
• Regional Market: Dynamics APAC region dominates the market and will retain the highest market share over the timeframe forecast.

Driving Factors

The Growth in the Demand for High Mileage Vehicles and the Synthetic Automatic Engine Oil Help the Market Grow

The engine needs to be lubricated in order to make it work properly. Engine oil helps increase the efficiency of the vehicle by reducing the friction between the moving parts of the engine and reducing the temperature of the engine. The ability to improve the fuel economy of the vehicle is the factor driving the demand for the lower viscosity motor oil in the market.

Also, the replacement for mineral-based engine oil is synthetic-based engine oil. This oil is chemically similar to mineral-based oils, as they are refined from crude oil. Synthetic oil has high demand from emerging countries for its ability to increase the fuel efficiency of the engine. It also has the ability to decrease oil consumption and also extend oil change intervals. These are the factors driving the growth of the market.

Restraining Factors

The Fluctuation of the Prices and the Rise in the Number of Competitors Restraining the Market

Due to the volatile changes in the prices of engine oil, the market of automotive engine oil is facing numerous challenges. The prices of engine oil vary due to currency fluctuation, product shortage, environmental regulations, etc. are the factors restraining the growth of the market.

The rise in the sustainability issues for the companies due to the increase in the number of competitors is the factor restraining the growth of the market. As the production of engine oil involves complex processes to complete the finished products, the cost of the production is high, which is the main market restraint.

Grade Analysis

The Fully-Synthetic Segment Dominates The Growth Of The Market.

The fully synthetic segment dominates the growth of the market. Due to the multiple desirable characteristics, the segment has seen growth. The characteristics such as better stability, increased lubrication, lower deposits, etc., are the factors driving the growth of the segment.

Compared to traditional mineral oils, the fully synthetic segment offers three times more advanced engine protection, which is the reason for the rise in the adoption of the segment. The semi-synthetic segment will grow at a significant rate during the forecasted period. Due to the benefits such as high performance and better component protection, the growth of the segment is observed.

Engine Type Analysis

The Diesel Segment Dominates The Growth Of The Market.

By Engine Type, the diesel segment dominates the growth of the market and holds the largest market share during the forecasted period. The growth in the segment is due to the superior anti-wear load. Diesel types of engines have high viscosity and possess more adjectives to provide high performance compared to gasoline or natural gas engines.

The gasoline segment will grow at a significant rate during the forecasted period. The growth of the segment can be observed due to the excellent solubility and high leaching loss resistance.

Vehicle Type Analysis

The Passenger Segment Dominates The Growth Of The Market.

The passenger segment holds the largest market share and dominates the growth of the market during the forecasted period. Due to the disposable income in the people of the region, the growth of the segment can be seen. There is a rise in consumer preferences for passenger vehicles across different countries is the factor that is driving the growth of the segment.

Heavy-duty vehicles hold a significant market share. The growing urbanization, which resulted in the rise in the usage of off-highway construction vehicles, is driving the growth of the market.

Key Market Segments

Based on Grade

• Mineral
• Semi-Synthetic
• Fully-synthetic

Based on Engine Type

• Gasoline
• Diesel
• Alternative Fuels

Based on Vehicle Type

• Passenger Cars
• Light Commercial Vehicles
• Heavy-Duty Vehicles
• Motorcycles

Growth Opportunity

The Rise in the Growth of the Automotive Industry Generating Opportunities

The rise in the demand and sales of automotive vehicles in regions like Europe and APAC is creating massive demand and growth opportunities for automotive engine oil. Countries like India, China, Japan, etc., from the APAC region, consist of a large number of major players in the market.

Due to the rise in the disposable income of people in emerging economies, the growth of the automotive industry has been observed, which eventually results in the growth of the automotive engine oil market. The rise in the adoption of technological advancement by the key players is a major opportunity for the growth of the market players.

Latest Trends

The Adoption of Advanced Technologies in Engine Oil is a Major Trend

Engine oil provides many opportunities for the key players in the market who can expand their business, and it is a highly profitable business for downstream. The adoption of advanced technologies for the development of automotive engine oil is resulting in the growth of the market.

With the help of advanced antioxidants, high-pressure agents, surfactants, and corrosion inhibitors, the major key players are efficient engine oil. This advancement in technologies will drive the growth of the market.

Regional Analysis

Apac Region Dominates The Growth Of The Market

The APAC region dominates the market and is anticipated to hold the largest market share during the forecast period. The growth of the region is attributed to the rise in the production and consumption of the product in the region and the presence of major key players in the market. The increase in the disposable income of the people in the area is associated with the increase in the demand for engine oil in the region.

North America holds a significant share of the automotive engine oil market. The rise in the need for commercial vehicles in the area is attributed to the growth of the market in the region. Also, the rise in awareness among the people of the region is driving the development of the market in the region.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

The major key players in the market are focusing on launching new offerings that can drive the growth of the company in the market. Companies are heavily investing in research and development activities for the development of technologies in the automotive engine oil market.

Some of the key players are focusing on partnerships and collaboration with other competitors to gain a strong market position.

Top Key Players

• Valvoline Inc.
• Wurth Group GmbH
• Castrol Ltd.
• ExxonMobil
• Total Energies
• Eni GmbH
• Amsoil Inc.
• Petronas
• Fuchs Petrolub
• Other Key Players

Recent Developments

• In November 2020, Repsol Lubricants and Honda Motorcycle collaborated on the launching of the Honda Repsol MOTO biker lubricating oil in India.
• The Delo 600 ADF heavy-duty engine oils were launched by Chevron in 2020 and are made to reduce particulate matter emissions in diesel engines.

Report Scope