Automotive Lubricant Market

Automotive Lubricant Market Outlook (2024 to 2034)

Worldwide revenue from the sales of automotive lubricants is set to reach US$ 84 billion in 2024 and thereafter increase at a CAGR of 3.1% to end up at US$ 114 billion by 2034.

Automotive lubricants play an important role in enhancing the life of vehicles. Widespread availability of mineral-based automotive lubricants is fuelling theirs sales growth. However, fully synthetic automotive lubricants are also gaining popularity among end users. Synthetic lubricants are widely utilized in heavy duty gas turbines. They are also exhibiting growing demand in the power generation sector to maintain temperature levels.

Automotive manufacturers are making specific innovations in improving the efficiency of a car engine, thereby they are making hefty investments in research & development for enhancing the properties of automotive equipment. They are also employing the nanoparticle technology and focusing on reducing the dependability on diesel and gasoline. Properties such as high-level thermal stability, low freezing point, and high boiling point helps to improve the overall performance of an engine. The rising developments in the automotive manufacturing are set to boost the sales of automotive lubricants during the forecast period.

Rising automotive sales are contributing the automotive lubricant market growth. The rising need for lubricants such as engine oils and transmission fluids are set to offer lucrative opportunities for automotive lubricant producers.

• North America is estimated to account for 21.6% of the global automotive lubricant market share in 2024.
• The East Asia automotive lubricant market size is projected to reach US$ 28 billion by 2034.

Report Attributes	Details
Automotive Lubricant Market Size (2024E)	US$ 84 Billion
Forecasted Market Value (2034F)	US$ 114 Billion
Global Market Growth Rate (2024 to 2034)	3.1% CAGR
South Korea Market Value (2034F)	US$ 3.9 Billion
Gear Oil Demand Growth Rate (2024 to 2034)	3.3% CAGR
Key Companies Profiled	Royal Dutch Shell PLC Idemitsu Kosan Sinopec Group China National Petroleum Corporation Fuchs Petrolub SE Valvoline Inc. ENEOS Corporation Shell Plc. TotalEnergies SE Exxon Mobil Corporation Chevron

What is the Global Sales Outlook for Automotive Lubricants?

“Sustainability Trend Driving Sales of Bio-based Automotive Lubricants”

Bio-based lubes are exhibiting increasing demand due to the harmful effects of conventional automotive lubricants on the environment and pollution caused by diesel vehicles. Furthermore, to meet government norms and regulations, many countries are likely to reduce the usage of gasoline cars and diesel cars in the future. Nevertheless, leading manufacturers are focusing on the production of eco-friendly automotive lubricants, which are less toxic, and have zero effect on human health and the environment.

Leading companies are offering a wide range of bio-based automotive lubricants developed to reduce environmental impact and better lubrication performance. They are also investing in R&D to improve the physicochemical properties of bio-based lubricants. Bio greases are also utilized in construction, rail curves, forestry machinery, and nautical machinery. Several industries are adopting bio-based metal cutting fluids and coolants for grinding and gear cutting.

“Technological Advancements Set to Improve Product Efficiency and Productivity”

In terms of consumption, over 60 percent of the energy is consumed in the vehicle through the engine components. So, improvements in automotive lubricants are the ideal place to optimize the performance of engines. High-performance automotive lubricants constitute excellent solvency and better hydrophilic properties.

Application of these automotive lubricants leads to durable operation of the engine through lighter viscosity grades of high-performance lubricants. Additionally, less viscous and premium synthetics lubricants also increase the fuel economy of engines to a greater extent.

Introduction of nano-lubricants is a notable automotive lubricant market trend, created by adding nanoparticles to lube oils. Adding carbon-based nanoparticles in automotive lubricants improves the anti-wear properties and helps to reduce the frictional resistance in the engine.

Furthermore, nano-lubricants also enhance the load-carrying capacity of the engine. To meet the ever-changing consumer demand for high-performance automotive lubricants and strict environmental legislation to reduce CO2 emissions, market players need to implement advanced technologies. Prominent manufacturers are leveraging R&D activities to bring more efficiency and new advancements, which will add more value to the existing product portfolio in the forecast period.

Which Obstacles are Hindering Automotive Lubricant Demand Growth?

“Rising Adoption of Electric Vehicles Will Dent Sales Graph of Automotive Lubricants”

Several countries are tilting toward e-mobility solutions.

• The Norway government has declared by declared 2025, no Norwegian will drive car with combustion engines.

Similarly, Volkswagen is completely realigning with its TRANSFORM 2025+ strategy. As per the company’s policy, its target is to sell about 70% of electric cars by 2034 and dominate the e-mobility market.

Electric vehicles are gaining importance and witnessing smooth growth.

• In China, more than 8 million electric cars were registered in 2023. Additionally, Europe and the United States are also looking for further investments in electric vehicles.

An increase in the number of electric vehicles will decline the usage of combustion engines, which will impact the growth of the automotive lubricant market to some extent.

How are New Companies Expected to Gain a Competitive Edge?

“Investments in Innovations Leading toward Success”

New companies should concentrate on innovations to produce novel automotive lubricants such as anti-wear lubricants or eco-friendly lubricants. Continuous innovation is expected to boost market position. This move also helps to attract a wide consumer base.

Some of the start-ups in the lubricant industry include Capra Biosciences, Nuspec oils, FluxMagic Inc, Hagen Automation, NeyoChem, and Aerofa.

• Hagen Automation is a British start-up focused on the development of silicone lubricants for automotive, cycling parts, 3D printers, and robots. These lubricants are gaining traction due to their effectiveness in prevention of gears, bearing, and wheels.
• Aerofa a Turkish start-up produces silicone and silicone grease sprays for machinery maintenance. The start-up is also investing in R&D for the development of new aerosol products to meet their customer’s needs.

Country-wise Analysis

What’s Driving Sales of Automotive Lubricants in the United States?

“Presence of Huge End-User Base Increasing Consumption of Lubricant Solutions”

Attribute	United States
Market Value (2024E)	US$ 13 Billion
Growth Rate (2024 to 2034)	1.2% CAGR
Projected Value (2034F)	US$ 14.7 Billion

High volume sales of premium automotive greasing products are likely to push the United States market size in the coming decade. Automotive and industrial are the key applications of lubricants contributing to their increasing sales. Demand for lubricants is growing from the industrial division due to the mounting production of chemicals, food, and electronics in the United States.

Presence of chief industrial machinery makers, such as Baker Hughes, Inc., Caterpillar, Inc., Deere & Co., and Veritiv Corp., cater to the mounting demand for heavy machinery used in construction, agriculture, mining, and other industrial products. Additionally, the agriculture industry in the North American region has observed substantial technological novelties that led to the growing utilization of farm machinery and equipment, thus contributing to the increasing the demand for lubricants.

Why are Automotive Lubricant Providers Lining Up in China?

“Increasing Automobile Ownership Driving Consumption of Automotive Lubricants”

Attribute	China
Market Value (2024E)	US$ 10.7 Billion
Growth Rate (2024 to 2034)	4.2% CAGR
Projected Value (2034F)	US$ 16.1 Billion

China is the large market for automotive lubricants. China is holding major share of the East Asian market due to an increase in automobile ownership levels, incorporation of advanced engines, and consistent investments in transportation activities. Factors such as a rise in private transport, increasing economic stability, and consumer affordability are surging the usage of vehicles and are set to drive the automotive lubricant sales in China.

How Fast are Sales of Automotive Lubricants Increasing in Germany?

“High Number of Motor Vehicles and Use of Advanced Machinery Boosting Sales of Lubricants”

Germany is a leading market in the European region. This can be attributed to its strong automotive manufacturing sector and increasing sales of luxury cars. The high volume of engine oil used in motor vehicles is further driving the market growth in Germany.

Category-wise Analysis

Which Type of Automotive Lubricant is Most Widely Used?

“Advanced Automotives Brake Oil Enhancing Vehicle Functioning”

Attribute	Brake Oil
Segment Value (2024E)	US$ 18.9 Billion
Growth Rate (2024 to 2034)	3.2% CAGR
Projected Value (2034F)	US$ 26 Billion

According to Fact.MR, a market research and competitive intelligence provider, brake oil is projected to hold 22.8% of the global market share by 2034.

Expansion of the automotive sector is having direct influence on brake oil demand. The automotive brake oil solutions are exhibiting increasing demand for effective function of vehicles. The rising sales of luxury cars across the globe are also increasing adoption of advanced brake oil. Automotive gear oil demand is also expected to witness a healthy global market share by the end of precast period.

Why is Automotive Mineral Oil Highly Preferred?

“Long Lasting Aspect Driving Use of Mineral-based Oil in Automobiles”

Attribute	Miner Oil
Segment Value (2024E)	US$ 59.9 Billion
Growth Rate (2024 to 2034)	3.1% CAGR
Projected Value (2034F)	US$ 81 Billion

Mineral oil are exhibiting high use in the automotive sector. The low cost option is primarily driving the adoption of automotive mineral oil. These oil products also require fewer changes that means their prolong use characteristic is aiding to their popularity. Mineral-based oil is refined version of ground source oil.

Competitive Landscape

Key players in the automotive lubricant market are focused on partnerships, collaborations, acquisitions, and innovative product launch to stay ahead. Constant innovation strategy is adopted by prominent market players to ensure a seamless client-customer relationship.

• In May 2022, Shell Overseas Investments B.V. and B.V. Dordtsche Petroleum Maatschappij – subsidiaries of Shell Plc., announced the completion of Shell Neft LLC sales, Shell’s retail and lubricants businesses in Russia, to PJSC LUKOIL.

Key Segments of Automotive Lubricant Market Research

• By Lubricant :

  • Engine Oil
  • Gear Oil
  • Brake Oil
  • Grease
  • Others

• By Base Oil :

  • Fully Synthetic
  • Semi-Synthetic
  • Mineral Oil

• By Vehicle :

  • LCVs
  • HCVs
  • Midsize Vehicles
  • Compact Vehicles
  • Premium Class Vehicles
  • Luxury Vehicles

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa