Automotive Lubricants Market

Automotive Lubricants Industry Outlook (2022-2032)

The global automotive lubricants market size is likely to be valued at US$ 79.23 Billion in FY 2022, up from US$ 76.82 Billion in 2021.

During the past year, the industry registered a Y-o-Y increase worth 3%. From 2022 to 2032, automotive lubricants sales are poised to flourish at a CAGR of 3.1% to reach a value of US$ 108 Billion by the end of 2032.

Demand for engine oil automotive lubricants will continue to thrive, with a documented CAGR of 3.1% during the 2015-2021 historical period of assessment, while demand for Automotive Lubricants for LCVs proliferated at a rate of 3.5% during the same period. The APAC will dominate the global automotive lubricants market, registering a market value worth US$ 60 Billion by 2032.

Report Attributes	Details
Market Size in 2021	US$ 76.82 Billion
Market Value in 2022	US$ 79.23 Billion
Projected Forecast Value (2032)	US$ 108 Billion
Global Growth Rate (2022-2032)	3.1% CAGR
Growth Rate of the U.S Market (2022-2032)	3% CAGR
Expected Market Value of Asia Pacific (2032)	US$ 60 Billion
U.K Market Expansion Rate (2022-2032)	3% CAGR
Key Companies Profiled	Royal Dutch Shell PLC ExxonMobil Chevron Total S.A. FUCHS

2015 to 2021 Market Revenue Analysis vs. Market Outlook 2022-2032

Fact.MR has predicted the automotive lubricants market to increase at 3.1% CAGR between 2022 and 2032 in comparison to the 3% CAGR over the historic period. Properties such as high-level thermal stability, low freezing point, and high boiling point are helping to improve the overall performance of the engine. These are factors that are likely to push the automotive lubricants market during the forecast period.

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 adopting the nanoparticles and focusing on reducing the dependability on diesel and gasoline in the upcoming future.

Key Drivers Stimulating Industry Expansion

Increased Focus on Bio-based Automotive Lubricants

Significant growth has been seen in the market of bio-based lubes due to the harmful effects of 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.

Companies such as FUCHS Petrolub SE, Castrol Limited, etc. offer a wide range of bio-based automotive lubricants developed to reduce environmental impact and better lubrication performance. Furthermore, Biosynthetic Technologies, LLC has lifted ~ $9 Billion to commercialize its range of bio-based products.

Technological Advancements to Improve 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.

In recent years, nano-lubricants have been an advanced development in the automotive lubricants market, 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.

Nano-lubricants not only reduce the frictional resistance but also enhance the load-carrying capacity of the engine. But the tendency to “settle out” from the liquid lubricant, nano lubricants need extensive research for their stable and effective production.

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 can leverage R&D activities to bring more efficiency and new advancements, which will add more value to the existing product portfolio in the forecast period.

Key Challenges to Automotive Lubricants Industry Expansion

Adoption of Electric Vehicles to Hamper the Demand for Automotive Lubricants

Several countries are tilting toward e-mobility solutions. For instance, the Netherlands and Norway declared that from the 1st quarter of 2032, no new car with combustion engines will be approved. Similarly, Volkswagen is completely realigning with its TRANSFORM 2025+ strategy.

As per the company’s policy, its target is to sell about one Billion electric cars per year by the end of 2032 and to dominate the e-mobility market. Electric vehicles are gaining importance and witnessing smooth growth in the past ten years. In China, about 2 billion electric cars were on the road in 2021. Additionally, Europe and the United States are also looking for further investments in electric vehicles such as increasing number of charging stations.

An increase in the number of electric vehicles will decline the usage of combustion engines, which will impact the automotive lubricants market. At the same time, gasoline and diesel-based automotive industries are well-established markets. So even with new electric vehicles, the automotive lubricants market has a lot of potentials and is a big market in terms of revenue.

Country-wise Analysis

How Opportunistic are Growth Prospects across the U.S Market?

The U.S. lubricants market size was valued at US$ 20.31 Billion, and is anticipated to inflate at a moderate CAGR of 3% from 2022 to 2032. High volume sale of premium products is likely to push the U.S. market for lubricants in the upcoming future. Automotive and industrial are the key applications of lubricants, accounting for over 4/5th share in the U.S. market.

Demand for lubricants is growing from the industrial division due to the mounting production of chemicals, food, and electronics in the U.S.

The presence of chief industrial machinery makers, such as Caterpillar, Inc.; Deere & Co.; Baker Hughes, Inc.; AGCO Corp.; 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 propelling the demand for lubricants. Fact.MR forecasts that the U.S market for automotive lubricants is expected to touch the US$ 28 Billion mark by the end of 2032.

Why are Automotive Lubricants Providers Venturing into the Asia Pacific?

Asia Pacific dominates the automotive lubricants market accounting for around 40% share of the global market. Due to an increase in automobile ownership levels, incorporation of advanced engines, and consistent investments in transportation activities, Asia’s supremacy is set to continue in the automotive lubricants market.

Furthermore, China is the biggest market, followed by the United States and India. In India, there is a significant potential for growth in the automotive lubricants market. Additionally, India is expected to show a growth rate of around 6% annually.

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 lubricants market across all geographical regions. APAC Automotive Lubricants Market is expected to expand at a CAGR of 3.3% to reach US$ 60 Billion by 2032 end.

Country-wise Value CAGRs for Automotive Lubricants (2022-2032)

U.S	3%
U.K	2.8%
China	3.5%
Japan	3.1%
South Korea	3%

Category-wise Insights

Which Lubricant is Most Preferred in the Automotive Lubricants Market?

Based on product type, the engine oil section held the majority share in 2021 and is expected to maintain its status quo throughout the forecast period. Engine oil is designed to enhance the efficiency of the vehicle by targeting to extend the overall vehicle life cycle. The elementary factor that pushes the consumption of engine oil comprises an upsurge in automotive sales across the globe.

Industrial engine oil is expected to remain a chief contributor to the development of the overall lubricant market. This lubricant is used to balance operating costs by substantially reducing the wear and tear of the heavily moving mechanical components.

It also helps in reducing the consumption of fuel since they have a low coefficient of friction, which ultimately aids to keep the engine parts clean, perform optimally, and deliver optimum combustion efficiency. Fact.MR’s report depicts that this section is estimated to cultivate at a 3.1% CAGR over the forecast period.

By Vehicle Type, which Automotive Lubricants are expected to Dominate?

By Vehicle Type, the market for LCV is projected to rule the largest share of the global automotive lubricants market. This is largely attributed to rising production and possession of passenger and general utility vehicles.

Soaring awareness regarding maintenance and usage of lubricants among passenger car owners, rigorous government guidelines related to emission, and refining road infrastructure and income levels are some other growth accelerators. The above-mentioned aspects are likely to propel the demand for LCVs at an annual rate of 3.5% during the conjecture period.

Competitive Landscape

Prominent Automotive Lubricants providers are reliant on partnerships, collaborations, acquisitions, and new software launch to stay afloat in the global automotive lubricants market. Constant innovations to ensure a seamless client-customer relationship are the main focus of prominent market players.

• In May 2022, Shell Overseas Investments B.V. and B.V. Dordtsche Petroleum Maatschappij – subsidiaries of Shell Plc., have signed an agreement to sell Shell Neft LLC, which owns Shell’s retail and lubricants businesses in Russia, to PJSC LUKOIL.
• In May 2019, ExxonMobil agreed to purchase Indonesian lubricant blender PT Federal Karyatama, the companies announced this week, as part of a plan to expand in the Asia-Pacific region. The $435 Billion acquisition includes the Federal Oil brand of lubricants and a new blending plant in Cilegon, Indonesia.

Key Segments Covered in the Industry Survey

• By Lubricants :

  • Engine Oil
  • Gear Oil
  • Brake Oil
  • Grease
  • Other Automotive Fluid Lubricants

• By Base Oil :

  • Fully Synthetic Automotive Lubricant Oils
  • Semi-Synthetic
  • Mineral Oil

• By Vehicle :

  • LCVs
  • HCVs
  • Midsize Vehicles
  • Compact Vehicles
  • Premium Class Vehicles
  • Luxury Vehicles
  • Other Vehicle Types

• By Region :

  • North America
  • Latin America
  • Europe
  • Japan
  • APEJ
  • Middle East & Africa