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The automotive engine oil market size is estimated to increase by USD 14.29 billion at a CAGR of 4.71% between 2023 and 2028. The growth of the market hinges on various factors including the expanding vehicle fleet, increasing demand across the Asia-Pacific region (APAC), and the rising popularity of full synthetic engine oil. With a growing number of vehicles in operation, particularly in APAC, there's a corresponding uptick in the need for high-quality engine lubricants like full synthetic oil. This trend reflects the evolving preferences of consumers towards superior engine protection and performance, driving the demand for advanced lubrication solutions in the automotive sector.
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The market is intricately tied to various factors, starting from the sourcing of raw materials such as crude oil and base oil to the incorporation of essential additives like dispersant additives and detergents. Engine oils must meet stringent standards, including being BSIV compliant and formulated to support emissions reduction efforts in vehicles powered by both diesel and petrol engines. As the automotive industry continues to evolve, there's a growing demand for engine oils compatible with alternative fuels like LNG fuels and CNG, as well as those tailored for light-weight engines and turbocharged vehicles. Furthermore, the market is adapting to changing consumer preferences, with an increasing emphasis on e-commerce platforms for convenient purchase and distribution, catering to the needs of the logistics industry and ensuring optimal performance for diesel fuel power vehicles. The market relies on a comprehensive value chain encompassing various raw materials, including base oil derived from sources like Marcellus shale. Different grades, particularly mineral types, cater to diverse engine requirements, with a focus on meeting BSIV compliance standards and supporting the latest engine types such as lightweight diesel engines. This market is essential for the logistics industry and diesel-powered vehicles, ensuring optimal engine performance and longevity.
The market is driven by various factors including the demand for high-quality lubricants to support the performance of modern engines. With advancements in engine technology and the pursuit of emissions reduction, there's a growing need for engine oils that cater to specific requirements such as turbochargers and emissions control. The market sees a diverse range of products, from mineral-grade types to semi-synthetic blends, addressing the needs of gasoline and diesel engine alike. Additionally, the emergence of alternative fuels like compressed natural gas (CNG) and liquefied natural gas LNG fuel presents new opportunities and challenges for engine oil formulations. Players in the market, including major brands like Castrol, are focusing on additives like dispersants and detergents to improve performance and prolong oil drain intervals, catering to the evolving needs of consumers and industries alike. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing demand for full synthetic engine fuel is the key factor driving market growth. Full synthetic engine fuel offers a wide range of advantages and benefits compared with conventional engine fuel, which has resulted in increased demand. Owing to the addition of advanced lubricants and chemicals in fully synthetic engine fuel, it is costly compared with conventional fuel. Therefore, the growing uptake of advanced engine oil is driving the growth of the market under focus.
Fully synthetic fuel makes use of the superior quality of synthetic base stock with advanced additives and lubricants. Some prominent market players that offer fully synthetic engine fuel are Exxon Mobil Corp, Shell plc, and Valvoline Inc. The demand for fully synthetic engine fuel has increased over the years, owing to its performance advantages and an increase in consumer awareness. Hence, the rising uptake of fully synthetic engine fuel will drive the growth of the Germany automotive engine oil market during the forecast period. As consumers and automotive manufacturers in Germany prioritize high-performance lubrication solutions for improved engine efficiency and longevity, the market for fully synthetic engine oils is expected to expand, supported by technological advancements and stringent regulatory standards promoting fuel efficiency and emissions reduction.
An increasing number of strategic alliances by vendors is the primary trend shaping market growth. The global market is witnessing an increase in the number of strategic alliances such as collaboration, agreements, and mergers and acquisitions (M&A) in the global market, which is expected to drive the growth of the market. Besides, the advancements in engine design and construction technology have played an important role in driving the advancements in engine fuel technology.
In addition, stringent vehicular emission norms and the growing demand for higher fuel efficiency are driving engine fuel makers to use an advanced formulation of additives and synthetic base fuel. For instance, in August 2022, Saudi Aramco, a Saudi Arabian Oil Company, announced the signing of an equity purchase agreement to acquire Valvoline Inc. global products business ("Valvoline Global Products" or "VGP") for USD 2.65 billion. Thus, such an increasing number of strategic alliances by the vendors is expected to drive the growth of the global market during the forecast period.
Fluctuating crude oil prices is a challenge that affects market growth. The oil is made from petroleum hydrocarbons, derivatives of crude fuel. Hence, the price is dependent on the price of crude fuel and its derivatives. In 2022, the global crude fuel market witnessed irregular fluctuations in average prices. According to The World Bank Group, the last four quarters witnessed fluctuations in the quarterly averages of crude fuel.
Moreover, the fluctuations in the prices can be seen on a monthly basis as well. Fluctuations in the prices of crude fuel have led to demand uncertainty for petroleum hydrocarbons required to manufacture engine fuel. Thus, the fluctuations in crude fuel prices may impede the growth of the market in focus during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is evolving rapidly in response to diverse factors such as urbanization, emissions reduction requirements, and advancements in engine technology. High-performance engine oils are crucial for Internal Combustion Engines (ICE) and diesel engine reducing friction and heat while protecting moving parts and engine components. With a focus on emissions reduction and compliance with regulations like BSIV, engine oils are formulated with dispersant additives and detergents to combat soot buildup and prolong oil drain intervals. The market also witnesses innovations driven by automation and robotics, streamlining oil change intervals and catering to e-commerce and logistics industries. As electric vehicles gain traction, there's a shift towards synthetic lubes, presenting investment opportunities amidst changing consumer preferences and the growing demand for sustainable transportation solutions. The market is evolving with the integration of advanced Automotive Engine Oil Level Sensors, which enhance vehicle maintenance and performance efficiency.
The passenger vehicles segment is estimated to witness significant growth during the forecast period. The fuel used in passenger vehicles is also referred to as passenger car motor oil (PCMO). The consumption of this material in passenger vehicles depends upon several factors, such as engine type insights cylinder displacement, and others. This material is usually replaced during each service interval or annually.
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The passenger vehicles segment was the largest and valued at USD 37.52 billion in 2018. Mineral-based material is used in gasoline-fueled vehicles, flex-fuel vehicles, and utility vehicles. Full synthetic material is mainly used in vehicles with high-performance engines. Some prominent market players offering this material for passenger vehicles are BP Plc, Exxon Mobil Corp, Chevron Corp., Shell Plc, Valvoline Inc., and others. Thus, such factors are likely to drive the adoption of this material during the forecast period, thereby propelling the growth of the passenger vehicles segment of the market during the forecast period.
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APAC is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The high population of vehicles (vehicle-in-use) makes APAC a dominant region in the global market. APAC, the largest automotive market in the world, is witnessing a growing demand for automobiles. In addition, the growing consumer awareness about the advantages of using synthetic oil in automobiles is driving revenue generation in the market in focus.
Furthermore, the growing consumer awareness about the different types of material is contributing to revenue generation in the regional market. The demand for synthetic and fully synthetic material has increased in the last few years owing to its performance advantages. In addition, some of the prominent market players based in APAC are Sinopec and PETRONAS. These players offer this material of different grades and types for automotive applications. Hence, such factors are expected to drive market growth in this region during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The Market in India is dynamic, driven by diverse vehicle types and evolving servicing needs. With a focus on commercial vehicles, motorcycles, and passenger vehicles, the market caters to various product grades to meet specific requirements. Despite fluctuations, the India market continues to thrive, with substantial consumption rates driven by servicing frequencies and the growing motorcycle population. Engine oils fortified with additives like ZDDP (zinc dialkyl dithiophosphate) play a vital role in protecting diesel engine and enhancing their efficiency. As the industry evolves, innovations in raw materials and formulations continue to drive advancements in engine oil technology. Marine lubricants, essential for the maintenance and performance of marine vessels, also contribute significantly to the market, catering to the specific needs of marine engines and systems.
Moreover, the engine oil market is a complex ecosystem influenced by various factors, from grade insights to specific types such as mineral grade, catering to the needs of different engines, including those powered by diesel fuel power vehicles and two-wheelers. It addresses the demand for high-performance oils, essential for maintaining ICE (Internal Combustion Engines) in vehicles ranging from off-highway construction vehicles to light commercial vehicles (LCV) and heavy commercial vehicles (HCV). The market emphasizes BSIV compliance and the development of lightweight oils suitable for modern engine types like those found in light-weight engines. Additionally, it ensures optimal oil change intervals to uphold engine efficiency and longevity, particularly in high-temperature environments like the Permian basin. Original equipment manufacturers (OEMs) play a significant role in shaping market trends, while investments and disposable income levels influence consumer choices in selecting engine oils. Furthermore, the market supports logistics activities by providing reliable lubrication solutions for vehicle engines and transmission systems, combating issues like rusting, oxidation, and temperature fluctuations, ultimately contributing to seamless vehicle production and operation.
Furthermore, top companies like Bharat Petroleum Corporation Limited, BP PLC (Castrol), and ExxonMobil Corporation dominate the industry, offering a range of engine oils to meet diverse needs. Collaborations and agreements, such as the marketing and technology collaboration agreement between Cummins and ExxonMobil, further bolster market growth. With a focus on innovation and global distribution networks, the industry remains poised for sustained expansion.
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Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.71% |
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Market growth 2024-2028 |
USD 14.29 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.71 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 47% |
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Key countries |
US, China, Japan, India, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AMSOIL Inc., BP Plc, Chevron Corp., China Petrochemical Corp., DMax Lubricants GmbH, Eni SpA, Exxon Mobil Corp., FUCHS PETROLUB SE, GS Global Corp., Hinduja Group Ltd., Idemitsu Kosan Co. Ltd., MOTUL SA, Nandan Group, PETRONAS Chemicals Group Berhad, PJSC LUKOIL, Polski Koncern Naftowy ORLEN SA, Repsol SA, Shell plc, TotalEnergies SE, and Valvoline Inc. |
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Market dynamics |
Parent market analysis, market report, market forecast, Market forecasting, market growth and trends, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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