Press Release

Southeast Asia Two Wheeler Engine Oil Market to Surge at a CAGR of 4.9% During 2024-30

The Southeast Asia Two Wheeler Engine Oil Market size is estimated to grow at a CAGR of around 4.9% during the forecast period, i.e., 2024-30, cites MarkNtel Advisors in the recent research report. The increasing popularity of motorcycles and scooters, fueled by urbanization, and the need for affordable transportation in Southeast Asia has led to heightened demand for engine oil. Lubricants such as engine oils are essentially required during both the initial purchase and subsequent maintenance of two-wheelers. Thus, the extensive utilization of bikes for personal commuting results in higher oil demand, supporting market growth. Moreover, manufacturers have been pushed towards developing new varieties of engine oils that cater specifically to the two-wheelers' unique needs.

Further, in Southeast Asian countries, such as Indonesia, Vietnam, Thailand, and Malaysia, the number of motorcycles and scooters in operation is significant since these countries face traffic congestion problems. Around 25% of the global operational two-wheeler fleet is located in Southeast Asian countries. Therefore, many individuals opt for personal two-wheeler transportation options for intercity and intracity travel. This inclination of consumers towards two-wheelers to avoid traffic and reach their destination on time has resulted in increased sales which subsequently generates a spike in engine oil demand. Consequently, there are various reasons leading to the rising popularity of two-wheelers within the region prompting an increase in production output over recent years.

Further, better engine protection and efficiency are becoming necessary with the growing advancements in engine technology. Along with this, consumers have become more knowledgeable about the benefits of synthetic and other quality oils leading to a growing preference for these products compared to traditional mineral-based options, particularly under hot and humid conditions prevalent in some regions. Moreover, customers nowadays desire optimized mileage, improved fuel economy, and greater overall motor health safeguards, owing to which they are shifting towards high-performance engine oil.

Furthermore, national governments are enforcing more rigorous rules and standards concerning environmental protection and safety measures. Such regulations extend to limitations on sulfur levels present in motor oils as well as protocols for the disposal of used oil products. As a response, prominent companies like Castrol or Chevron have shown adaptability by creating environmentally compliant goods while simultaneously engaging in sustainable approaches through investment initiatives, further states the research report, “Southeast Asia Two Wheeler Engine Oil Market Analysis, 2024.”

Southeast Asia Two-Wheeler Engine Oil Segmentation Analysis

Synthetic Oil Holds a Significant Market Share

Based on the product type, the market is further bifurcated into, Synthetic Oil, Semi-Synthetic Oil, and Mineral Oil.

Synthetic oil has gained a strong foothold in terms of market share since it provides superior lubrication while reducing engine wear and sustaining viscosity across various temperature ranges. Additionally, it improves fuel efficiency and is hence more appropriate for contemporary engines. Its extended drain periods as well as recyclability are attractive features among environmentally conscious consumers. Along with this, the increasing transition towards using this high-quality oil is expected to persist with advancements in modern engine design making them increasingly attainable and economical alongside heightened customer knowledge of their advantages.

Indonesia Dominating the Southeast Two-Wheeler Engine Oil Market

Indonesia dominates the market for two-wheeler engine oil due to various factors that converge and contribute to its leading position. As one of the countries with the largest population, the country has one of the largest consumer base. The country’s two-wheeler sales touched 6 million units in 2023.

 Moreover, the majority of the individuals in the country depend on motorcycles as their primary mode of transportation since the road infrastructure in the country is underdeveloped and highly congested. Further, the urban areas in the country are gridlocked, therefore to commute in the cities, there is a requirement for vehicles such as motorcycles & scooters that offer superior maneuverability. Additionally, the economic advantages offered by two-wheelers compared to cars also contribute significantly to their higher sales. The high preference of individuals to travel via motorcycles within the country is resulting in the demand for engine oil to maintain the overall vehicle's efficiency.

Also, several major motorcycle manufacturers such as Astra Honda Motor and PT Yamaha Indonesia Motor Manufacturing are located in Indonesia. They manufacture vehicles for both local use and export, guaranteeing a constant stream of production that results in an increased OEM demand for engine oil.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Shell Indonesia, Motul, Castrol (BP p.l.c.), Chevron Corporation (Caltex), ExxonMobil, TotalEnergies, Idemitsu Kosan, Fuchs SE, PT Pertamina Lubricants, Petronas, and Others are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping across various countries?
6. How have the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?