Global Automotive Lubricants Market Research Report: Forecast (2023-2028)

Market Definition

The fluidic substances used for reducing friction between surfaces and preventing wear and tear of automobile components are automotive lubricants. They minimize the heat generated between parts, and efficiency and functioning improve critical components such as engines, hinges, bearings, and hydraulic gears. They are used for brake and fuel systems, body part stamping, transmission manufacturing, and other automotive mechanics.

Market Insights & Analysis: Global Automotive Lubricants Market (2023-28)

The Global Automotive Lubricants Market is projected to grow at a CAGR of around 5.0% during the forecast period, i.e., 2023-28. The market growth is owed principally to the surging demand for efficient automotive vehicles & the rising need for high-performance engines. Additionally, the rise in construction and agricultural activities further extends the requirement for lubricants for construction and agricultural vehicles, expanding the market. Furthermore, the rising number of on-road vehicles, private vehicles for transportation, economic stability, consumer affordability, and maintenance of both private and public vehicles fuels the elevation of the industry. Also, the presence of aging vehicles expands the scope of their care, further fueling the market growth.

With the focus of authorities and organizations on increasing vehicle production and awareness of suitable quality products extending the life and experience of vehicles, more application of it is bound to continue. Moreover, as the durability of vehicles is majorly dependent on the smooth working of parts, which is facilitated by engine oil, or other product types, the market is likely to propel exponentially during the forecasting period.

On the contrary, the emergence and adoption of electric vehicles pose a threat to the market. However, increasing inclination towards luxurious, modern, and durable vehicles and demand for fuel efficiency to maintain the vehicle's performance is likely to propel industrial expansion.

Market Dynamics

Key Driver: Expansion of the Automotive Industry Presenting the Demand for Frequent Lubrication

The automotive industry is expanding with the rise in disposable income, the addition of advanced features, and consumer desire to own a passenger or another vehicle. This industrial growth has driven the industry, as lubricants play a vital role in the smooth working of engines and vehicles. Their characteristics of durability, vehicle protection, reduction of friction between the engine parts, and more are essential to extend vehicle life, especially regularly. Thus the industry has been driven by the conventional desire to maintain the quality and smoothness of engines and vehicles.

Possible Restraint: The Increasing Emergence of Electric Vehicles Outpacing ICE Variants

With the addition of technology and further advancement in the automotive sectors, the emergence of electric vehicles is gaining traction globally. However, it impedes as a threat to the industry as it diminishes the requirement for engine oil or grease as a whole by replacing the engine with an electric motor. Thus, increasing sales and adoption of electric vehicles pose a threat to the industry. Besides, the presence of lesser components and parts in the vehicles and the depreciation of various parts with the implementation of technology and advanced gadgets further pose a hindrance to the automotive lubricant market.

Growth Opportunity: Increasing Inclination Towards Environment-Friendly and Sustainable Lubricants

The rising usage of different lubricants is expected to surge the market growth. Additionally, the increasing environmental awareness among consumers and manufacturers to reduce the avoidable impact of some aspects and products by adopting alternative options like bio-based over mineral variants pose a growth opportunity for the industry. A consumer shift could be expected with synthetic greases, which undergo extensive treatment to enhance their performance, and degradable and environment friendly bio-lubricants. These products offer improved fuel efficiency, enhanced hardware capability, and lower emissions. With the rise in environmental concerns, the industry is presented with a growth opportunity to expand four-dimensionally. For instance,

• In February 2021, Royal Dutch Shell stated that it would offer consumers carbon-neutral greases for heavy-duty diesel engines, passenger automobiles, and industrial uses to assist consumers in managing their sustainability needs.

Key Trend: Rising Industrial Preference for Synthetic Grease

Increasing awareness about the usage of synthetic lubricants leading to a rise in their utilization has garnered the industry’s interest. Synthetic oil provides better lubrication than mineral oils, causing a shift in consumers to opt more for synthetic ones. Moreover, the trend of adopting new and better ways to enhance vehicle productivity and automotive functions by both consumers and manufacturers is leading to a moderate flow of endorsement of these greases. For instance,

In April 2021, Valvoline Inc. introduced Valvoline High Mileage 150k with MaxLife Plus technology synthetic blend, the engine oil explicitly formulated for engines with more than 150,000 miles. Furthermore, governmental bodies are also establishing minimum standards for such products to control rising emissions resulting in rising applications of low-viscosity greases such as synthetic or semi-synthetic oils, fueling the market growth.

Market Segmentation

Based on Application

• Engine Oil
• Gear Oil
• Transmission Fluids
• Brake Fluids
• Coolants
• Greases

Engine oil is expected to gain the major market share of the Global Automotive Lubricants Market during the forecast period, continuing its domination like the historical period. The segment's rise is aided by the utilization and requirement of engine oil to ensure the continuous working of engines by creating a thin film between the moving parts to enhance the transfer of heat and reduce tension during the contact of different parts.

The primary purpose of engine oil is to minimize wear and tear and friction on moving parts and prevent varnish and sludge, ensuring the quality and the whole process smoothly. By lubricating internal combustion engines, protecting them from corrosion, and ensuring smooth operation of the engine, it performs an essential role in the functioning of the vehicle; thus, the requirement for regular application of engine oil enthralls the market's elevation.

Additionally, the surging number of gasoline and diesel vehicles further safeguards the utilization of engine oils. Moreover, commercial and high-duty vehicles such as tractors, off-the-road vehicles in construction and farming, trucks, and others require engine oil for healthy functioning. As a result, they are less likely to be replaced by other technologies ensuring industrial growth.

Based on Base-oil Type

• Mineral Oil
• Synthetic
• Semi-synthetic
• Bio-based Oil

Among all, Mineral Oil are expected to govern the market during the forecasting period, owing to the numerous benefits and utilization by on-road vehicles. Also referred to as Regular and Conventional oils, Mineral oils have temperature-resisting properties along with cohesion and strength, enabling the adoption of engine oils for lubrication and superior protection of engines. Additionally, the formulation quality of mineral oil in various levels and viscosity complement simple machines, further exemplifying the industry.

On the other hand, Synthetic lubricants are also expected to garner a significant share, attributing to better temperature performance, extended drain intervals, reduced friction, improved fuel economy, and growth in engine power. Rising as an alternative option for mineral oil, synthetic greases are garnering the attention of automotive manufacturers, fluctuating in the market positively.

Regional Projection

Geographically, the Global Automotive Lubricants Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Globally, Asia-Pacific is anticipated to gain the largest market share during the forecasting period, influenced by the growth in the automotive industry as a whole in the region. The rising population, coupled with surging urbanization, is fueling the demand for automotive vehicles. The region’s government also focuses on replacing obsolete cars, increasing the demand for upgraded, high-quality products. The high sales of vehicles combined with lubrication required for maintenance of sold vehicles are collectively aiding in the market expansion.

Besides coinciding, China is the largest automotive manufacturer and a hub for all related industries, while India possesses one of the leading markets. For instance, In March 2021, Nissan Motor India signed an agreement with ExxonMobil variant to supply lubricating solutions for the passenger vehicle aftermarket. Likewise, the presence of major industries and the bolstering amount of on-road vehicles in countries like China, India, Indonesia, Japan, and South Korea has increased the consumption and application. In addition, rising disposable income is further surging demands for passenger vehicles, strengthening the market for engine oils, brake fluids, etc., in the region.

Moreover, the region’s marine industry, with numerous ports and rising trade activities with other economies, fosters lucrative opportunities for the industry, as it would result in the extended application. Along similar lines, with the advent of further industrialization and installing various manufacturing plants, lubricant application would also widen, extending the market growth.

Recent Developments in the Market

• In July 2022, Royal Dutch Shell USA, Inc. and Shell Midstream Partners, L.P. announced the execution of a definitive agreement and plan of merger. Shell USA will acquire all the common units representing limited partner interests in SHLX.
• In July 2021, Valvoline launched All-Terrain, a new engine oil designed specifically for off-highway, heavy-duty diesel engines that operate in challenging environments such as construction, mining, and agriculture.

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