Automotive Two Wheeler Engine Oil Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Grade (Synthetic, Semi synthetic and Minerals), By Demand Category (OEM, Aftermarket) By Region, By Competition, 2018-2028
Published Date: April - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2024-2028 |
| Market Size (2022) | USD 13 billion |
| CAGR (2023-2028) | 7.6% |
| Fastest Growing Segment | Semi synthetic |
| Largest Market | Asia-Pacific |
Download Sample Ask for Discount Request Customization
Market Overview
Global Automotive Two Wheeler Engine Oil Market has been worth USD 13 Billion in 2022 and is expected to forecast strong growth during the forecast period with a CAGR of 7.6% from 2022 to 2028.
The Global Automotive Two Wheeler Engine Oil market is an active and central part of the larger automotive market, offering crucial lubrication products for a large number of two-wheeler vehicles such as motorcycles, scooters, and mopeds. This market is defined by ongoing evolution and innovation, fueled by a number of major factors. First, the constant need for fuel efficiency and lower emissions has prompted the creation and use of advanced lubricants, such as synthetic and low-viscosity engine oils. These lubricants not only improve engine performance but also help ensure environmental sustainability. Secondly, the market is observing a significant shift towards sustainable and green lubricants to fall in line with worldwide environmental issues. The companies are paying more attention to designing engine oils with biodegradable ingredients and encouraging sustainable production to reduce their environmental impact as much as possible. This trend demonstrates the industry's dedication to ethical and environmental-friendly production. In addition, specialization and customization have become key tendencies in the marketplace, as lubricant firms collaborate with two-wheeler companies to develop customized solutions to unique engine types and applications. Such an approach guarantees that lubricants are perfected to address the distinct needs of different two-wheeler models in order to ensure engine protection and longevity. Last but not least, the application of digital technology and predictive maintenance practices is transforming the way engine oils are dealt with and maintained. Smart IoT sensors and sophisticated software allow for real-time monitoring of oil quality and condition, enabling proactive maintenance scheduling and cost savings for both two-wheeler customers as well as service providers.
Key Market Drivers
Rising Two-Wheeler Ownership and Usage
One of the primary drivers of the global automotive two-wheeler engine oil market is the increasing ownership and usage of two-wheelers worldwide. This trend can be attributed to several factors, including urbanization, population growth, and improved economic conditions in emerging markets. As urban areas expand, there is a growing need for convenient and cost-effective modes of transportation. Two-wheelers, such as motorcycles and scooters, are often preferred in congested urban environments due to their maneuverability and ease of parking. This has led to a surge in two-wheeler ownership in cities worldwide. The global population continues to grow, particularly in countries like India, China, and Southeast Asian nations. These regions have witnessed a significant increase in two-wheeler ownership as more people seek affordable and efficient transportation options. Two-wheelers are often more affordable than four-wheelers, making them an attractive option in regions with lower average incomes. As disposable incomes rise, more individuals and families are purchasing two-wheelers, further fueling the demand for engine oils.
Increasing Focus on Vehicle Maintenance
Another crucial driver for the global two-wheeler engine oil market is the growing emphasis on vehicle maintenance and engine health. This trend is influenced by several factors. The internet and digitalization have made it easier for vehicle owners to access information about the importance of regular maintenance and the role of engine oil in preserving engine health. Online forums, videos, and educational content have contributed to increased awareness. Modern two-wheelers are designed to last longer, and owners are keen to ensure their investments remain in good condition. Regular oil changes and maintenance are vital for extending the lifespan of two-wheeler engines. Consumers are becoming more environmentally conscious, and maintaining their vehicles optimally is seen as a way to reduce emissions and fuel consumption. Clean and efficient engines require quality engine oil. Many two-wheeler manufacturers recommend specific engine oil brands and types for their vehicles. This has led to brand loyalty and an increased demand for the recommended oils. These factors drive consumers to prioritize engine maintenance and regularly change engine oil, which, in turn, boosts the demand for automotive two-wheeler engine oil.
Download Sample Ask for Discount Request Customization
Technological Advancements in Engine Oil
Advancements in engine oil technology have been a significant driver for the global market. Manufacturers and researchers continually work on improving the quality and performance of engine oils. Key technological drivers includeThe development of synthetic and semi-synthetic engine oils has revolutionized the lubricants industry. These oils offer superior protection, viscosity stability, and longevity compared to conventional mineral-based oils. Engine oil formulations with lower viscosity provide better fuel efficiency and reduce friction, leading to improved engine performance. This is crucial as fuel efficiency standards become more stringent worldwide. Manufacturers are creating specialized engine oils designed for specific types of two-wheelers, such as high-performance motorcycles or scooters. These formulations cater to the unique needs of different vehicles, enhancing their efficiency and longevity. The inclusion of advanced additives in engine oils helps protect engines from wear, corrosion, and deposits. Additives like detergents, dispersants, and anti-wear agents contribute to better engine performance and longevity. Engine oil formulations are evolving to meet environmental regulations, with a focus on reducing emissions and environmental impact. Bio-based oils and oils with reduced environmental footprint are gaining traction. These technological advancements not only improve engine oil performance but also cater to the evolving needs of modern two-wheelers, further stimulating market growth.
Growth in Aftermarket Sales
The aftermarket segment plays a significant role in driving the global two-wheeler engine oil market. Aftermarket sales encompass the distribution of engine oils through various channels, including independent retailers, auto parts retailers, and e-commerce platforms. Several factors contribute to the growth of aftermarket sales. Many consumers prefer choosing their preferred engine oil brands and formulations for their two-wheelers. This leads to increased aftermarket sales as individuals seek specific products that align with their preferences and vehicle requirements.
Aftermarket channels offer convenience and accessibility, making it easier for consumers to purchase engine oil when needed. With the proliferation of e-commerce platforms, consumers can order engine oil online and have it delivered to their doorstep. Intense competition in the aftermarket segment often results in competitive pricing, attracting cost-conscious consumers who seek value for their money. Independent workshops and mechanics play a crucial role in the aftermarket distribution of engine oils. They recommend and use specific brands, drivingsales through word-of-mouth referrals. The aftermarket segment's growth is a testament to the demand for engine oils outside of manufacturer-specific service centers, contributing significantly to the overall market size.
Stringent Emission Regulations
Key Market Challenges
Download Sample Ask for Discount Request Customization
Environmental Regulations and Sustainability Concerns
One of the most prominent challenges for the Global Automotive Two Wheeler Engine Oil market is the ever-increasing environmental regulations and sustainability concerns. Governments worldwide are implementing stricter emission norms, pushing automakers to develop cleaner and more fuel-efficient vehicles. This trend directly affects the demand for engine oils, as manufacturers seek lubricants that reduce friction, improve fuel economy, and minimize emissions. Adapting to these evolving regulations requires continuous innovation in oil formulations, putting pressure on manufacturers to invest in research and development.
Technological Advancements in Engine Design
Rapid advancements in engine technology pose another significant challenge. Modern two-wheeler engines are becoming more sophisticated, with features like turbocharging, direct injection, and electric propulsion systems. These technological shifts demand specialized engine oils tailored to the unique requirements of these engines. The Global Automotive Two Wheeler Engine Oil market must keep pace with these changes, ensuring that their products meet the demands of cutting-edge engine designs while maintaining performance and reliability.
Market Saturation and Competition
The automotive two-wheeler engine oil market is highly competitive and, in many regions, already saturated. Numerous manufacturers and brands are vying for market share, leading to intense price competition. This saturation, coupled with the emergence of private-label brands, poses challenges for established players, as they must continuously innovate, differentiate their products, and maintain quality to remain competitive. Price wars can impact profit margins and hinder investments in research and development.
Consumer Shift Towards Electric Vehicles (EVs)
The global shift towards electric vehicles (EVs) represents a substantial challenge for the traditional automotive two-wheeler engine oil market. As electric two-wheelers gain popularity due to their eco-friendliness and lower operating costs, the demand for traditional engine oils may decline. Manufacturers must adapt by diversifying their product portfolios to include lubricants designed for electric powertrains. This shift requires not only new formulations but also changes in marketing strategies and distribution channels to cater to the evolving needs of consumers.
Supply Chain Disruptions and Raw Material Costs
The automotive two-wheeler engine oil market relies on a complex global supply chain for its raw materials, including base oils and additives. Disruptions in the supply chain, whether due to geopolitical factors, natural disasters, or economic instability, can impact production and lead to cost fluctuations. These uncertainties can strain manufacturers' ability to maintain stable prices and supply, potentially affecting customer trust and brand reputation. Moreover, fluctuating raw material costs can impact profit margins, requiring companies to manage their supply chain risks effectively.
Key Market Trends
Synthetic and Semi-Synthetic Oils Take Over the Market
The most notable trend in the Global Automotive Two Wheeler Engine Oil market is the growing use of synthetic and semi-synthetic oils. These high-performance lubricants provide better performance, stability, and longevity than traditional mineral oils. With increasingly technologically advanced two-wheeler engines and the need for greater protection, synthetic and semi-synthetic oils have become increasingly popular. They better lubricate under harsh conditions, lower friction, and improve fuel efficiency. In addition, these oils have enhanced thermal stability, lowering the possibility of oil breakdown and deposits. The trend towards semi-synthetic and synthetic oils is likely to persist with developing engine technology, which will propel demand for better-quality lubricants.
Change Towards Low-Viscosity Engine Lubricants
Another notable change in the market is the change towards low-viscosity engine lubricants. It is fuel efficiency and lower emissions that are propelling this trend. More easily flowing oils with lower viscosities, like 5W-30 and 0W-20, lower engine friction and improve fuel economy. As emissions regulations tighten around the world, two-wheeler manufacturers are increasingly asking for or specifying low-viscosity oils. This has encouraged the development and marketing of engine oils with lower viscosity grades, which are designed to give not only engine protection but also fuel efficiency.
Eco-Friendly and Sustainable Lubricants
Environmental sustainability is becoming increasingly important all over the world, and this has accelerated the use and development of eco-friendly and sustainable lubricants in the Global Automotive Two Wheeler Engine Oil market. These lubricants are designed to minimize their ecological footprint, usually through the utilization of biodegradable base oils and additives. More importantly, most manufacturers are focusing on recyclability and lower emissions throughout the manufacturing process. With consumers and governments continuing to prioritize ecologism, demand for environmentally friendly lubricants is growing. This has resulted in an upsurge in research and development activities in the industry to produce lubricants that provide better performance while following sustainability guidelines.
Specialty Lubricants and Customization
The industry is seeing a shift towards specialty lubricants and customization to suit particular engine types, brands, and uses. Various two-wheeler companies tend to have different engine designs and specifications. Consequently, certain lubricant players are collaborating with original equipment manufacturers to create lubricants that are specifically designed for individual models or engine types. Such specialty lubricants target maximizing the performance of the engine, maximizing component life, and overall reliability. This is a testament to the fact that the industry is determined to provide customized solutions that suit the changing needs of two-wheeler manufacturers and their customers.
Digitalization and Predictive Maintenance
Digitalization and incorporation of technology within the automotive sector are revolutionizing how engine oils are handled and serviced. Predictive maintenance software and IoT sensors are increasingly common, enabling owners of two-wheelers and service shops to track the health of engine oil in real-time. Such systems can identify alterations in oil quality, temperature, and levels of contamination, allowing for proactive servicing and oil change scheduling. This trend not only improves the performance and life of engines but also saves on maintenance and downtime. As digitalization progresses, the market will probably see increased integration of technology into engine oil management and maintenance routines.
Segmental Insights
Grade Analysis
The mineral, synthetic, and semi-synthetic categories of automotive engine oil make up most of the global market for engine oil. Compared to the synthetic and semi-synthetic oil categories, the mineral engine oil category commands the biggest market share for motor oils globally. As a byproduct of the oil refining process, mineral oil is produced directly from refined crude petroleum oil. Because they are less expensive and more readily found at, mineral oils are mostly utilized in automobiles. Additionally, the most fundamental kind of oil and the kind most frequently utilized in most ordinary cars are mineral-based automobile engine oils. Where the weather is not particularly hot or cold, they are better suited for two-wheelers. Because semi-synthetic engine oils are less expensive than synthetic lubricants, the market for them is anticipated to rise over time. Mineral oil is a component in semi-synthetic oils, although only in small amounts.
Regional Insights
Due to the highest concentration of automobiles, particularly in countries like China, India, and Thailand, the Asia Pacific region is the largest and experiencing the quickest growth in the global motor oil industry. Additionally, India and China are predicted to have the biggest number of vehicles on the road, and India also has the largest market for two-wheelers, all of which will contribute to the expansion of the market for automotive engine oil. The market in North America is distinguished by significant government assistance for energy-efficient car engine oil. Additionally, it is anticipated that widespread awareness among the local populace would keep the market for synthetic engine oil active. The use of this environmentally friendly oil will regulate the market in Europe. Additionally, it is expected that China and India will have the most vehicles on the road. Since India is the world's largest two-wheeler market, the government is likely to be more motivated to encourage the use of energy-efficient engine oils. It is anticipated that widespread consumer knowledge about synthetic motor oil will keep demand for the product high in Europe. The market in Europe is predicted to be driven by the use of this environmentally friendly oil. The market share of automotive engine oil represented by South America, the Middle East, and Africa is expected to increase throughout the projected period because these markets are currently developing.
Recent Developments
- Thelong-standing marketing and technological cooperation agreement betweenValvoline and Cummins was renewed by five years in October 2021. For itsheavy-duty diesel engines and generators, Cummins is anticipated to support andsell Valvoline's Premium Blue engine oil. Additionally, it is anticipated thatCummins will make Valvoline products available through its extensive globaldistribution networks.
- Castrolconfirmed a long-term collaboration with Ford in Austria in March 2021.Castrol's specifically formulated engine oil, Ford-Castrol MAGNATEC, isendorsed by Ford and offered at Ford dealerships all throughout the nation.
- Byintroducing the new Shell Helix Ultra Hybrid oil for Maserati hybrid engines inMarch 2021, Shell and Maserati expanded their technological and businesspartnership. This oil offers long-lasting performance and outstandingprotection for the lifespan of automobile engines.
- September2019For a total of USD 631 million, the Saudi Arabian Oil Company acquiredShell Saudi Arabia (Refining) Limited's (Shell) 50% stake in the SASREF jointventure in Jubail Industrial City, Saudi Arabia. As a part of its long-termdownstream growth strategy, this acquisition was made in order to expand thesophistication and capacity of its refineries.
- Thethird-largest quick-lube system in Canada, Great Canadian Oil ChangeFranchising Ltd., sold its business assets to Valvoline Inc. in July 2018. Withthis transaction, Valvoline will be able to franchise and own more than 1,200quick-lube sites in the United States and Canada.
Key Market Players
- Royal Dutch Shell plc
- Pentagon Lubricants Private Limited
- Castrol Limited
- HINDUJA GROUP
- Saudi Arabian Oil Co.
- Total S.A
- Gazprom
- LUKOIL oil Company
- Exxon Mobil Corporation
- Chevron Corporation
|
|
By Demand Category |
By Region |
|
|
|
Related Reports
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy