Automotive Passenger Cars 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 32 billion |
| CAGR (2023-2028) | 5.9% |
| Fastest Growing Segment | Semi synthetic |
| Largest Market | Asia-Pacific |
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Global Automotive Passenger Cars Engine Oil Market stands at USD 32 Billion in 2022 and is expected to forecast strong growth in the forecast period with a CAGR of 5.9% between 2022 and 2028.
The Global Automotive Passenger Cars Engine Oil Market is a dynamic and critical industry in the automotive sector, which plays a crucial role in helping ensure efficient operation and lifespan of passenger vehicles globally. These motor oils are carefully designed to accommodate the changing requirements of today's engines, which are constantly attempting to deliver increased performance, less emissions, and more fuel economy. Some major trends in the market are moving toward low-viscosity oil for satisfying low emissions requirements and mileage, increasing adoption of synthetic and semi-synthetic oils to deliver better engine protection, and increased significance of OEM-specific recommendations for engine oil to achieve optimum performance. Challenges are managing to keep pace with a highly diversifying scope of powertrains, fitting products to motorists' desires to maintain longer distances between oil change services, and meeting growing levels of demand for sustainable products. In addition, as car engines keep developing with new technologies, engine oil companies need to stay ahead of the curve in terms of innovation to provide products that not only satisfy the needs of current engines but also foresee the needs of future cars. Essentially, the Global Automotive Passenger Cars Engine Oil Market is a dynamic and constantly changing environment, where innovation, compliance with regulations, and environmental stewardship come together to facilitate the efficient and sustainable running of passenger cars globally.
Key Market Drivers
Stringent Emissions Regulations and Fuel Efficiency Imperatives
The foremost driver in the passenger car engine oil market is the ever-increasing pressure to adhere to stringent emissions regulations and achieve higher fuel efficiency standards. Governments worldwide are imposing strict emissions limits to combat climate change, which directly impacts the automotive industry. As a result, automakers are developing engines with smaller displacements, turbocharging, and direct fuel injection to reduce emissions and improve fuel efficiency. These advanced engines demand high-quality engine oils with lower viscosities that can reduce friction and optimize performance. Consequently, engine oil manufacturers are continuously innovating their formulations to meet these requirements, giving rise to the demand for low-viscosity, eco-friendly engine oils.
Vehicle Electrification and Hybridization
The proliferation of electric vehicles (EVs) and hybrid electric vehicles (HEVs) is reshaping the automotive landscape. While these vehicles use less traditional engine oil, they still rely on lubricants for various components, such as transmissions, differentials, and even some hybrid engines. Moreover, the transition to electrified powertrains doesn't happen overnight, as internal combustion engine (ICE) vehicles will coexist with EVs and HEVs for some time. This complex scenario necessitates engine oil manufacturers to diversify their product portfolios to serve both traditional and alternative powertrains. As the electrification trend continues to gain momentum, the market for specialized lubricants for EVs and HEVs is poised for growth.
Rising Vehicle Ownership and Mileage
The global rise in vehicle ownership, coupled with increased annual mileage, is another significant driver of the passenger car engine oil market. As the global population grows and more individuals enter the middle class, more people have the means to own and operate vehicles. This trend results in higher wear and tear on vehicle engines, leading to more frequent oil changes. Additionally, with greater awareness of the importance of vehicle maintenance for preserving resale value and longevity, consumers are increasingly mindful of maintaining their vehicles in top condition. Consequently, this ongoing increase in vehicle ownership and mileage ensures a sustained demand for engine oils, especially in emerging markets where the automotive industry is experiencing rapid growth.
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Advanced Engine Technologies
Automotive manufacturers are relentlessly pushing the boundaries of engine technology to enhance performance, reduce emissions, and meet stringent regulatory standards. These advancements include innovations such as turbocharging, direct fuel injection, variable valve timing, and cylinder deactivation. While these technologies contribute to more efficient engines, they also pose greater demands on engine oils. Modern engine oils must possess superior thermal stability, oxidation resistance, and enhanced detergent-dispersant properties to protect engines operating under higher temperatures and pressures. Engine oil manufacturers are responding by developing formulations tailored to the specific needs of these advanced engines, ensuring that they remain well-lubricated and protected.
Expanding Middle-Class Population in Emerging Markets
Emerging markets are witnessing a remarkable surge in vehicle ownership, driven by the growing middle-class population. As individuals in these markets transition from two-wheelers to four-wheelers, the demand for passenger cars and related automotive products, including engine oils, is experiencing exponential growth. The significance of efficient and cost-effective engine oils is particularly pronounced in these regions, where consumers aim to maintain their vehicles for extended periods while ensuring optimal performance and fuel economy. Engine oil manufacturers are actively targeting these emerging markets, recognizing the immense growth potential they offer. By tailoring products to meet the unique demands of these regions, manufacturers are contributing to the rapid expansion of the passenger car engine oil market.
Key Market Challenges
Evolving Emissions Regulations and Sustainability Pressure
One of the foremost challenges confronting the market is the ever-evolving landscape of emissions regulations and the mounting pressure for sustainability. Governments worldwide are tightening emissions standards to combat climate change, prompting automakers to develop cleaner and more fuel-efficient engines. This shift translates to reduced carbon emissions but also places greater demands on engine oil. Manufacturers must create low-viscosity, eco-friendly engine oils that reduce friction and contribute to lower emissions while still meeting the stringent performance requirements of modern engines. Navigating this intricate regulatory landscape and developing engine oils that strike a balance between environmental responsibility and performance is a persistent challenge.
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Diversification of Powertrains and Lubricant Requirements
The increasing diversity of powertrains in the automotive industry presents a significant challenge for engine oil manufacturers. While internal combustion engines (ICEs) continue to dominate, the market is witnessing a surge in hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and fully electric vehicles (EVs). Each of these powertrains has unique lubrication requirements, ranging from traditional engine oils for ICEs to specialized lubricants for transmissions and electric drivetrains. Engine oil producers must adapt to this multifaceted landscape by diversifying their product portfolios and developing specialized lubricants to cater to all powertrain types. This diversification, while essential for market competitiveness, demands substantial research and development efforts.
Consumer Shift Towards Extended Oil Change Intervals
A challenge stemming from evolving consumer preferences is the trend towards extended oil change intervals. Modern synthetic and semi-synthetic engine oils, along with advancements in engine technology, have enabled drivers to extend the time between oil changes. While this is convenient for consumers, it presents a hurdle for engine oil manufacturers who must develop products capable of maintaining engine protection and performance over longer durations. Meeting these demands while ensuring that extended oil change intervals do not compromise engine longevity is a delicate balancing act that requires continuous innovation in engine oil formulations.
Growing Demand for Environmentally Responsible Products
The global trend towards environmental responsibility is compelling consumers to seek eco-friendly products, including engine oils. This shift presents a challenge as engine oil manufacturers are pressed to develop formulations with reduced environmental impact. Engine oils are scrutinized not only for their emissions-reducing properties but also for their sustainability throughout the production and disposal lifecycle. Sustainable sourcing of base oils, reducing packaging waste, and implementing eco-friendly production processes have all become priorities for manufacturers. Meeting these demands adds complexity and cost to the production process, but it is essential for maintaining a competitive edge in the market.
Rapid Technological Advancements in Automotive Engines
Key Market Trends
Shift to Low-Viscosity Engine Oils for Better Fuel Efficiency
Transition to low-viscosity engine oils is one of the leading trends in the Global Automotive Passenger Car Engine Oil market, fueled by the need for better fuel efficiency and meeting stringent emission regulations. Low-viscosity oils like 0W-20 and 5W-30 have characteristics that allow them to flow more freely at low temperatures and lower friction in the engine. This results in lower energy loss and better fuel efficiency, addressing the immediate concern of cutting down carbon emissions and increasing sustainability. Vehicle manufacturers and engine oil makers are more frequently working together to create and advise low-viscosity engine oils for new passenger vehicles. Such oils provide advantages such as faster start-up of the engine under cold weather, enhanced engine efficiency, and decreased fuel consumption. Low-viscosity oils also help cause lesser wear and tear on engine parts, prolonging the engine's life. With tightening emission norms around the world, the need for engine oils that assist automakers in achieving these norms while improving fuel efficiency at the same time is likely to be a key driver for the Passenger Car Engine Oil market.
The Emergence of Synthetic and Semi-Synthetic Engine Oils
The consumption of synthetic and semi-synthetic engine oils is on the rise in the Passenger Car Engine Oil market. They provide better performance and protection than traditional mineral-based oils. Synthetic engine oils are manufactured using a highly controlled production process, producing oils with stable quality and excellent properties. Synthetic and semi-synthetic oils provide a plethora of benefits, includingThese oils are more stable under heat, and therefore suitable for engines that work in extreme conditions. Synthetic oils are less susceptible to oxidation, and thus they retain their lubricating ability longer. Synthetic oils tend to allow longer drain intervals, lowering maintenance needs and expenses. They work well in cold temperatures because they have lower viscosity at low temperatures, which encourages faster engine starts. Synthetic oils offer better wear protection, which guarantees the longevity of the engine. As manufacturers increasingly specify synthetic and semi-synthetic engine oils for their vehicles, consumers are more likely to use these higher-performance lubricants. The market reacts with a wider array of semi-synthetic and synthetic engine oil products to meet the variety of passenger car owners' needs.
Low-Sulfur and Eco-Friendly Engine Oil Formulation
Eco-friendliness is a major growth driver for the development of low-sulfur and eco-friendly engine oils in the Passenger Car Engine Oil market. Engine oil containing sulfur has the potential to release sulfur dioxide (SO2), a toxic pollutant. International regulatory bodies are placing stringent requirements on sulfur levels in engine oils to limit air pollution and decrease the environmental footprint of emissions from vehicles. The manufacturers are taking this up by developing engine oils with much lower sulfur content to meet these requirements. Low-sulfur engine oils not only help to reduce cleaner emissions but also avoid harming advanced exhaust aftertreatment systems, including catalytic converters and diesel particulate filters (DPFs). In addition, increasing attention is being paid to the environmental footprint of engine oil throughout its life cycle. This encompasses sustainable base oil and additive sourcing, recyclability, and biodegradability of used engine oil. Engine oil companies are spending on research and development to create more eco-friendly engine oils, in accordance with worldwide sustainability targets. Environmentally aware consumers and car owners of passenger vehicles are increasingly demanding engine oils that not only guard their cars but also minimize their ecological impact. This trend emphasizes the need for creating engine oils that are both low-sulfur and ecologically friendly.
Application-Specific Engine Oil Solutions
Another noteworthy trend in the Passenger Car Engine Oil market is the development of application-specific engine oil solutions. Today's passenger cars serve various purposes, from daily commuting to high-performance driving and off-road adventures. To address the diverse needs of these vehicles, manufacturers are formulating specialized engine oils optimized for specific applications.
High-Performance Engine OilsThese are engine oils engineered specifically for sports vehicles and performance vehicles, which provide better protection under high-stress conditions such as racing and aggressive driving.
Economy-Conscious Engine OilsEngine oils engineered for fuel economy are engineered to minimize friction and optimize mileage, which are best suited for environmentally conscious customers.
Long-Life Engine OilsThere are some passenger car owners who look for extended oil change intervals. Manufacturers produce engine oils with additives and formulations that enable extended drain intervals without sacrificing engine protection.
Off-Road and SUV Engine OilsOff-road and SUV-formulated oils offer greater protection against dust, dirt, and heat conditions, addressing the needs of thrill-seeking drivers. Tailored engine oil solutions address the unique challenges and demands of various passenger car segments to deliver maximum performance, protection, and durability. Manufacturers work in close partnership with automakers to create and endorse these expert formulas, providing consumers with an even broader range of options to suit their vehicle and driving needs.
Digitalization and Predictive Maintenance
The integration of digitalization and predictive maintenance solutions is transforming the Passenger Car Engine Oil market, enhancing engine oil management and vehicle maintenance practices. Digital technologies, including telematics, IoT sensors, and data analytics, are increasingly integrated into modern passenger cars to monitor engine performance and oil condition in real time. These digital solutions provide valuable insights into the health of the vehicle and the condition of the engine oil. Some key aspects include Oil Condition MonitoringSensors and telematics systems continuously monitor engine oil condition, tracking factors such as temperature, viscosity, and contaminants.
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.
Recent Developments
The long-standing marketing and technological cooperation agreement between Valvoline and Cummins was renewed by five years in October 2021. For its heavy-duty diesel engines and generators, Cummins is anticipated to support and sell Valvoline's Premium Blue engine oil. Additionally, it is anticipated that Cummins will make Valvoline products found at through its extensive global distribution networks.
Castrol confirmed a long-term collaboration with Ford in Austria in March 2021. Castrol's specifically formulated engine oil, Ford-Castrol MAGNATEC, is endorsed by Ford and offered at Ford dealerships all throughout the nation.
By introducing the new Shell Helix Ultra Hybrid oil for Maserati hybrid engines in March 2021, Shell and Maserati expanded their technological and business partnership. This oil offers long-lasting performance and outstanding protection for the lifespan of automobile engines.
September 2019For a total of USD 631 million, the Saudi Arabian Oil Company acquired Shell Saudi Arabia (Refining) Limited's (Shell) 50% stake in the SASREF joint venture in Jubail Industrial City, Saudi Arabia. As a part of its long-term downstream growth strategy, this acquisition was made in order to expand the sophistication and capacity of its refineries.
The third-largest quick-lube system in Canada, Great Canadian Oil Change Franchising Ltd., sold its business assets to Valvoline Inc. in July 2018. With this transaction, Valvoline will be able to franchise and own more than 1,200 quick-lube sites in the United States and Canada.
Key Market Players
- Royal Dutch Shell plc
- Pentagon Lubricants PrivateLimited
- Castrol Limited
- HINDUJA GROUP
- Saudi Arabian Oil Co.
- Total S.A
- Gazprom
- LUKOIL oil Company
- Exxon Mobil Corporation
- Chevron Corporation
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By Demand Category |
By Region |
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Synthetic Semi synthetic Minerals |
OEM Aftermarket |
North America Europe Asia Pacific South America Middle East & Africa |
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