Automotive Engine Oil Market – Global Industry Size, Share, Trends Opportunity, and Forecast 2018-2028. Segmented Vehicle Type (Commercial Vehicles, Two-Wheelers, Passenger Cars), By Demand Category (OEM and Replacement), By Region and By Competition.
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 17.72 billion |
| CAGR (2023-2028) | 4.5% |
| Fastest Growing Segment | Passenger Cars |
| Largest Market | North America |
Download Sample Ask for Discount Request Customization
Market Overview
The size of the Global Automotive Engine Oil Market was USD 17.72 billion in 2022 and is forecasted to rise with a CAGR of 4.5% during the forecast period.
The diversification of oil types is one of the major trends in the automotive engine oil market. Conventional or mineral-based engine oils used to be popular, but with the evolution of engine technology, semi-synthetic and synthetic engine oils have become more prominent. Synthetic oils, in specific, are specifically designed for high-performance and new engines and provide excellent viscosity stability, thermal stability, and protection under extreme conditions. Such oils are extremely popular, particularly among customers of high-performance and luxury vehicles.
There has been an increasing awareness of the need to maintain engines regularly, including oil change, by customers. Automotive and oil companies have introduced educational efforts to make customers aware of the advantages of proper use of engine oil and observing prescribed service schedules. This increased consciousness has helped improve the demand for high-quality engine oils.In addition, high-mileage engine oils have experienced growth in their market. With more cars traveling over 100,000 miles, there is a need for engine oils that are designed specifically for older cars with high mileage. These oils will have additives to help protect against wear on the engine, decrease oil consumption, and help extend the life of the engine.
The international automotive engine oil market is a dynamic and changing industry in the automotive sector. It is influenced by developments in engine technology, environmental policy, consumer knowledge, and shifting patterns of vehicle ownership. As the industry evolves to face new challenges and opportunities, engine oil formulation and consumer demand will probably continue to change, determining the direction and development of the market.
Key Market Drivers
Advancing Engine Technologies
The ongoing development of automotive engine technology is a pillar driver for transformation in the engine oil industry. As manufacturers pursue better fuel economy and lower emissions, they have introduced new engine designs. These are downsized engines with smaller displacements, turbocharging, and direct fuel injection. These new engines run at higher temperatures and pressures, putting greater demands on engine oil. Therefore, engine oil formulations need to evolve to deliver better wear protection, thermal stability, and lower friction. Low-viscosity synthetic oils, for example, have become increasingly popular to meet these requirements and maximize engine performance.
Stringent Environmental Regulations
International concerns regarding environmental pollution and climate change have led to increasingly stringent emissions regulations. Governments across the globe are introducing strict standards to restrict carbon emissions from vehicles. These rules impact not just automakers but also bring major changes in the engine oil business. Engine oil formulations have to comply with these rules through the provision of low-viscosity oil that decreases friction and increases fuel efficiency. Engine oil makers are, therefore, striving to create greener and more fuel-efficient products that enable cars to pass these strict emissions standards.
Consumer Awareness and Education
Consumer education and awareness have become focal points as engines of change within the engine oil industry. Consumers today are more educated on the value of maintenance for their engines and the impact of engine oil on maintaining engine performance and lifespan. Automakers and engine oil companies spend on education campaigns informing consumers of the value of such benefits and to select the right engine oil as well as sticking to recommended servicing intervals. This increased consciousness has created a demand for better-quality engine oils, particularly synthetic and semi-synthetic types. People now realize that spending on quality engine oil can mean extended engine life and lower long-term maintenance expenses.
Shift in Vehicle Ownership Trends
Vehicle ownership trends have changed around the world, with people keeping their vehicles longer. This has created a market for high-mileage engine oils. These oils are specifically designed to meet the specific requirements of older vehicles with higher mileage. They provide better protection against engine wear, lower oil consumption, and overall engine maintenance. This change in ownership trends has established a gap in the market for engine oil, with oils formulated to handle the maintenance demands of older cars. As increased numbers of motorists choose to make their cars last longer, there is increased demand for high-mileage engine oil.
The automotive engine oil global market is repeatedly impacted by evolving engine technologies, strict environmental norms, consumer learning and sensitization, and emerging vehicle ownership tendencies. These drivers cumulatively influence the growth and development of engine oils to address the changing requirements of contemporary engines, consumers' expectations, and demands to abide by environmental regulations. As these drivers continue, the market for engine oils will keep evolving to suit the changing automobile industry
Key Market Challenges
Evolving Engine Technology and Formulation Complexity
The continuous evolution of automotive engine technology poses a significant challenge for engine oil manufacturers. Modern engines incorporate advanced features such as smaller displacements, turbocharging, direct fuel injection, and variable valve timing. These innovations result in higher operating temperatures and pressures within the engine, necessitating engine oils with specialized formulations. Achieving the delicate balance between reducing friction, providing sufficient lubrication, maintaining thermal stability, and meeting emissions standards is an ongoing challenge. Engine oil manufacturers must invest in extensive research and development to create oils that cater to these precise engine demands.
Download Sample Ask for Discount Request Customization
Stringent Environmental Regulations
Although stringent emissions regulations can push the creation of low-viscosity engine oils for better fuel efficiency, they also pose challenges to manufacturers. Producing these oils in a way that is durable, protective of the engine, and meets constantly changing environmental standards can be challenging. Complying with emissions standards tends to involve changing the formulas of engine oils, which raises production expenses. This, in turn, leaves manufacturers at odds with providing affordable products while keeping up with ever-tighter regulations.
Consumer Misinformation and Confusion
The abundance of engine oil products available in the market can confuse consumers and cause them to make incorrect choices. It is not always easy to distinguish between conventional, synthetic, and semi-synthetic oils and their effects on certain engines. This confusion can lead consumers to choose the wrong engine oil for their cars, which can result in weaker engine performance or even engine damage. Automakers, engine oil companies, and retailers are confronted with the perpetual task of enlightening consumers to make the right decision and steer clear of disinformation.
Counterfeit and Substandard Products
The motor vehicle engine oil industry is prone to spurious and below-standard products which fall short of quality specifications. These low-grade oils are very harmful to engines, causing extensive damage and curtailing engine lifespan. It is a constant threat to regulators and authentic manufacturers to identify and phase out counterfeit goods. Counterfeit and below-standard products destroy consumers' confidence, threaten safety, and tarnish the image of the engine oil business.
Shifting Patterns of Vehicle Ownership and Maintenance
With consumers retaining their cars for longer, there has been increased demand for high-mileage engine oils. Formulating such specialized oils to address the specific needs of aging engines is difficult. Aging vehicles could have dissimilar maintenance requirements, and high-mileage engine oils need to provide superior engine wear protection, minimize oil consumption, and prolong engine life. Furthermore, evolving vehicle ownership habits, such as an increase in do-it-yourself (DIY) oil changes, put more responsibility on consumers to choose the right engine oil. This trend emphasizes the need to provide consumers with accurate information and quality products specifically designed for their individual vehicles.
The world automotive engine oil industry struggles with issues resulting from the ongoing development of engine technology, tough environmental laws, consumer confusion, counterfeit goods, and changing vehicle ownership and maintenance habits. These issues require constant innovation, education, and cooperation between industries to guarantee that engine oils keep up with the needs of today's sophisticated engines, environmental requirements, and consumer demands.
Key Market Trends
Transition to Low-Viscosity Oils
One of the significant trends in the automotive engine oil industry is the growing use of low-viscosity oils. New engines are created with improved fuel economy, and this has translated into a demand for thinner, lower-viscosity oils. Low-viscosity oils consume less energy and decrease friction while increasing fuel efficiency, thus allowing fuel economy to be improved. With tightening emissions standards, low-viscosity oils also assist engines in achieving these standards by minimizing internal drag. This is influencing the creation of synthetic and semi-synthetic engine oils with better viscosity profiles.
Synthetic and semi-synthetic engine oils are picking up considerable speed. Synthetic oils are designed for high-performance usage and are especially suited for new engines with stringent specifications. They have better thermal stability, less volatility, and better oxidation resistance than standard oils. Semi-synthetic oils, a mix of standard and synthetic base stocks, are between performance and affordability, appealing to more consumers.
Increasing Need for Environmentally Friendly Engine Oils
There's an increasing demand for environmentally friendly engine oils due to rising environmental awareness. There is growing concern among consumers and regulators to cut carbon emissions and save resources. This has led to an upsurge in the production of environmentally friendly engine oils. The environmentally friendly engine oils are made using renewable or recycled base oils and feature additives to ensure they have a low environmental footprint while providing strong engine protection.
High-Mileage Engine Oils for Older Cars
With consumers keeping their vehicles for longer periods, there's a growing market for high-mileage engine oils. These oils are tailored to address the specific needs of older vehicles with higher mileage. They contain additives that help combat engine wear, reduce oil consumption, and extend the engine's lifespan. This trend is expected to continue as the global vehicle fleet ages, emphasizing the importance of maintenance products designed for older engines.
Greater Emphasis on Engine Oil Additives
Additives in engine oil are important for improving the performance of engine oil. More focus is being put on the development of sophisticated additives with superior anti-wear protection, anti-oxidation, and anti-sludge protection. Anti-friction additives like molybdenum and graphene are attracting attention for their potential in lowering additional friction and improving fuel economy. Also, detergents and dispersants are being optimized to keep the engine clean and minimize deposit formation.
Digitalization and Predictive Maintenance
The motor industry is accepting digitalization and connectivity, and this is applied to engine oil monitoring and servicing as well. Most contemporary automobiles are fitted with sensors and telematics modules that can analyze engine performance and oil condition in real-time. This information can be utilized for predictive maintenance purposes, enabling automobile owners and servicing companies to organize oil changes and other servicing more effectively. This trend increases the overall lifespan of engines and maximizes the utilization of engine oil.
The world automobile engine oil market is experiencing a movement towards low-viscosity oils, an increase in synthetic and environmentally friendly products, high-mileage engine oil development, emphasis on cutting-edge additives, and convergence of digitalization and predictive maintenance. These trends are being fueled by a mix of consumers' needs, environmental factors, and evolution in automotive technology, which eventually dictate the direction and innovation in the engine oil market.
Segmental Insights
Download Sample Ask for Discount Request Customization
The automotive engine oil market is segmented by product type, with various options catering to different consumer needs. Conventional engine oils, also known as mineral-based oils, remain in use for older vehicles and cost-conscious consumers. However, there is a noticeable shift toward synthetic engine oils, which have gained substantial market share due to their superior performance characteristics. Synthetic oils offer improved viscosity stability, thermal resistance, and overall engine protection, making them favored choices for high-performance and modern engines. Semi-synthetic engine oils, a blend of conventional and synthetic base stocks, provide a middle-ground solution, appealing to consumers seeking a balance between performance and affordability. These product type segments reflect the diverse preferences of consumers and the evolving demands of today's engines. Viscosity grade segmentation plays a crucial role in meeting the specific requirements of modern engines. Low-viscosity engine oils have gained prominence in response to the industry's focus on enhanced fuel efficiency and reduced emissions. These oils have lower internal friction, contributing to better fuel economy and improved engine performance. In contrast, high-viscosity engine oils, once common in older engines and specific applications, have seen a decline in market share as modern engines increasingly favor low-viscosity oils. Viscosity grade segmentation underscores the importance of tailoring engine oil formulations to match the unique needs of different engine types and applications.
Base oil type is a critical factor in engine oil formulation, and the market offers various options to cater to different performance requirements. Group I base oils, derived from conventional crude oil refining, have traditionally been used in conventional engine oils. However, as engine technology advances and performance demands increase, there is a growing shift toward Group II, Group III, and Group IV base oils, which offer superior properties and are commonly used in synthetic and semi-synthetic engine oils. Group V base oils, such as esters and polyalphaolefins, are also gaining attention for their ability to meet the specific needs of high-performance engines and specialized applications. Base oil type segmentation reflects the industry's pursuit of improved engine protection and efficiency through advanced base oil technologies.
Segmental insights into the global automotive engine oil market reveal the diverse landscape of product types, viscosity grades, and base oil options. These segments reflect the industry's response to evolving consumer preferences, regulatory requirements, and technological advancements, ultimately shaping the range of engine oil products found at to consumers and businesses.
Regional Insights
North America, comprising the United States and Canada, represents a significant automotive engine oil market. In this region, there's a strong focus on environmental regulations aimed at reducing emissions and improving fuel efficiency. As a result, low-viscosity synthetic engine oils are prevalent, especially in newer vehicles. The market is also characterized by consumer awareness of engine oil quality and the importance of regular maintenance. Major oil companies and automakers collaborate to educate consumers, emphasizing the use of high-quality engine oils to extend engine life and optimize performance. Additionally, the region's embrace of electric and hybrid vehicles has spurred innovation in engine oil technologies to cater to these alternative powertrains.
Europe is at the forefront of the transition to low-emission vehicles, and this drive has influenced the engine oil market. The European Union has implemented stringent emissions standards, propelling the use of low-viscosity engine oils to improve fuel efficiency and reduce CO2 emissions. Germany, as a hub for leading automakers, plays a pivotal role in advancing engine oil technology. European consumers are well-informed about the importance of quality engine oils, and there's a growing preference for synthetic and semi-synthetic products. The region also witnesses investments in research and development to formulate engine oils that cater to the specific needs of high-performance European vehicles.
Asia-Pacific, encompassing countries such as China, Japan, South Korea, and emerging markets, is a dynamic region for the automotive engine oil market. China, in particular, stands out as the world's largest automotive market and is experiencing significant growth in engine oil demand, driven by increasing vehicle ownership and environmental concerns. The Chinese government's support for electric vehicles (EVs) has influenced the market, with a focus on engine oils for hybrid and EVs. Japan continues to innovate in engine oil technology, particularly in the development of low-viscosity oils. South Korea's automotive giants are also investing in advanced engine oil formulations. The Asia-Pacific region is characterized by a mix of consumer preferences, with a growing demand for synthetic engine oils and a keen interest in eco-friendly products.
South America's automotive engine oil market has unique dynamics influenced by economic conditions and consumer preferences. While conventional engine oils remain prevalent in many countries, there's a gradual shift toward synthetic and semi-synthetic options. Economic factors, such as fuel prices, play a crucial role in shaping engine oil choices in this region. The market also reflects the region's growing interest in high-mileage engine oils as vehicle ownership patterns evolve.
The Middle East and Africa are characterized by a diverse range of economic conditions and automotive markets. These regions have traditionally been dominated by conventional engine oils due to the availability of low-cost crude oil. However, there's a growing interest in synthetic engine oils, driven by consumer awareness of the benefits of improved engine protection and fuel efficiency. As economic conditions improve, consumers are increasingly opting for higher-quality engine oils. Additionally, the region's extreme climate conditions create demand for engine oils designed to perform effectively in hot and arid environments.
Recent Developments
- In January 2022, three business units,ExxonMobil Upstream Company, ExxonMobil Product Solutions, and ExxonMobil LowCarbon Solutions, make up ExxonMobil Corporation.
- In December 2021, ExxonMobil unveiledthe Mobil Super Pro brand of synthetic engine oils for SUVs.
Key Market Players
- BP PLC (Castrol)
- Chevron Corporation
- China National PetroleumCorporation
- China Petroleum &Chemical Corporation
- ENEOS Corporation
- ExxonMobil Corporation
- Idemitsu Kosan Co. Ltd
- Royal Dutch Shell PLC
- Total Energies
- Valvoline Inc.
|
By Vehicle Type |
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