Engine Oil Market - Growth, Trends, and Forecasts (2023 - 2028)

The engine oil market was valued at around 21,000 million liters in 2021, and the market is projected to register a CAGR of greater than 2% during the forecast period (2022-2027).

The market witnessed positive growth in 2021. Engine oils are mainly used for lubrication against wear and tear in engines that are exposed to different temperatures and pressures. Engine oils are used in various industries such as automotive, industrial usage, and heavy-duty equipment. According to the OICA, the total automotive production across the globe increased by 9% in the first nine months of 2021 compared to 2020.

Key Highlights

• Over the medium term, the market has been driven by rising global usage of high-performance lubricants in recent years, and this trend is likely to continue throughout the study period.
• On the other hand, factors limiting the growth of the engine oil market include prolonged engine oil drain intervals and the potential effect of electric vehicles (EVs), which will have a negative influence on demand for engine oil.
• The Asia-Pacific region led the market, followed by North America and Europe, with China, India, United States, and Russia, among others, consuming the most.

Key Market Trends

The Automotive and Other Transportation Segment Dominated the Market

• Engine oils are widely used to lubricate internal combustion engines and are composed of 75-90% base oils, and 10-25% additives are mostly used in automotive and other transport segments across the world.
• The major advantages of using engine oil are wear and tear reduction, corrosion protection, and engine's smooth operation. They function by creating a thin film between the moving parts for enhancing heat transfer and reducing tension during the contact of parts.
• According to the OICA data, the global production of automotive vehicles in the first nine months of 2021 has recorded 57,262,777 units compared to 52,146,292 units in the first nine months of 2020.
• Global automobile sales were somewhat higher in most major regions of the world in the full year of 2021. With sales increased 6.6% to more than 21 million cars, China remained the world's largest and best-performing major single-country auto market.
• Car sales in India expanded at a quicker rate of 27%, although the entire vehicle market remained tiny. In 2021, new passenger car registrations in Japan and Europe were lower, while the market for light vehicles in Russia, United States, and Brazil grew marginally.
• As a result, the aforementioned factors are anticipated to have a substantial beneficial influence on the engine oil market in the future years.

The Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region controlled the majority of the worldwide market share. For instance, MG, a British brand owned by China's SAIC Motors and created in partnership with Thailand's Charoen Pokphand Group, is targeting Thailand with its first-ever pickup truck, the "Extender," which is expected to boost engine oil consumption in the area over the projection period.
• China's annual automobile sales reached 21,090,200 units in 2021, according to the German Association of the Automotive Industry, making it the world's largest market.
• In 2021, India's new automobile sales grew by 26.7% to 3,082,400 vehicles, up from 2,435,100 in 2020, making it one of the large worldwide markets that grew at a faster rate. Even though automobile sales in India increased in 2019, the market was still roughly 10% lower than in 2018 and 2017.
• In 2021, new automobile sales in Indonesia, Thailand, Malaysia, Vietnam, the Philippines, and Singapore reached 2.79 million cars, up 14% from 2020, with Indonesia leading the way with a 67 % increase.
• As a result, the aforementioned factors are projected to have a substantial influence on the engine oil market in the approaching years in the region.

Competitive Landscape

The engine oil market is highly fragmented in nature. Key players in the market include Total Energies, Exxon Mobile Corporation, BP PLC, Shell PLC, and China National Petroleum Corporation.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support