Automotive Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Automotive Lubricants Market is segmented by Product Type (Engine Oil, Transmission and Hydraulic Fluids, General Industrial Oil, Gear Oil, Grease, Process Oil, and Other Product Types) and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Automotive Lubricants Market Overview
Study Period:

2016 - 2026

Base Year:

2020

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

CAGR:

>2.5 %

Automotive Lubricants Market Top Players

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Market Overview

The automotive lubricants market size was estimated at around 20 million metric ton in 2020, and the market is projected to register a CAGR of over 2.5% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. The declining automotive industry, along with the temporary shutdown of automotive manufacturing units and various industrial activities due to the ongoing pandemic scenario, has declined the consumption of engine oil, gear oils, and greases, thus creating a negative impact on the demand in the automotive lubricants market.

  • Over the short term, the growing adoption of high-performance lubricants is expected to drive the market’s growth.
  • On the other hand, extended drain intervals of lubricants and the modest impact of electric vehicles (EVs) are expected to hinder the market’s growth.
  • Engine oil dominated the market, and it is expected to continue the growth during the forecast period.
  • Asia-Pacific dominated the market, followed by North America and Europe across the world with the largest consumption from the countries, such as China, India, the United States, and Russia, among others.

Scope of the Report

Lubricant is a fluidic material that is used to reduce friction between contact surfaces to avoid wear and tear. It is prepared with specific additives and specific group base oils depending upon the end-uses. Automotive lubricants are mainly used as engines, gear, and hydraulic oils. The automotive lubricants market is segmented by product type and geography. By product type, the market is segmented into engine oil, transmission and hydraulic fluids, general industrial oil, gear oil, grease, process oil, and other product types. The report also covers the market size and forecasts for the automotive lubricants market in 28 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Product Type
Engine Oil
Transmission and Hydraulic Fluids
General Industrial Oil
Gear Oil
Grease
Process Oil
Other Product Types
Geography
Asia-Pacific
China
India
Japan
South Korea
Philippines
Indonesia
Malaysia
Thailand
Vietnam
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Russia
Turkey
Spain
Poland
Rest of Europe
South America
Brazil
Argentina
Chile
Colombia
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
United Arab Emirates
Morocco
Rest of Middle-East and Africa

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Key Market Trends

Increasing Usage of Engine Oils

  • Engine oils are widely used to lubricate internal combustion engines and are generally composed of 75-90% base oils and 10-25% additives.
  • They are typically used for applications, such as wear reduction, corrosion protection, and smooth operation of engine internals. They function by creating a thin film between the moving parts for enhancing the transfer of heat and reducing tension during the contact of parts.
  • Between technology improvements and government-mandated fuel economy requirements, automakers have been manufacturing light vehicles with tight tolerances, which makes them more durable.
  • High-mileage engine oils are in demand lately, owing to the properties that help in the prevention of oil leaks and the reduction of oil consumption.
  • The light motor vehicles segment has the highest consumption rate of engine oils among all segments.
  • Heavy-duty motor vehicle engine oils are high-viscosity engine oils, which are used in on-highway and off-highway heavy vehicle applications. These engine oils are manufactured to help sustain extreme geographical and strict emission standards.
  • Up to Q3 of 2019, about 67.47 million vehicles were produced globally and has reached about 52 million vehicles up to Q3 of 2020, registering a decline rate of about 23%, thus led to a decrease in the demand for engine oils, greases, and others, which, in turn, negatively impacted the market growth of automotive lubricants.
  • Most of the light and heavy vehicle diesel and gasoline engines use 10W40 and 15W40 viscosity-grade oils.
  • As of Q3 2019, about 15.37 million light commercial vehicles were produced globally and reached about 11.79 million till Q3 2020, registering a decline rate of about 23.2%. Thus, this led to a decrease in the demand for engine oils, which in turn, negatively impacted the market growth of automotive lubricants.
  • The average age of vehicles has been increasing at a constant rate over the years. This factor provides an opportunity in terms of the refill market. The increasing average age of passenger cars and the growing urban population in the developing countries are the factors expected to drive the market for engine oils.
  • Owing to the increased engine oil change intervals, technological advancements are imposing a threat to the growth of the engine oil segment in terms of volume consumption. Therefore, the aforementioned factors are expected to show a significant impact on the automotive lubricants market in the coming years.
Automotive Lubricants Market Revenue Share

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Asia-Pacific is Expected to Dominate the Market

  • The Asia-Pacific region dominated the global market share. In the region, China is the largest lubricant market and is expected to remain so in the coming years, irrespective of the economy witnessing slow economic growth.
  • The government is focusing on replacing obsolete vehicles, in turn, increasing the demand for improved and high-performance lubricants. At the same time, India is the second-largest lubricant market in the region and the third-largest in the world.
  • China is the world's largest automotive producer. As of Q3 2019, China had produced 18.17 million vehicles and reached 16.96 million vehicles by Q3 2020, registering a decline rate of about 6.66%, which negatively impacted the demand for the regional automotive lubricants market.
  • Indonesia is one of the major consumers of lubricants in the ASEAN region. Japan is the fifth-largest consumer of lubricants in the world.
  • The Japanese automotive industry has been witnessing slow growth for the past two years, primarily due to the drastic drop in the sale and production of motor vehicles. As of Q3 2019, Japan had produced 7.37 million vehicles and reached 5.69 million vehicles by Q3 2020, registering a decline rate of about 22%, which negatively impacted the demand for the regional automotive lubricants market.
  • Therefore, the aforementioned factors are expected to show a significant impact on the automotive lubricants market in the coming years.
Automotive Lubricants Market Growth Rate By Region

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Competitive Landscape

The automotive lubricants market is partially consolidated, with intense competition among the top players. These major companies include Royal Dutch Shell PLC, Chevron Corporation, BP PLC, Exxon Mobil Corporation, and Total, among others.

Recent Developments

  • In March 2020, Royal Dutch Shell PLC announced to double the production capacity of its lubricant blending plant in Bekasi of Indonesia, to 300 million liters per year, and it is estimated to be completed by 2022, which will help to meet the growing demand of the domestic lubricant market in the coming years.
  • In June 2019, Brenntag AG, a strong ExxonMobil distributor, announced the acquisition of B&M Oil Company, a regional lubricant distributor based in Oklahoma of United States, for further expanding the lubricants business.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Increasing Adoption of High-performance Lubricants

      2. 4.1.2 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Extended Drain Intervals

      2. 4.2.2 Modest Impact of Electric Vehicles (EVs) in the Future

      3. 4.2.3 Declining Automotive Industry Growth and Further Impact of COVID-19

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Regulatory Policy Analysis

  5. 5. MARKET SEGMENTATION (Market Size by Volume)

    1. 5.1 Product Type

      1. 5.1.1 Engine Oil

      2. 5.1.2 Transmission and Hydraulic Fluids

      3. 5.1.3 General Industrial Oil

      4. 5.1.4 Gear Oil

      5. 5.1.5 Grease

      6. 5.1.6 Process Oil

      7. 5.1.7 Other Product Types

    2. 5.2 Geography

      1. 5.2.1 Asia-Pacific

        1. 5.2.1.1 China

        2. 5.2.1.2 India

        3. 5.2.1.3 Japan

        4. 5.2.1.4 South Korea

        5. 5.2.1.5 Philippines

        6. 5.2.1.6 Indonesia

        7. 5.2.1.7 Malaysia

        8. 5.2.1.8 Thailand

        9. 5.2.1.9 Vietnam

        10. 5.2.1.10 Rest of Asia-Pacific

      2. 5.2.2 North America

        1. 5.2.2.1 United States

        2. 5.2.2.2 Canada

        3. 5.2.2.3 Mexico

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United Kingdom

        3. 5.2.3.3 Italy

        4. 5.2.3.4 France

        5. 5.2.3.5 Russia

        6. 5.2.3.6 Turkey

        7. 5.2.3.7 Spain

        8. 5.2.3.8 Poland

        9. 5.2.3.9 Rest of Europe

      4. 5.2.4 South America

        1. 5.2.4.1 Brazil

        2. 5.2.4.2 Argentina

        3. 5.2.4.3 Chile

        4. 5.2.4.4 Colombia

        5. 5.2.4.5 Rest of South America

      5. 5.2.5 Middle-East and Africa

        1. 5.2.5.1 Saudi Arabia

        2. 5.2.5.2 South Africa

        3. 5.2.5.3 United Arab Emirates

        4. 5.2.5.4 Morocco

        5. 5.2.5.5 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share/Ranking Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 AMSOIL INC.

      2. 6.4.2 Bharat Petroleum Corporation Limited

      3. 6.4.3 BP PLC

      4. 6.4.4 Chevron Corporation

      5. 6.4.5 China National Petroleum Corporation

      6. 6.4.6 China Petroleum & Chemical Corporation

      7. 6.4.7 ENEOS Corporation

      8. 6.4.8 Exxon Mobil Corporation

      9. 6.4.9 Freudenberg

      10. 6.4.10 FUCHS

      11. 6.4.11 Gazprom Neft PJSC

      12. 6.4.12 Gulf Oil Lubricants India Ltd (Hinduja Group)

      13. 6.4.13 Hindustan Petroleum Corporation Limited

      14. 6.4.14 Illinois Tool Works Inc.

      15. 6.4.15 Indian Oil Corporation Ltd

      16. 6.4.16 ITWProBrands

      17. 6.4.17 LUKOIL

      18. 6.4.18 Motul

      19. 6.4.19 Petrobras

      20. 6.4.20 PETRONAS Lubricants International

      21. 6.4.21 Phillips 66 Company

      22. 6.4.22 PT Pertamina Lubricants

      23. 6.4.23 Repsol

      24. 6.4.24 Royal Dutch Shell PLC

      25. 6.4.25 SK Lubricants Co. Ltd

      26. 6.4.26 Total

      27. 6.4.27 Valvoline Inc.

      28. 6.4.28 Veedol International Limited

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Development and Innovation for Bio-lubricant

**Subject to Availability

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Frequently Asked Questions

The Automotive Lubricants Market market is studied from 2016 - 2026.

The Automotive Lubricants Market is growing at a CAGR of >2.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

  • Royal Dutch Shell plc
  • Chevron Corporation
  • BP p.l.c.
  • Exxon Mobil Corporation
  • Total

Are the major companies operating in Automotive Lubricants Market.

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