Automotive Lubricants Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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).

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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.

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