Engine Oil Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Engine Oil Market is segmented by End-user Industry (Power Generation, Automotive and Other Transportation, Heavy Equipment, Metallurgy and Metalworking, Chemical Manufacturing, and Other End-user Industries) and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Engine Oil Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >2 %

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Market Overview

The engine oil market was valued at around 22,000 kilo metric ton in 2020, and the market is projected to register a CAGR of greater than 2% 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, declined the consumption of engine oil, thus creating a negative impact on the demand of the engine oil market. According to OICA, automobile sales declined by around 13.77% in 2020 compared to the same period in 2019, reaching a total of 77.97 million unit sales.

  • Over the medium term, increasing adoption of high-performance lubricants globally is has been driving the market over the recent past and is expected to continue over the study period.
  • On the flip side, the factors affecting the growth of the engine oil market are extended drain intervals of engine oil and the modest impact of electric vehicles (EVs) in the future, thus creating a negative impact on the demand for engine oil market.
  • Asia-Pacific dominated the market, followed by North America and Europe, with the largest consumption from the countries, such as China, India, the United States, and Russia, among others.

Scope of the Report

Engine, or motor, oil is designed to lubricate the inner components of internal combustion engines and protect them against corrosion and keep them cool while in use. The engine oil market is segmented by end-user industry and geography. By end-user industry, the market is segmented into power generation, automotive and other transportation, heavy equipment, metallurgy and metalworking, chemical manufacturing, and other end-user industries. The report also covers the market size and forecasts for the engine oil market in 27 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kilo metric ton).

End-user Industry
Power Generation
Automotive and Other Transportation
Heavy Equipment
Metallurgy and Metalworking
Chemical Manufacturing
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Philippines
Indonesia
Malaysia
Thailand
Vietnam
Rest of Asia-Pacific
North America
United States
Mexico
Canada
Rest of North America
Europe
Germany
United kingdom
France
Italy
Russia
Turkey
Spain
Rest of Europe
South America
Brazil
Argentina
Chile
Colombia
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Qatar
United Arab Emirates
Rest of Middle-East and Africa

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Key Market Trends

The Automotive and Other Transportation Segment Dominated the Market

  • The automotive and other transportation segment was the highest consumer of engine oil. Engine oils are widely used to lubricate internal combustion engines and are composed of 75-90% base oils and 10-25% additives.
  • They are typically used for applications, such as wear reduction, corrosion protection, and engine internals' 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.
  • High-mileage engine oils are in demand, owing to properties that help in oil leak prevention and reduce oil-burn offs. Most light and heavy vehicle diesel and gasoline engines use 10W40 and 15W40 viscosity grade oils globally.
  • Due to the global economic slowdown after 2018, new vehicle car sales have witnessed a growth slowdown. Vehicle sales registered a decline of 13.8%, from 90.423 million in 2019 to 77.97 million in 2020.
  • Technological advancements are imposing a threat to engine oils' growth, owing to the increased engine oil change intervals.
  • Additionally, the global sales of electric vehicles in 2020 increased by 39% year on year to reach 3.1 million units, where the total passenger car sales declined by 15.9 % from 63.73 million units in 2019 to 53.59 million units in 2020, which is expected to hinder the market growth for engine oil.
  • Therefore, the aforementioned factors are expected to impact the engine oil market in the coming years significantly.
Engine Oil Market Share

The Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share. With the increasing investments in the automotive industry in the countries such as Malaysia, India, and Thailand. For instance, the British-brand MG, owned by China's SAIC Motors and developed in collaboration with Thailand's Charoen Pokphand Group, is targeting Thailand with its first-ever pickup truck, the "Extender" which is further likely to stimulate the demand for engine oil in the region during the latter part of the forecast period.
  • China is the largest engine oil consumer in the region, as well as globally. However, there is a declining trend in the demand for and production of vehicles in the country. The country is expected to witness a growth slowdown until the mid forecast period due to factors like market saturation and global economic slowdown.
  • China is the world's largest automotive producer. However, as of 2020 OICA sales statistics, China had witnessed a decline of 1.9% in sales to reach 25.31 million units in 2020 from 25.79 million units in 2019 due to the COVID-19 pandemic, which, in turn, negatively impacted the demand for the regional engine oil market.
  • Car sales in China jumped 365 percent year-on-year to 1.455 million in February of 2021, the eleventh straight month of increases, as the automobile industry's recovered further from the coronavirus crisis. Considering the first two months of the year, car sales totaled 3.958 million units, up 76.9 percent year-on-year. By 2021, the China Association of Automobile Manufacturers expects car sales to rise by around 4 percent relative to 2020.
  • In India, the automotive industry has been witnessing a continued shift in the vehicle preferences, i.e., evolving vehicle parc, owing to consistent economic development, coupled with rising income; consumers moving from two- to four-wheelers, in turn, resulting in augmenting demand for passenger car motor oils (PCMO). Several automakers have started investing heavily in various segments of the industry, with the increasing demand for vehicles.
  • According to InvestIndia, the USD 118 billion automobile industry in India is expected to reach USD 300 billion by 2026. India is expected to emerge as the world’s third-largest passenger vehicle market in 2021. India's annual automotive sale was 2.93 million vehicles in 2020, as against 3.81 million in 2019, registering a decline in sales of 23%.
  • Therefore, the aforementioned factors are expected to impact the engine oil market in the coming years significantly.
Engine Oil Market Growth Rate By Region

Competitive Landscape

The engine oil market is highly fragmented in nature. Key players in the market include Royal Dutch Shell PLC, BP PLC, Exxon Mobil Corporation, Total, and China Petrochemical Corporation, among others.

Recent Developments

  • In November 2020, Honda Motorcycle & Scooter India Pvt. Ltd announced its strategic alliance with Spain’s largest petroleum company Repsol Lubricants for the launch of the ‘Honda Repsol MOTO BIKER & MOTO SCOOTER’ engine oil in India. The engine oil, which will be marketed as ‘Honda Repsol MOTO’, is exclusively formulated for Honda’s two-wheelers.
  • In May 2018, Shell Lubricants and Hyundai Motor India Limited (HMIL) announced ten years of their partnership in India, with an extension for the next three years.

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 Impact of the COVID-19 Pandemic

    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 Buyers

      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

    1. 5.1 End-user Industry

      1. 5.1.1 Power Generation

      2. 5.1.2 Automotive and Other Transportation

      3. 5.1.3 Heavy Equipment

      4. 5.1.4 Metallurgy and Metalworking

      5. 5.1.5 Chemical Manufacturing

      6. 5.1.6 Other End-user Industries

    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 Mexico

        3. 5.2.2.3 Canada

        4. 5.2.2.4 Rest of North America

      3. 5.2.3 Europe

        1. 5.2.3.1 Germany

        2. 5.2.3.2 United kingdom

        3. 5.2.3.3 France

        4. 5.2.3.4 Italy

        5. 5.2.3.5 Russia

        6. 5.2.3.6 Turkey

        7. 5.2.3.7 Spain

        8. 5.2.3.8 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 Qatar

        4. 5.2.5.4 United Arab Emirates

        5. 5.2.5.5 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

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

    2. 6.2 Market Ranking Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Bharat Petroleum Corporation Limited

      2. 6.4.2 BP PLC

      3. 6.4.3 Caltex Australia Group

      4. 6.4.4 Chevron Corporation

      5. 6.4.5 China National Petroleum Corporation

      6. 6.4.6 China Petrochemical Corporation

      7. 6.4.7 Exxon Mobil Corporation

      8. 6.4.8 FUCHS

      9. 6.4.9 Gazpromneft - Lubricants Ltd

      10. 6.4.10 Gulf Oil Lubricants India Ltd

      11. 6.4.11 HPCL

      12. 6.4.12 Idemitsu Kosan Co. Ltd

      13. 6.4.13 Indian Oil Corporation Ltd

      14. 6.4.14 ENEOS Corporation

      15. 6.4.15 Kemipex

      16. 6.4.16 LUKOIL

      17. 6.4.17 Motul

      18. 6.4.18 Petrobras

      19. 6.4.19 PETRONAS Lubricants International

      20. 6.4.20 Phillips 66 Company

      21. 6.4.21 PT Pertamina Lubricants

      22. 6.4.22 Repsol

      23. 6.4.23 Royal Dutch Shell PLC

      24. 6.4.24 SK Lubricants Co. Ltd

      25. 6.4.25 Veedol International Limited

      26. 6.4.26 Total

      27. 6.4.27 Valvoline LLC

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

    1. 7.1 Numerous Upcoming Construction Projects in North America and Asia-Pacific

**Subject to Availability

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Frequently Asked Questions

The Engine Oil Market market is studied from 2016 - 2026.

The Engine Oil Market is growing at a CAGR of >2% over the next 5 years.

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

Asia Pacific holds highest share in 2020.

China Petrochemical Corporation, Total, Exxon Mobil Corporation, BP p.l.c., Royal Dutch Shell plc are the major companies operating in Engine Oil Market.

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