Market Trends of France Lubricants Industry
Growth from the Engine Oil
- The three typical engine oil types are full synthetic oil, semi-synthetic oil, and mineral oil. Full synthetic oil is the most refined type of engine oil that is commonly used in high-performance bikes. This oil includes a longer shelf life than the other two engine oil types. The only downside of this engine oil is the heavy price associated with synthetic oil.
- Semi-synthetic oil is a mixture of non-conventional and high-performance fluid additives combined with traditional engine oil. Semi-synthetic oil exhibits the properties of both synthetic oil in terms of their performance. Typically, this oil is used in low-capacity engines, like 125-180 cc bikes.
- Mineral oil is the most used type of engine oil in the country. It is extracted from petroleum products and is hence termed mineral oil. It is widely used in lower-capacity bikes, like mopeds, scooters, etc. Although the oil lasts for smaller distances, it is highly affordable, and hence, it includes high demand for its affordability and ability to protect engines.
- According to the Ministry of Ecological Transition and Territorial Cohesion, in France, the total number of registered passenger cars in 2023 reached 38,856, marking a small increase from 38,814 in 2022. Thus, the increase in the number of on-road vehicles is expected to drive the market for engine oil lubricants in the country.
- Moreover, the private car fleet in circulation in France is dominated by diesel and petrol combustion engines-based cars. In 2022, more than 21.36 million cars in circulation were powered by a diesel engine and about 15.52 million cars were based on petrol engines.
- Engines used in the heavy equipment industries, such as construction and agriculture machinery, have witnessed technological changes in the form of lower soot levels, and the major challenge for engine oils used in such machinery is to handle the threat of oxidation. There is increased adoption of lower-viscosity engine oils in off-highway equipment to realize better fuel efficiencies and reduced warm-up times.
- With the increasing demand from various sectors in the country, engine oil consumption is expected to boost during the forecast period.
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Automotive Industry to Dominate the Market
- The automotive segment is the largest end-user market for lubricants in France. Light-duty vehicles include two-wheelers and passenger cars. Engine oils, gear oils, transmission oils, greases, and compressor oils are the most widely used lubricants. Lubricants have a good share in both the OEM and the aftermarket.
- Typical medium-duty trucks include utility, courier, package delivery trucks, ambulances, shuttle buses, school buses, and recreational vehicles. However, straight trucks continue to be the predominant medium-duty chassis.
- According to the International Organization of Motor Vehicle Manufacturers, France is one of the largest automotive vehicle production markets in Europe. In 2022, the country produced a total of 13,83,173 cars and commercial vehicles compared to 13,51,308 vehicles produced during 2021, recording an increase of 2%. High demand for vehicles indicates a significantly large market for automotive lubricants in the country.
- Furthermore, there have been significant investments in EV production in the country to meet this rising demand. Renault announced an investment of EUR 1 billion (~USD 1.09 billion) for three flagship EV sites (Flins, Cleon, and Maubeuge) and to introduce a new Alliance EV platform in Douai. This project aims to produce 400,000 electric vehicles annually by 2025. The growing demand and production of EVs is expected to increase the demand for lubricants in the country as proper lubrication is important for the battery's longevity in an EV.
- According to Avere France, the number of new battery electric passenger car registrations in the country in 2023 reached 328,512, registering a 49.5% increase over the previous year.
- Thus, the factors above are expected to impact the automotive industry, which, in turn, may affect the growth of the lubricant demand in the country.
