Synthetic Lubricants Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Synthetic Lubricants Market Report Segments the Industry by Product Type (Engine Oils, Transmission and Gear Oils, Hydraulic Fluids, and More), by Base Oil (Polyalpha-Olefin (PAO), Esters, Polyalkylene Glycol (PAG), and More), by End User (Power Generation, Automotive, Heavy Equipment, and More), and Geography (Asia-Pacific, North America, Europe, and More). The Market Forecasts are Provided in Terms of Volume (Liters).

Synthetic Lubricants Market Size and Share

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Synthetic Lubricants Market Analysis by Mordor Intelligence

The Synthetic Lubricants Market size is estimated at 5.08 Billion liters in 2025, and is expected to reach 8.18 Billion liters by 2030, at a CAGR of 10% during the forecast period (2025-2030). Rising demand for lower-viscosity engine oils, accelerated regulatory pressure on fuel economy, and the rapid adoption of high-performance fluids across automated manufacturing lines are the principal growth engines. The synthetic lubricants market is also benefiting from the introduction of the ILSAC GF-7 specification, effective March 2025, which compels automakers and service networks to shift toward advanced PAO and PAG-based formulations. Continuous investments in metallocene PAO capacity, together with product launches tuned for new API and ACEA categories, reinforce supply security and spur formulation innovation. Against this backdrop, Asia-Pacific maintains leadership on both consumption and growth, aided by China’s large manufacturing base and India’s recovering vehicle parc.

Key Report Takeaways

  • By product type, engine oils retained 34.58% of the synthetic lubricants market share in 2024, whereas metalworking fluids are projected to grow the fastest at an 11.15% CAGR to 2030. 
  • By base oil, Polyalpha-Olefin (PAO) held 46.15% of the synthetic lubricants market share in 2024; Polyalkylene Glycol (PAG) is forecast to expand at an 11.31% CAGR through 2030. 
  • By end user, automotive applications accounted for 36.07% of the synthetic lubricants market size in 2024, while heavy equipment is poised to post a 10.82% CAGR to 2030. 
  • By geography, Asia-Pacific commanded 40.27% of the synthetic lubricants market in 2024 and is advancing at an 11.03% CAGR to 2030.

Segment Analysis

By Product Type: Engine Oils Lead Despite EV Headwinds

Engine oils captured 34.58% of the synthetic lubricants market in 2024 by volume, a position protected by the vast installed base of internal-combustion vehicles and the superior longevity synthetics deliver. Transmission and gear oils follow as the second-largest category because automated manufacturing lines and wind turbines both require high-load, clean-running formulations. Hydraulic fluids benefit from a construction upswing and robotics integration, supplying stable viscosity across wide temperature spreads. Greases remain indispensable in aerospace actuators and heavy machinery joints where drip-free lubrication is vital. Metalworking fluids, though holding a smaller volume share, advance at the fastest 11.15% CAGR as precision machining and additive manufacturing mature. 

The segment outlook is shaped by ILSAC GF-7 and API SQ, both of which reduce permissible wear and LSPI occurrence. This shift favors premium synthetics that can sustain longer drains, reducing workshop visits, and oil disposal. Furthermore, metalworking fluids with low mist and high flash points mitigate occupational hazards, leading factories to migrate to synthetic ester-and-PAG systems. Together, these trends ensure that the synthetic lubricants market size for fluids beyond engine oils will expand steadily through 2030.

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Note: Segment shares of all individual segments available upon report purchase

By Base Oil: PAO Dominance Faces PAG Challenge

Polyalphaolefins occupied 46.15% of the synthetic lubricants market in 2024 because OEMs endorse their balanced cold-flow and high-temperature capability. ExxonMobil’s SpectraSyn MaX shows how metallocene catalysts enable ultra-low volatility, improving fuel economy in 0W-16 and thinner grades. Ester-based stocks retain a foothold in aviation, where flashpoint and elastomer compatibility matter, while Group III and GTL synthetics gain share thanks to lower cost and wider availability. 

PAG base oils are scaling quickly at an 11.31% CAGR, propelled by electric-vehicle driveline and compressor requirements. Superior thermal conductivity and sludge-free oxidation products grant PAG fluids an edge in compact e-motors and direct-drive compressors. Chevron Phillips Chemical’s upgraded Kingwood R&D center, opened 2024, underlines incumbent commitment to innovation in conventional PAO even as PAG rises. The interplay between PAO enhancements and PAG penetration will define competitive positioning over the forecast horizon, ensuring the synthetic lubricants industry focuses equally on legacy and emerging chemistries.

By End User: Automotive Leads While Heavy Equipment Accelerates

Automotive applications represented 36.07% of the synthetic lubricants market size in 2024, anchored by OEM factory-fill programs and an aftermarket that increasingly insists on full synthetics for warranty compliance. Heavy equipment, from articulated dump trucks to hydraulic excavators, is the star performer with a 10.82% CAGR. Caterpillar, for instance, treats fluids as engineered components of the drivetrain, driving demand for premium TO-4 and FD-1-compliant synthetics that extend overhaul intervals [2]Caterpillar Inc., “Fluids & Filters: Engineered System Components,” caterpillar.com

Power generation consumes rising volumes of ester-and-PAO turbine oils as offshore wind buildouts proliferate, while metallurgy and precision machining employ metalworking fluids that stabilize tooling temperatures and reduce scrap. Data centers are an emerging niche, adopting synthetic dielectric fluids for immersion cooling, although current volumes remain modest relative to automotive and heavy machinery. Overall, the heavy-equipment surge offsets engine-oil erosion in electrifying passenger cars, keeping the synthetic lubricants market on a clear upward path.

Synthetic Lubricants Market: Market Share by End-User Industry
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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia-Pacific held 40.27% of the synthetic lubricants market in 2024, with a 11.03% CAGR outlook. China’s re-acceleration in advanced manufacturing, together with India’s double-digit vehicle sales rebound, underpins regional consumption. New blending plants in coastal China, such as Quaker Houghton’s Zhangjiagang facility scheduled for 2026, illustrate suppliers’ determination to localize supply for high-growth sectors. Japan sustains demand for high-grade factory fills, while Southeast Asian economies ramp up industrial output, widening the customer base.

North America ranks second in volume and remains a technology bellwether. EPA 2026 rules and API’s category pipeline push formulators into next-generation additive chemistry. The United States also dominates supply of high-viscosity PAO thanks to extensive propylene infrastructure, although propylene tightness predicted for mid-2025 could test margins. Canada’s oil sands and mining fleets, plus Mexico’s automotive export platforms, add stable demand pockets that rely on synthetic lubricants for uptime and warranty assurance.

Europe preserves its premium positioning through stringent environmental legislation and advanced OEM technical standards. Euro 7 compels lower viscosities and stronger aftertreatment compatibility, pushing adoption of ester-enhanced formulations in both light- and heavy-duty fleets. The North Sea offshore wind corridor and the Iberian Peninsula’s emerging renewable clusters require fill-for-life gearbox oils that tolerate brine exposure, widening scope for high-value PAG and PAO blends. Eastern Europe’s industrial base further diversifies demand as automation investments accelerate. The Middle East and Africa, while smaller, show a gradual shift from mineral to synthetic as Gulf petrochemical hubs and South African mines target longer drain intervals in harsh climates.

Synthetic Lubricants Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The synthetic lubricants market is partially consolidated with the presence of major players, such as Exxon Mobil Corporation, Chevron Corporation, Shell plc, TotalEnergies, and BP p.l.c. (Castrol). Shell's 18-year consecutive leadership in global lubricants demonstrates the importance of scale and brand recognition in this industry. ExxonMobil expanded metallocene PAO capacity at Baytown to secure feedstock and shorten development cycles, while Chevron Oronite moves upstream into next-generation dispersant and antiwear chemistries. TotalEnergies pioneers water-based e-fluids with lower carbon footprints. Strategic partnerships between lubricant majors and OEMs, such as Shell’s multi-year alliance with BMW, extended in 2025, lock in factory-fill volumes while guaranteeing joint product development roadmaps.

Synthetic Lubricants Industry Leaders

  1. Chevron Corporation

  2. Shell plc

  3. Exxon Mobil Corporation

  4. TotalEnergies

  5. BP p.l.c. (Castrol)

  6. *Disclaimer: Major Players sorted in no particular order
Synthetic Lubricants Market Concentration
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Recent Industry Developments

  • March 2025: Shell launched Shell Advance Ultra full-synthetic motorcycle oil meeting the new API SP standard, utilizing PurePlus Technology to enhance engine performance and reduce evaporation while improving fuel economy for two-wheeler applications.
  • November 2024: Valvoline launched its first premium full synthetic gear oil, Valvoline Extended Protection, claiming four times the gear wear protection compared to conventional products and featuring anti-foam agents and friction modifiers

Table of Contents for Synthetic Lubricants Industry Report

1. Introduction

  • 1.1 Study Assumptions & Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Increasing Usage of High-Performance Synthetic Engine Oils in the Automotive Aftermarket
    • 4.2.2 Stringent Emission & Fuel-Economy Regulations
    • 4.2.3 Growth in Industrial Automation Demanding Advanced Hydraulic & Gear Oils
    • 4.2.4 Rapid Expansion in Aerospace & Defence Requiring Synthetic Turbine Oils
    • 4.2.5 Surge in Offshore Wind Installations Boosting Long-Drain Synthetic Gearbox Oils
  • 4.3 Market Restraints
    • 4.3.1 Higher Upfront Cost Versus Mineral Oils
    • 4.3.2 Growing Electric-Vehicle Fleet Reducing Demand for Engine Oils
    • 4.3.3 Volatility in Polyalphaolefin (PAO) Feed-Stock Supply
  • 4.4 Value Chain Analysis
  • 4.5 Porter's Five Forces Analysis
    • 4.5.1 Bargaining Power of Suppliers
    • 4.5.2 Bargaining Power of Buyers
    • 4.5.3 Threat of New Entrants
    • 4.5.4 Threat of Substitute Products
    • 4.5.5 Degree of Competition

5. Market Size & Growth Forecasts (Volume)

  • 5.1 By Product Type
    • 5.1.1 Engine Oils
    • 5.1.2 Transmission and Gear Oils
    • 5.1.3 Hydraulic Fluids
    • 5.1.4 Metalworking Fluids
    • 5.1.5 Greases
    • 5.1.6 Other Product Types (General Industrial Oils, etc.)
  • 5.2 By Base Oil
    • 5.2.1 Polyalpha-olefin (PAO)
    • 5.2.2 Esters
    • 5.2.3 Polyalkylene Glycol (PAG)
    • 5.2.4 Group III / GTL-derived Synthetic
    • 5.2.5 Others (Alkylated Naphthalene, etc.)
  • 5.3 By End User
    • 5.3.1 Automotive
    • 5.3.2 Power Generation
    • 5.3.3 Heavy Equipment
    • 5.3.4 Metallurgy and Metalworking
    • 5.3.5 Other End-user Industries (Oil and Gas, Marine, Data-centres, etc.)
  • 5.4 By Geography
    • 5.4.1 Asia-Pacific
    • 5.4.1.1 China
    • 5.4.1.2 India
    • 5.4.1.3 Japan
    • 5.4.1.4 South Korea
    • 5.4.1.5 Malaysia
    • 5.4.1.6 Indonesia
    • 5.4.1.7 Thailand
    • 5.4.1.8 Vietnam
    • 5.4.1.9 Rest of Asia-Pacific
    • 5.4.2 North America
    • 5.4.2.1 United States
    • 5.4.2.2 Canada
    • 5.4.2.3 Mexico
    • 5.4.3 Europe
    • 5.4.3.1 Germany
    • 5.4.3.2 United Kingdom
    • 5.4.3.3 France
    • 5.4.3.4 Italy
    • 5.4.3.5 Russia
    • 5.4.3.6 NORDIC Countries
    • 5.4.3.7 Turkey
    • 5.4.3.8 Rest of Europe
    • 5.4.4 South America
    • 5.4.4.1 Brazil
    • 5.4.4.2 Argentina
    • 5.4.4.3 Colombia
    • 5.4.4.4 Rest of South America
    • 5.4.5 Middle East and Africa
    • 5.4.5.1 Saudi Arabia
    • 5.4.5.2 United Arab Emirates
    • 5.4.5.3 Qatar
    • 5.4.5.4 Egypt
    • 5.4.5.5 South Africa
    • 5.4.5.6 Nigeria
    • 5.4.5.7 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products & Services, Recent Developments)
    • 6.4.1 Shell plc
    • 6.4.2 Exxon Mobil Corporation
    • 6.4.3 BP p.l.c. (Castrol)
    • 6.4.4 Chevron Corporation
    • 6.4.5 TotalEnergies
    • 6.4.6 Valvoline Global Operations (Saudi Aramco)
    • 6.4.7 China Petrochemical Corporation (Sinopec)
    • 6.4.8 PETRONAS Lubricants International
    • 6.4.9 FUCHS SE
    • 6.4.10 ENEOS Corporation
    • 6.4.11 Indian Oil Corporation Ltd
    • 6.4.12 AMSOIL Inc.
    • 6.4.13 Idemitsu Kosan Co.,Ltd.
    • 6.4.14 Gazpromneft-Lubricants Ltd.
    • 6.4.15 LUKOIL
    • 6.4.16 Phillips 66 Company
    • 6.4.17 Suncor Energy Inc.
    • 6.4.18 Quaker Chemical Corporation
    • 6.4.19 Repsol
    • 6.4.20 Motul

7. Market Opportunities & Future Outlook

  • 7.1 White-space & Unmet-need Assessment
  • 7.2 Growing Adoption of Bio-lubricants
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Global Synthetic Lubricants Market Report Scope

Synthetic lubricants are chemically engineered lubricants derived from pure chemicals, unlike conventional lubricants refined from crude oil. These lubricants do not contain nitrogen, sulfur, or any other harmful elements that lead to sludge formation and, thereby, damage the engine or machine.

The synthetic lubricants market is segmented by product type and end-user industry. By product type, the market is segmented into engine oils, transmission and gear oils, hydraulic fluids, metalworking fluids, greases, and other product types (general industrial oils, etc.). By end-user industry, the market is segmented into power generation, automotive, heavy equipment, metallurgy and metalworking, and other end-user industries (oil and gas, etc.). The report offers market size and forecasts for 26 countries across major regions. For each segment, market sizing and forecasts are done on the basis of volume (liters) for all the above segments.

By Product Type Engine Oils
Transmission and Gear Oils
Hydraulic Fluids
Metalworking Fluids
Greases
Other Product Types (General Industrial Oils, etc.)
By Base Oil Polyalpha-olefin (PAO)
Esters
Polyalkylene Glycol (PAG)
Group III / GTL-derived Synthetic
Others (Alkylated Naphthalene, etc.)
By End User Automotive
Power Generation
Heavy Equipment
Metallurgy and Metalworking
Other End-user Industries (Oil and Gas, Marine, Data-centres, etc.)
By Geography Asia-Pacific China
India
Japan
South Korea
Malaysia
Indonesia
Thailand
Vietnam
Rest of Asia-Pacific
North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Russia
NORDIC Countries
Turkey
Rest of Europe
South America Brazil
Argentina
Colombia
Rest of South America
Middle East and Africa Saudi Arabia
United Arab Emirates
Qatar
Egypt
South Africa
Nigeria
Rest of Middle East and Africa
By Product Type
Engine Oils
Transmission and Gear Oils
Hydraulic Fluids
Metalworking Fluids
Greases
Other Product Types (General Industrial Oils, etc.)
By Base Oil
Polyalpha-olefin (PAO)
Esters
Polyalkylene Glycol (PAG)
Group III / GTL-derived Synthetic
Others (Alkylated Naphthalene, etc.)
By End User
Automotive
Power Generation
Heavy Equipment
Metallurgy and Metalworking
Other End-user Industries (Oil and Gas, Marine, Data-centres, etc.)
By Geography
Asia-Pacific China
India
Japan
South Korea
Malaysia
Indonesia
Thailand
Vietnam
Rest of Asia-Pacific
North America United States
Canada
Mexico
Europe Germany
United Kingdom
France
Italy
Russia
NORDIC Countries
Turkey
Rest of Europe
South America Brazil
Argentina
Colombia
Rest of South America
Middle East and Africa Saudi Arabia
United Arab Emirates
Qatar
Egypt
South Africa
Nigeria
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the current size of the synthetic lubricants market?

The synthetic lubricants market size is estimated at 5.08 billion liters in 2025 and is projected to reach 8.18 billion liters by 2030, reflecting a 10.0% CAGR.

Which product segment leads the synthetic lubricants market?

Engine oils lead with 34.58% market share in 2024, driven by the installed base of internal-combustion vehicles and extended drain intervals.

How fast is the Asia-Pacific region growing?

Asia-Pacific is expanding at an 11.03% CAGR through 2030, the fastest among all regions, underpinned by manufacturing and automotive growth.

What impact will electric vehicles have on lubricant demand?

EV adoption will reduce engine-oil volumes, especially in Europe and North America, yet opens new demand for e-transmission fluids and thermal management lubricants, keeping overall value growth positive.

Why are synthetic lubricants more expensive than mineral oils?

They use chemically engineered base stocks such as PAO, PAG and esters plus advanced additive systems, which cost more to formulate but deliver longer service life and energy savings that offset the higher upfront price over time.

Page last updated on: July 11, 2025

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