The global automotive engine oil market is projected to grow at a CAGR of 5.39% to reach US$12.866 billion by 2025, from US$9.391 billion in 2019. Engine oil is used to lubricate the internal combustion engine. Its basic function is to cool the engine, prevent the wear and tear, reduce friction on the moving parts and to clean the engine of sludge. Three types of engine oils commonly used for vehicles; synthetic, synthetic blend and conventional. There are increasing concerns regarding the faster deterioration of engine components due to wear and tear, which leads to a significant decrease in their life due to the usage of inferior quality lubricants and oils. This is encouraging people to use good quality engine oils to provide proper lubrication to limit the wear and tear, which has led to an increased demand for these products and is a factor that will drive the growth of the engine oil market.
Furthermore, the increasing investments and participation of market players in order to improve the quality of engine oils and to launch products that are more advanced is also going to bolster the market growth over the forecast period. For instance, recently on December 5th 2019, Valvoline Inc. a leading supplier of premium lubricants announced that they had developed engine oil Valvoline Hybrid Vehicle Full Synthetic motor oil which was specifically designed for hybrid vehicles and would be launched in 2020. In September 2019, Pennzoil a subsidiary under Shell, a leading oil and gas company announced the launch of 4 new motor oils; Pennzoil Extended Care, Pennzoil Start Stop Protection, Pennzoil Maximum Power and Pennzoil Hybrid. Pennzoil Start Stop Protection offers enhanced protection to engine during start/stop driving, Pennzoil Hybrid caters to the need of hybrid vehicles. Whereas Pennzoil Extended care increases the life of the component by increasing fuel economy and reducing the wear and tear.
The automotive engine oil market has been segmented based on type, engine type, vehicle type, sales channel and geography. By type, the market is segmented as synthetic, synthetic blend and conventional. By engine type, the market has been classified as petrol and diesel. By vehicle type, the market is segmented as passenger vehicle and commercial vehicle. By sales channel, the market has been segmented into online and offline.
Synthetic Oil is estimated to hold a significant market share
By type, synthetic oil is estimated to hold a significant share in the market. The right quality of engine oil is very important for the proper functioning of the engine thus preventing any deterioration of the engine components and to extend the life and fuel economy. Synthetic engine oils contains some additives, which can aid in the effective management of the engine and prolonging the life of components.
Petrol dominates the by engine type segment.
By engine type, petrol dominates the market owing to the fact that petrol cars are lighter, produce low emissions, have low maintenance cost and easier to drive as compared to diesel cars. Also, the cost of maintenance and acquisition of petrol cars is lower than diesel cars.
Passenger vehicles witnessing a surge in demand.
By vehicle type, passenger vehicles are projected to account for a significant share owing to the rising production of passenger vehicles coupled with rising demand for these vehicles due to increasing purchasing power of people.
Online sales are responsible for generating high revenues owing to the rising internet penetration across the globe.
By sales channel, online is expected to hold a significant share in the market, which is attributable to the increasing penetration of internet and people’s preference shifting towards ordering products line, which is associated with the high level of convenience it provides.
By geography, the Asia Pacific region hold a substantial market share owing to the increasing production of passenger vehicles and other vehicles in major economies such as China and India.
Some of the major players covered as a part of this report are Shell, Exxon Mobil Corporation, BP plc., and PETRONAS among others.
Frequently Asked Questions (FAQs)