The global automotive engine oil market is set to gain momentum from the increasing demand for lower viscosity motor oil as they are capable of enhancing the fuel economy. Many OEMs have also begun recommending these types of oils to enhance performance. Fortune Business Insights™
Drivers & Restraints-
The market is anticipated to be affected positively owing to the increasing demand for synthetic automotive engine oil. It is mainly considered to be a replacement for mineral based engine oil. This type of oil is experiencing high demand from the developed regions, such as Europe and North America. It consists of chemically similar properties that of mineral based oil. Synthetic engine oil is capable of extending oil change intervals, decreases oil consumption, and enhances fuel economy. It is also less likely to oxidize, is not volatile, and is resistant to temperature change. However, increasing sustainability issues for the companies to exist in the highly competitive market may hamper the automotive engine oil market growth during the forthcoming period.
The automotive engine oil market encompasses a wide range of products designed to lubricate and protect internal combustion engines in vehicles. This market is influenced by various factors such as the automotive industry's growth, technological advancements, environmental regulations, and consumer preferences.
Key trends and factors driving the automotive engine oil market include:
- Increasing Vehicle Sales: As the number of vehicles on the road continues to rise, there is a corresponding increase in the demand for engine oil.
- Growing Automotive Industry: Emerging markets, particularly in Asia-Pacific and Latin America, are experiencing rapid industrialization and urbanization, leading to increased vehicle ownership and thus, demand for engine oil.
- Technological Advancements: Engine oil formulations are continuously evolving to meet the requirements of modern engines, which are becoming more efficient and sophisticated. This includes the development of synthetic and semi-synthetic oils with improved performance characteristics.
- Environmental Regulations: Stringent emissions and fuel economy regulations are pushing automotive manufacturers to develop engines that are more fuel-efficient and produce fewer emissions. Engine oils are also being developed to meet these requirements, such as low-viscosity oils that reduce friction and improve fuel economy.
- Consumer Awareness: Consumers are becoming increasingly aware of the importance of using high-quality engine oil for optimal engine performance and longevity. This awareness is driving demand for premium and synthetic engine oils.
- Rise of Electric Vehicles (EVs): While EVs do not require traditional engine oil, their increasing popularity could have an indirect impact on the engine oil market. However, internal combustion engine vehicles are expected to remain dominant for the foreseeable future, sustaining demand for engine oil.
- Maintenance Practices: Proper maintenance, including regular oil changes, is essential for the longevity and performance of vehicles. This ensures a steady demand for engine oil, particularly in aftermarket sales.
Segment-
In terms of engine type, the market is segregated into alternative fuels, petrol, and diesel. Out of these, the diesel segment procured 43.38% automotive engine oil market share in 2018. This growth is attributable to the cost-effective nature of diesel engines, as compared to the petrol ones. Also, these are approximately 40% more efficient than the petrol engines because they possess more energy. The combustion process reduced the emission of carbon dioxide and is efficient.
Fortune Business Insights™ lists out the names of all the organizations present in the automotive engine oil market. They are as follows:
- ExxonMobil Corporation
- Valvoline, Inc.
- Fuchs Petrolub SE
- Castrol
- Royal Dutch Shell plc
- RelaDyne
- Pentagon Lubricants Private Limited
- HINDUJA GROUP
- Chevron Corporation
- Total S.A.
- Other players
