Automotive Engine Oil Market Size, Industry Trends Analysis 2020, & Forecast 2021-2026 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Automotive Engine Oil Market


The global Automotive Engine Oil market size is projected to reach US$ 49.47 billion by 2026, from US$ 39.78 billion in 2020, at a CAGR of 3.7% during 2021-2026. Increasing production of automobiles and demand for the conventional and synthetic products are the key factors driving this industry. Automotive vehicle sales have shown a constant rise over the past few years, mainly in the Asia Pacific and Europe regions, as a result of growing population and consumer spending capacity.

Regardless of economic turbulence, China engine lubes market is expected to witness a moderate CAGR. According to The Organisation Internationale des Constructeurs dAutomobiles (OICA), automotive vehicle production of China in 2017 was 29,015,434 units, showing a 3.19% rise. Brazil is one of the primary vehicle manufacturers in the Latin America region. In Eastern Europe and Central Asia region, Russia accounts for more than 80% of automotive vehicle demand supported by a high population base of the country.

With slow economic recovery and government subsidies for car loans and leasing, it is expected to witness a rise in sales. Conventional oil is much cheaper as compared to modern lubes. Hence it has a high demand all over the world. Whereas, synthetic lubes provide excellent protection and better performance for a longer period of time than conventional products. This factor is also likely to contribute to the market development.

Performance of the conventional products in cold and extreme weather conditions is very poor, whereas synthetic lubes show excellent functioning and have a uniform molecular size that reduces friction between engine components. Various engine oil additives, such as anti-oxidants, anti-foaming agents, dispersants, and detergents, keep the engine clean and boostprotection, thereby offering maximum durability and performance longevity.
In the further development of vehicle engines, synthetic engine oil is projected to play a crucial role. Consumer awareness for fuel-efficiency and high-performance variants are expected to create lucrative opportunities for the manufacturers in the industry. Synthetic oil performs smoothly at a high operating temperature, which is a major reason for OEMs to manufacture turbocharged vehicle engines.

Market Segmentation, Outlook & Viewpoint: Global Automotive Engine Oil Market

Grade Market Segmentation & Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  
Mineral
  
Semi-synthetic
  
Fully-synthetic

Engine Type Market Segmentation & Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  
Gasoline
  
Diesel
  
Alternative Fuel

Vehicle Type Market Segmentation & Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

Passenger Cars

Light Commercial Vehicles

Heavy Duty Vehicles

  
On-Highway Vehicle
  
Off-Highway Vehicle

Motorcycles

Key Players, Recent Developments & Regional Insights: Global Automotive Engine Oil Market

Increasing efforts and heavy investments in R & D and rising production of various Light Commercial Vehicles (LCVs) are expected to propel the segment growth over the forecast period. However, demand for LCVs in Middle East is expected to be lower. Most of the regional market is expecting a decline, as oil-producing economies are affected by low crude oil prices. The heavy-duty truck segment is likely to witness a steady rise in future, especially in Saudi Arabia due to the regional governments initiatives attracting investors to build new infrastructure and production facilities.

Engine Insights

European countries are focusing on the development of new diesel engines to increase fuel efficiency and reduce carbon emissions. Moreover, hybrid and Electric Vehicle (EV) manufacturers are continuously conducting R & D for the development of new models. The government in Germany is supporting manufacturing and encouraging use of EVs through investment and incentive programs. It has also approved for a ban on combustion engine vehicles by 2030. Alternative fuel engine oil demand in Germany is expected to increase with CAGR of 3.7% over the forecasted period, which is higher than gasoline and diesel-fueled engine oils.

U.S. has the presence of most of the prominent companies, such as Pennzoil, Valvoline, ExxonMobil, and Castrol. Diesel-fueled engines are highly used for LCVs and heavy-duty vehicles across the nation due to high fuel economy and lower carbon emissions. Diesel-fueled produc demand in U.S. is projected to expand at a CAGR of 2.7% by revenue over the forecasted period.

Regional Insights

Asia Pacific is the dominant regional market owing to increasing produxt demand from developing economies, such as India, Thailand, and Vietnam. Improved product quality and performance due to stringent regulations by the Society of Automotive Engineers (SAE) and American Petroleum Institute (API) have also contribute to the regions growth. On the other hand, E-Mobility has come into the picture in several countries of Europe, which is the intervention of battery-driven EVs.

Moreover, synthetic variant, which offers longer fuel change cycle, is highly consumed in the region resulting in a moderate drop in the demand. Which, in turn, will affect the overall market in the region. In Latin America, Brazil is the largest car exporter to Argentina and Columbia. More than half of the German branded cars in Columbian market are manufactured in Brazil. Unlike U.S., diesel engine and alternative fuel vehicles are very rare in Latin America, whereas, automobile sector is led by gasoline and ethanol-fueled vehicles.

The market in Middle East has got the hardest hit due to fall in petroleum prices. However, increasing investments from international companies may boost the regional market. Recently, Saudi Arabia removed the ban on women to drive commercial vehicles, which is anticipated to complement the regions growth. The market in Africa is led by second vehicles imported from developed countries. The overall contribution of African region in the global vehicle manufacturing sector is very small.

Automotive Engine Oil Market Share Insights

Some of the key industry participants are ExxonMobil Corp.; Royal Dutch Shell PLC; Valvoline, Inc.; Castrol; Petroliam Nasional Berhad (PETRONAS); Fuchs Petrolub SE; ENI GmbH; Sinopec Petroleum & Chemical Corp.; and Motul. Most of these companies have integrated their supply chain.

Moreover, they focus on the development of new additives, such as Nanometric Tungsten Disulphide powder, which is used along with detergents, dispersants, and metal deactivators to provide a protective layer and reduce friction.
The threat of new entrants is relatively low as it requires huge capital investment and extensive research on developing a product. Moreover, primary raw material sources are acquired by national companies where suppliers have the highest bargaining power.

Key Insights Covered: Global Automotive Engine Oil Market
1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Automotive Engine Oil industry.
2. Global major manufacturers operating situation (sales, revenue, growth rate and gross margin) of Automotive Engine Oil industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Automotive Engine Oil industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Automotive Engine Oil industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Automotive Engine Oil industry.

Research Methodology: Global Automotive Engine Oil Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other