GLOBAL AUTOMOTIVE LUBRICANT MARKET
Automotive lubricants are crucial as they reduce friction between moving parts and the heat generated through that friction. Thus, increasing the average life of an engine. The lubricants also help in improving the fuel efficiency of the vehicle and reduce the temperature by absorbing the heat generated. These factors have caused the increase in demand of automotive lubricants. This has driven the automotive lubricant industry to produce lubricants at immense rate. The rise in Electric Vehicle around the globe has evidently led to slight decline in the engine oil market. To know more about EV fluids Market, read our report.
Lubricants required for an automobile are:
- Engine oil
- Transmission fluid
- Brake fluid
By End Use
By Base Oil
- Mineral Oil
- Single Grade
- Multi Grade
By Vehicle Type
- Passenger Cars
- Commercial Vehicles
- 2-Wheeled Vehicles
Based on the type of lubricant used engine oil evidently holds the largest share in the market. Asia is the biggest automotive lubricant market in the automotive lubricant s. High population and highest number of two- wheelers are the major factors for this.
80% of market share is held by Aftermarket sales rather than that by OEM. It will continue to follow similar trend.
Based on the type of vehicle used, passenger cars drive the lubricant sales. Various factors responsible for this are high performance, fuel efficiency, need for reduced emissions from the engine, high resale value and increase the engine life. Commercial vehicles’ share edge past the 2 wheeler vehicle share in the global lubricant market. The below graphic shows the various automobiles’ share in lubricant market:
LUBRICANT MARKET BY REGION
US` share in the lubrication market is second biggest after Asia’s. Being one of the largest automobile markets in the world, US lubricant market is expected a steady growth in the coming years. Passenger cars and Commercial vehicles’ sales are helping the lubricant market growth in the US region. The extreme weather conditions in US have led to development of synthetic oil lubricants.
In Europe, Strict emission norms have lead to rapid rise in adoption of high performance engines. Thus, positively affecting the growth of lubricants. Synthetic and Semi-synthetic oils have been dominating lubricant market in Europe.
Asia is the key region in the lubricant market and holds the highest share of all the regions. China and India play crucial role in boosting the Asia’s lubricant market. Number of two and three wheelers in China, India and other South-East Asian countries such as Indonesia, Vietnam and Thailand is the major factor influencing lubricant market.
BY TYPE OF LUBRICANT USED
Based on the material used, mineral oil lubricant holds the largest market around the world. Mineral oil lubricants are economical and easily available, making it the leading lubricant among all. However, Synthetic and Semi-Synthetic oil lubricants are gaining prominence as they possess superior properties and perform at extreme weather conditions. Due to high price and high stress formed on engine after its extensive use have been holding people to use it.
MARKET SIZE AND FORECAST
Regular improvements in the oil quality and there has been a lot of investments in R&D sector to develop better quality synthetic and semi-synthetic oils would propel the lubricant market in the future.
Even though the BEVs and PHEVs hinder the growth of lubricants, there is an opportunity for lubricant market to find its foothold in EV lubricant market. Fluids made for BEVs and PHEVs must be electrically insulating. Since there are about 4x copper content in BEVs compared to ICE vehicle, the fluids used must be copper corrosion resistant.
The global automotive lubricant market is estimated at $XX Billion in 2020, growing at XX% CAGR till 2025.
- Gulf Oil has partnered with Pitstop to launch door step car service program in three Indian cities Mumbai, Pune and Gurugram.
- Renault India has formed a partnership with Castrol India to exclusively supply after sales engine oil lubricants.
- Tata Motors and Valvoline Cummins (VCPL) have launched the new segment of automobile lubricants for Tata motors vehicles under the name Tata Motors Genuine Oil.
- German speciality chemicals company Lanxess launched an organic lubricant additive for passenger car and high performance engine oils.
- Valvoline has launched a series of performance fluids for EV not only to extend battery life but also to improve overall performance.
Key Players in the Global Automotive lubricant market are Royal Dutch Shell from Netherlands, Chevron Corporation and ExxonMobil from US, Total S.A. from France, Castrol from England, PetroChina Company from China, Petronas from Malaysia. Some of the companies in Indian market are HP Lubricants, Valvoline and Gulf Oil.
- Royal Dutch Shell PLC
- PetroChina Company Ltd
- Chevron Corporation
- HP Lubricants
- Gulf Oil
- JXTG Nippon Oil & Energy