The global automotive engine oil market is anticipated to witness significant growth from 2016 to 2020 on account of the growing automotive industry. Automotive engine oil helps minimize friction and thus reduces the damage of automotive parts. The increase of the automobile service industry is also a major driver fueling the demand for the automotive engine oil.
Using engine oil provides several long-term benefits to the end-user, the reduced friction between automotive engine parts on account of using motor oil helps minimize wear & tears of the vehicle parts. It also reduced the adverse impact accumulated dust has on engine parts. Apart from these benefits it also seals gaps and prevents corrosion.
The automotive engine oil market is segmented into four variants by technology. It is divided into premium conventional engine oil which is used in two or three wheelers and small cars, fully synthetic engine oil which is used for high-tech cars as it provides the highest level of lubrication and engine protection, synthetic blend engine oil is used for SUVs and heavy-duty vehicles on account of their added oxidation resistance and low-temperature properties, and higher mileage engine oil used for SUVs and heavy motor vehicles as it restores engine compression and reduces viscosity loss.
Engine oil utilized in the automotive industry differ by their viscosity index, the engine size, and volume. Certain additives are added to maintain and improve the engine oils viscosity index.
The engine oil market by additives added is segmented into dispersants, friction modifiers, anti-wear agents, pour point depressants, foam inhibitors, and antioxidants.
The factors driving the automotive engine oil market are increasing middle-class population, infrastructural development, increasing mobility on account of urbanization and development of township projects, megacities, and satellite towns, increasing disposable income, growing aspiration of possessing a vehicle, and the demand for goods carrier from small and medium-sized enterprises.
North America is expected to occupy the largest market for automotive engine oil on account of the growing number of automobiles in the region. It is followed by Asia Pacific and Europe. The automotive engine oil market in North America is projected to grow by the number of vehicles the population owns.
Asia Pacific is expected to witness the highest growth rate in automotive engine oil market from 2016 to 2024 on account of increasing infrastructural development activities and increase in the number of passenger cars, especially in China. India, Malaysia, Thailand, and Philippines are anticipated to occupy a significant market share in the small car segment over the forecast period.
Other drivers that contribute to the growth of the automotive engine oil market are increased DIY (Do It Yourself) and DIFM (Do It For Me) culture, whereby vehicle owners either repair or service their automobile on their own or take it to a professional repair facility.
The growing automotive market in Europe and North America and improved standard of living in Asia Pacific is anticipated to drive further the growth of this market. Increasing demand for car-care products from vehicle owners and growing number of automobile servicing facilities is projected boost the automotive engine market.
The automotive engine oil market growth is expected to be hampered by the increasing supply of counterfeit motor oil products. Engine oil manufacturers spend huge amounts on building their brand identity; this brand identity is in turn used by counterfeiters to sell fake products. The growing supply of counterfeit goods in the market hampers the brand image and the revenue of authentic engine oil manufacturers.
The automotive engine oil market is governed by stringent rules and regulations concerned with the disposal of used oil. According to the EPA under the Federal Standards for Management of Used Oil, used oil should be recycled or burned for the restoration of energy. Used automotive engine oil market poses serious environmental threats due to the presence of petroleum base stocks that are toxic and difficult to dispose of after use.
Universal Lubricants, LLC, headquartered in Kansas, U.S., produces and distributes Synthetic Blend Motor Oil, a product called ECOULTRA (re-refined flagship product) in an easy-to-pour, heavy duty, flex-pack pouches which have earned tremendous acceptance in other countries and flourishing in the U.S. As it offers the consumers a faster, easier and cleaner way to change the oil and as the used oil is refined, it is anticipated that the demand for packaged engine oils would increase over the forecast period.
Major players in the automotive engine oil market are Total S.A, Saudi Arabian Oil Co., LUKOIL Oil Company, Royal Dutch Shell plc, Exxon Mobil Corporation, Gazprom, BP, Statoil, Chevron Corporation., Amsoil Inc., Pennzoil, Citgo Petroleum Corporation, Sinopec Lubricant Company, Castrol Limited, Jiangsu Lopal Company Limited, and Ashland Inc.
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