Automotive Engine Oil Market Size, Share & Trends Analysis Report By Product, By Application (Passenger Cars, Commercial Vehicles, Motorcycles), By Region, And Segment Forecasts, 2024 - 2030

Automotive Engine Oil Market Size & Trends

The global automotive engine oil market size was valued at USD 41.2 billion in 2023 and is projected to grow at a CAGR of 3.7% from 2024 to 2030. This growth is attributed to increasing automobile production and demand for synthetic and conventional engine oils. In addition, factors such as growing disposable income, urbanization, and technological advancements in engine design contribute to this growth. The need for high-performance oils also influences the market due to the implementation of turbocharged engines and stricter emission regulations. Furthermore, the expansion of the automotive aftermarket and the rising vehicle population in developing regions, particularly Asia Pacific, further propel market growth.

Automotive engine oil technology has been advancing with market trends on newer vehicles and technology by responding with products that fulfill the needs. Moreover, the innovations in hybrid cars from the past few years and modern engines have also experienced design modifications to improve engine performance, increase fuel economy, and help minimize emissions. Engine oil provides proper protection for engines. Hence, oils are formulated with a mixture of base oils and additives for particular applications.

In addition, the demand for engine oil primarily relies upon aspects such as quality, cost, and time taken in the supply chain. However, the main functions of engine oil are to reduce friction and wear, maintain the temperature of engine components, seal components to avoid leakage, prevent rust and corrosion, reduce shock from extreme pressure, and improve fuel economy. This resulted in the use of synthetic products by creating more opportunities for manufacturers to expand their business.

Furthermore, the increasing demand for enhanced-quality lubricants, increasing disposable income, and rising standard of living of the middle-class population and the robust development in the automotive sector by manufacturing and selling large volumes of motorcycles and vehicles in various around the globe have led to market growth in the forecast period. Many companies have a solid and integrated supply chain network. They are inclined to manufacture raw materials and engine oils as the final products for automotive engines. Companies are enhancing continuous research to maintain a consistent supply of raw materials and ascertain lower manufacturing costs for higher returns.

Product Insights

10W-60 oil dominated the market and accounted for the largest revenue share of 15.1% in 2023. 10W-60 motor oil is generally manufactured to provide optimal engine protection and performance in extremely harsh and high-temperature conditions. As modern engines are technically progressing, there’s a growing demand for engine oils that can improve operating conditions. Apart from this, 10W-60 oil is completely synthetic, with superior durability and viscosity. It’s ideal for high-performance vehicles, motorcycles, and heavy-duty applications. Finally, the increased use of passenger and commercial vehicles, particularly in emerging economies, propels the demand for specialized engine oils such as 10W-60.

0W-20 is expected to grow at a CAGR of 5.4% over the forecast period. The growth of the 0W-20 oil type in the automotive engine oil market is led by several key factors. The 0W-20 oils offer improved fuel economy and less carbon dioxide emissions due to their lower viscosity, which reduces friction compared to higher viscosity grades. The rise of hybrid vehicles has further boosted demand for 0W-20 oils, as most automotive companies require them in their latest hybrid internal combustion engine (ICE) vehicles. Therefore, fuel efficiency, government regulations, and hybrid adoption contribute to positive growth.

Application Insights

Passenger car dominated the market and accented for the largest revenue share of 51.3% in 2023. There is a continuous growth in the demand for passenger vehicles due to changes in customer preferences for this segment across the world over the past years which further drives the demand globally. Furthermore, rapid urbanization and increasing incomes of people are anticipated to boost the market of passenger vehicles. In addition, the demand for vehicles has increased as a result of leisure and tour activities. Furthermore, higher sales of cars and passenger vehicles and keeping maintenance and in better working condition fuels the demand for automotive engine oils

Motorcycles are expected to grow at a CAGR of 4.1% over the forecast period. In the current motorcycle industry, enhanced engine oil is crucial. Motorcycle engine oil not only safeguards the engine but also extends its protection to other critical components, including the transmission gears, clutch, and coupling. These elements all operate within the same lubricating environment. Furthermore, urbanization, rising customer aspirations for vehicle ownership, and increased demand for goods carriers from small and medium-sized businesses for various business purposes or individual use have positively influenced the motorcycle engine oil market.

Regional Insights

The automotive engine oil market in North America is expected to grow significantly over the forecast years. The market is divided into major categories, resulting in customers' various requirements for the maintenance of different vehicles and operating conditions in the region. These applications of automotive engine oils comprise a wide range of vehicles, such as passenger cars, light-duty trucks, heavy-duty vehicles, and off-road bikes.

U.S. Automotive Engine Oil Market Trends

The automotive engine oil market in the U.S. is projected to witness substantial growth owing to technological advancements and innovation, and it plays an important role in the market. Furthermore, developments such as high-performance engines, turbocharged systems, and electric vehicles with specialized engine oil formulations designed to address these specific requirements raise the market growth of automotive engine oil.

Asia Pacific Automotive Engine Oil Market Trends

Asia Pacific automotive engine oil market dominated the global market and accounted for the largest revenue share of 45.6% in 2023 driven by the presence of major automotive companies in countries such as China, India, and Japan with robust development of new formulations of automotive engine oils with higher quality performance has been developed and utilized widely in motorcycle, passenger, and commercial vehicle applications, boosting the automotive engine oil market.

The automotive engine oil market in China held a significant revenue share in 2023. This growth is attributed to the growing demand for passenger and commercial vehicles and the stringent government regulations regarding vehicular emissions concerns. In addition, a burgeoning vehicle population, increasing automotive production, and rising consumer demand for high-quality engine oils, particularly synthetic variants, contribute to greater vehicle ownership. Furthermore, urbanization and improved disposable incomes contribute to the growth of the market.

India automotive engine oil market is expected to grow significantly owing to the country’s economic growth, which is backed by evolving demographics. In addition, the growth in urbanization and a rising population inclined towards buying motorcycles, cars, SUVs, and other passenger vehicles are some of the factors boosting the high demand for vehicles in the country.

Middle East & Africa Automotive Engine Oil Market Trends

The automotive engine oil market in the Middle East and Africa is expected to grow at a CAGR of 3.9% over the projected years. This growth is driven by rising vehicle ownership, a growing automotive industry, and increasing regional industrialization. The expanding two-wheeler market in countries such as Egypt and South Africa further contributes to market growth. In addition, the need for high-performance lubricants due to the implementation of advanced engine technologies and stricter emission regulations is driving demand for synthetic and semi-synthetic engine oils. Furthermore, the market is also influenced by the expansion of the automotive aftermarket and the increasing focus on fuel efficiency and sustainability in the transportation sector.

Europe Automotive Engine Oil Market Trends

Europe automotive engine oil market has experienced significant growth in the forecast years. It is led by several factors, such as the broad use of engine oils in passenger and luxurious vehicles over the developed countries. Moreover, as passenger vehicle production recovers, demand for engine oils is expected to rise. Notably, Russia stands out as the largest market due to its fleet of commercial trucks and passenger vehicles.

The automotive engine oil market in the UK is expected to grow substantially over the forecast years. This growth is driven by the high utilization of engine oil in passenger vehicles, the expected recovery of motorcycle production and sales, the preference for energy-efficient lubricants, the demand for full synthetic engine oil, and the increasing automotive production and sales. All these factors contribute to the positive expansion of the UK automotive engine oil market.

Key Automotive Engine Oil Company Insights

Some of the key companies in the automotive engine oil market include Shell, CASTROL LIMITED, Petroliam Nasional Berhad, Repsol, Exxon Mobil Corporation., and BP p.l.c.in the market focusing on development & to gain a competitive edge in the industry.

• Valvoline manufactures and markets lubricants, grease, and automotive chemicals for passenger vehicle motor oil and automotive services. The company operates through a network of service centers in company-owned and franchised locations. Moreover, it is a prominent manufacturer of diesel engines and the largest exporter of engineering goods.

• Motul is a renowned French company specializing in high-performance automotive engine oils and lubricants. The company offers a comprehensive range of products, including fully synthetic and mineral oils, designed to enhance engine performance and longevity. Motul caters to various vehicles, from cars to motorcycles, emphasizing innovation and quality, making it a trusted name in both everyday automotive care and motorsport applications.

Recent Developments

• In April 2024, Shell Lubricants India launched an upgraded portfolio of Shell Advance motorcycle oils featuring limited-edition packaging with brand ambassador Shahid Kapoor. The new range includes the Shell Advance AX7 Synthetic Technology oil, which utilizes Flexi Molecule Technology for enhanced performance, and the AX5 premium mineral oil with improved Active Cleansing Technology. This initiative aligns with the brand's "Rukna Mushkil Hai" campaign, celebrating the spirit of passionate riders across India.

• In May 2024, PETRONAS announced a strategic collaboration with Sinopec to explore future opportunities to enhance growth and innovation in the energy sector. The memorandum of understanding focuses on sustainable development in commodity and specialty chemicals, LNG trading, and lubricants. This partnership dates back to 1997 and aims to support decarbonization efforts across various industries while ensuring a resilient energy supply in the Asia Pacific region.

Automotive Engine Oil Market Report Scope

Global Automotive Engine Oil Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and analyzes the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global automotive engine oil market report based on product, application, and region.

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • 0W-20

  • 0W-30

  • 0W-40

  • 5W-20

  • 5W-30

  • 5W-40

  • 10W-60

  • 10W-40

  • 15W-40

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Passenger Cars

  • Commercial Vehicles

  • Motorcycles

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Poland

    • Russia

    • Turkey

  • Asia Pacific

    • China

    • Japan

    • India

    • Indonesia

    • Malaysia

    • Vietnam

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Argentina

    • Colombia

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • South Africa

    • UAE

    • Oman

    • Kuwait

    • Qatar