GVR Report cover Automotive Engine Oil Market Size, Share & Trends Report

Automotive Engine Oil Market Size, Share & Trends Analysis Report By Grade, By Engine Type (Gasoline, Diesel, Alternative Fuel), By Vehicle Type (Passenger Cars, LCVs, Motorcycles), And Segment Forecasts, 2019 - 2025

  • Published Date: Jan, 2019
  • Base Year for Estimate: 2017
  • Report ID: GVR-3-68038-008-8
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 102

Industry Insights

The global automotive engine oil market size was valued at USD 35.67 billion in 2017 and is projected to expand at an estimated CAGR of 3.7% from 2018 to 2025. Increasing the production of automobiles and demand for 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 the growing population and consumer spending capacity.

Regardless of economic turbulence, the China engine lubes market is expected to witness a moderate CAGR. According to The Organisation Internationale des Constructeurs d'Automobiles (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.

U.S. automotive engine oil market

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 high demand all over the world. Whereas, synthetic lubes provide excellent protection and better performance for a longer period than conventional products. This factor is also likely to contribute to the market development.

The 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 antioxidants, anti-foaming agents, dispersants, and detergents, keep the engine clean and boost protection, 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.

Grade Insights

Based on grades, the market has been categorized into mineral, semi-synthetic, and synthetic. Conventional products will have moderate growth as they have a high viscosity, which might resist the sliding of lubricants between the moving parts.

Semi-synthetic lubes are engine-specific oils, which are specially manufactured by adding suitable additives and as per the specifications of vehicle manufacturers. Group 2 and Group 3 products are used in the manufacturing of semi-synthetic oils. Oil changing cycle for semi-synthetic is a little longer than the mineral-based products.

Fully-synthetic products were previously used only for race cars. These oils provide excellent protection from friction, wear, and tear, and operate smoothly at high temperatures and extreme weather conditions. These are majorly manufactured using Group 4 base oil, which contains very less amount of sulfur and other impurities. Consumer awareness of the advantages of using fully-synthetic lubes is driving the segment growth.

Vehicle Type Insights

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 the 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 the future, especially in Saudi Arabia due to the regional government’s initiatives attracting investors to build new infrastructure and production facilities.

Engine Type 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 the use of EVs through investment and incentive programs. It has also approved a ban on combustion engine vehicles by 2030. Alternative fuel engine oil demand in Germany is expected to increase with a CAGR of 3.7% over the forecasted period, which is higher than gasoline and diesel-fueled engine oils.

Global automotive engine oil market

The 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 the high fuel economy and lower carbon emissions. Diesel-fueled product demand in the U.S. is projected to expand at a CAGR of 2.7% by revenue over the forecasted period.

Regional Insights

The Asia Pacific is the dominant regional market owing to increasing product 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 contributed to the region’s 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 a 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 in Argentina and Columbia. More than half of the German branded cars in the Columbian market are manufactured in Brazil. Unlike the U.S., diesel engines and alternative fuel vehicles are very rare in Latin America, whereas, the automobile sector is led by gasoline and ethanol-fueled vehicles.

The market in the Middle East has got the hardest hit due to the 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 region’s growth. The market in Africa is led by second vehicles imported from developed countries. The overall contribution of the 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; Petroleum 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.

Report Scope



The base year for estimation


Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Volume in Kilotons, Revenue in USD Million, and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa

Country Scope

U.S., Canada, Germany, France, U.K., China, India, Japan, Brazil, Mexico, and Saudi Arabia

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments Covered in the Report

This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global automotive engine oil market report based on grade, engine type, vehicle type, and region:

  • Grade Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Mineral

    • Semi-synthetic

    • Fully-synthetic

  • Engine Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Gasoline

    • Diesel

    • Alternative Fuel

  • Vehicle Type Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • Passenger Cars

    • Light Commercial Vehicles

    • Heavy-Duty Vehicles

      • On-Highway Vehicle

      • Off-Highway Vehicle

    • Motorcycles

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S

      • Canada

    • Europe

      • Germany

      • France

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East & Africa

      • Saudi Arabia

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