Automotive Lubricants Market Analysis By Product (Engine Oil, Gear Oil, Transmission Fluids, Brake Fluids, Coolants and Greases), Competitive Insights, Strategic Framework, And Segment Forecasts, 2018 - 2025

Industry Insights

The global automotive lubricants market size was estimated at 22,858.5 kilo tons in 2016. Growing demand for lightweight and high performance vehicles in emerging economies such as China and India along with increasing disposable income across the globe is expected to be a key factor driving market growth. 

Engine oil is anticipated to witness rapid growth rate owing to increasing passenger cars per 1,000 populations, increasing mobility on account of urbanization, growing per capita income, growing aspiration of possessing a vehicle and the demand for goods carrier from small and medium-sized enterprises.

U.S. automotive lubricants market volume by product, 2014 - 2025 (Kilo Tons)

Engine oils are widely used to inhibit corrosion, wear & tear and reduce friction in engines. With a majority of engine run on diesel, there is a growing demand for motor oils with shear resistance and specified viscosity index. This trend is expected to complement the industry growth over the forecast period.

Lubricants are manufactured through base oil and additives which are derived from petroleum sources such as crude oil, shale oil, and CBM. These are further refined to produce mineral oils such as paraffinic oils, naphthenic oils, and aromatic oils. These oils in combination with additives give lubricants that find applications in automotive.

With depleting crude oil reserves, the market has witnessed a crunch in raw material supply. Major oil companies have started to focus on developing new refining techniques, and sources to overcome this obstacle. This trend has led to an establishment of patented refining technologies that are limited to established companies and their alliances. Shell, ExxonMobil, and Kendall have developed PurePlus, Mobil 1 and Liquid Titanium technologies for producing lubricating oils, principally motor oils.

The market is growing due to increasing demand for engine oils, brake fluids, and transmission fluids among both consumer and commercial automobiles. Increasing sales of motorcycles are also expected to further strengthen this growth over the forecast period. Shift in trend towards green derivatives is also expected to drive the market over the forecast period. Strong presence of regulatory associations, such as EPA and REACH, is also projected to help overall bio-based lubricants market.

Rising per capita income and increasing need for individualized transportation options has driven the sale of cars in several countries. OEMs are thus ramping up their production capabilities in order to meet growing regional and export demand. It has driven the demand for at the OEM level itself.

Product Insights 

On the basis of product, industry has been segmented into engine oil, gear oil, transmission fluids, brake fluids, coolants, and greases. Engine oil was the leading segment and accounted for over 54.5% of the overall revenue in 2016. Engine oil is widely used in passenger cars, diesel trucks, and light-duty trucks. It helps in maintaining viscosity, ensure dependability and reduce engine wear. It also contributes to keeping engine cool, prevents corrosion and cleans engine.

Automotive lubricants market volume by product, 2016 (%)

It is very crucial to use correct engine oil as per the vehicle’s requirement since using wrong oil can damage engine, burn more fuel as well as increase carbon emissions as well. Major industry players are involved in extensive R&D to develop innovative engine oils with higher performing additives.

China’s automotive industry has witnessed high growth rate in 2016, with total vehicle’s sales booming over 13% in comparison to 2015. Tax incentives on small-engine cars, which reduced to 10% to 5% played a crucial role in the industry growth. Rapidly expanding sales of electric and plug-in-hybrid vehicles across the region is another factor contributing significantly to automobile industry growth. These trends are further expected to propel engine oil demand in upcoming years.

Gear oil, on the other hand, is a high viscosity lubricant widely used to protect gear and ensure a smooth transfer of lubrication through the gear train. Major players such as ABRO Industries, Inc. have developed gear oils with high-quality base stocks to provide improved oxidation stability and longer service life. The oil exhibit various exceptional properties such as anti-foaming, corrosion as well as wear resistance of metals in vehicles. Additionally, gear oils are also utilized to provide superior performance by maximizing oxidation resistance, offering extended drain intervals, preventing gear scuffing and scoring as well as easing the start-up even in arctic conditions.

Brake fluids are fastest-growing product during the forecast period. It is a hydraulic fluid, widely utilized in hydraulic brake and clutch applications in automobiles. Primary function of a brake fluid helps in transmitting driver’s foot pressure on the brake pedal to lock friction material against the discs by providing an incompressible medium.

DOT3, DOT4, and DOT5 are main categories of brake fluids available in the U.S. market. Additionally, brake fluids are expected to meet certain characteristics for braking system to work properly, including high boiling point, constant viscosity, corrosion resistance and low level of compressibility

Regional Insights 

Asia Pacific was the leading region and accounted for over 43.9% of the total market revenue in 2016. Asia Pacific automotive industry is anticipated to witness high growth rate over the forecast period owing to rapid economic development, mega construction projects and an introduction of various favorable policies by the Government such as 100% FDI and “Smart Cities.”

Also, growing demand for high performance luxurious passenger cars has attracted massive investments from international auto players. Besides this, major industry players are also shifting their production facilities to highly lucrative Asia Pacific market owing to the presence of low-cost labor, ever-increasing demand, and favorable government policies.

North America accounted for over 19% of total market volume in 2016. North American market is mainly driven by rapid industrialization taking place in Mexico. Mexico has emerged a major automobile manufacturing hub since the last decade. Major U.S. based auto manufacturers have shifted their production bases to Mexico on account of relatively low manufacturing cost in the country. Developed markets of North America and Europe are also characterized by the growing demand for bio-lubricants.

Competitive Insights

The automotive lubricants industry is highly competitive and relatively concentrated, with top four companies accounting for the maximum share of the production in 2015. Some of the key market participants include ExxonMobil, Royal Dutch Shell, Total SA and British Petroleum. 

Report Scope 

Segments covered in the report

This report forecasts revenue growth for global automotive lubricants and provides an analysis of the industry trends in each of the segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the automotive lubricants market on the basis of product and region: 

• Product Outlook (Volume, Kilo Tons; Revenue, USD Million; 2014 - 2025)

  • Engine Oil

  • Gear Oil

  • Transmission Fluids

  • Brake Fluids

  • Coolants

  • Greases

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

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa