Automotive Lubricant Market - Snapshot
Automotive lubricants are predominantly utilized to reduce friction and enable smooth functioning of a vehicle. They are also used for transfer of heat, transmission of power, and protection against corrosion and rust.
Rise in number of on-road vehicles is a major driver of the automotive lubricant market. Rising dependency on private transport, economic stability, and increasing consumer affordability are boosting the usage of vehicles, which in turn is driving the demand for automotive lubricant. The average age of vehicles has increased to 11 years. Presence of ageing vehicle fleet improves the maintenance scope, thus driving the automotive lubricant market. OEM recommendation on usage of quality lubricants, such as synthetic/ semi-synthetic oil as they offer better lubrication than mineral oil, is expected to boost the demand for quality lubricants. Rise in consumer awareness and affordability is driving the usage of high quality lubricants, thus boosting the market of automotive lubricant. Government bodies are establishing minimum performance standards for lubricants in order to control rising emissions. Thus, prompting the utilization of low viscosity lubricants such as synthetic / semi-synthetic oil. Synthetic / Semi-synthetic oil has longer drain intervals as compared to mineral oil and hence, are being increasingly preferred by consumers. Moreover, synthetic/semi-synthetic oils account for a higher share of the market share, in terms of revenue, as these oils are more expensive than the mineral oils.
Rising sales of electric vehicles is expected to decline the consumption of automotive lubricant. Battery electric vehicles eliminate the need for engine oil due to the absence of the IC engine. Furthermore, electric vehicles have fewer reciprocating parts and hence, rising adoption of electric vehicles is expected to hamper the automotive lubricant market.
The global automotive lubricant market has been segmented based on product type, base oil, vehicle type, sales channel, and region.
Based on product type, the global automotive lubricant market has been classified into mineral oil, synthetic/ semi-synthetic oil, & bio-based oil. The synthetic/ semi-synthetic oil segment is anticipate to expand at a high growth rate during the forecast period owing to the rise in demand for quality lubricant and increase in stringency in emission norms. The bio-based oil segment accounted for a relatively minor share of the global automotive lubricant market. Performance challenges and their high price have hampered the segment. However, rise in the number of researches adopting bio-based oil on a large-scale, in order to find crude alternatives, is expected to propel the segment during the forecast period.
In terms of base oil, the global automotive lubricant market has been bifurcated into engine oil, manual transmission fluid, and automatic transmission fluid. The engine oil segment held a dominant share of the market share in 2017 due to its low drain interval time. Engine oil is generally replaced at 10,000 to 15,000 miles and hence, corresponds to high demand. Growing preference for automatic transmission among consumers is boosting penetration of automatic transmission, such as dual clutch transmission, continuously variable transmission, and torque converters. Thus, the automatic transmission fluid segment is projected to expand considerably during the forecast period.
Based on region, the automotive lubricant market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is expected to dominate the global automotive lubricant market owing to the rise in usage of vehicles in the region. Latin America is also witnessing rapid economic growth and hence, rise in sales of light vehicles and heavy vehicles in the region is boosting the automotive lubricant market in Latin America.
Key players operating in the global automotive lubricant market include Royal Dutch Shell plc, ExxonMobil Corporation, BP p.l.c., Chevron Corporation, Total S.A.., Sinopec Corporation, Fuchs Lubricants Co., LUKOIL, Phillips 66 Company, Valvoline LLC, Repsol S.A., JXTG Nippon Oil & Energy Corporation, Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited, Petrobras, and Morris Lubricants. The automotive lubricant market was being earlier dominated by national oil & gas companies; however, the market is witnessing increased penetration of independent private companies.
Automotive Lubricant Market - Overview
The global automotive lubricant market has been forecasted for the period from 2018 to 2026, based on value (US$ Bn) and volume (million tons). This report provides forecast and analysis of the global automotive lubricant market at regional and global levels. The study highlights the drivers and restraints influencing the market. The report also highlights the opportunities in the global automotive lubricant market and underlines the technological roadmap for understanding the market.
The report contains value chain analysis, which provides a comprehensive view of the global automotive lubricant market. The Porter’s Five Forces analysis of the automotive lubricant market has also been included that helps understand the competitive scenario of the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and attractiveness.
The study provides a decisive view of the global automotive lubricant market by segmenting it in terms of product Type, base oil, sales channel, vehicle, and region. These segments have been analyzed based on present and future trends. Regional segmentation comprises current scenario along with forecast of the automotive lubricant market. The forecast provided is based on the compilation of current trends as well as the expected scenario in future due to change in technological, geographical, political, regulatory, and economic factors such as the rapid rise in number of vehicles. Demand for automotive lubricants among consumers and government regulations have been considered while sizing the market.
The study includes profiles of major companies operating in the global automotive lubricant market. The major share of the market is held by a few key players, and the rest is fragmented among medium-scale manufacturers. Major players operating in the global automotive lubricant market include Royal Dutch Shell plc, ExxonMobil Corporation, BP p.l.c., Chevron Corporation, Total S.A.., Sinopec Corporation, Fuchs Lubricants Co., LUKOIL, Phillips 66 Company, Valvoline LLC, Repsol S.A., JXTG Nippon Oil & Energy Corporation, Bharat Petroleum Corporation Limited, Indian Oil Corporation Limited, Petrobras, and Morris Lubricants. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The global automotive lubricant market is primarily driven by the rising number of on-road vehicles. Increased average age of vehicles is spurring the demand for vehicle maintenance, thus boosting the automotive lubricant market.
The report provides the estimated market size of the global automotive lubricant market for 2017 and forecast for the next nine years. The global market size has been provided in terms of value (US$ Bn) and volume (million tons). Market figures have been estimated based on base oil, product type, sales channel, vehicle type, and region. Size and forecast for each major segment have been provided in terms of global and regional/country markets.
In-depth interviews and discussions were conducted with a number of key industry participants and opinion from leaders to compile the research report. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. Key players’ product literature, annual reports, press releases, and relevant documents were reviewed for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, Internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be highly reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, market reports, news articles, press releases, and webcasts specific to companies operating in the market, Food and Agriculture Organization (FAO), Automotive Research Association of India, Factiva, etc.
Primary research involves e-mail interactions and telephonic interviews for each market, category, segment, and sub-segment across regions. Primary interviews are conducted on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
The global automotive lubricant market has been segmented as follows:
Global Automotive Lubricant Market, by Product Type
- Mineral Oil
- Synthetic/Semi-Synthetic Oil
- Bio-Based Oil
Global Automotive Lubricant Market, by Base Oil
- Engine Oil
- Manual Transmission Fluid (MTF)
- Automatic Transmission Fluid (ATF)
Global Automotive Lubricant Market, by Vehicle Type
- Light Vehicle
- Heavy Vehicle
Global Automotive Lubricant Market, by Sales Channel
Global Automotive Lubricant Market, by Region/Country/Sub-region
- North America
- Latin America
- Rest of Latin America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa