The presence of a large number of players features high fragmentation and intense competition in the global automotive lubricants market, notes a new study by Transparency Market Research (TMR). In 2015, the top three market players, namely ExxonMobil Corp., Royal Dutch Shell Plc, and BP Plc held a share of only 31.6% in the global market. The wide array of product offerings by top players has been advantageous for these players over their competitors. However, the increasing entry of local players is expected to intensify competitiveness in the global automotive lubricants market, as per TMR’s report.
The global automotive lubricants market is expected to reach a valuation of US$78.92 bn by 2024 increasing from US$55.44 bn in 2015 at 4.10% CAGR from 2016 and 2024. Passenger cars (PC) display the highest demand for automotive lubricants due to the surging demand for transportation needs of the increasing global population and due to the rising demand for passenger cars with increasing economic prosperity. This is expected to continue over the forecast period, with sales exceeding 32.3 mn tons by 2024, as per the report.
Rising Purchasing Power Ensures Dominance of Asia Pacific
The report analyzes the global automotive lubricants market in terms of its regional reach. The major regional markets for automotive lubricants are North America, Europe, the Middle East and Africa, Latin America, and Asia Pacific, as per the TMR study. Amongst these, Asia Pacific is the largest consumer of automotive lubricants with the region accounting for 36% of the total automotive lubricant consumption worldwide in 2015. The region is followed by Europe and North America. The Asia Pacific automotive lubricants market is expected to register the highest CAGR of 5.40% between 2016 and 2024, thanks to the rising demand for passenger cars due to the increasing economic prosperity in the region.
Other regional segments, particularly Latin America and the Middle East and Africa are also expected to contribute significantly to the growth of the global lubricants market. This is mainly due to the rising demand for automobiles complemented by strengthening economic conditions, the report adds.
Improved Vehicular Efficiency to Augment Utilization of Automotive Lubricants
A TMR analyst says, “The increasing number of vehicles on road is highly influencing the demand for automotive lubricants.” This is because the use of automotive lubricants improves vehicular operation and increases engine longevity by reducing friction, thus the demand for automotive lubricants is directly proportional to the use of automobiles.
With the rising global population, the surging demand for increased number of vehicles for transportation needs is positively influencing the automotive lubricants market. Besides this, the increasing disposable income worldwide is also reflected on the rising sales of motor vehicles, which in turn, is leading to a substantial increase in the demand for automotive lubricants, reports the study.
Increasing Use of Biofuels to Affect Growth of Automotive Lubricants Market
Despite the lucrative growth prospects of the global automotive lubricants market, the high-cost factor of fully synthetic or semi-synthetic lubricants may impede the growth trajectory of this market in the coming years.
Besides this, the increasing environmental awareness leading to the increased use of biofuels for automobiles can also hamper the growth of the automotive lubricants in the coming years, says the research report.
The review presented is based on the findings of a TMR report, titled “Automotive Lubricants Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
The global market for automotive lubricants is segmented into:
By Base Oil
By Vehicle Type
By Distribution Channel
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