The top three companies operating in the global automotive lubricants market in 2015, namely ExxonMobil Corporation, Royal Dutch Shell plc., and BP PLC, commanded a combined share of 31.6% of its value. Their dominance can be attributed to the diverse range of products offered by them, observes Transparency Market Research (TMR) in a new study.
“The leading players are conducting research and development activities to enhance their existing automotive lubricants production facilities,” says the author of the study. The strong foothold of these players is rendering this arena less opportunistic for new players.
Sales of Engine Oil to Remain High through 2024
The opportunity in the global automotive lubricants market was pegged at US$57.29 bn in 2016 and is poised to rise to US$78.92 bn by the end of 2024, progressing at a CAGR of 4.1% therein. On the basis of product, engine oil will continue to dominate the market until 2024, accounting for over 68.0% of the overall market revenue. The growth of the segment is single-handedly fuelled by the increasing sales of vehicles worldwide. The segment is anticipated to exhibit a CAGR of 4.4% during the review period.
While developed regions are estimated to register a decline in shares, developing regions will offer fertile ground for the growth of the market. Geographically, Asia Pacific will be the leading revenue contributor throughout the forecast period, representing 34.4% of the overall market value by 2024. The flourishing growth of the automotive industry is contributing to the growth of the region. Latin America is expected to rise at a noteworthy CAGR of 7.1% during the same period. The growing number of vehicles through production as well as import is propelling the consumption of automotive lubricants in the region.
Upswing in Number of Vehicles Triggers Sales of Automotive Lubricants
The indispensable requirement of oil change and other maintenance as long as they are in use is one of the key factors driving the global automotive lubricants market. “The stressful driving conditions of vehicles such as stop-and-go traffic, idling, and frequent short trips creates a dire need for maintaining vehicle efficiency and protecting the engine. This is where automotive lubricants come into play,” says a TMR analyst. Moreover, the increasing production and sales of automobiles, especially in BRIC countries, is providing a significant boost to the global consumption of automotive lubricants.
High Prices of Synthetic Lubricants Hamper Market Growth
However, the high prices of fully synthetic or semi-synthetic lubricants are hampering the growth of the market. The implications of this factor are more prominent in regions other than Europe and North America, where consumers prefer affordability of lubricants to their quality. While in Europe, governments are emphasizing on the adoption of biofuels. Lesser emissions are produced with the use of biofuel compared to traditional diesel engines, which is likely to cut down the reliance on automotive lubricants. However, the shift towards the use of lower viscosity grade lubricants is assuring long-term growth to manufacturers.
The information in this preview comes from a report by Transparency Market Research, titled ‘Automotive Lubricants Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.’
The global automotive lubricants market has been segmented as follows:
Automotive Lubricants Market, by Product
Automotive Lubricants Market, by Base Oil
Automotive Lubricants Market, by Vehicle
Automotive Lubricants Market, by Distribution Channel
Automotive Lubricants Market, by Region
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