Market Research Report
Automotive Lubricants Market - Global Outlook & Forecast 2022-2027
|Automotive Lubricants Market - Global Outlook & Forecast 2022-2027|
Published: June 20, 2022
Arizton Advisory & Intelligence
Content info: 277 Pages
Delivery time: 1-2 business days
The automotive lubricants market size is expected to grow at a CAGR of 4.87% during 2022-2027
An automotive lubricant is used for lubricating automotive parts to minimize friction in vehicles. It also performs a variety of secondary roles. It aids in the cleaning and cooling of engine parts and the prevention of rust and corrosion accumulation. The automotive lubricant market is changing as the customers demand better-performing lubricants that would enhance the engine's fuel economy and deliver better performance. Advancements in technology-supported catering to diverse automotive needs such as increasing the shelf life of the engine, reducing carbon footprint, improving fuel economy, supplying lubricants with low viscosity, and meeting the changing vehicle emission standards. The increasing use of passenger cars and commercial vehicles in emerging economies has fueled the automotive lubricant market.
Market Trends & Drivers:
Increasing demand for passenger vehicles in emerging economies
The automotive industry in India, China, Brazil, and South Korea is growing rapidly because the global automotive market has developed immensely over the past decades in terms of markets, production capacity, and competitive standards. Emerging economies such as India and China are the most populated countries globally, enabling a huge domestic market. In addition, emerging countries have taken advantage of foreign direct investment and helped MNCs to set up their assembly plants in various countries. Also, new industrial policies implemented by governments of emerging economies helped increase the automobile industry's production capacity. As per the International organization of motor vehicle manufacturers, since 2005, the automobile industry has shown rapid growth in emerging economies because of low-cost raw materials, low cost of skilled labor, and increased foreign direct investment (FDI).
Rapid growth in urbanization and middle-income population
Rapid progress in urbanization, changing lifestyles, and growth in the middle-income population are some of the major opportunities for the market. As per the World Bank, about 75% of the world's population resides in middle-income countries, and the population of middle-income countries is increasing annually by 1%. Also, the migration of people from rural to urban areas has rapidly increased in past years and is the main reason for the rapid growth in urbanization. More than 80% of global GDP is generated through cities as urban areas develop at high rates. Infrastructure and industrial development are key factors contributing to rapid growth in the middle-income segment. In recent years, sectors like automotive and information technology have grown immensely in emerging economies because of the availability of low-cost raw materials, a huge investment in research and development, low cost of skilled labor, and availability of good quality infrastructure. Countries such as China, Japan, Indonesia, India, USA, UK, France, Canada, Italy, Germany, and Spain are investing in green chemistry and circular economy; these are the methods that help urbanization with sustainability to protect the environment in the coming years and, it creates a balance between infrastructure development and environment. This will help the automotive sector grow, and demand for automotive lubricants will also increase.
Increased Requirement for Alternate Powertrain Specific Lubricants
High investment in the automobile sector has posed a challenge of new requirements for lubricants as the sector is manufacturing vehicles that will have a low impact on the environment and deliver high performance. Also, the engine design requirements, transmission assembly, gearbox, and brake system are different for different manufacturers. So, to meet this requirement lubricant industry must work with the automobile manufacturer and develop a new set of products that will be suitable for that vehicle. For instance, the thinner engine oil will help to secure fuel economy. But thinner engine oil might affect the engine functionality, which poses a challenge to lubricant manufacturers.
MARKET SEGMENT REVIEW:
Engine oil is the most common type of automotive lubricant used in internal combustion engines which are widely employed in vehicles. Engine oil plays a vital role in engine performance, protecting against wear and tear of moving parts in an engine. Engine oil consists of base oils and various additives, which impart a wide spectrum of properties to the lubricant. Automobile manufacturers are investing heavily in R&D activities to produce engine oils that deliver high performance and better fuel efficiency, which is projected to drive the market further.
The commercial vehicle segment is the largest segment among others. Commercial vehicles like trucks, buses, vans, heavy transport trailers, and others are considered in this segment. The primary use of a commercial vehicle is to transport goods, materials, and passengers. Commercial vehicles generally incorporate diesel engines because these engines generate more torque and offer better fuel efficiency than other types. Generally, commercial vehicles use high horsepower engines to transmit that power; commercial vehicles use modular transmission assembly with an increased gearbox gear ratio. Also, to provide better handling, commercial vehicle manufacturers use air brake assembly in which hydraulic fluid is used. Commercial vehicles have complex functions; they require good quality automotive lubricants to deliver better performance. The rise in commercial vehicle demand due to growth in population, environment sustainability, and increasing urbanization is projected to boost lubricant consumption in the segment.
Mineral oil-based lubricants are known for their excellent lubricating properties. They offer multipurpose lubrication of mechanical components of vehicles such as engine, transmission assembly, and brake assembly, where operating temperatures range from -17°C to 150°C. One of the main advantages of mineral oils is that they are compatible with many additives, which can help in improving the overall performance of automotive vehicles. Mineral oils also are compatible with many grease thickener systems. Also, the cost of mineral oil is low compared to synthetic oil. In emerging economies such as China, India, Brazil, Russia, South Korea, and Mexico price sensitivity of consumers is projected to boost demand for mineral oil-based lubricants.
The APAC is the largest market for automotive lubricants. The rapid urbanization, rising disposable income, increasing demand for passenger cars, growing adoption of new energy vehicles, and growing industrialization are creating a demand for automotive lubricants in APAC. Countries such as China, India, Japan, and Indonesia are the major consumers of automotive lubricants as the demand for passenger cars and two-wheelers are increasing rapidly in these countries. In addition, factors such as low labor cost, low raw material cost, and government promoting Foreign Direct Investment in the automotive industry and related sectors are creating a demand for automotive lubricants in APAC.
COMPANY AND STRATEGIES
The key players have undertaken various strategies to grow in the automotive lubricants market. Companies in the automotive lubricants industry compete strategically. The growth in sustainable processes and initiative has been a challenge for all companies globally. Technological advances and environmental and economic challenges drive the demand for innovative and sustainable automotive lubricant products.
Some major players in the market include Exxon Mobil Corporation (US), British Petroleum (UK), Shell (Netherlands), Gulf Oil (US), Idemitsu (Japan), Castrol (US), Fuchs (Germany), and Chevron Corporation (US). These players have adopted strategies such as expansion, agreement, new product development, joint ventures, and others to increase their revenues in the automotive lubricants market.
The automotive lubricants market is provided for the forecast years 2022 to 2027 and the base year of 2021. The market is segmented as per Type, Vehicle Type, Oil Type, and Geography for the years considered. The report provides a holistic approach to the automotive lubricants market to enable customers to analyze the market efficiently.
Other Prominent Vendors
Segmentation by Product Type
Segmentation by Group
Segmentation by Oil Type
Segmentation by Geography
KEY QUESTIONS ANSWERED
LIST OF TABLES