ID: MRFR/IA - E/7203-CR | 136 Pages | Author: Snehal Singh | February 2020
Automotive Motor Oil Market to the extent that value is evaluated to enlist a 3.80% CAGR during the check time span
The automotive motor oil market size is projected to reach approximately USD Significant Value billion by 2030. The major factor that drives the automotive motor oil is that conventional automotive motor oil is much cheaper than advanced tubes, and it is in high demand ly. Moreover, automotive synthetic motor oil outperforms conventional oil in terms of performance of vehicle and automobile parts safety over a longer period, which is supposed to drive market growth. Numerous automotive engine oil preservatives, such as anti-foaming agents, anti-oxidants, disinfectants, and emulsifiers, improve vehicle safety and keep the motor clean, allowing for better performance, durability, and reliability. The automotive motor oil market is expected to register CAGR of 3.80% from 2022 to 2030.
COVID-19 negatively impacted the automotive motor oil market due to the strict lockdowns due to the spread of the virus. The economic uncertainty, partial shutdown of the business, and low customer confidence impacted demand for the market. The supply chain got hampered during the pandemic and delayed logistics activities. However, due to the easing of the restrictions, the automotive motor oil market regained its pace during the post-pandemic scenario.
The automotive motor oil market trends include growing automobile production and the need for synthetic and conventional products. Automotive vehicle sales have noticed consistent growth over the past few years, majorly in Asia-Pacific and Europe regions, due to the growing population and consumer spending capability. The market is expected to notice significant growth during the forecast period due to the advanced technological innovations implemented in the automotive motor oil industry. The emerging requirement for high-performance engine oils is ever-growing owing to tactical vehicle mechanisms and functional blueprints being executed by multinational automobile manufacturers.
Synthetic automotive motor oil is considered a replacement for mineral-based engine oil. Synthetic engine oils are fabricated by polymerizing short-chain hydrocarbon molecules known as alpha-olefins into long-chain hydrocarbon polymers called polyalpha-olefins. They are chemically exact to mineral oils purified from crude oils and, thus, have huge demand from developed regions, including North America and Europe. The benefits of synthetic engine oil are that it enhances fuel economy, reduces oil consumption, and expands oil change intervals.
The automotive engine oil market faces numerous challenges due to the volatile change in cost, over-utilization or product shortage, currency fluctuation, the continuous emphasis on energy-efficient products, and environmental regulations. There has been an increase in competitors, raising sustainability issues for companies to strive for high risk and high returns in business. The price of production is high as it includes complex processes to drive out the finished products. The cost poses severe challenges for the customers as they demand a reasonably priced product. It thus makes it the customers difficult to buy the product.
The engine works appropriately when it is lubricated. It requires putting less work into the moving piston, so it glides easily. Engine oil is used so the vehicle can operate using less fuel and run at a lower temperature. The increasing demand for lower-viscosity motor oil is driven by its ability to enhance fuel economy. The OEMs recommend these oils to maximize performance and convert their factory and service fill requirements to low-viscosity grade products.
The automotive motor oil market segmentation based on grade includes mineral, synthetic, and semi-synthetic. The automotive motor oil market growth was prominently high under the synthetic category in 2021, as it offers three times more advanced engine protection than traditional mineral oils. Besides this, the semi-synthetic was the fastest-growing category due to its benefits, including better component protection and higher performance.
The automotive motor oil market segmentation based on engine type includes diesel, petrol, and alternative fuels. The diesel category had a prominent share in 2021 due to its far superior anti-wear load, typically in ZDDP (zinc dialkyl dithiophosphate) form. However, alternative fuels were the fastest-growing category due to their high leaching loss resistance and excellent solubility.
Based on the application area, the automotive motor oil market is divided into passenger vehicles, LCV, HCV, two-wheeler, and others. The passenger vehicles category had a major market share in 2021 due to the increasing disposable income and swiftly growing urban population. Besides this, the HCV was the fastest growing category due to the increasing urbanization, which has led to the increased utilization of off-highway construction vehicles.
The automotive motor oil market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific accounted for the most extensive market share. North America is anticipated to exhibit the highest CAGR during the review period.
The automotive motor oil market in Asia-Pacific held a prominent market share in 2021. This is due to the existence of a large consumer base and growing production and consumption of the product in countries such as China. Product formulators, including Total, are increasingly investing in this region's potential growth. Automotive Multinationals operating in this region have started investing heavily in digitizing their production facilities for faster output delivery.
North America was the fastest-growing region in 2021, owing to the rising demand for commercial vehicles from the e-commerce and logistics industry in the region. The U.S. has recorded high sales of on-road diesel fuel power vehicles compared to off-road diesel fuel-driven vehicles, as per the U.S. Department of Energy. The country uses a substantial amount of diesel fuel compared to gasoline or natural gas alternatives due to its high fuel economy and lower carbon emissions.
The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach with diverse product portfolios. Companies such as Valvoline, Wurth Group, Castrol, ExxonMobil, and Total dominate the automotive motor oil market due to product differentiation, financial stability, strategic developments, and diversified regional presence. The players are concentrating on supporting research and development. Furthermore, they embrace strategic growth initiatives, such as development, product introduction, joint ventures, and partnerships, to strengthen their market position and capture an extensive customer base. For instance, in September 2019, The Saudi Arabian Oil Company acquired Shell Saudi Arabia (Refining) Limited's (Shell) 50% interest in the SASREF collaborative venture in Jubail Industrial City, Saudi Arabia, for USD 631 million. They made this acquisition to increase the complexity and capacity of their refineries as part of their long-term downstream growth strategy.
Prominent players in the automotive motor oil market include Eni GmbH, Amsoil Inc., Petronas, Fuchs Petrolub, Sinopec Lubricant Company, Lotos, and Motul, among others.
The objectives of the study are summarized in 5 stages. They are as mentioned below:
To identify and estimate the market size for the automotive motor oil market segmented by grade, engine type, and application area by value (in U.S. dollars). Also, to understand the consumption/ demand created by consumers of automotive motor oil between 2022 and 2030 according to the automotive motor oil market forecast.
To identify and infer the drivers, restraints, opportunities, and challenges for the automotive motor oil market growth.
To find out the factors which are affecting the sales of automotive motor oil among consumers
To identify and understand the various factors involved in the automotive motor oil market affected by the pandemic
To provide a detailed insight into the major companies operating in the market. The profiling will include the financial health of the company's past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.
|Market Size||2030: USD Significant Value billion|
|CAGR||3.80% CAGR (2022-2030)|
|Forecast Units||Value (USD Billion)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Grade, Engine Type, and Application Area|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Valvoline, Wurth Group, Castrol, ExxonMobil, and Total|
|Key Market Opportunities||Increased investment in the development of automotive motor|
|Key Market Drivers||Growth in the automotive industry|
The automotive motor oil market forecast period of the is 2022 - 2030
The automotive motor oil market is rising at a CAGR of ~3.80% over the next 10 years, according to the automotive motor oil market research.
North America is expected to register the highest CAGR during 2022 - 2030
Asia-Pacific held the largest share in 2021
The automotive motor oil market size is expected to be USD Significant Value billion by 2030.
Valvoline, Wurth Group, Castrol, ExxonMobil, and Total are the major companies operating in the automotive motor oil market.
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