The Global Automotive Lubricants Market is estimated to be valued at USD 70.4 Bn in 2024 and is expected to reach USD 84.4 Bn by 2031, growing at a compound annual growth rate (CAGR) of 3.2% from 2024 to 2031. The market is driven by growth in automotive production and increasing demand for high-performance lubricants across both developed and developing countries.

The automotive lubricants market is expected to witness positive trends over the forecast period. Lightweight vehicles demand is growing due to stringent emission norms pushing lubricant manufacturers to develop fuel efficient and eco-friendly products. Synthetic and semi-synthetic lubricants are gaining higher traction compared to mineral-based lubricants. Developments in electric vehicles also open new opportunities for specialized lubricant formulations optimized for electric powertrains with minimal environmental footprint.

Market Driver - The Need to Minimize Energy Loss Due to Friction in Metal Components of Automotive Vehicles

One of the primary drivers for the automotive lubricants market is the need to minimize energy loss due to friction in metal components of automotive vehicles. Friction between moving parts like the engine, gear system and other components leads to wastage of significant amount of energy in the form of heat. It is estimated that around 20% of the energy generated in an internal combustion engine is lost due to friction alone. The use of advanced lubricants plays a crucial role in reducing this friction between surfaces which are in constant contact during motion. Lubricants form a thin protective film that separates the surfaces and reduces the adhesion and friction between them. This film holds the grinding dust and pollutants generated during movement, prevents direct metal to metal contact and allows for the parts to move over each other smoothly. The thinner the film, the lesser is the energy required to overcome friction forces. Lubricant companies have been innovating new lubricant formulations that can provide effective lubrication and reduce friction even at high pressures and temperatures inside modern engines. These low viscosity lubricants not only enhance the fuel efficiency of vehicles but also help extend the lifetime of components that are otherwise prone to premature wear and tear. With rising environmental consciousness, there is a growing demand from both OEMs and consumers for vehicles with higher fuel efficiency. Use of advanced automotive lubricants plays a vital role in improving the efficiency of engines and other components, thereby making them more environment friendly. This drives the market for high performance lubricants that can meet the stringent efficiency and emission norms.

Market Driver- Increasing vehicle production and ownership, especially in emerging economies

Another key driver for the automotive lubricants market is the increasing vehicle production and ownership levels witnessed across the globe, especially in emerging economies. Over the past few decades, personal mobility has risen dramatically in tandem with economic growth and rising disposable incomes in developing nations. Countries like China, India, Brazil, Mexico, and Indonesia have seen massive growth in the number of passenger and commercial vehicles plying on roads. This has directly translated to higher demand for various automotive products including lubricants. Even though the fleet size in developed markets of United States, Europe and Japan have grown at a steady pace, emerging economies now account for the bulk of global vehicle sales. As infrastructure and connectivity improves in these developing regions, personal transport is becoming more accessible causing vehicle ownership to boom. At the same time, local manufacturing of cars and commercial vehicles has also picked up substantially. Both domestically produced as well as imported vehicles require lubricants for various systems like engines, gearboxes and differentials. Regular maintenance and scheduled oil changes ensure a continuous demand from the sizable in-use vehicle parc. Furthermore, growing vehicle usage also accelerates the wear of components, necessitating more frequent oil changes or top-ups. The rising mechanization of industries and growth of e-commerce has augmented demand for commercial vehicles like trucks and buses, further amplifying lubricant consumption. With emerging economies projected to account for over 50% of the global vehicle sales in coming years, automotive lubricant manufacturers can expect sustained volume growth from these markets.

Market Challenge - Conventional Lubricants Work Efficiently Only Under Specific Temperature Ranges, and They Break Down Easily Under Extreme Conditions

Conventional lubricants work efficiently only under specific temperature ranges, and they break down easily under extreme conditions. This poses a significant challenge for the automotive lubricants market. Traditional mineral-based lubricants start to deteriorate and lose their viscosity and film strength properties when exposed to very high or very low temperatures outside their operational range. As modern vehicles are being engineered to perform efficiently even in diverse climatic conditions around the world, the lubricants need to be able to withstand wider temperature variances as well. The engines and transmission components of vehicles often experience temperatures ranging from below freezing point up to 150 degree Celsius during extreme usage. Similarly, conventional lubricants also get increasingly shear thin under high friction and heavy loads. This exposes the internal parts to damage. Therefore, developing lubricants that can maintain their lubricating properties effectively under a broad range of thermal and mechanical stresses is a major challenge for the automotive lubricants industry. New product formulations with advanced additives are being researched to overcome this limitation of conventional lubricants.

Market Opportunities - Development of Biodegradable Lubricants to Reduce Ecological Impact

One of the significant opportunities for the automotive lubricants market is the increasing focus on developing biodegradable and environmentally sustainable products. The disposal and leakage of used conventional mineral-based lubricants pose hazards to the environment as most lubricant components are not readily biodegradable. Stricter environmental regulations globally are now mandating the use of lubricants which are less toxic and can break down naturally after use. Biodegradable lubricants based on esters and bio-based additives offer a solution. They can reduce ecological impact if released into the soil or water sources. This represents a major business potential for lubricant manufacturers. By offering bio-lubricants as alternatives, they can capitalize on the growing consumer demand for green products and tap into the emerging market for sustainable automotive technologies. Many companies have started extensive R&D on vegetable and plant-based lubricant formulations to replace traditional petroleum-derived components.

Strategic Partnerships - Players have partnered with leading vehicle manufacturers to gain approval for their lubricants. For example, Shell partnered with Volkswagen Group in 2018 to supply factory fill lubricants for all Volkswagen, SEAT, SKODA and Audi vehicles. This gives Shell a competitive advantage as it can market directly to Volkswagen owners.

Product Innovation - Continuous investment in R&D has allowed players to develop new products catering to evolving technology. In 2020, ExxonMobil launched Mobil EV fluid specifically for electric vehicles. It helps extend motor life in EVs. Successful new products like this have helped capture growing market segments like EVs.

Brand Positioning and Marketing - Strong branding and marketing campaigns create awareness and preference for brands. For example, Castrol launches annual “Driven by Passion” campaigns associating its brand with performance and reliability. Its marketing messages resonate well with target customers.

Pricing Strategies - Players differentiate through competitive pricing for high volume products while offering value-added products at premium prices. This two-pronged strategy allows access to all customer segments. For example, Shell offers slightly lower priced basic oils but charges more for its Advanced formula targeting performance enthusiasts.

Distribution Network - Having widespread geographic coverage is essential. Market leaders like Castrol and Shell have a global network of more than 100,000 distributors and retailers stocking their products. This omnichannel reach accelerates sales velocity.

These winning strategies adopted by top players like Shell, ExxonMobil and Castrol have consistently increased their market share year-over-year. Their innovative products, cooperative partnerships, effective marketing and strong distribution helped establish dominance in the highly competitive automotive lubricants industry.

Insights, By Oil Type, High Demand for Synthetic Oil Induces Further Market Developments

By Oil Type, Synthetic oil segment is projected to contribute 42.1% in 2024 due to superior performance and demand from modern engines. Synthetic oil contributes the highest share in the automotive lubricants market in terms of oil type due to its superior performance compared to semi-synthetic and conventional oils. Modern engines require oils that can withstand higher temperatures and pressures. Synthetic oils are engineered to perform under severe conditions and provide better protection for engines. They have enhanced oxidation stability which allows them to maintain viscosity and film strength for longer durations. This keeps engines clean by reducing sludge and preventing build-up of deposits.

Synthetic oils are also becoming more popular as they allow for longer drain intervals. This effectively reduces maintenance costs for vehicle owners. The full synthetic and synthetic-blend formulations are able to maintain engine protection for longer distances driven. This promotes their use as motorists want convenient options that save on future repair bills. Additionally, new vehicles nowadays have delicate engines and components that need maximum protection against friction and wear. Synthetic oils fulfill this need admirably through their advanced additive packages.

With automakers emphasizing fuel efficiency and emissions standards, synthetic oils are ideally suited. Their low viscosity grades provide better lubrication during cold starts and reduce friction within engines. This enhances fuel economy and engine performance while lowering emissions. The growing environmental consciousness is steering demand towards sustainable synthetic oil variants. Overall, synthetic oils address the rising performance needs of engines in modern vehicles, making them the top choice in automotive lubricants.

Insights, By Product, Engine Oil Enjoys a High Demand in the Forecast Period

By Product, Engine oil is projected to account for 50.4% market share in 2024. As engines are the critical core component in all vehicles. It is designed specifically to lubricate the moving parts inside engines, mainly the pistons, cylinders, camshafts and crankshafts, protecting them from damage and wear. High-quality engine oil is formulated to maintain and enhance engine efficiency, reduce emissions, and extend the life of critical engine components.

The large engine oil volume consumed can be attributed to the frequent oil change intervals required. Most automakers recommend changing engine oil every 5,000-10,000 miles for passenger cars depending on oil grade used. This ensures sludge removal and consistent engine protection is maintained throughout the lifespan of the vehicle. Additionally, with more vehicles on the road each year, the size of the aftermarket for engine oil has grown substantially. Availability across multiple brands and value-added product types has also boosted consumption.

Newer engines rely extensively on thin low-viscosity oils to maximize fuel efficiency without compromising on performance or service life. This amplifies the importance of advanced additive formulas in high-tech synthetic and semi-synthetic engine oils. Their all-weather capabilities and extended drain capabilities help reduce total cost of ownership for vehicle drivers. Therefore, engine oil will likely dominate lubricant product demand for the foreseeable future.

The global automotive lubricants market is witnessing steady growth, driven by rising vehicle production, particularly in emerging economies such as China and India. With advancements in lubricant technology focused on fuel efficiency and emission reduction, companies like ExxonMobil, Shell, and Castrol are investing in R&D to develop high-performance lubricants. The market faces challenges, including the shift towards electric vehicles, but also offers new opportunities, such as the development of biodegradable lubricants and the integration of nanotechnology in lubricant formulations. The Asia Pacific region leads the market, followed by Europe and North America. As demand for electric and hybrid vehicles grows, specialized lubricant solutions are also expected to expand.

The major players operating in the Automotive Lubricants Market include ExxonMobil, Shell, Castrol, Repsol, LUKOIL, Sasol, Indian Oil Corporation Ltd, HP Lubricants, Philips 66, Fuchs and Cepsa.

• In October 2022, Total Energies signed an agreement with MG Motor to develop MG Oil, the first MG-branded lubricant manufactured entirely in Chile, aimed at expanding geographical presence.
• In January 2023, McLaren Automotive renewed its partnership with Gulf Oil International to supply lubricants and fuel for its luxury supercars.
• In June 2022, Shell introduced a used oil management service in India, enhancing the re-refining rate for used oils and supporting circular economy practices in the lubricants industry.

• By Oil Type
  • Synthetic
  • Semi-synthetic
  • Conventional
• By Product
  • Engine Oil
  • Gear Oil
  • Transmission Fluids
  • Coolant
  • Brake Fluids & Grease