Global Automotive Engine Oil Market to Reach Sales Value of $44.51 Billion | Electric Vehicle to Disrupt Engine Oil Demand by Up to 35%
Global automotive engine oil market was valued at USD 35.7 billion in 2021, and it is expected to reach a value of USD 44.51 billion by 2028, at a CAGR of 3.20% over the forecast period (2022-2028).
Westford, USA, Dec. 05, 2022 (GLOBE NEWSWIRE) — The automotive industry is growing rapidly and with it, the demand for automotive engine oil market. As the world’s population continues to grow and more people gain access to motor vehicles, the demand for engine oil will only continue to increase. Currently, over 1.4 billion vehicles are running on the road. Out of which, over 93% are required with engine oil. This is good news for companies that produce this product, as they are sure to see a healthy return on their investment.
The automotive engine oil market is a complex and ever-changing landscape. To better understand the current state of the market, and where it might be headed in the future, SkyQuest has conducted a comprehensive study of market. Asia-Pacific accounting for the largest share of sales at 37%. Europe is the second largest market, accounting for 26% of sales, followed by North America at 20%. Looking at regional trends, our analysis shows that Asia-Pacific is the fastest growing market for automotive engine oils, with sales increasing by 5% in 2022. This growth is being driven by strong economic growth in China and India, as well as continuing demand for new vehicles in these markets.
In its latest analysis of the automotive engine oil market, the report finds that the market is highly fragmented, with a large number of players and a wide range of product offerings. SkyQuest’s analysis shows that the most successful players in the market are those that have been able to differentiate their products in terms of quality, performance, and value. Additionally, these companies have been able to develop strong relationships with original equipment manufacturers (OEMs) and create aftermarket sales channels to reach consumers directly.
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Fully Synthetic Oil to Generate Over 35% Revenue of Global Automotive Engine Oil Market
According to a new study from SkyQuest, fully synthetic oil is expected to generate over 35% of the automotive engine oil industry’s revenue by 2028.This is a significant increase from the current market share of synthetic oils, which is estimated to be around 30%. The study attributed this projected growth to the continued improvement in engine technology and the growing preference for synthetic oils among car users. Fully synthetic oils are made through a process of chemical synthesis, whereas conventional oils are refined from crude petroleum. The advantage of synthetic oils is that they can be tailored to meet the specific needs of an engine, resulting in better performance and protection. With the automotive industry continuing to move towards more technologically advanced engines, it’s likely that the use of synthetic oils will become even more widespread in the coming years.
Synthetic oil provides superior protection for engines compared to conventional or blended oils, and is therefore preferred by many car manufacturers in the global automotive engine oil market. Global consumption of fully synthetic engine oil has been growing steadily in recent years, as more car owners have become aware of the benefits of using this type of oil. In 2021, global consumption of fully synthetic engine oil was estimated at 7.2 million barrels per day. This figure is expected to grow to 8.4 million barrels per day by 2025. The majority of fully synthetic engine oil is consumed in developed countries, where car ownership is more common. The United States is the largest market for this type of oil, followed by Europe and Japan. However, demand is also growing in developing countries, such as China and India, as the middle class expands and more people can afford to own cars. With the continued growth in global consumption of fully synthetic engine oil, major oil companies are investing heavily in this market. ExxonMobil, Royal Dutch Shell, and Chevron are some of the leading producers of fully synthetic engine oil.
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Fluctuating Oil Prices to Pose a Threat to Profit Margin of Players in Automotive Engine Oil Market
The automotive engine oil market is facing a number of challenges, including the following:
1. Increasing costs of raw materials and finished goods: The prices of crude oil and other raw materials used in the production of engine oils have been on the rise in recent years. This has led to an increase in the cost of finished goods, which is passed on to consumers in the form of higher prices.
2. Stringent government regulations: The automotive engine oil industry is subject to stringent government regulations, which are designed to protect consumers and the environment. These regulations limit the types and amounts of chemicals that can be used in engine oils, and mandate how these products must be labeled and advertised.
3. Competition from synthetic oils: Synthetic oils are increasingly being used in new vehicles, as they offer superior performance and protection. This poses a challenge for traditional engine oil manufacturers in the global automotive engine oil market, who must find ways to differentiate their products in the marketplace.
4. Changing consumer preferences: Consumer preferences are changing, as more people are interested in sustainable and environmentally-friendly products. This presents a challenge for engine oil manufacturers, who must find ways to develop products that meet these changing needs.
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Electric Vehicle Could Disrupt Automotive Engine Oil Market By 2035
The automotive engine oil industry is facing a potential major disruption from the rise of electric vehicles (EVs). In a new report, research firm SkyQuest predicts that by 2035, EVs will make up 50% of new car sales globally. This shift away from traditional gasoline-powered cars will have a big impact on the engine oil market, as EVs don’t require oil changes as frequently as gasoline cars. This change will have a ripple effect on the entire automotive ecosystem, as engine oil companies will need to find new ways to monetize their products and services.
The 50% EV could displace over 4 million barrels per day of engine oil demand. This would have a significant impact on the market for automotive engine oil market, which is currently dominated by petroleum-based products. According to the BNEF report, EV growth could lead to a decline in demand for engine oil of up to 35% by 2035. This presents a challenge for the automotive engine oil industry, which will need to adapt its products and business model to survive in a world with fewer internal combustion engine (ICE) vehicles. One option for the industry is to focus on developing oils for EVs, which are expected to have different lubrication needs than ICE vehicles. Another option is to explore new markets for automotive engine oils, such as the growing market for hybrid and electric commercial vehicles. Whatever direction the industry takes, it will need to adapt to survive in a world with fewer ICE vehicles on the road.
Aftermarket services in the global automotive engine oil market such as oil changes could decline significantly, putting pressure on service stations and other businesses that rely on them for revenue. The rise of EVs will also present challenges for petroleum companies, which could see demand for gasoline decline in the coming years. The prediction is just one of many scenarios for the future of the automotive industry, but it underscores the need for companies in the sector to be prepared for a shift to EVs. Those that don’t adapt could be left behind as the industry undergoes a major transformation.
Major Players in Global Automotive Engine Oil Market
- Motul (France)
- Petroliam Nasional Berhad (Malaysia)
- ExxonMobil (US)
- Royal Dutch Shell (UK)
- Total S.A. (France)
- Fuchs Group (Germany)
- Petronas Lubricant International Sdn Bhd (Malaysia)
- Amsoil Inc (US)
- CASTROL LIMITED (UK)
- Chevron Corporation (US)
- Oryx Energies SA (Switzerland)
- KenolKobil Ltd. (Kenya)
- Sinopec (China)
- Pennzoil (US)
- Equilon Enterprises (US)
- Idemitsu Kosan Co., Ltd (Japan)
- Leo Lubricants Pvt Ltd. (India)
- DANA LUBRICANTS FACTORY LLC (UAE)
- Castrol Limited (UK)
- HINDUJA GROUP (INDIA)
- GP Petroleum Ltd. (India)
- Saudi Arabian Oil Co. (Saudi Arabia)
- Gazprom (Russia)
- ROSNEFT (Russia)
- Jiangsu Lopal Tech. Co. Ltd. (China)
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