The global engine oil market was valued at $77.5 billion in 2021 and is expected to reach $105.5 billion by 2027.
Chicago, June 22, 2022 (GLOBE NEWSWIRE) -- According to latest research report by Arizton, the engine oil market is expected to grow at a CAGR of 5.26% during the forecast period. Engine oil market is changing as the customers are demanding better performing engine oil which will enhance the fuel economy and deliver better performance. In the past years, engine oils are used to manufactured from mineral oils which is derived from crude oil. Advancements in technology helped engine oil industry to cater to diverse needs such as increasing the shelf life of engine, reducing carbon footprint, improving fuel economy, supplying engine oil with low viscosity, and meeting the increasing vehicle emission standards. Increasing use of passenger cars in the emerging economies is fueling the engine oil market.
Engine Oil Market Report Scope
MARKET SIZE (2027)
MARKET SIZE (2021)
End-Use, Oil Type, and Geography
North America, Europe, APAC, Latin America, and Middle East & Africa
Castrol Limited, Chevron Corporation, Exxon Mobil Corporation, Shell PLC, and Total Energies
Rapid Infrastructure Development Increasing the Demand for Heavy Equipment
In recent years infrastructure development has grown substantially across the globe and due to this the demand for heavy equipment has increased. Generally, heavy equipment refers to heavy-duty vehicles used for construction and mining work therefore increase in heavy equipment will ultimately increase the demand for engine oil. For instance, According to Volvo CE, the South American market increased by 12% and China was up by 28%. In 2020, demand for heavy equipment increased in Europe by 20% but fell in North America by 18% compared to 2019. In Asia demand for heavy equipment increased by 39% compared to 2019 due to government motivation in China, as well as improvements in other markets.
Engine oils are important for smooth functioning of internal combustion engines. Major players in the segment include Castrol Limited (UK), ExxonMobil (US), Shell (UK), Chevron (US), and Total Energies (France) operate through strategies such as expansion, acquisition, new product launch to further their reach in the market.
Automotive & Transportation is estimated as the largest end-use industry with 74.86% market share in 2021. Companies such as Ford (US), Tata (India), BMW (Germany), and Hyundai (South Korea) have formed contracts with engine oil manufacturers to develop good quality engine oils.
Passenger car and commercial vehicle market in emerging economies is developing at rapid speed as many automotive manufacturers are taking advantage of foreign direct investment that results in to increase in demand of passenger cars and commercial vehicles, this will drive the engine oil market in upcoming years.
Engine oils are manufactured from different oil types such as mineral oils and synthetic oils. Semi-synthetic oils derived from mixture of synthetic and mineral oil that offers properties of synthetic oil as well as mineral oil and during forecasted period it will show annual growth of 5.27%.
The stringent emission regulation laid down by various government have impacted the engine oil market. Automotive manufacturers have invested large amount to develop hybrid powertrain vehicles which will mitigate the impact of emission of vehicle. Therefore, many lubricant manufacturers have developed engine oils compatible for hybrid powertrain vehicles which are eco-friendly and sustainable that resulted in huge investment in R&D.
In future, advanced technologies such as engine oils for hybrid engines, innovative engine designs, weight reduction techniques of used engine parts, and next-generation vehicle design will further drive the market by enabling advantages such as higher efficiency, longer lifespan, and reduced operational costs.
Emerging economies such as India, China, Indonesia, Malaysia, Thailand, Brazil, Argentina, and others are the major markets for engine oil. Growing population, developing infrastructure, rising disposable incomes, growing middle class, and growing prevalence of chronic diseases are major factors for growth in the region.
Other Prominent Vendors
Bharat Petroleum Corporation Limited
Gazpromneft - Lubricants Ltd
GS Caltex Corporation
Gulf Oil International limited
Hindustan Petroleum Corporation Limited
Idemitsu Kosan Co., Ltd.
Indian Oil Corporation Limited
Kuwait Dana Lubes Company
Petro Canada Lubricants Inc.
Petroliam Nasional Berhad (PETRONAS)
Ravensberger Schmierstoffvertrieb GmbH (Ravenol)
Segmentation by End-Use
Automotive & Transportation
Segmentation by Oil Type
Segmentation by Geography
Rest of Europe
Rest of Latin America
Middle East & Africa
Rest of MEA
Explore our chemicals materials profile to know more about the industry.
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