Automotive Lubricants Market Expected to Reach $116.1 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Automotive Lubricants Market," The automotive lubricants market was valued at $77.8 billion in 2022, and is estimated to reach $116.1 billion by 2032, growing at a CAGR of 4.1% from 2023 to 2032.

Automotive lubricants are used to reduce friction between two surfaces of the components of a vehicle and exemplify the futuristic technologies, which are capable of manufacturing durable surfaces, maximizing overall efficiency while meeting environmental norms. These lubricants help to control vehicle temperature by absorbing the heat generated by moving parts of the vehicle and transferring it to the sump or cooler.

Emerging economies, particularly in Asia-Pacific, have witnessed significant growth in vehicle ownership and production. This region contribute significantly to the automotive lubricant market's growth due to increased vehicle usage. The ease of purchasing automotive lubricants online has expanded the reach of lubricant manufacturers and increased consumer access to a wide range of lubricant products.

The growth of quick lube centers and vehicle maintenance services has made it more convenient for vehicle owners to get regular oil changes and lubricant replacements, driving demand for lubricants.

However, Lubricants have a finite lifespan and must be regularly replaced. Neglecting to do so lead to increased friction, wear, and potential engine damage. The regular replacement of lubricants generates waste in the form of used oil, filters, and containers. Proper disposal and recycling are essential to mitigate this issue.

Economic development is expected to play a key role in the market, as consumption of automotive lubricants are expected to increase in the developing nations, thereby creating numerous growth opportunities for the market.

Rise in environmental awareness and stricter emission regulations drive the development of eco-friendly lubricants. Lubricant companies seize the opportunity to produce low-viscosity, low-emission lubricants that reduce environmental impact. The expansion of quick lube centers and vehicle maintenance services provide an opportunity for lubricant manufacturers to partner with service providers and supply their products to a wider customer base.

The automotive lubricants market is segmented on the basis of base oil, application, vehicle type, and region. The base oil segment is categorized into mineral oil, synthetic, semisynthetic, and bio-based lubricants. By vehicle type, the market is divided into passenger cars, light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and others. On the basis of application, the market is classified into engine oil, gear & brake oil, transmission fluids, greases, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.

By base oil, the market is divided into mineral oil, synthetic, semisynthetic, and bio-based lubricants. The mineral oil lubricants segment dominated the global market, in terms of revenue in 2022. Mineral oil lubricants are used in a wide range of applications, including automotive engines, transmissions, differentials, hydraulic systems, industrial machinery, gearboxes, and many other mechanical systems that require lubrication.

By vehicle type, the market is divided into passenger cars, light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), and others. The passenger vehicle segment dominated the global market, in terms of revenue in 2022 with 56% share in the global market. Brake components such as rotors, calipers, and brackets uses  automotive lubricants to enhance their corrosion resistance and maintain braking performance.

Automotive lubricants also be applied to interior components such as seat frames, seat tracks, and hinges, especially in areas where durability and corrosion resistance are important. Automotive lubricants is used on safety-critical components like airbag brackets and mounting points. Ensuring the integrity of these components is essential for passenger safety. These factors are anticipated to boost the market growth during the forecast period; thus, offering the most lucrative opportunities for the market.

By application, the market is divided into engine oil, gear & brake oil, transmission fluids, greases, and others. The engine oil segment dominated the global market, in terms of revenue in 2022 with 65% share in the global market. Stricter environmental regulations and emissions standards have encouraged the use of higher-quality engine oils that reduce friction and improve fuel efficiency.

Many of these oils are synthetic or semi-synthetic, boosting their market growth. Consumers are keeping their vehicles for longer periods, resulting in increased maintenance needs, including regular oil changes. High-quality engine oils are essential for extending the life of these vehicles.

Region wise, the automotive lubricants market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The automotive lubricants market accounted for a major market share in 2022 and is projected to grow at the highest CAGR during the forecast period. China is a major player in the electric vehicle market. While EVs require less traditional lubrication, there is still demand for specialized lubricants for components like transmissions and wheel bearings in hybrid and electric vehicles.

In India, two-wheelers, including motorcycles and scooters, are the dominant mode of transportation. This has led to a significant market for lubricants used in these vehicles. Japanese consumers are known for their meticulous vehicle maintenance practices, including regular oil changes, which support a consistent demand for lubricants. These factors are anticipated to boost the Asia-Pacific automotive lubricants industry during the forecast period.

Key players operating in the global automotive lubricants market include FUCHS, Indian Oil Corporation Limited, PetroChina Company Limited, Chevron Corporation, Exxon Mobil Corporation, TotalEnergies, BP p.l.c., Valvoline Inc., Royal Dutch Shell PLC.

Key Findings: 

• On the basis of base oil, the mineral oil lubricants segment is expected to grow at a high CAGR, in terms of revenue, during the forecast period.
• Depending on vehicle type the passenger cars segment is expected to grow dominantly, in terms of revenue, during the forecast period.
• Depending on application, the engine oil segment is expected to grow at a CAGR of 4.3%, in terms of revenue, during the forecast period.
• Region wise, Asia-Pacific garnered a share of around 40% in 2022 in terms of revenue.